THE DIOCESE OF MONMOUTH
THE PARISH SHARE WHAT IT IS AND WHAT IT DOES
THE DIOCESE OF MONMOUTH THE PARISH SHARE
Introduction I hope you will find this small booklet a useful reference. If you would like more detailed information on Diocesan finances and the Parish Share, or if you have any suggestions to make about the content of future booklets, then please contact the Diocesan Office (contact details are at the end of the booklet, and on the Diocesan website www.monmouthdiocese.org.uk). Suggestions and comments are always welcomed. If you would like further copies of this booklet then please contact the Diocesan Office. The booklet is also available on the Diocesan website.
Stella Schultz Diocesan Secretary
CHRISTIAN GIVING Different dioceses use different terms to describe the Parish Share – some call it the Family Purse, the Diocesan Share or the Quota – but it amounts to the same thing. It is the money needed from the parishes to pay for ministry and mission across the diocese. Christian giving, whether individual or by a parish, requires a Christian attitude of generosity because we believe in a generous God. Our giving is in response to his graciousness and all that he has given to us. St Paul wrote that ‘God loves a cheerful giver’ because a cheerful giver is happy that he or she has the money to give to the work of the gospel. Such people see it as a privilege and a joy to be able to give in thanksgiving and response for all that God has given to us. In changing the culture of our churches we need to move from the ‘Scrooge’ mentality that views the Parish Share as some kind of taxation which they resent. The Parish Share should be seen as one expression of a Eucharistic community that does not just celebrate the Eucharist (Thanksgiving) but lives it as well - and shows it in action. I am grateful to all parishes that contribute so faithfully to the Parish Share and I pray that ‘cheerful giving’ will become a characteristic of the diocese as we seek to further God’s kingdom in our midst. + Dominic Monmouth
WHAT IS THE PARISH SHARE? The Parish Share is a contribution from each Parish towards the cost of ministry throughout the Diocese. It is based on the principle that the cost of ministry is shared across the diocesan family as a whole. At present, the Parish Share comprises just under 70% of the income of the Diocesan Board of Finance (DBF). A further 27% of the DBF’s income comes from a grant (‘The Block Grant’) from the Representative Body of the Church in Wales (the RB). The remaining income comes from the Diocese’s investment income and, where necessary, its reserves.
Income 2013 Parish Share 1%
RB Grant
2%
27% 70%
Fig 1
WHAT THE PARISH SHARE IS SPENT ON For every £1 of diocesan expenditure: •
84 pence is spent on clergy and ministry costs including stipends, clergy pensions, parsonages, clergy Council Tax payments, insurance and training;
•
7 pence is spent on supporting parishes: this includes parish development, local outreach and mission, youth and children’s work and stewardship;
•
5 pence is spent on Diocesan support and administration: this includes the cost of running the Diocesan Office and staff costs;
•
2 pence is spent on governance: this includes safeguarding, audit fees, the Registry and other associated legal costs;
•
2 pence is spent on Board of Finance grants: these include grants to the Bishop’s Mission & General Fund, the clergy family hardship fund, the Clergy Widows Orphans & Dependants fund and the Cathedral.
Dioc.Office Expenditure 2013 support Grants 2% 5%
Governance 2%
Parish support 7% Clergy & Ministry 84%
Fig. 2
We are budgeting for fewer stipendiary clergy. However, in response to the needs of the Diocese, the DBF is also budgeting for an increase in training provision for both clergy and lay people over the next five years. This will be particularly important as Ministry Areas, currently being discussed in deaneries, are gradually introduced across the Diocese. The DBF is also continuing to provide financial support for the ministry to children and young people; the future of our Diocese.
