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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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.”
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