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GS Misc 1292 Strategic Investment Board Annual report 2020 How, then, can they call on the one they have not believed in? And how can they believe in the one of whom they have not heard? And how can they hear without someone preaching to them? And how can anyone preach unless they are sent? As it is written: “How beautiful are the feet of those who bring good news!” Romans 10 14-15 Table of Contents Foreword 3 Sustainability Funding 4 Lowest Income Communities Funding 5 Strategic Development Funding 6 Map of Projects Supported by Strategic Development Funding 7 Progress and Outcomes from Strategic Development Funding 8 Strategic Challenges 11 Mission to Children and Young People 12 Mission in Deprived Areas 14 List of SDF Projects Awarded in 2020 16 Evaluation and Monitoring 18 Learning From SDF 19 Strategic Development Funding in 2021-2022 20 Strategic Transformation Funding 21 Financial Position 22 Diocesan Peer Review Programme 23 Conclusion 24 Annex A: Members of the Strategic Investment Board in 2020 25 Foreword This has been an extraordinary and challenging subsequently in developing the applications, has year. Extraordinary in the sense that so much has been one of the positive developments this year, changed so quickly in our lives, and the lives of our and one we propose to continue. parishes and dioceses; and challenging, not only The pandemic has accelerated many of the because of the Covid-19 virus itself – and its existing downward trends in attendance and mental, physical and emotional impact – but also finance that dioceses were already facing. Many because of the impact on worship and finances. dioceses are bringing forward their thinking and The Strategic Investment Board has been very proposals on how they can transform mission and conscious of the pressures on colleagues in ministry, turn around attendance decline, dioceses and the National Church Institutions. strengthen discipleship and community The projects that are supported by the Strategic engagement, and address long-term financial Development Funding have shown enormous sustainability. The award in December of Strategic resilience and creativity in adapting their mission to Transformation Funding to support Sheffield’s very different ways of working, alongside serving major strategic programme is a significant their communities at a time of increased need. The milestone in the life of the Church. Board is very grateful to project leaders and There have inevitably been some difficult congregation members for all the many ways in decisions. Identifying monies for the Sustainability which they have continued to further the Church’s Funding saw a 20% cut to funding for SDF and mission during 2020. Innovation Funding in 2021-2022. This meant the Prior to the pandemic, SDF projects were set Board was not able to invite forward in full some overall to exceed the growth expected of them in excellent proposals from dioceses submitted as 2020. Although it is clear that the progress of many Stage 1 applications in December. The Board also will be delayed by the successive lockdowns – and decided to postpone the introduction of Innovation the full impact has yet to be seen – the Board has Funding until later in 2021, recognising both the seen many inspiring and creative examples of limited capacity of dioceses to engage with a new outreach to support churches’ wider communities, funding stream and the fact that good practice may and a rapid move online to worship, discipleship emerge from the pandemic which needs support to support and training. However, the Board is help the Church grow back. acutely aware of the very significant challenges We have been inspired throughout the year by the that projects have faced and are continuing to enormous commitment and resilience shown by face. Staff are working closely with projects to church leaders and congregations in developing, assess the impact of the pandemic upon them and adapting and growing the Church’s mission at will carry out further analysis as the pandemic such a challenging time. continues to unfold. Covid-19 has had other major impacts on the Board’s work. Lowest Income Communities funding payments were brought forward in April to John Spence support the cashflow of recipient dioceses. The Chair of the Strategic Board moved quickly to create a new funding Investment Board stream to support diocesan sustainability and this was launched in June. The close collaboration between the staff in the NCIs and dioceses in understanding dioceses’ financial position, and 3. Strategic Investment Board Annual Report 2020 Sustainability Funding As part of a package of measures to support By the end of 2020, the Board had made dioceses and, through them, parishes, during the Sustainability Funding awards totalling £15m to 24 Covid-19 pandemic, the Archbishops’ Council dioceses. allocated up to £35m of the funding made available The funding was targeted on dioceses with less to it by the Church Commissioners