UMC suspends funding for NCC

Christian Century, Oct 27, 1999

The United Methodist Church, the largest member denomination of the National Council of Churches, has suspended its basic financial support of the ecumenical agency because of concern over the NCC's debt and its fiscal practices. The decision, by the denomination's Commission on Christian Unity and Interreligious Concerns, came after five hours of closed discussion during the commission's October 7-10 meeting in Daytona Beach, Florida.

"We're hopeful and expectant that this suspension will be very brief," said William Boyd Grove, ecumenical officer for the United Methodist Council of Bishops. The United Methodist Church, with some 8.2 million members, is one of the largest contributors to the NCC. In 1999 the NCC was expected to receive $070,000 from the UMC. So far, the council has been given $327,081.

It was distressful "to even think of suspending funding," said Patricia M. Toschak, vice-president of the commission and chairwoman of its task force relating to the NCC. "But with the information presented, we had to exercise our fiduciary responsibility on behalf of the United Methodist Church and in faithfulness to those who give the dollars in our local churches."

Joan Brown Campbell, general secretary of the NCC, said the council was aware of the UMC action and had already taken steps to meet the concerns expressed by the commission. The NCC's executive committee adopted a financial recovery plan during an October 4-5 meeting to deal with a $4 million deficit. An October 13 statement from the office of the general secretary said that the council was "distressed but not surprised" by the UMC's action. The statement also acknowledged that "in recent decades the council's finances have been a growing concern."

According to Bruce Bobbins, the commission's top executive, the commission questions "whether the NCC is viable fiscally into the future, even with the plans put in place by the executive board." Among the commission's concerns are the size of the NCC's debt, the lack of fund balances to cover that debt, the absence of a budget based on actual income from member communions, the lack of clarity on future liabilities and the lack of data with which to address these issues.

In taking its action, the commission specified that the NCC's plan for fiscal recovery should include:

* Quantification of existing and future benefit costs of the NCC's health insurance program for retirees.

* A budget and related spending plan for the year 2000 that generates a 10 percent surplus income over projected expenses in specific areas.

* A process for any necessary staff reductions.

* Quantification of all prior and proposed transition costs.

* A resolution of issues related to past actions regarding any failures to comply with NCC financial policies and procedures.

* Receipt and review of the 1998 external audit.

* A full report on liabilities facing the council.

Robbins said the Methodists have expressed their concerns to NCC officials for over a year, but "they have not been able to provide the answers needed by the United Methodist leadership." Robbins and other commission staff members met with Campbell and other top NCC executives October 12. Both parties described the meeting as "constructive." The NCC will celebrate its 50th anniversary next month in Cleveland.