How is our Fair Share Apportionment calculated?

First, Let’s Review…In the Northern Illinois Conference there are Three Apportioned Funds. Every church is asked to contribute to each fund and the amount each church is asked to contribute is based on a formula.

Support for Ordained

Leadership

Based on clergy related expenses, including salary, benefits, housing allowances etc.

Provides support to clergy, thru District offices and District Superintendents,

moving costs, equitable

compensation, and scholarships to attend

seminary.

Mission & Evangelism

Based on expenses for other staff members, deacons, programs,

administration, and all other operational costs.

Supports New Church development,

Programming, vital mission and ministries at

all levels of the church.

Strengthening the Connection

Based on the total operation budget of

the local church (minus capital and debt expenditures).

Strengthens the connection at all levels

of the Church thru General and Annual Conference sessions,

and NIC, NJC, UMC administrative costs.

The Calculation: A five step process

Step One: Annual Statistical Report

Step Two: Five year look

Step Three: Apportioned Fund Calculation

Three A: Support for Ordained Leadership

Three B: Mission & Evangelism

Three C: Reconnecting the Connection

Step Four: “According to Means” Functions

Step Five: Additional Factors & Calculations

Step One: The Annual Statistical Report

Every year, each local church compiles their annual statistical report by answering questions about their local church expenditures.

Step Two: the five year look

The calculation looks at more than one year’s worth of data to provide some stability and predictability to the Apportionment amount.

The current year and four previous years’ worth of statistical report data are used. The high and low numbers are discarded, and the three remaining years’ numbers are averaged.

Step Three A:Support for Ordained Leadership

Statistical Report Questions:

Clergy Related Expenses51-52. Pension for clergy programs

53 a. Pastor's base Compensation

54. Associates Base Compensation

55 a-e. Housing allowances and utilities

56. Reimbursements

57. Other Cash allowances

For parsonage appointments, add 25%

The Calculation Rate

x 16%

Step Three B:Mission & Evangelism

58-9. Diaconal/Deacon Ministry

60. Other Staff Compensation & Benefits

61. Program Expenses

62 a-f. Other Current Operating

The Calculation Rate

x 14%

Statistical Report Questions:

Program & Operational Expenses

Step Three C:Strengthening the Connection

Statistical Report Questions:

Total Expenditures65. Grand Total Paid

(minus) Apportionments paid

(minus) 63. Principal & Interest Expenses

(minus) 64. Capital expenditures

The Calculation Rate

x 1 %

Step Four: “According to Means” Functions

Pastoral Residual

Calculated by finding the difference between the church’s clergy-related expenditures and the average expenditures for like-sized churches.

Affects Support for Ordained Leadership Apportionment

The Calculation

Residual cubed,

x .0000000001

Step Four: “According to Means” Functions

Churches that have higher clergy-related expenses than the average spent at churches of the same size are asked to give more for this apportioned fund.

Likewise, churches that have lower clergy-related expenses than average are given a credit for part of this apportioned fund.

Pastoral Residual

Step Four: “According to Means” Functions

Budget Size

An additional calculation based on the overall budget size

Total church expenditures minus benevolent giving

The Calculation

Total squared,

times .00000005

Additional Factors & Calculations

The Apportionment may not increase or decrease by more than 9% from one year to the next.

The Apportionment must be divisible by 12, so that monthly payments are a round number.

Here’s an example.

Statistical Report AnswersAve. Clergy Costs 50,000Ave. Operational Costs 50,000Ave. Total Expenditures 100,000Capital Spending 11,000Benevolent Giving 24,000

Here’s an example.

Fund 100: Support for Ordained LeadershipAve. Clergy Costs 50,000Rate of Apportionment 16%Sub-total 8,000Additional Calculation

Average AttendancePastoral Residual: above (below) similar sized churchesChange to apportionment

7010,000

+100

Net Clergy Apportionment $8,100

Here’s an example.

Fund 200: Mission & EvangelismAve. Church Operation Costs 50,000Rate of Apportionment 14%

Net Mission & Evangelism Apportionment $7,000

Here’s an example.Fund 300: Connectional Apportionment

Ave. Budget Grand Total 100,000Rate of Apportionment 1%Sub-total 1,000

Additional Calculation (Budget Size) +500

Net Connectional Apportionment $1,500

Here’s an example.

Fund 100: Support for Ordained LeadershipAve. Clergy Costs 50,000Rate of Apportionment 16%Sub-total 8,000Additional Calculation

Average AttendancePastoral Residual: above (below) similar sized churchesChange to apportionment

7010,000

+100

Net Clergy Apportionment $8,100

Fund 200: Mission & Evangelism Apportionment

Ave. Church Operation Costs 50,000Rate of Apportionment 14%

Net Mission & Evangelism Apportionment $7,000

Fund 300: Connectional ApportionmentAve. Budget Grand Total 100,000Rate of Apportionment 1%Sub-total 1,000

Additional Calculation (Budget Size) +500

Net Connectional Apportionment $1,500

Grand Total Apportionment $16,600

33%

33% 11%

7%

16%

Clergy Related CostsOperational ExpensesApportionment GivingCapital SpendingBenevolent Giving

Questions?

Contact:

Merrie BuntApportionments Administrator,Northern Illinois Conference

mbunt@umcnic.org