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Welcome to Diocesan Synod

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Welcome to Diocesan Synod Welcome to Diocesan Synod Christ’s presence in every community Growing • Outward Facing • Learning • Healthy PRESIDENTIAL ADDRESS Christ’s presence in every community Growing • Outward Facing • Learning • Healthy BUDGET 2017 AND FORECASTS 2018 & 2019 Christ’s presence in every community Growing • Outward Facing • Learning • Healthy Common Fund receipts 2012 Actual £4,466,469 2013 Actual £4,451,277 -0.3% 2014 Actual £4,489,298 +0.9% 2015 Actual £4,559,791 +1.6% 2016 Budget (94%) £4,861,477 +6.6% EVERY £47,600 not collected = one less post Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2016 3-year plan 2016 3-year plan • 2015 budget 2015 2016 2017 2018 Budget Budget Forecast Forecast - £216k deficit 50 Breakeven • 2016 forecast 2015 -50 Actual? - £19k deficit • 2017 forecast -150 £ Thousands £ - breakeven -250 Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 Budget HEADLINES • 2015 Common Fund – less than expected (and 2016 showing a similar pattern) • Reduction of two posts • Continuation of £70k funding for DBE • Reduction of £179k in National Church Funding • New Common Fund formula – increase of 2% • Income from land and buildings improvement • Stipends and salaries – provisional 2% increase • Set a breakeven budget Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 Budget 2017 National Church Funding • No more Mission Development Funding • New funding stream to dioceses - Lowest Income Communities Funding (using IMD) • Loss of income - equivalent to 1 post per year over 10 years, if we stand still • Opportunity to bid for strategic funding - proactive investment in growth - and new posts Christ’s presence in every community Growing • Outward Facing • Learning • Healthy BUDGET 2017 BUDGET 2017 Where the money Where the money will go... will come from... COMMON FUND 92% People Costs 55% Common Fund MINISTERS & PARISH 5% Support & SUPPORT 17% Church Funding Costs Commissioners 3% National Church 21% Investment Income CHURCH COMMISSIONERS Ministry Support 7% Other Income RETURNS ON INVESTMENTS SUPPORT, FUNDING & ADMIN OTHER INCOME NATIONALCHURCH 2017 Budget Increasing income? • Common Fund proposed increase of 2% (to reflect increase in stipend) • Improved income from investments • Other sources of income – rental income on property Deficit increases slightly… Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 new 3-year plan 2017 3-year plan: • 2015 actual - £59k deficit • 2016 forecast - £80k to 100k deficit? • 2017 budget - small deficit Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 Budget UNRESTRICED FUND RESERVES 2015 2016 2017 2018 2019 Actual Forecast Budget Forecast Forecast £ 000 £ 000 £ 000 £ 000 £ 000 Reserves brought forward 3,100 3,300 3,200 3,175 3,180 Planned surplus/(deficits) 200 (100)? (25) 5 5 Reserves carried forward 3,300 3,200 3,175 3,180 3,185 AGREED RESERVES POLICY: “to cover irregular common fund receipts the Board of Finance has a minimum free reserves target equivalent to unrestricted fund expenditure over three months, £2.3million”. Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 Budget Cost of an incumbent status post 2017 2016 Budget Budget £ £ Stipend (+2% from 1st April) 26,450 26,190 National Insurance (employer's share) 2,142 2,121 Pension and death-in-service benefits 9,381 9,231 Average housing costs 7,757 8,088 Training costs 758 776 Other staffing costs 1,311 1,228 Total cost per post 47,799 47,634 Provision for an increase in stipend of 2% has been included in the 2017 budget Christ’s presence in every community Growing • Outward Facing • Learning • Healthy 2017 Budget 2017 Common Fund new formula 2017 Transitional arrangements: Parishes faced with an increase will have this phased in over 3 years. Parishes with reductions will have these phased in over 2 years Those parishes with reductions below the amount that they currently pay are requested to “freeze payments” at their current level Christ’s presence in every community Growing • Outward Facing • Learning • Healthy Motion: That this Synod approves the Budget as proposed for 2017 and authorises expenditure of a sum not exceeding £8,961,628 and Common Fund request of £5,194,944. Christ’s presence in every community Growing • Outward Facing • Learning • Healthy PARISH GIVING SCHEME Christ’s presence in every community Growing • Outward Facing • Learning • Healthy Proposal for Derby Diocese © Parish Giving Scheme 2014. Registered in England No: 8824540. Registered Charity No: 1156606 Reason for recommending the Parish Giving Scheme to Derby Diocese 1. Improve the current level of planned giving for our parishes 2. Reduce administration workload for parishes - gift aid and regular giving 3. 