Facing the financial challenges together

Firstly, I want to take this opportunity to say a huge ‘thank you’ for all that you do, particularly what you have achieved in these extraordinary times. We know it hasn’t been easy, but as difficult as  these last 18 months have been it is important to also recognise how people have risen to the challenge to support our church and wider communities.

As a diocese we are facing some major financial hurdles and I wanted to write not only to reassure you that we are taking that challenge very seriously, but also to take this opportunity to remind you of the support that is available to you and your churches.

At our recent gathering, Diocesan Synod was given an update of our financial situation and of our plans to address the challenges we face. As we face the future without certainty of seeing the end to the current crisis, and recognising the concerns across the diocese, we felt it was important to also share this with you directly.

In Bath and Wells we have been immensely blessed by the way in which parishes have met the request for their share to the Common Fund which has resulted in an almost 99% return.  Since last year this is no longer the case and we recognise the shortfall in our income cannot be sought solely from PCCs. We are therefore committed to looking at other ways to address this.

We are in the final stages of reshaping our support services team, with a view to reducing costs and ensuring that we are able to offer local, impactful and sustainable support to you as those living and telling the story of Jesus within your communities. Synod is also considering a five-year plan which aims to get us to a break-even position by 2026. Any cost reductions are being made with due consideration to the impact this has on our ability to grow the Kingdom.

At the end of the month, you will be getting details of next year’s parish share contributions. As ever, we are deeply grateful for the work you do, in making this contribution which supports mission and ministry across the diocese. Please remember that should you have any concerns about your own financial position and your contribution you can contact the finance team and the Giving and Funding Adviser for support.

You, or others in your parish, may have further questions and we have sought to answer those in the accompanying Question and Answer paper, but if you have any further questions, please send them to parishshare@bathwells.anglican.org

In closing my address to our Diocesan Synod recently, I reminded them that whilst we do need to be financially prudent in current times we should also remember that our God is one of great abundance. His grace is sufficient for all our needs and ours must be a response to His love which calls from us both a commitment to a growth in personal generosity and a determination to address the fragility in the fabric of our life together.

With my prayers and thankfulness for you!
+Ruth

Questions and answers

What has been the effect of the pandemic of diocesan income?+

Historically, 75% of our income as a diocese comes from our parishes and our previous collection rate for parish share was 97%. In 2020, as parishes found their traditional sources of income impacted by the pandemic and lockdown in particular, the collection rate fell to 87% and it is likely to be at a similar or slightly lower level in 2021. We are projecting a partial recovery in 2022 to 92% of the amount requested. We are then projecting similar levels of collection rate across the next four years.

The chart below shows that for 2021 the Common Fund receipts with parochial fee income and rental income does not match the direct parish related expenditure. This means that in the past two years, and projected for next year and beyond, the income from Parish Share is being subsidised by other diocesan income and currently significant levels of reserves.