Budget Allocation Formula

Keeping the mission "to make Christlike disciples in the nations" in the forefront and looking to the future, the Board of General Superintendents (BGS) voted in its meetings the week of December 1, 2008, to recommend a new budget allocation formula for the U.S.A. Church of the Nazarene.

The 10 percent formula, which would take effect with 2010 district assemblies, if approved, is based on current-year income and no deductions. The formula includes the following:

Proposed U.S.A. Budget Formula

World Evangelism Fund (WEF)    5.5%
Pensions & Benefits Fund            2.0%
Education                                         2.5%
                                                          _____
                            Total                     10.0%

District budgets in the United States would be in addition to these categories and percentages.

The Board's recommendation is based on the work of the Budget Allocation Committee chaired by Dr. Bob Brower, president of Point Loma Nazarene University, San Diego, California, USA, and in consultation with the committee. 

Commenting on behalf of the Board, Chairman Jesse C. Middendorf stated:

"Nazarenes throughout our history have been extraordinarily generous in their financial support of the mission of the church. As we face rapidly-changing economic conditions, the generosity of our people continues.

"We are committed to the mission, even in the face of difficult days in the world's economy. Our financial commitment reaches not only to world evangelism but also to those who participate in the Pensions & Benefits Fund (P&B), and to the essential ministries of our colleges, universities, and seminaries."

Dr. Bob Brower said: "The Budget Allocation Committee began this study with the goal of developing a simple, fair, and equitable system to finance the global ministries of the Church. I am grateful for all of the input that many groups and individuals across the Church provided to guide our work and to shape the final recommendation of the Board of the General Superintendents."

The BGS recommendation for World Evangelism Fund (WEF), P & B Fund, and Education now goes to the U.S.A. National Board for a decision during its annual meeting in February 2009. 

The current formula, which has been the subject of much discussion and review for some time, is based on complex calculations determined by the previous year's expenditures in the local church. The new formula recommendations would be determined by a simple and straightforward percentage of current income. 

"Simplification of the budget system has been a driving force for change among pastors and district superintendents in the various studies that have been conducted over the years," observed Dr. Middendorf.

The Board also voted to recommend a 5.5% budget allocation for WEF to the six World Mission regions and Canada. The proposal will be presented to the General Board, which is also meeting in February 2009. The objective of this proposal is to create global participation in support of the World Evangelism Fund.

"While we are aware that the proposed formula will actually produce a smaller amount for the World Evangelism Fund than the current formula, the objective has also been to lessen the impact on local churches and to invite the global church to adopt the same 5.5% recommended for the United States and Canadian churches," said the BGS chairman.

The Formula for Canadian districts is determined by the Canadian National Board, usually based on the formula established in the U.S.A.
A presentation of this recommendation, along with time for discussion of the proposed change, is planned for the U.S.A./Canada Leaders' Conference in San Francisco, California, U.S.A., on February 7-10, 2009. 

As a result of the international economic crisis and in light of our commitment to keep our primary focus on the mission of the church, the Global Ministry Center and regional offices are currently going through a budget review. This review is directed by the BGS to find ways of reducing expenses by at least 10 percent.


General Board Structure

Additionally, the Board voted to recommend proposed changes in the structure of the General Board.  These changes, if adopted, would be effective with the newly-elected General Board at its first meeting in February 2010. 

The current structure is composed of committees in the following areas:

• Finance Committee
• Sunday School and Discipleship Ministries International and NYI Committee
• USA/Canada Mission/Evangelism Committee
• World Mission Committee
• The International Board of Education Committee also reports to the General Board.

The proposed structure would focus the General Board on global policy and accountability supportive of the church's mission in the following areas:

• Global Mission Committee

This committee would represent the interests of the current World Mission and U.S.A./Canada Mission Committees. Evangelism and church planting would be primary concerns of this committee.

• Global Ministries and Services Committee

This committee would give oversight to the three auxiliaries of SDMI, NYI and NMI, as well as NCM and World Mission Literature. It would give attention to local church resources from General Board entities; Holiness Today, NCN News and other communication interests; and other functions as may be deemed necessary for oversight.

• Global Education and Clergy Development Committee

This committee would give oversight to the global educational enterprise, IBOE, clergy preparation, clergy development, and other such interests related to education and ministry.

• Global Administration and Finance Committee

The General Secretary and General Treasurer and their departments would work with this committee in establishing effective policies and procedures.

While policy belongs to the General Board, the management of the Global Ministry Center resides with the Board of General Superintendents.

"Our Board studied the referral from the 2005 General Assembly (GA-310) to merge the World Mission and USA/Canada Departments. We believe the creation of a new, single Global Mission Committee is a better solution to relationships and structure inside the Global Ministry Center than simply merging two departments," Dr. Middendorf noted. 

"The Global Mission Committee is a unified effort to reach those who do not know Jesus as Savior and Lord and to help them become Christlike disciples," he added.

Comments on the proposed changes are welcomed by the Board of General Superintendents at bgs@nazarene.org.

--Board of General Superintendents