40 parishes not collecting Gift Aid 4. 14 parishes with no planned giving scheme 5. 62% of parishes where average giving is less than £10 per person per week Principles behind the scheme 1. Addresses static giving, option for an inflationary increase 2. Donations by monthly direct debit 3. Church needed to develop in line with Third Sector 4. Lighten the burden locally 5. We wanted a unique benefit … Giving can rise in line with inflation annually History Year Joining diocese launch date Live at end 2015 (year and month) In pre-launch phase or with launch in 2009 Gloucester (09) 2016/17 2012 Winchester (09) Conversations 2013 Chichester (02) 2014 – Joint Exeter (11) Venture (11) 2015 Guildford (03), Liverpool (03), Chelmsford (08) & Portsmouth (09) 2016 Truro (01), St Albans (02), Birmingham (05), Leicester (05) & London (05) Rapid growth • 846 parishes registered with PGS over 17,045 active donors • £800,000 raised during 2011(including £150k Gift Aid) • £10 million during 2015 (including £1.9m Gift Aid) Impact of the inflationary uplift 2016 year to date: • 59% of monthly givers inflate their gifts • In addition15% (opting in) have increased further, either by super inflation (6%) or as a result of a parish request (9%) • Reductions: 0.5% donors have reduced their contribution (not clear if this is as a result of uplift request) • Cancellation 0.5% – of which 9% as a result of death. Diocesan comparison Diocese Total no: No: % of Number % donors (against 2014 Churches Registered Churches of donors national statistics PGS enrolled on total planned givers) Winchester 359 141 39% 3163 20% Gloucester 385 147 38% 2792 26% Portsmouth 173 58 34% 1063 14% Chichester 488 147 30% 3375 15% Liverpool 245 59 24% 1385 10% Exeter 611 132 22% 1415 10% Guildford 216 45 21% 1113 7% Truro 307 32 10% 266 5% Chelmsford 594 28 5% 222 1% Value added • Centrally run scheme reduces administration costs • The quick return of Gift Aid • Centralised resource purchasing keeps the cost low of high quality resources through bulk purchasing • Only one database to maintain bank charges the same regardless of volume or amount • Access to Stewardship expertise through member dioceses and beyond • Releasing local volunteers & succession planning Winchester example – provider comparison Winchester Diocese 2015 donations: £3,174,838 forwarded in total to PCC accounts £100,000 £90,000 £80,000 £70,000 £60,000 £50,000 £40,000 £30,000 £20,000 Administration charge per annumpercharge Administration £10,000 £0 CAF (2%) Stewardship (3%) PGS New donor sign up charge £1,062.00 Donation management costs £63,496.00 £95,245.14 £15,000.00 Donation management providers Board of Trustees Chair: John Preston – National Stewardship Officer Trustees: Victoria James (Stewardship Advisor) Portsmouth, Benjamin Preece Smith (Diocesan Secretary) Gloucester, Gordon Randall (Stewardship Advisor) Winchester, John Sherlock (Strategy & Resources Adviser Chichester) and Neil Williams (Finance Director) Exeter. PGS Team Helen Taylor, Head of Operations leads a team of three (2.8 FTE) Costs for the DBF 1. £20k one-off subscription ( refundable) 2. Estimated £12-£15k running costs per annum depending on level of uptake. Benefits for Parishes in Derby Diocese 1. Improve the current level of planned giving for our parishes 2. Reduce administration workload for parishes - gift aid and regular giving 3. Quicker receipt of Gift Aid for parishes 4. Increase our parishes regular giving Motion That this Synod agrees that the Diocesan Board of Finance should apply to become a member of the Parish Giving Scheme and offer the scheme as the recommended Diocesan scheme for giving to parishes COMMON FUND NEW FORMULA Christ’s presence in every community Growing • Outward Facing • Learning • Healthy Common Fund proposed new formula Feb-Mar 15 Common Fund Consultations May 15 Common Fund Review Group Summer 15 Further work undertaken in Summer 2015 Nov 15 Proposals put to meeting of Rural Deans & Lay Chairs Early 16 Consideration of Bishop’s Council May-Jul 16 Deanery Chapters Jun-Jul 16 Open Deanery Meetings Sep 16 Bishop’s Council approval Sep-Oct 16 Open Deanery Meetings for sharing figures Christ’s presence in every community Growing • Outward Facing • Learning • Healthy Common Fund proposed new formula Common Fund lowest amounts Common Fund highest amounts £ per person per week £ per person per week Derby St Peter £5.46 Aston on Trent £11.71 Derby St Bartholomew £5.85 Beeley £11.63 Walbrook Epiphany £6.37 Edensor £11.63 Derby St Mark £6.91 Baslow £11.63 Upper Langwith £7.75 Wingerworth £11.62 Chesterfield St Augustine £7.83 Duffield £11.61 Christ’s presence in every community Growing • Outward Facing
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