WHAT THE PARISH SHARE IS NOT SPENT ON: The Parish Share does not cover the costs of: •
the Archbishop, the Bishops and the Bishops’ Secretaries. These are met from the funds of the Representative Body of the Church in Wales (the RB)
•
the Representative Body of the Church in Wales
•
the pensions of clergy retiring prior to 2008; clergy pension contributions prior to 2008. These are met by the Representative Body of the Church in Wales
•
any other diocese in the Church in Wales or beyond
•
the Monmouth Diocesan Trust
•
all the many volunteers, including some of our diocesan officers, who give so freely of their time serving on diocesan committees, or providing support services across the Diocese
•
mission giving
HOW THE PARISH SHARE IS CALCULATED No Parish Share system is ever going to be perceived as being wholly fair by everyone. The current system is based on two factors: average Sunday attendance and Parish Share bands. • Average Sunday attendance (aSa) A Parish’s contribution to the Parish Share is primarily based on the average Sunday attendance (aSa) figure provided by the Parish in its Annual Return. To calculate the Parish Share, we take an average of the latest 3 years’ aSa figures. This helps to smooth out any sudden fluctuations in aSa, which might result in wide variations in a parish’s Parish Share from one year to the next. • Parish Share bands Parishes are placed in one of 4 Parish Share bands, A – D. These bands are a recognition that parishes vary in their circumstances. Some cover wealthier areas than others, whilst others may have to maintain large or very special churches. We take into account 3 factors when calculating a Parish’s band:
•
parish income (excluding certain categories e.g. mission giving, grants) relative to average Sunday attendance (aSa);
•
the Welsh Index of Multiple Deprivation;
•
church insurance category relative to the aSa figure. This is designed to make some allowance for those smaller parishes maintaining large or costly church buildings.
In 2013 the Parish Share contribution between each band will differ by less than 85p per person per week.
WHY THE PARISH SHARE HAS BEEN INCREASING Two main factors affect the level of Parish Share: •
Sunday attendance figures
At present, Sunday attendance figures across the Diocese are falling. This means that there are fewer people contributing to the Parish Share so the amount each Parish is asked to contribute increases. •
Costs of ministry
The costs of ministry, on which we spend 84% of our total income, have been rising in recent years primarily because of increases in:
•
clergy stipends: stipends are set by the RB and confirmed by the Governing Body of the Church in Wales (the GB) following consultations with all the dioceses. In recent years, stipends have been rising at less than the rate of inflation;
•
contributions towards clergy pensions: these are paid by the Diocese. The rate of contribution is reviewed every three years by independent actuaries to ensure that there are sufficient funds to pay clergy pensions. Historically, these contribution rates have risen at each review;
•
the cost of maintaining clergy houses: the level of funds set aside each year to maintain clergy houses is set in accordance with an independent index of building costs. Historically, this index has risen each year.
•
the cost of clergy Council Tax.
Despite these increases, in 2011 Diocesan expenditure fell by 3%.
CONTROLLING OUR COSTS All diocesan budgets are subject to a full review each year. Some budgets are being cut and others are being held. You can find more information on this in the Diocesan Annual Financial Report, which is circulated widely each year. If you would like a copy then please contact the Diocesan Office (01633 267490 or
[email protected]). The Report is also available online (www.churchinwales.org.uk/monmouth). Most of our expenditure (84%) is on ministry costs. The Diocese, in common with all dioceses across Wales, is seeking to reduce the number of stipendiary clergy posts. Until very recently, stipendiary clergy numbers had been falling more slowly than originally envisaged, and our Diocese still has the highest ratio of clergy to parishioners in Wales. Stipendiary clergy numbers will fall over the next few years. However, it is important to remember that our clergy are one of our greatest assets, and any reduction in stipendiary numbers has to be balanced against the need to develop and encourage new clergy, whether stipendiary or non-stipendiary, for the future.
THE FUTURE The Church in Wales is living through a time of great change. We are facing a future that is uncertain, but is also filled with exciting possibilities. The Church as a whole is considering the recommendations of the recent Church in Wales Review, many of which will have an impact on the Diocese. Meanwhile, the Diocese itself is already planning for a real change in the provision of ministry over the next few years - Ministry Areas – for which it needs to train and equip its clergy. The Diocese will also be increasing resources to develop and support lay ministry; a vital element in the new Ministry Area teams. This support for lay ministry will include training for discipleship. The Diocese will continue to encourage and support work with children and young people, and outreach work. It also remains committed to providing support and advice services for parishes. The Parish Share will continue to be of vital importance in funding ministry in all its variety across the Diocese so that we might further God’s Kingdom amongst the communities we serve.
ANNEX 1 FREQUENTLY ASKED QUESTIONS •
WHY IS OUR PARISH SHARE RISING FASTER THAN THE INCREASE IN THE DIOCESAN BUDGET?
This usually happens when a parish’s rolling three years average Sunday attendance (aSa) figure rises. Equally, a parish will, very occasionally, move into a higher Band, resulting in an increased Parish Share. However, as overall aSa figures across the Diocese fall then it is possible that a parish with a stable aSa figure may face a Parish Share percentage increase slightly above the overall budget percentage increase. •
WHY ARE WE FACING AN INCREASE OF 20% IN OUR PARISH SHARE?
