1. Unification Steering Team Listening & Learning Session

2. United Methodist Church Realities http://www.gbophb.org/flf2011/UMCRealitiesVideo.asp This video was shown at the Financial Leadership Forum in Fort Worth, Texas, March 2011

3. FACT Financial Advisory Consulting Team

4. Observations Reports & Recommendations

5. FACT TEAM OBSERVATIONS: SWTC Demographically Unsustainable

6. 1. SWTC faces the beginning of a death tsunami in 2018. Average age in the US is 35; average age in the UMC is 57.

8. 2. SWTC also faces a demographic tsunami. 66% of the US population is Caucasian; 92% of UMC membership is Caucasian; 77% of the population growth in SWTX geographical area comes from Hispanics Hispanics now comprise 58% of the population within the geographical boundaries 9 out of 10 new Texas residents were non- Caucasian Of the last 1 million children added to Texas – 95% were Hispanic

9. 3. Our denomination has not been effective in keeping even the small foothold that we have with in the Hispanic community.

10. 4. Any current ties between the conferences are minimal and sub-optimized; and most SWTC & RGC churches don’t collaborate even when nearly next-door neighbors.

11. 5. SWTC has less than 2 months of reserves, while 6-24 months of reserves are recommended guide- lines for not-for-profit corporations.

12. FACT TEAM OBSERVATION RGC RGC Operationally Unsustainable

13. 1. Financial Data indicates RGC has little more than a quadrennium to radically decrease connectional ministries and/or find new ministry partners. RGC reserves cover approximately 18 months of program and administrative expenses. RGC reserves cover approximately 18 months of program and administrative expenses. Apportionments cover 44% of RGC expenses and 97% in the SWTC. Apportionments cover 44% of RGC expenses and 97% in the SWTC. RGC utilizes investment income to cover over 50% of total expenses; SWTC less than 1%. RGC utilizes investment income to cover over 50% of total expenses; SWTC less than 1%. RGC relies heavily on general Church funds, likely to be reduced in 2012. RGC relies heavily on general Church funds, likely to be reduced in 2012.

14. (cont’d) Loss of general church funds requires RGC to use investment corpus for general expenses. Loss of general church funds requires RGC to use investment corpus for general expenses. 68% of RGC churches paid in full for a total receipt of 87% of the total apportionment figure. 68% of RGC churches paid in full for a total receipt of 87% of the total apportionment figure. The 2011 Annual Conference reduced its district superintendents from 3 to 2; and voted for a 20% drop in apportioned funds. The 2011 Annual Conference reduced its district superintendents from 3 to 2; and voted for a 20% drop in apportioned funds.

15. 2. The current “familia” approach in some RGC churches limits the growth in local church membership, calling for “open doors” to new and emerging generations of Hispanics.

16. 3. The current approach to member- ship in some RGC churches could be viewed as exclusive re: socio and economic factors within and across the Hispanic population.

17. FACT recommendations Focus on: Church culture and growth opportunities Conference Financial Sustainability Cross-conference initiatives with RGC Preparing for unification with RGC Implementing unification with RGC Sustainability of churches Clergy opportunities and succession planning

18. “the power of two, working as one” will create synergies for the long-term sustainability of the SAEA, and will be a model of growth and vitality for the denomination! P.13 FACT Reports

19. Adaptive Questions Technical Questions

20. Adaptive Questions Who are we? [the identity question] What has God called us to do or be? [the purpose question] Who is my neighbor? [the context question]

21. Technical Groups Communication & Connectional Ministry Communication & Connectional Ministry Pension, Health Benefits, Salaries Property Management & Insurance Clergy & Congregational Affiliation Boards of Ordained Ministry Financial Benchmarks and Policies Demographics

22. Conversation is the currency of change. It matters what we talk about. we talk about.

23. What stands out to you or catches your attention from the information you are hearing regarding What stands out to you or catches your attention from the information you are hearing regarding: The reality of the UMC? The FACT Reports? The work of the Unification Steering Team?

24. Regarding today’s conversation and its implications: What are your concerns about unification?

25. Regarding today’s conversation and its implications: In what way do you find yourself hopeful or encouraged?

26. What particular questions do you have for the Unification Steering Team as it continues in this work?

27. Conclusion & Next Steps Your comments will be brought forward to the UST for their learning and understanding as the TEAM works to discern and design a new conference that responds to the needs of our missional field in the San Antonio Episcopal Area.

28. For information/updates on the Unification Steering Team’s work visit: www.onepeopleumc.org