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Stewardship Information
Dear member of St Peter’s,
As the leader of our church I want to take this opportunity to say how thankful we are for your financial support. Your generosity to St Peter’s over the years has enabled the church to be a bright witness in our community and provide a context for mission, discipleship, worship and hospitality.
It was not my intention to enter into discussions surrounding stewardship so early on in my ministry with you. However, several factors have led myself and the PCC to believe that it is the right time for us to create this pack to bring an important level of clarity to our financial affairs.
While I realise that discussions surrounding money in church are sometimes uncomfortable, I do believe that we must be realistic, clear and regular in our approach to this issue. The four key factors that precipitate our development of this pack are centred on the following: 1) Our change of banking providers to increase our interest yield on our deposits. 2) Our desire to reclaim tax on gifts that could benefit from the government’s rebate scheme but currently do not. 3) Our need to bring clarity and improved confidence in the handling of our financial affairs. 4) Our need to recalibrate the system for anonymity and secrecy in the handling of gifts.
Whilst the nation goes through a difficult financial period, we are also acutely aware that the church’s finances are also under pressure. To relieve some of this impending pressure I have negotiated a valuable reprieve in the level of Common Fund giving that is required of St Peter’s and along with the PCC have instigated rental increases for our hall users. However, we are also aware that we have to do everything we can to support and encourage the church membership in our own giving to God’s work here.
This pack contains important information about the church’s financial position, how we can give effectively, what our safeguards and process look like and what we are hoping to achieve in our stewardship moving forward.
It is my hope that through reading this information many concerns you may have had about giving will be assuaged, and regardless of any impact it may have upon your giving, it will increase your sense of comfort and assurance in the financial processes here at St Peter’s.
Yours in Christ
Rev’d Will Van Der Hart
Contents
1) Introduction to the church finances
2) Biblical principals for Giving to the Church
3) Treasurer’s Report
4) Statement of Financial relationship with diocese
5) Statement of financial relationship with Hall Users
6) Principles of Church generosity and missionary giving
7) St Peter’s Hardship Fund
8) Processes for anonymity and secrecy in giving
9) Explanation of taxation system for church gifts
10) How to give to the church
11) How to give anonymously
12) Legacies and bequests
1) Introduction to the Church Finances
It is important to know that the church finances are carefully managed. Our PCC hold the executive power to authorize payments for the church. Supporting the PCC in this role is our treasurer Mr Gordon Cochrane. He is in turn supported by a wider group of individuals including John Cuthbert and John Price. As well as having an excellent treasurer and PCC we also have a Finance Team made up of a mix of PCC and Non-PCC members. They include a solicitor and financial advisor and work closely with the treasurer and vicar to plan a strong course for the churches financial future.
A strong system of accountability and scrutiny is in place, both internally and through our position in the wider dioceses. We have multiple signatories for large cheques and all financial approvals are made by the PCC. Accounts are available to every member of St Peter’s church and you are always welcomed to ask questions and make observations at any time.
2) Biblical Principles for Giving
Principal 1: We are stewards (not owners) of all God has given to us.
q “You are not your own you were bought at a price” (1 Corinthians 6:19-20). As the Children of God we can only attribute what we have to God. “The silver is mine and the gold is mine”' declares the LORD Almighty.”(Haggai 2:8)
Principal 2: We give as part of our worship to God
q “Honour the LORD with your wealth, with the first fruits of all your crops then your barns will be filled to overflowing, and your vats will brim over with new wine.”(Prov 3:9-10) We offer God and His church the best that we have in response to all he has given us.
Principal 3: We give freely and with a joyful spirit
q “Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”(2 Cor 9:7) “Out of the most severe trial, their overflowing joy and their extreme poverty welled up in rich generosity. For I testify that they gave as much as they were able, and even beyond their ability. Entirely on their own.” (2 Cor 8:2-3)
Principal 4: We give generously and mindfully, not obligated by the tithe, but seeking to bless God with the best of what we have
q “Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” (2 Cor 9:6) “First ten percent to Levites (priests).” (Leviticus 27:30) “Now about the collection for God's people. On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up, so that when I come no collections will have to be made. (2 Cor 16:1-2)
3) Treasurer’s Report
My name is Gordon Cochrane. I have been a member of the congregation here at St Peter’s for over 15 years. I became treasurer in June this year and have been working with Will and John Cuthbert (who was previously treasurer) to organise our accounts and plan our budget for the coming year.
