Finance Committee Chairperson Christina Jackson-Skelton reports to the Council 2013. © LWF/M. Haas
Work Must Be Sustained Amid Rising Costs, Says Finance Committee Chairperson Jackson-Skelton
(LWI) – The Lutheran World Federation (LWF) governing body, the Council, has been told that financial results for 2012 were positive with income exceeding expenses mainly due to increased World Service operations, while pension provisions were reduced and operating reserves increased.
“Staff and management should be commended for their careful monitoring of budgeted expenses and good budget planning – resulting in positive net results,” Finance Committee Chairperson Ms Christina Jackson-Skelton said in her report to the annual meeting, being held in Geneva, Switzerland, 13-18 June.
“Going forward, it will be important for the Council and LWF management to consider ways to sustain growth or grow the work in the midst of rising costs. Additions to the Endowment Fund and increasing membership contributions and other unrestricted revenue sources are two important considerations,” she added.
The representatives of LWF member churches heard that receipts for 2012 totaled EUR 100.8 million, compared with EUR 85 million the previous year, a gain of EUR 15.8 million or 18.6 percent, mainly attributed to World Service being able to undertake more emergency operations.
In 2012 LWF’s reserves increased from EUR 19 million to EUR 21.7 million,
The net income from LWF’s operations in 2012 was nearly EUR 2.7 million, with the Geneva Coordination showing a positive income of EUR 137,000 while work coordinated in the Department for World Service (DWS) field operations reported an income of EUR 2.5 million, mainly due to an operating surplus at the Augusta Victoria Hospital in East Jerusalem.
Jackson-Skelton, who serves as Executive Director at the Mission Advancement unit of the Evangelical Lutheran Church in America said that membership fee contributions, which “provide stability for critical work other than programs and projects,” remained stable at EUR 2.4 million.
However, she added that the undesignated contribution by LWF member churches lag behind fair membership targets. “Growth in this area would help provide support for areas that have been identified as high priority in the strategic planning process, such as theological and ecumenical work,” she noted.
LWF’s total expenditures in 2012 totaled EUR 97.8 million, compared with EUR 85 million in 2011, an increase of EUR 12.8 million or 15 percent. DWS accounted for EUR 85.7 million or 87.6 percent, the Department for Mission and Development, EUR 8.5 million or 8.7 percent, the Department for Theology and Witness EUR 1.3 million or 1.4 percent, while the General Secretariat expenditures amounted to EUR 2.3 million, 2.3 percent.
The finance committee chairperson reported that the merger of the LWF Pension Fund with the Switzerland-based Abendrot Foundation was completed.
Contributions to the LWF Endowment Fund in 2012 were CHF 134,000, which was lower than anticipated for the fund, which was established in 1999. However, Jackson-Skelton added that the investment performance of the portfolio was “extremely positive” with a net return of CHF 951,410.
Participants at the Council meeting include Council members, invited guests and LWF staff.
