Wednesday, July 4, 2012

Why the budget matters, part 1

The national church (we're not supposed to call it that, but the alternative is to use insider terms like DFMS or 815, which is contrary to what I'm trying to accomplish here) derives its income from two sources: a draw from its endowment, and an ask from each diocese. The current ask is 19% of operating income. In unkind moments, some people might refer to the ask as a tax.

There are moves afoot to reduce the ask to 15%, though it is far too early to say how successful they will be. Read more about that here.

I want to focus for a moment on why you should care about a 4% tax cut. Like non-profits of all stripes, the budget of the Diocese of Indianapolis is under pressure. A draft 2013 budget was recently released, and in order to balance it, the current proposal countenances cutting support for the diocese's community ministries, things like a shelter for homeless families with children, an an AIDS service center, and other services, by approximately 2/3, or $100,000. I happen to think we're misplacing priorities here, but that's a discussion for another time.

For the Diocese of Indianapolis, the difference between a 19% ask and a 15% ask is approximately $150,000. Changing the ask wouldn't solve all of our diocese's financial issues by a long shot (Indianapolis is one of the most solvent dioceses, by the way), but it would make it easier for us to continue to provide support for homeless children and people living with AIDS. These are some of the most valuable things we as a church do. A reduced ask helps us focus on local ministry.

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