We currently have two main sources of income; that is the giving from you, the congregation, and the rental income from the other users of the building including the medical practice.
The best way for you to give to the church is by a regular standing order direct to our bank account. This allows us to plan our finances better and if you are a tax payer it is easier for us to reclaim tax on your gifts. If you do not yet ‘gift aid’ your donations, please can I urge you to do so – this means we can claim an extra £25 from the government for every £100 you give us. This is at no extra cost to you whatsoever. On page 10-12 you will find more on what gift aid is and a clear explanation of how to quickly and easily gift aid your donations.
As a church we have one outstanding debt – the loan from the diocese that helped to fund the last building project. This is currently around £23,000 and we hope to be able to pay this off over the next two years using money raised at events like the murder mystery evenings, the Ceilidh at the end of January and some of the rental income from the medical practice.
Our finances are spent as prudently as possible. The main areas of spending are as follows:
· The Common Fund: This is paid to the Church of England to support its work and pay the clergy. (Will’s salary comes from the Church of England not from us.)
· Salaries: For our staff (administrators, caretaker, cleaners.)
· Utilities: heating, lighting, water rates, refuse collection. As you know these bills have gone up rapidly in the last year. We have been told that our water rates may be calculated differently in the future which could mean they would double or even treble.
· Missionary Fund: we give at least 10% of our income to mission, in the local community, the UK and abroad.
· Maintenance: There is always work that needs to be done around the church. In the next few months we hope to be able to renovate the toilets and transform the coffee area. We also have a quinquenial report this year (this is a 5 yearly assessment of the building) which will make recommendations of work that needs to be carried out.
In summary we are in a stable position but we would like to complete some large projects that will put some strain on our finances. We also face uncertainty with utility bills. Please pray about your giving and make sure that you do gift aid your gifts – it does make an enormous difference.
4) Statement of our financial relationship with the diocese
It is often presumed that the Church of England has a very large amount of money that it pays to its’ churches. Sadly while this might have once been true, it is not so now. Instead, each church that is a member of the Anglican Communion is required to pay the Church of England what is known as the Common Fund Payment.
This payment can be simply split into two clear sections. The first section is known as Clergy Costs and the Second in Diocesan Costs. These standard costs amount to roughly £62,000 (2008). About £42,000 make up the clergy costs while the remainder goes to the diocese to pay for the bishops, administrators, missionaries etc that the wider diocese employ.
The clergy costs are basically a calculation of what it costs the diocese to employ a vicar. This includes the clergy salary, pension, housing and other diocesan costs relating to clergy etc.
St Peter’s West Harrow is in a slightly unique position because as part of the Roxeth Team we share one set of Diocesan costs between us. However, in our current financial situation we have reduced our payments this year to £40,000 in an effort to get into a stronger financial position for next year. Christ Church have paid the outstanding balance for the team.
5) Statement of financial relationship to Hall users
The ultimate mission of St Peter’s Church is to make Jesus known throughout Harrow. Jesus has called us to preach the good news of the Kingdom of God. Just as Paul taught us tent making as a means of working toward that goal, St Peter’s venue rental is for the purpose of raising the necessary finances to support the missionary aims of the church.
We are blessed to have the opportunity to do some tent making on our own premises, while also enjoying the excellent provision that some groups offer. We also have the opportunity to engage many of the hall users in the events of our Church and hope to see a fruitful harvest from these relationships.
The mission of St Peter’s has sometimes been confused with the provision of space for user groups. While we do support many of the values of different groups using the building, their presence here does not embody our mission. There is also no doubt that while we have received a reasonable income from hall users in the past, recently this has been offset by the high utilities bills they incur and the wear and tear that is evident in our fabric.
Following a process of internal and professional rental review, it became apparent that some of our hall user groups were paying as little as £5 per hour; far below the costs incurred upon the church itself. This situation has now been rectified and the discounting scheme that led to these anomalies has been removed. However, because of the graded way in which we are helping groups to adjust to these new rents the benefits of these changes will not be fully felt until 2010.
We believe it is important to view the venue rental income as an asset that could give St Peter’s a greater budget for outreach and mission. We would also like to see the venue business cover its own costs of utilities and fabric maintenance and we are attempting to set it on the road towards such a goal. However, we believe it is also paramount that as a church we do not depend upon the venue rents as a supplement to our own giving and personal generosity.
