Proposal for a new approach to MMF MMF Consultations January, 2018 Proposal for a new approach to MMF

The Church of today paying for the Church of today. The funding of the church was historically based on income from its land and landowners. There is a shift change, in that the dioceses need to become more self sufficient. Across the country we see a fall in congregation numbers.

Using historic assets Our aim is to use income from historic assets to fund historic pension deficits and to invest in the future. Falmouth. Church Commissioners investing in the future. Inter generational argument. Property upgrades, using historic assets.

The theology behind the proposal Abundance Worship Witness Hope One body

Though we are many we are one body, as we share in one bread.

Where does our income come from? In every £10 we receive; £6.03 comes from Mission and Ministry Fund £2.78 Investment income & Fees £1.19 Church Commissioners

Where does the budget go? Of every £10 we spend, this is where it goes:

The options considered Income-based IMD Offer Cost Simplicity

Principle 1 Given the issues with the other drivers, the new approach should be based on authorised ministry costs as a starting point.

Principle 2 MMF will initially be determined at deanery level, and deaneries will work towards covering their costs.

Principle 3 The Episcopal College will work jointly with the deaneries to develop sustainable deanery plans.

Principle 4 All costs used will be averages, calculated across the diocese as a whole, and then applied locally. We will take no account of local peculiarities or variances. Similarly, we take no account of periods of transition, provided the deanery plan shows that the post is intended to be filled.

Principle 5 Authorised ministry costs will be determined on a fixed date each year, and then included in the budget and MMF call for the following year.

Principle 6 All deaneries will have a role to play in determining MMF. There will no longer be a choice of approach. Deaneries will be accountable, and must allocate MMF fully between parishes. This is the main proposed change Why are we proposing this? We need to support those parishes that are truly most in need That knowledge can only really be assessed locally, rather than by Church House However …

Principle 7 Church House will provide support both in terms of resources and tools to understand and implement the new allocation method. Assistance with facilitating agreement is important, and will be provided.

Principle 8 Transparency is vital, and deaneries will be provided with full information about costs, allocations of resources, and parish MMF call and payment records. Deaneries will also be provided with summary information from parishes’ Returns of Parish Finance.

Principle 9 There should be transitional provisions to prevent a deanery’s overall MMF call increasing or decreasing by more than a fixed percentage. N.B. Transitional provisions operate at deanery level only, unless the deanery chooses to establish a similar approach.

Principle 10 Where a deanery reduces its costs, the full amount of that reduction will go into reducing the period until the MMF call equates to authorised ministry costs.

Principle 11 Authorised ministry costs will be calculated at benefice level by Church House. Parishes within a benefice must decide how to split those costs between them. They too must allocate 100% of the costs. There are further support mechanisms in place, so this need not be the final MMF call.

Principle 12 Deaneries will be allocated their share of “other support costs”, which will cover all non-ministry costs, other than those already specifically covered through designated or restricted funds. These costs will be allocated to deaneries based on the number of parishes in the deanery, as a percentage of the total number of parishes in the diocese.

Principle 13 Deaneries will also allocate the “deanery allowance” to parishes (being their share of other income), with a view to providing most support to those that need it most.

Consultation Process and what next? Please contact Church House to book meetings for your individual deaneries and invite PCC treasurers to these meetings. Rural Deans meet on 7 March, 2018. Telephone 01872 274351.

Timetable Date Activity 9 & 11 Jan 2018 Meetings with Rural Deans, Lay Chairs, Deanery Treasurers and other key people 7 Mar 2018 Rural Deans’ meeting to discuss feedback from January meeting Jan – Mar 2018 Feedback from Deaneries on proposed way forward 5 May 2018 Presentation to Diocesan Synod on proposed new approach May – Jul 2018 PCC Officers’ Training Days 19 & 23 May. Explanatory sessions with Deaneries and PCCs

Timetable Date Activity 16 & 27 Jun 2018 PCC Officers’ Training days 29 Sep 2018 Diocesan Synod: approval of 2019 budget, incorporating the new approach 1 Jan 2019 Implementation of new approach to MMF

Any questions?