Derby Diocesan Synod Share Review 4 th February 2012

Preamble The Christian Church depends entirely on the commitment and generosity of its members to sustain its Mission and Ministry. No system is perfect, but ours has stood the test of time and our Diocese may be rightly pleased that our finances have remained fundamentally sound in difficult times. The purpose of the Share System is to provide a fair and impartial method to assess the potential contribution of a Parish or MMA.

Share Calculation Introduction In November 2009 the Diocesan Synod considered the work of the previous share review committee and decided not to change the system but to update it with more recent figures Then allowances are made of £2,000 per church building, and a 'Rural Travel Allowance' if appropriate. As before, the heart of the calculation is the 'Count' made up of USAA, Electoral Roll and Parish Population - multiplied by 'Income Rating' taken from the Census statistics.

Share Calculation Intro, Cont. The 'Deprivation Factor' has been subsumed into the Income Rating because there is now less need to subsidise community buildings in deprived areas No recommendation has been made about 'Ceilings and Floors' because the group saw these as integral to Renewing Ministry, the revision of which was not in our brief. The 'Investment Income' has been removed from the calculation because much of it is likely to be dedicated for large projects, and therefore is reserved income; so it would be wrong to regard it as general income.

A sample approximate calculation An Urban Church MMA USAA:163(*2/3) + Roll:139(*1/3) + Population:19 = Count: 174 The diocese asks about 65% of potential = £47,219 per year Deduct £2,000 for one church = £72, * £8.25 * 52 weeks = £74,646 per year Potential to the Church is 5% of income = £8.25 per person per week Average Income in the Parish from Census Statistics, less a 'Living Allowance' (£70 per week) gives 'Income Rating' = £165 per week

Another example A Rural Church USAA: 17(*2/3) + Roll: 25(*1/3) + Population: 7 = Count: 27 65% of Potential = £8,570 per year Deduct £2,000 for Church, £750 Rural Travel =£13, * £11.35 * 52 weeks = £15,935 per year Potential to the Church 5% of income - £11.35 per person per week Average Income in the Parish from Census Statistics, less a 'Living Allowance' (£70 per week) gives 'Income Rating' = £227 per week

What this means 'in the pew' Giving needs to be realistic, proportionate to a person's income When 65% of potential has been paid as share, mostly to pay the clergy, 35% is left for the rest of the Mission and Ministry of the local Church An average of 5%, after tax and a personal allowance, is achievable - many people tithe, ie pay 10%

Comments The allowances of £2,000 per church and for Rural Travel have a proportionally larger effect in smaller Parishes. For example, one Parish has a potential before allowances of £3936, but after subtracting £2750 for church and rural travel and then asking for 65%, the share works out at £771.

Calculating the Income Rating The 2001 Census Data was mapped for each Parish. Government Final Income data enables us to assign the average income for each of the social groups, including benefits and tax effects. From this we have the proportions of households in social groups AB, C1, C2, D & E, together with the total population of the Parish including children.

Comparing Income Rating with the old Wealth Factor The old Wealth Factor was based on a 10% sample of the Parish population. For small communities this was potentially inaccurate. It is noticeable that some Parishes which had a very different Wealth Factor from their neighbours have Income Ratings much more similar. The Income Rating is taken from the Census which includes all households.

Final Comment We would expect to phase in the new Share system over three years.