General Board gives a positive financial report for 2004.

The past year was a very positive one for the Core Ministries Fund of the General Board, reported treasurer Judy Keyser. The fund provides for most ministries of the board and depends heavily on congregational and individual giving. "This type of outcome certainly relieves a bit of pressure and gives us some reprieve," said Keyser.

A welcome turnaround was an increase in congregational giving over budget and over 2003. Congregational giving had shown a downward trend in recent years. In 2004, gifts from congregations to the fund increased to $3,324,300, and gifts from individuals rose slightly to $654,200. "The General Board appreciates this strong support and trust in its ministries," Keyser said. "The board is also grateful for those individuals who provide generously through their estates. For the first time in several years, bequest income met and exceeded the budgeted amount." Investment returns were also remarkably higher than expected, she said.

"These factors, plus careful management of expenses by staff, resulted in income over expense totaling $414,200. This enabled the board to strengthen the financial foundation for ongoing ministries and to expand selected one-time ministries for 2005, resulting in a final net income of $192,200."

Because of the positive year-end report, the board did not need to use $215,000 set aside to cover projected shortfalls in 2004. The money had been redirected from funds the board designated in past years for other projects.

"The economic realities of the last several years prompted the board to take steps to provide better long-term stability in the Core Ministries Fund," Keyser said. All estate gifts will now go directly into the board's Bequest Quasi-endowment, and income budgeted from bequests will be a percentage of a five-year average of the Bequest Quasi-endowment, she said. "This will even out income from year to year without depleting the Bequest Quasi-endowment. Because investment income has also been volatile over the last several years, similar actions were taken with the Endowment Fund and the Gahagen Fund. During the transition year of 2005, a higher percentage of the Bequest Quasi-endowment will be used in order to have fewer budget reductions."

The board also operates several self-funding ministries that receive income through the sale of goods and services. While "Messenger" magazine finished the year with income over expense of $2,800, the other three self-funding units experienced losses: $47,200 for Brethren Press, $67,500 for the New Windsor (Md.) Conference Center, and $68,900 for Service Ministries. Lower net assets in some self-funding ministries is a longterm concern, Keyser said. "Each is developing plans to work at sustaining income," she said.

The board manages three special-purpose funds made possible by gifts from donors. Emergency Disaster Fund grants totaled $474,200 in 2004, Global Food Crisis Fund grants totaled $326,000, and the Emerging Global Mission Fund spent $121,400. Complete audited financial information on these funds will be available in June when the General Board audit report is published.

Despite positive results for 2004 and actions to stabilize income, expenses continue to outpace anticipated income, Keyser said. General Board budgets for 2005 were reduced by $248,210.

Source: 2/16/2005 Newsline
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