6) Principles of Church generosity and missionary giving
As a corporate body, St Peter’s is seeking to reflect the love and generosity of Jesus. Therefore we look towards giving at least 10% of our own income away each year to projects that share our vision for gospel centred mission. We also look towards supporting those who are in need both at home and abroad.
The internal process for allocation of finances is now held completely by the PCC. It is the PCC’s intention that the church will feel deeply involved and fully informed in the joys of our charitable giving. Budgets and accounts will be published within the treasurer’s report annually.
It might seem strange that the church would give away so much of what has been given to it. However, this is our response to the biblical instruction to be generous givers. When an individual makes a gift, it expresses the generosity of that individual, but when the church makes a gift it expresses the generosity of all it’s members and says something powerful about the love of God. Listed below are our ten principles of missionary giving.
Principles of St Peter’s Church Missionary Giving
1. The whole church are participants in the opportunity to be generous givers to God’s work both inside and outside of the direct ministry expressions of St Peter’s church.
2. St Peter’s giving is not measured in relationship to a budgeted tithe but in direct response to the prompting of the Holy Spirit. It will always be our intention to give more generously and freely than a tithe would allow.
3. The giving of finance to mission is just one expression of our passion to see God’s kingdom grow; the greatest expression of this passion is our own engagement with mission.
4. The giving of finance to mission does not remove the need to make other equally valuable investments of time, prayer, encouragement etc.
5. Regular contact will be made between our mission partners and our mission liaison team and the information and developments will be fed back to the church.
6. Planned seasons of investment to certain organisations can be beneficial, however, St Peter’s missionary giving will not be made on the basis of traditions, but upon what God is opening up through His Spirit
7. Throughout the year there may be open opportunities for the church to corporately choose a sum that they wish us to give in response to a particular mission need.
8. It is our intention to develop meaningful relationships with our Mission Partners. This will have implications upon the number of partners we may have in a particular year.
9. It is our intention that the church will deliver its gifts within the context of a Sunday service, where the church can also pray for the organisation or individual involved.
10. Should the PCC consider the level of missionary giving at the close of the year was lower than intended, we shall seek to give a second wave of generous gifts as the Holy Spirit directs us.
7) St Peter’s Hardship Allocation
St Peter’s Church has a small allocation of finances within its general fund with which to offer support and welfare to individuals or families who are in particular financial difficulty. In this way we are seeking to respond to the challenge of Matthew 25:35.
The allocation of this support is at the discretion of the church wardens and vicar. Because of the delicate nature of this fund, named accounts are not published. However, a regulated procedure and stringent perimeters are in place to ensure that these funds are used appropriately. If you would like to know more about these procedures please speak to the vicar or wardens.
St Peter’s Church is also a financial supporter and stakeholder in the new CAP Debt Clinic which will be started by the Roxeth Team in the spring. This is another way in which we are seeking to support people who find themselves in financial difficulty.
8) Process for anonymity and secrecy in giving
The Bible is very clear about the value of personal anonymity when giving finances. Matthew 6:3 says, “But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.”
We all value confidentiality and anonymity when it comes to our financial affairs. It has a particular meaning in church, where as the family of God we seek to be free from the divisions that finances make within wider society. As the leader of the church I would like to assure you that I have no knowledge and have no wish to know who gives finances to the church. Our new system will also ensure this remains the established protocol. It is important that you know this, so that if you are unable to give for a season, you do not read any of my comments in the light of a presumed knowledge I have about your finances. Equally it is also very important to me that I do not treat people who may be giving large sums of money to the church in a different way to other members. With this in mind, please be aware that if I do not thank you personally for your generosity, it is not because I would not wish to, but because I have no knowledge of your gift.
Within the church, the only person who will know who has given an amount by standing order, direct debit or enveloped cheque will be the Treasurer. He will keep full confidence of all names relating to gifts and will never pass on names to either myself, the PCC, wardens or staff.
With the new anonymous giving system in place, were I to be reviewing our accounts with the treasurer I would merely view meaningless codes. Equally our new banking system will be calibrated so that only the treasurer will know which entries belong to which individual. From now on only the treasurer will be opening cheque envelopes that are given on a Sunday and he will bank these independently.
Later in this pack you will find information on how to give anonymously. If you would like to ask more questions about the system for anonymity please do not hesitate to speak to myself or the treasurer.
