Alliance Financial Realities

From the Office of the President of the Christian and Missionary Alliance

June 27, 2008

Dear Friends,

In recent weeks you may have heard me communicate several "chilling realities" facing the Alliance. One of these "realities" is our financial challenge. We are confronted—like so many other groups—with an ailing economy. In my interactions with leaders of other denominations, it is evident that we are not alone in this challenge. Additionally, the devaluation of the dollar has had a devastating effect on the cost of doing missions. You've also heard that our legacy giving has been far under expectations this past year. Because of that, we have changed the way we budget so that we will not be held hostage by this uncertain source of income.

At the end of May, revenues were at only 81.2 percent of budget, which has resulted in a shortfall of nearly $700,000 from what is necessary. Although the response to the Great Commission Sunday offering has been good, it was far short of the amount necessary to offset the deficit. Regrettably, we do not anticipate that the trend will change in the near future.

We have sought God's guidance and wisdom in making decisions necessary to guide our denomination through these troubled times. While we remain hopeful of a financial turnaround, the realities of what we currently are facing have forced the Board of Directors to closely examine the situation. As a result, the Board, at its meeting on June 26, 2008, took the following actions to control expenses:

1. All salary and cost-of-living increases for National Office employees and district superintendents scheduled for July 1, 2008, will be deferred until our financial position improves.
2. Our budget for fiscal year 2009 included a 3 percent allowance increase for missionaries on home assignment. Regrettably, this increase also must be deferred.
3. Unless our financial position takes a dramatic upward turn in the next two months, we will be forced to implement a 10 percent salary and allowance reduction for all personnel paid out of the Great Commission Fund. This will happen September 1, 2008.
4. Only mission-critical travel will be allowed.

You also should know that other cuts already have been made or are in the process of being made. More than 30 National Office and missionary positions have been cut or will not be filled—20 in International Ministries, 6 in Church Ministries, and 4.5 in support areas. These are primarily the result of retirements, attrition, and combining positions. Additionally, Church Ministries has cut more than $900,000 from its budget. International Ministries reduced its budget by nearly $1.1 million, cutting overseas field operating budgets by 30–40 percent. Another $477,000 was cut from ministry support offices.

While the weight of this financial burden threatens to hold us back, I am confident of God's mighty power as our limitless Provider. This has been repeatedly demonstrated in our history. I recently read a portion of the C&MA Annual Report from 1933, where H. M. Shuman reflects back on his first eight years as the C&MA's fourth president:

From the human standpoint, the outlook for the future is not encouraging. Threatening clouds are hanging low over the horizon today . . . The foundations of society are being shaken . . . We must remember that the early Christian church worked in the midst of world conditions equally distressing, though different . . . Their inspiration and encouragement came not from their surroundings, but from the presence of the living One.

Our situation today seems strikingly similar. Yet, look what God has done in our midst since these words were penned: He has grown us to an international body of more than 20,000 churches in 81 nations, with an inclusive membership of nearly 5 million believers!

We are at a critical time in The Alliance, and our dependence upon God and His direction is as essential as ever. In our country and around the world, the opportunity for reaching people for Christ remains wide open. The Alliance is blessed with skilled and dedicated servants (both official workers and laypeople) who stand poised to reach the last unevangelized corners of our neighborhoods and the nations.

Because of the situation we now find ourselves in, I respectfully ask for the following help:

1. Join me in regular prayer and fasting for the next two months. My specific requests are for God's mighty supply, wisdom for National Office administration in making the needed financial adjustments and for the all the people impacted by the current financial situation.
2. Join me in telling our Alliance friends of this situation and assuring them that administration is diligently working to match expenses to revenues. By positive communication, you will help me in being "part of the solution."
3. Join me in assuring our Alliance people that we are repositioning ourselves to prepare the ground for improved health and fruitful ministry in the United States and the world.

Thank you for your faithful service, and for enduring the hardships we face together as servants of our Master. "May the Lord direct your hearts into God's love and Christ's perseverance" (2 Thessalonians 3:5).

Living the Call Together,

Gary M. Benedict
President