Chelmsford Diocese Deanery Finance Forum Chapter House Wednesday 3rd July 2019

Agenda Context Future Financial Challenges Initial response - 2020 Budget - 2020 Share Process Ideas - Roles and responsibilities - Communication and training - Ministry and other areas Discussion and feedback Next Steps

1. Context Bishop Stephen’s presidential address at March Synod: Articulated significant financial challenges Reductions in national funding: £2.1m p.a. from 2026 Growing deficit: £0.5m in 2017 and £1.1m in 2018 Problem of non share payment but a bigger problem of subsidy rather than sustainability

2. Future Financial Challenges If we do nothing in 5 years’ time… General Fund deficit likely to be over £3.0m p.a., assuming: Parish contributions rise by 0.5% p.a. We continue with increased vocations National funding continues to reduce at c£200k p.a. We continue with the current trajectory of stipendiary posts and miss the 2025 target by 35 FTE

Case study 1 MMU X: 3 stipendiary clergy, 1 HfD and 4 SSM’s Breakdown £ A Direct Ministry Costs 162,500 B Future training + Overheads 112,200 C Total Cost of Ministry 274,700 D LinC -7,500 Total 267,200 MSF offer 10,000 MMU X: 3 stipendiary clergy, 1 HfD and 4 SSM’s £55k of mutual support within MMU 702 monthly members

Case study 2 Team Ministry Y: 3 stipendiary clergy, (including a recent appointment) 149 monthly members Breakdown £ A Direct Ministry Costs 149,400 B Future training + Overheads 67,000 C Total Cost of Ministry 216,400 D LinC - 8,400 Total 208,000 MSF grant -132,900

Case study 3 Parish Z: 1 stipendiary clergy 307 monthly members MMU Z: Breakdown £ A Direct Ministry Costs 49,700 B Future training + Overheads 37,000 C Total Cost of Ministry 86,700 D LinC Total MSF offer 30,000 Parish Z: 1 stipendiary clergy 307 monthly members Breakdown £ A Direct Ministry Costs 199,700 B Future training + Overheads 101,900 C Total Cost of Ministry 301,600 D LinC -6,100 Total 295,500 MSF grant - 80,000 MMU Z: 4 stipendiary clergy 527 monthly members

3. Initial response Beginning a journey from subsidy to sustainability: Implementation of new share process is proving challenging: Circumstances are evolving Unintended consequences Interim plan approved for 2020 We need an effective plan for 2021: We are beginning an engagement process today

3. Initial response 2020 budget summary: 0.6% reduction in expenditure Stipends and salaries increase by 2% Stipendiary clergy posts to reduce by 14 to move towards 2025 sustainability target Continued investment in curates 2020 intake remains at 14 Clergy houses repairs to increase by 5% Salaried costs increase 0.9% (cost of living increase 2%) after review of diocesan office. Shortfall provision remains at £100,000 necessitating significant drawdown of reserves 0.2% reduction in parish share request

3. Initial response 2020 Share Process: MMU guided Mutual Support Fund Application Standard Form Complete for Grant, Offer or Neither Includes a ‘target’ for the figure that the MMU should be aiming for Requests a narrative of how and by when the MMU will reach this target Benefice model: 0% and 2.5% increases Calculated increases that recognises Benefices who cover there ministry costs Timeline MMUs will receive Guided Application paperwork in July Benefices will receive ‘new style’ assessments in September MSF Panel sign off applications in November

4. Ideas Draft Roles and Responsibilities Data Finance MMA Archdeacon Area Dean / D. Treasurer Benefice Leader MMU Leader Maintain database Process raw data Produce share assessments Provide review figures Analyse and report trends and exceptions Define timetable Quality check share assessments Track payments versus plan Report to Trustees Provide financial overlay Manage MSF process Support MMAs and Archdeacons Teach on stewardship Train and support Deanery treasurers Escalation point for complex issues Support Archdeacon on clergy appointments and finances Recruit and support volunteers Explain guided offers and cost of ministry figures Review and collate MSF offers/grant requests Drive process in line with agreed timeline Provide share health checks? Review guided offers and cost of ministry figures Encourage generosity and mutual support within the MMU Agree MSF offer/grant request with individual parishes Work with late/non paying parishes in MMU Archdeacon Work with MMU leaders to agree ministry numbers and MPA’s Hold MMU’s accountable for ministry, mission and giving Manage vacancy and appointment process with consideration of finances Draft Roles and Responsibilities 11

4. Ideas Communication and Training: Postcard/brochure financial summary for all parishes Cost of the diocese: graphic description of current finances, trends and year ahead Cost of a priest: ball park figure for stipendiary, HfD and SSM priests plus a brief explanation of A, B and C costs Cost of discipleship : biblical texts on giving/tithing and links to resources for good stewardship Clergy and Treasurer training programmes Biblical reflection on money and giving Preaching on giving: for new disciples, as part of regular preaching, tools and resources PCC’s and Finance: chairing meetings, treasurer job descriptions, good financial reporting, asking questions and charity law Practicalities: fees, vacancies, online reporting, grant application, funding for buildings and encouraging legacies

4. Ideas Further actions/ideas Clear target for generous giving, e.g. £60k increase per week Preaching on stewardship Contactless giving and PGS Legacies Income generation from property Change vacancy process Accelerate vocations, particularly SSMs and LMMs More turnaround posts – SDF funded Voluntary redundancies Discern potential tentmakers Work parish investments harder – CCLA offer

5. Discussion and Feedback Over to you…. Process Roles and Responsibilities Communication and Training Further Ideas

6. Next Steps Circulate feedback from today Work together on 2020 share Continue to engage on 2021 plans Key messages for parishes: Thank you for faithful payment of share, against very tough backdrop But, we will run out of money if we don’t change Need to work together on a new approach

6. Next Steps “Where parishes pay their share in full but this amount is less than the cost of ministry they are not failing. It is our system that needs to adapt to changing circumstances and we are working to produce a system that enables more parishes to contribute to full ministry costs. In the meantime, we are enormously thankful for the great majority of parishes who pay their share in full.” 2565