to create a new investment assets and less affluent populations. In grant funding stream – Sustainability Funding – in making its decisions on funding applications, the June 2020. The Council delegated responsibility to Board took account of the steps dioceses are the Strategic Investment Board (the Board) for taking to address the impact of Covid-19 on their distributing the funding. financial position up to the end of 2021; the The Sustainability Funding aims to maintain some measures they have undertaken in recent years to short-term financial stability for dioceses as they improve their financial sustainability; and the steps implement or develop their strategies for long-term they are taking or planning to develop their longer- mission health and financial stability. It comprises term mission health and financial sustainability. two grant schemes: The impact of the pandemic on dioceses’ income, • Grant funding to help reduce a diocese’s whilst very significant, was less in 2020 than estimated deficit in 2020 and into 2021 as a originally feared. However, the pandemic is result of the impact of Covid-19 on its income continuing for far longer than many had anticipated (this is the majority of the funding). and there is real concern amongst dioceses that 2021 may be an even more difficult year financially. • Funding to offset interest payments on borrowing taken out by dioceses to help with The Board will distribute further Sustainability the cash flow implications of Covid-19. Funding if needed in the second half of 2021 when the overall impact on dioceses’ finances is clearer. 4. Strategic Investment Board Annual Report 2020 Lowest Income Communities Funding Lowest Income Communities (LInC) Funding Church, to each other) on how they use the was introduced in 2017 as part of the LInC funding. The Board is seeking to ensure Resourcing the Future reforms alongside the that all the LInC funding is clearly directed to the expansion of Strategic Development Funding poorest areas by the end of 2021. (SDF), with the aim of better supporting During 2017-19, dioceses made steady dioceses’ plans for developing mission and progress towards directing the LInC funding to growth. their most deprived communities. By the end of The funding seeks to target monies on dioceses 2019, at least 40% of the funding was directed to give them some extra capacity for the to the most deprived 10% of parishes. strategic reallocation of funds to support the The survey of the use of LInC in 2020 is Church’s mission in the poorest communities. currently underway, having been deferred to Transitional payments are also being made, slightly later than usual to help ease the tapering down over a ten-year period, to assist pressures on dioceses at the end of 2020 and dioceses who are receiving less funding than beginning of 2021. The Board will review the they did prior to the introduction of LInC. In responses in June. addition, all these dioceses were offered a one- As the Church continues to grapple with the off sum of Restructuring Funding in 2017-19. ongoing challenges caused by the pandemic, LInC funding is a small amount of funding the Council and Commissioners paid all the compared to the diocesan economy, but it can 2021 LInC Funding and Transition Funding up function as a catalyst for wider changes. In this front in January 2021 to help dioceses with their way it dovetails with the Strategic Development cashflow. Funding projects which aim to provide a more significant step-change for dioceses for mission to deprived areas (for example, the 2020 awards to Durham, Manchester and York dioceses) and Strategic Transformation Funding awards which help dioceses move to a more sustainable funding model e.g. Birmingham (supported by SDF) and Sheffield (supported by Strategic Transformation Funding). In 2020, £26.3m of LInC funding was awarded to 26 dioceses. As part of a package of measures designed to provide cash flow relief to dioceses during the pandemic, the Archbishops’ Council and Church Commissioners paid all the LInC funding and Transition Funding to dioceses in receipt of the funding in one lump sum in April. This provided a liquidity boost of approximately £25m in total. To facilitate accountability and mutual learning, In 2020 a total of £26.3 million in LInC funding was awarded to 26 dioceses (dioceses we ask dioceses to provide information annually receiving funding in 2020 are coloured blue) to the national Church (and, through the national 5. Strategic Investment Board Annual Report 2020 Strategic Development Funding The Strategic Development Funding (SDF) supports major change projects which fit with dioceses’ strategic plans and make a significant difference to their mission and financial strength. By the end of 2020, the number of major change programmes in dioceses that have been supported by SDF had increased to 77. Of these, 61 projects have been funded since January 2017 when the SDF programme was significantly expanded.
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