When the formula for calculating how the Parish Share is divided between parishes was changed in 2004, a very few parishes were found to be paying markedly less under the old system than they should have been under the new system. To help these parishes adjust, Parish Share increases were ‘capped’. The cap is set at 20%, with the Diocese paying from its reserves the difference between the two amounts. The ‘cap’ now only applies to one or two parishes.
•
WHY DO WE HAVE TO PAY OUR FULL PARISH SHARE CONTRIBUTION WHEN WE ONLY HAVE AN NSM/HOUSE FOR DUTY OR PARTTIME PRIEST?
An individual parish does not pay for its ‘own’ parish priest. In fact, very few parishes pay the full cost of having a priest, when all costs are taken into account, and there are still costs associated with House for Duty, Non-Stipendiary and part-time clergy. The Diocese also undertakes to provide ministerial cover during an interregnum in a parish. However, there is an important principle involved in every parish paying its portion of the Parish Share. It recognises that we are a diocesan family and, as such, we all contribute towards the cost of providing ministry to everyone throughout the Diocese. •
WHAT HAPPENS IF OUR PARISH CAN’T PAY ITS PARISH SHARE?
The DBF recognises that parishes are working extremely hard to try to pay their Parish Share contribution in full and on time. The overwhelming majority do so. However, some parishes do experience difficulty in paying their Parish Share. It may be a temporary matter, caused for example by a cash flow problem, or it may indicate a more serious difficulty within the Parish.
The DBF is committed to trying to assist any Parish that gets into financial difficulties. There is a range of practical advice and support available from the Diocese. You should contact the admin team at the Diocesan Office (details at the end of this booklet) so that they can discuss the matter with you, and put you in touch with the appropriate person or team. •
WE’D LIKE SOMEONE TO COME AND TALK TO US ABOUT THE PARISH SHARE/GIVING
Members of the Admin & Finance team are always happy to visit parishes to talk about the Parish Share. There is also a Diocesan Stewardship network staffed by volunteers who have had experience of stewardship in their own parishes, and can offer practical advice (contact details in Annex 3). If you are interested in having a meeting to discuss the Parish Share then please contact Stella Schultz, the Diocesan Secretary at: The Diocesan Office 64 Caerau Road NEWPORT NP20 4HJ Tel. 01633 267490
[email protected] ANNEX 2 THE DIOCESAN ADMIN & FINANCE TEAM Stella Schultz Diocesan Secretary Responsible for the central administration of the Diocese, including the Diocesan Trust Secretary to the Diocesan Board of Finance, the Diocesan Trust, the Diocesan Parsonage Board Member of the Bishop’s staff, and of numerous diocesan committees Stella can assist with queries on: • • • •
diocesan procedures and business Church in Wales’ procedures and business Parish Share allocation general enquiries
[email protected] Sharon Smith Diocesan Accountant & Parish Resources Advisor Responsible for the day to day administration of the Diocesan accounts Secretary to the Churches & Pastoral Committee Resource Development Adviser Administrator, the Young People’s Council
Sharon can assist with queries on: • • • •
Parish Share payments parish accounts project development & funding in‐house grants for mission, and for church repairs
[email protected] Bethan Davies Finance Officer (part-time) Bethan assists Sharon in the day to day administration of the diocesan accounts, and parish development work Bethan can assist with queries on: • •
Parish Share payments general parish development
[email protected] Dan Parker Administrative Assistant Dan assists with the general running of the Diocesan Office. Dan can assist with general enquiries
[email protected] ANNEX 3
FURTHER ADVICE & SUPPORT FROM THE DIOCESE •
BECOMING A GENEROUS PEOPLE
If you would like information and advice on the current initiative on Christian giving, or on stewardship, then please contact the Diocesan Stewardship Adviser: The Reverend Mark Soady
[email protected] Tel. 01873 853168 •
GIFT AID
Gift Aid is a policy that enables tax-effective giving by individuals to charities in the United Kingdom. •
GIFT DIRECT
Gift Direct enables Church in Wales members to make regular donations to the church of their choice via direct debit. The facility is administered from the Provincial Office and is a free service to churches. If you would like to know more about either Gift Aid or Gift Direct please email
[email protected] or call 02920 348 200.
Thank you The DBF would like to thank all parishes who, year after year, continue to pay their Parish Share conscientiously and on time. We are living in challenging and difficult times. The members of the DBF, as fellow parish clergy or PCC members, are very aware of the enormous efforts parishes are making to pay their share of the costs of ministry across the Diocese. They wish to thank everyone for their continuing hard work in helping to ensure the furtherance of God’s Kingdom.