36 Reasons to say NO - Part Three - Finance

 Since the new Bishop of Truro, the Rt Rev David Williams, published proposals for pastoral reorganisation in Kerrier deanery, west Cornwall, last month we have received many questions from people who are concerned about the plan and would like to know how to object.  This pastoral reorganisation, with its proposal for 23 churches under one rural dean, has attracted negative attention both locally and nationally.

Here are three dozen reasons why large groupings of parishes are unnecessary and unwelcome...  These come under four headings. To read the first (Legal) click here and the second (Evidence) click here. The third heading is Finance.  A paper by Admiral Sir James Burnell-Nugent 

Summary:  Challenge how the financial management of your diocese compares with other dioceses across the country.  Is the funding organised to generate the maximum amount to pay clergy stipends?  Are the overheads in your diocese as slim as they could be?

How does the financial management of your diocese compare with others?  Comparative analysis has been done initially by STP and followed up by the national Church in the Diocesan Finances Review 2024 – achieving very similar results.  Figures from diocesan accounts are available from every diocese here.

17. Look up what percentage of your diocese’s expenditure is on support, training and admin.  See if the percentage is growing.  Also look up the percentage of diocesan expenditure that is on clergy stipends, including pensions – and whether that is declining.  Are further clergy cuts planned?  What has been the reduction of clergy vsoffice staff over the last 5 years?  The rate of decline of clergy if support costs are growing, needs vigorous challenge by PCCs.
18. Look up the gap between total parish share and expenditure on clergy and stipends.  It is possibly quite small.  This gap will be eased by the receipt of Low Income Communities Funding.  Glebe rent (historic parish money) will produce further income for clergy stipends.  So what maybe shown as a gap in funding is quite possibly sufficient to pay for current levels of clergy.  What is probably not affordable is the current level of diocesan staff.
19. The formation of Minster Communities, or other similar schemes, is probably being helped by a grant from the national Church.  Why is the diocese not asking for money for more clergy – rather than for help with funding to cut clergy?  A Diocesan Investment Programme bid to the national Church to grow clergy should be being prepared for submission.  Your Diocese should be bidding for financial support for more clergy across the diocese – to ‘make better provision for the cure of souls’ through ‘a Christian presence in every community.’  The Church’s grant giving body the SMMIB has made it clear that grants are available to support the development and revitalisation of existing Church ministry as well as for new approaches to mission.
20. Look up in your diocesan accounts or the STP website how many stipendiary clergy your diocese has and how many full time equivalent diocesan staff.  Work out the ratio.  The average across all dioceses is 1:3 – that is one bureaucrat for every three stipendiary priests.  If your diocese was a ‘tin rattling’ charity delivering ‘social services’, very few would donate (= parish share) if 1/3 of the employees were in head office.  This ratio in your diocese needs vigorous challenge. 
21. Look up nearby dioceses of a similar scale and see what they spend on ‘ministry support’ compared to your diocese.  Why isn’t your diocese learning from others – or better still, sharing ‘back office’ functions? 
22. Look up how much your diocese has in freehold land and buildings, and in other ‘investments’.  What steps are being taken to get a higher return on these investments?  The Diocesan Finances Review 2024 revealed that only 3 dioceses have been moving low yield glebe assets into higher yielding assets – is your diocese now embarking on this?  Diocesan Synod members need to check.
23. Has your diocese recently received any grants from the Archbishops’ Council?  Has any of this gone on parish ministry?  It is difficult to tell!  Most dioceses do not itemise the associated expenditure in their annual accounts.  It is normal accounting practice to show in ‘expenditure’ where the money has gone from a grant – try asking the Auditors why they are not demanding this.  And ask your diocese how much grant money they are spending on genuine parish ministry (as you understand the term).
24. Many of the ‘investments’ held by your diocese will be in the Diocesan Stipends Fund (DSF)  – which is a restricted fund for clergy and defined associated costs as per the Diocesan Stipends Funds Measure 1953 Section 4.   For many dioceses this amounts to tens of millions.  Look up the size of the size of your Diocesan Stipends Fund and see what return the diocese your diocese is getting.  Challenge whether they could do better by moving some of the assets in this fund to give higher rates of interest.  A few dioceses have been doing this for several years.  
25. In your DSF there may be some ‘Unapplied Total Return’.  This is capital gain over and above the rate of inflation and is legally available to fund clergy.  Judicious use of this sum could significantly increase the funding for stipends.  Ask your diocese what is their position on this?  Why are they cutting clergy if there is money available from the Diocesan Stipends Fund?
26. Check whether your diocese has any loss-making ventures – such as a conference centre, or accommodation for visitors, or a bookshop.  There is no rational justification for continuing with operational losses at the same time as cutting clergy.

Part One Legal  

Part Two Evidence

Part Three Finance

Part Four Pastoral