The budget is $359,000 less than the 2009 budget. Dean Lundgren, vice president for finance and treasurer, said the economic downturn was a major factor in reducing the budget.
“Without question, for almost all nonprofit organizations, 2009 and 2010 budget development is taking place in the most challenging economic financial environment in our work lifetimes,” Lundgren told the delegates.
Lundgren told delegates that developing the budget meant adhering to four principles:
• It must be realistic, recognizing the current economic environment
• It must be do-able, with support from God and the churches
• It must advance mission and ministry
• Activities must be reviewed to see if they continue to serve the central mission, and eliminated if they do not so that funds can be freed for new priorities
The budget format reflects the work of all mission and ministry initiatives, including core operating budget ministries, but also affiliated ministries such as Covenant World Relief, Paul Carlson Partnership, Sustaining Pastoral Excellence, Covenant Orientation, short-term and project missionaries, and missionary in-country projects, among others.
Budget allocations include:
• World Mission – $8,712,000 (42.3 percent)
• Compassion, Mercy and Justice – $3,717,000 (18.4 percent)
• Church Growth and Evangelism – $3,876,000 (19.2 percent)
• Christian Formation – $1,119,000 (5.6 percent)
• Ordered Ministry – $1,621,000 (8 percent)
• North Park University and Theological Seminary – $1,140,000 (5.6 percent)
Because the work of the Department of Communication and general administration functions serve all of the other ministry areas, those two areas of expense are allocated to the various ministry initiatives commensurate with the contributions made in each ministry area, as well as those areas’ percentage of total expenses. Those two areas continue to manage individual departmental budgets as do the other ministry areas.
Lundgren noted that of the total budget, 59 percent was dedicated to international mission and 41 percent to domestic ministry.
Revenue to support the 2010 Mission and Ministry Budget is projected to come from the following sources, expressed in percentage terms:
• Local Church giving – 42 percent
• Directed individual and church giving – 33 percent
• Fund transfers – 7 percent
• Individuals – 6 percent
• Communication sales – 2 percent
• Other support – 10 percent
The 2010 budget assumes church giving will be equal to that of last year’s, Lundgren said, noting that giving to date in 2009 is running somewhat behind the 2008 level at the same point in time. He encouraged delegates to seek increased financial support from their respective congregations in support of shared ministries at conference and denominational levels.
