Changing demographics affecting
United Methodist church funding
By Marta W. Aldrich*
Oct. 3, 2007 | NASHVILLE, Tenn. (UMNS)
|

Economist Don House chaired
the task force assigned by
the 2004 General Conference
to study funding patterns
for all levels of church. A
UMNS photo
by Marta W. Aldrich.
|
The face
of today's United Methodist is
markedly different than it was 40
years ago — a reality that concerns
church financial leaders tracking
how changing demographics are
hitting the denomination in its
pocketbook.
In
the United States, which provides
the lion's share of denominational
resources, United Methodists are
becoming rarer in a growing
population. They are generally older
adults above age 57 who attend
larger churches. Most are white or
African American. And they are
generally wealthier than United
Methodists of previous generations.
The
implications are far-reaching and
represent a mixed bag of good news
and bad news relating to
denominational resources and reach,
according to Don House, chairman of
a task force that recently completed
its study of funding patterns within
the church.
"While the (U.S.) population is
growing, our membership is
decreasing per capita, which means
United Methodists are having a
smaller and smaller impact on
society. That wasn't supposed to
happen," said House, a research
economist in College Station, Texas.
House
presented the group's report during
the September meeting of the
governing board of the
denomination's General Council on
Finance and Administration, on which
he also serves as a member. The
board voted to send legislation
based on the report's
recommendations to General
Conference, the denomination's top
legislative assembly. Among other
things, the legislation aims to hold
leaders at all levels of the church
accountable in their responsibility
to promote, support and model
Christian giving.
Mixed bag
House
presented the bad news first.
Membership has decreased by more
than 20 percent since 1973, and
membership per capita has dropped
from 4.75 percent to 2.7 percent by
2005. The church has 8 million U.S.
members and 11.5 million members
across the globe.
During the same time, the number of
United Methodist churches has
declined by 12.4 percent. The
declines have been significant in
all five of the church's U.S.
jurisdictions.
|

Since the mid-1980s, United
Methodist churches have
received a steady 6
percent of the dollars given
to U.S.
religious organizations.
Source: GCFA
|
"There
is no jurisdiction with a winning
report card," House declared. "We
are getting rare in the population,
and it has an impact on our
funding."
He
cited numerous trends that help
explain the drops:
Ethnic background: In counties
with a high percentage of whites and
African Americans, a solid
percentage of the population attends
United Methodist churches. However,
according to House, "we don't do
well" in counties with growing or
larger percentages of Asians,
Hispanics, Pacific Islanders and
Native Americans.
Age: Based on the U.S.
population, those attending United
Methodist worship services today are
underrepresented in the under-35 age
group and overrepresented in the
over-57 age group.
Church size: The largest
churches are growing while the
smaller ones are stagnant or
declining. "The smaller you get, the
faster the decline in membership. It
wasn't that way in the '70s," he
said, noting that church growth 30
years ago was similar among all
sizes of churches.
The
good news is that, despite declining
membership and attendance, United
Methodist churches claim a
relatively constant share of the
dollar given to U.S. religious
groups. While religious
organizations in general are losing
their share of the philanthropic
dollar to educational institutions
and foundations, The United
Methodist Church has received a
steady 6 percent of the religious
dollar since the mid-1980s.
House
cited data indicating that the
average income of a United Methodist
is growing faster than in the
general population. He noted that,
beginning in the mid-1990s, as
older, lower-income members have
died, new members replacing them
have generally earned higher
incomes. "United Methodists are
higher-income earners than ever
before," he said.
The
task force report adds: "Much of the
growth in giving per member since
the mid-1990s has been caused by the
growth in membership incomes rather
than an improvement in the
percentage of income given to our
denomination."
Sagging apportionments
The
report says churchwide United
Methodist ministries are struggling
because they are receiving less
funding from local churches.
|

Board member Diane Knudson
addresses the council as
Barbara Boigegrain waits to
speak. A UMNS photo by Marta
W. Aldrich
|
Such
ministries are primarily funded
through a system of apportionments,
in which local churches make
contributions based on an approved
formula. The funds are transferred
from local churches to their annual
(regional) conferences, which then
transfer the money to the
denomination.
In
recent decades, however,
congregations have spent more on
local ministries and needs,
resulting in a decreasing share of
total funds for the denomination. In
1974, local church contributions to
the apportioned funds represented an
average of 4.5 percent of local
church expenditures, compared with
2.5 percent in 2005.
"We
have lots of money," said House. "…
Our problem may be the friction of
getting that money from the local
church. … We need more respect for
the mission and ministries of the
general church, even while we
celebrate what goes on in the local
church. We are perhaps underfunding
the connection. But at some point,
the connection will begin to be
dismantled."
While
the denomination is managing
financially for now, House and the
task force are concerned about
reaching a "tipping point."
"So
far, while membership has decreased,
our dollars have still grown. Will
we reach a point where our dollars
will decrease as well? This is the
point when we would have to begin to
disassemble our infrastructure," he
said.
House
noted that some annual conferences
already have reached that point and,
without change, others are expected
to as well in the next 10 years. "We
have seen annual conferences
merging. We have seen districts
merge. That is a footprint of the
disassembly of infrastructure," he
said.
|

The apportionment system
provides
more than three-fourths of
local church funds paying
for denominational
ministries. Source: GCFA
|
The
report cites the church's aging
clergy as another factor expected to
affect future funding patterns. The
average age of United Methodist
clergy has increased from 45.8 in
1982 to 51.4 in 2005. Annual
conferences are increasingly relying
upon second-career clergy, and only
5 percent of clergy are under age
35. The church anticipates mass
retirements in the next 10 to 15
years that will result in a
significant loss of experience,
leadership and expertise.
"If
there is to be a concerted effort to
increase membership and attendance
through new church starts, and if
these new churches are to be
primarily served by first-career
pastors, there must be a change in
the current methods of attracting
more persons to the order of elder,"
the report said.
Taking action
The
task force offered numerous
recommendations — many related to
revising the Book of Discipline
— to hold church leadership more
accountable, including bishops,
district superintendents, local
pastors and candidates for ordained
ministry. The directors of the
General Council on Finance and
Administration are including the
recommendations in their proposed
legislation to General Conference.
The
measures include a proposal to
require jurisdictional committees
that already review the work of
bishops to also evaluate their
bishops' leadership in promoting and
supporting the full payment of
apportionments. When found to be
deficient in this task, a report
would be sent to the president of
the jurisdictional college of
bishops, who would share the report
with the Council of Bishops in
executive session.
Candidates for deacon or elder would
have to include in their graduate
theological studies the theology and
discipline of financial giving, in
addition to current required areas
of study such as Old Testament, New
Testament and church history.
Other
legislation being sent to General
Conference would:
-
Increase the membership of each
local church council by one to
include an "advocate in
connectional giving" to promote
the financial support of
churchwide mission and
ministries. Training and support
for this position would be
provided through the annual
conference and denominational
agencies responsible for
stewardship and connectional
giving.
-
Require that a study precede any
proposal to change the
apportionment formula or method
by an annual conference. The
change is designed to "protect
the annual conference council on
finance and administration from
unprepared motions on the annual
conference floor …" and ensure
that such changes and their
implications are fully explored
before being approved.
-
Order a study of the ways that
the central conferences — those
in Africa, Asia and Europe — can
participate in the apportionment
system.
General Conference, which convenes
every four years, will meet April
23-May 2 in Fort Worth, Texas.
*Aldrich is news editor of United
Methodist News Service.
News media contact: Marta Aldrich,
Nashville, Tenn., (615) 742-5470 or
newsdesk@umcom.org |