the united church of canada l’Égliseuniedu canada · 2019 assessment increase greater than 10%...

Remit Implementation and the New Assessment Remit Implementation and the New Assessment Remit Implementation and the New Assessment Remit Implementation and the New Assessment ProcessProcessProcessProcess

The United Church of Canada

L’Église Unie du CanadaErik Mathiesen

November 27, 2018

United in Learning webinar

A New CreedA New CreedA New CreedA New Creed

Finance, United Church of Canada3

We are not alone,

we live in God’s world.

We believe in God

who has created and is creating

who has come in Jesus

the word made flesh

to reconcile and make

new

who works in us and others

by the spirit.

We trust in God.

We are called to be the Church:

to celebrate God’s presence

to live with respect in Creation,

to love and serve others,

to seek justice and resist evil,

to proclaim Jesus, crucified and risen,

our judge and our hope.

In life, in death, in life beyond death,

God is with us.

We are not alone.

Thanks be to God.

Financing beyond the congregation Financing beyond the congregation Financing beyond the congregation Financing beyond the congregation In 2019 pastoral charges will be funding over 80% of the broader work of the church

Finance, United Church of Canada9

...

Work of the broader

church

Assessments from

Congregations

Mission & Service

Other:

Investment income

Donations

Other

EHM ~ The United Church of Canada 4

Recap of Design Principles Recap of Design Principles Recap of Design Principles Recap of Design Principles

• more consistent and transparent around what funds what.

• Revenue is the fairest measure of ability to pay.

• Sensitive to smaller/rural congregations most dependent on donations (vs rental income, investments etc)

• Externally verifiable.

• The 3 year "freeze“ on increases is intended to allow all to live into the new model and work out challenges.

• Changing over though can have different impacts and we need to live into this model.


Living into the new model Living into the new model Living into the new model Living into the new model

• annual statistics reporting is more important than ever

• Correct e-mail contact information is more important than ever

• Mission & Service giving is just as important as ever

• Ongoing refinement of both our statistics gathering and calculation of “assessable revenue”


Living into the new model Living into the new model Living into the new model Living into the new model

• Assessable revenue won’t include:

• Revenue designated for outwards purposes

• Asset sale proceeds

• Bequests

• Capital campaigns

• Insurance payouts (including and RCP reimbursement)

• Unrealized gains on investments

• Fundraising event revenue needs to reported NET

• Rental income should be reported NET where there are clearly identifiable costs (rental agents, parking contracts etc)


New Funding model New Funding model New Funding model New Funding model ---- TransitionsTransitionsTransitionsTransitions

• carry over of any unpaid amounts

• Provision for future year assessment if closing

• Not just a fee for services, but a contribution to “being church” and our bottom up decision making process

• Still need strategies for membership growth and/or increasing relevance to an increasing secular society


plementing the new Funding Model

• Increased cost for ¾

• Immediate reduction for ¼

• Attempt to buffer

increases with cap

• Varying circumstances

and history across country

• Deliver essential services

• maximize mission spend

• Invest in good transition

Congregation ability to payEssential funding

EHM ~ The United Church of Canada9

Assessment Transition Balancing Act

• Region portion of

assessment “guaranteed” for

2019, 2020.

• Will need to cut governance

costs further

• Balance timing against need

for change management

• Assessment decreases

offered right away

• Assessment increases

phased in

• Likely limits on future

increases

ExpenseRevenue

EHM ~ The United Church of Canada10

Mission & Service Narrative Budget view


Communications and Billing Process Communications and Billing Process Communications and Billing Process Communications and Billing Process

• Oct 25 – “advance notice” email to support local budgeting

• Clarifications and feedback

• Requests to update basis for calculation

• COMING SOON…. Billing election form

• Choose amount from the 3 options

• Select billing mode

• Will again be e-broadcast and available online.

• Snail mail for those who don’t yet have e-mail


Communications and Billing Process Communications and Billing Process Communications and Billing Process Communications and Billing Process ----2 2 2 2

• COMING SOON…. Billing election form

• Choose amount from the 3 options

• OPTION 1 – future assessment based on reported revenue with a one year lag

• OPTION 2 – lock in amount

• OPTION 3 – select an amount in between

• Select billing mode

• Annual payment

• Quarterly payment

• Pre-authorized monthly debit

• Snail mail for those who don’t yet have e-mail


On Line Reporting

https://webapps.united-church.ca/


Assessment at Target already

Typically, elect Option 1. Assessment will adjust with your revenues in future years.

Exception: if 2017 revenue unusually low, Option 2

might make sense but rare.


2019 Assessment Increase greater than 10%

Typically, elect Option 2. Assessment will apply for transitional period 2019, 2020, 2021.

Exceptions: Could choose Option 1 to complete

transition or Option 3 as bridging.


2019 Assessment DECREASE

Typically, elect Option 1. Assessment will move with reported revenues in future years.

Exception: Very rare, but do have some choosing

another option if base year revenue was especially

low.


Common questions or concernsCommon questions or concernsCommon questions or concernsCommon questions or concerns

• Did not receive the email

• Why show Option 2 if Option 1 is lower?

• Something we reported in the statistics is wrong

• What will happen in 2022 when I see a huge increase?

• Pastoral charge has re-organized – what is my assessment?

• Why wouldn’t we reduce M&S to fund the increase?

• Will the 4.5% rate increase / decrease?

• Will there be a supplemental regional assessment?


More informationMore informationMore informationMore information

• Most current info:

• https://www.united-church.ca/leadership/church-administration/new-assessment-process

• Infopak

• Online updates

• Please e-mail any questions to [email protected].


the united church of canada l’Égliseuniedu canada · 2019 assessment increase greater than 10%...

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