9) An explanation of the taxation system for churches
PCCs are legal charities and, as such, are exempt from income tax. The tax which has been paid on the giving of church members can be recovered from the Inland Revenue. For the church this means a huge amount. (For example, if you were to buy the church two coffees, the government would match your gift by buying us one coffee!) Sadly if you are a tax payer and are putting a ten pound note into the collection, depending on which rate of tax you pay, you are throwing between £2.80 and £4.00 down the drain.
The basic wisdom here is, don’t let your hard earned gift be poured down the drain. Planned regular giving and using Gift Aid on your gifts has huge benefits for the church, both in terms of our budgeting, but more importantly in terms of how much we have in the budget.
So what is gift aid?
If you are a UK taxpayer, you can gift aid your donations St Peter’s Church. We will receive an additional 28p for every £1 you give. (St Peter’s can claim Gift Aid tax relief of 25p on every pound you give and the Government currently pay an additional supplement of 3p)
What does the gift aid declaration commit me to?
Absolutely nothing! It just ensures that if you choose to give to St Peter’s Church, we can claim an extra 25 per cent back from the Inland Revenue. It costs you nothing.
What is a gift aid declaration?
It is simply a statement by an individual taxpayer that they want St Peter’s Church to get back from the Inland Revenue the tax paid on their donation. This is a great way to add 25 per cent to the value of your gift to St Peter’s Church without it costing you a penny more!
Gift aid - do I qualify?
For every £1 you donate to St Peter’s Church in a financial year, you must have paid 28p in income or capital gains tax in the same financial year to qualify for gift aid.
How do I know if I pay UK income or capital gains tax?
You pay these taxes if:
· Income tax is taken from your wages or salary before you receive your pay
· You pay tax after filling in a self-assessment form each year
· You have any taxable savings (in a Building Society, for instance), or a pension plan, or investment income
· You have paid any capital gains tax, on the sale of a property or some shares, for instance
If any of these applies to you, please complete and return your declaration so St Peter’s can reclaim the tax on your donations.
More details on how gift aid works are below:
Donors who are liable to tax at the basic rate:
To work out if you’ve paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. (£100/4 = £25). (Note that this calculation is based on the basic rate tax of 20 per cent) If you don’t think you’ve paid enough tax this year, you may be able to backdate your donation.
Donors who are liable to tax at the higher rate:
If you pay higher rate tax, you can claim the difference between the higher rate of tax (40 per cent) and the basic rate of tax (20 per cent) on the total (gross) value of your donation to the charity or CASC. For example, if you donate £100, the total value of your donation to the charity is £125 - so you can claim back 20 per cent of this (£25) for yourself. You can make this claim on your Self Assessment tax return if you were sent one.
10) How to give to the church
Hopefully the preceding information has given you a sense of confidence about the ways in which your finances are handled here at St Peter’s and you may now wish to consider how to give effectively. Below is a simple explanation of the different ways to give:
1. By Standing Order or Direct Debit
Whether or not you pay tax, setting up a direct debit or standing order directly from your bank account to the church account is the most effective way of giving.
To do this simply fill in one of the yellow standing order mandate forms in this pack, and return it directly to the treasurer.
Standing orders overcome the greatest issue with church finances, not willingness, but just convenience. If you set up a standing order the church will receive your gift even if you have forgotten your wallet of are away for a weekend. It means we can plan our annual budget much more effectively and recover any tax automatically. Often the regularity of a smaller standing order is worth more to the church than a larger one off cash gift. If you can give in this way it highly appreciated.
2. Cash or Cheques in a Gift Aid envelope
If you are a tax payer, and would prefer to give cash or cheques, please fill in the simple gift aid declaration alongside your cash or cheque and place them both in the gift aid envelope. During Sunday services, envelopes and slips can be found on the treasurer’s table. You can place your envelope in the collection bowl as normal, or in the treasurer’s box.
Because you have gift aided your gift, the church will be able to gain an extra 25 per cent more money from the government, at no extra cost to you. If you have any questions about using gift aid, please ask Gordon Cochrane or Helen Bailey who will be happy to help you. More information on gift aid is on page 10 above.
If you plan to regularly give by cash or cheque, you need to continue to use a gift aid envelope every time. But you only need fill in the gift aid declaration once.
3. Cash or cheques made payable to ‘St Peter’s Church’
If you are not a tax payer and don’t have a regular income, placing cash or a cheque in the collection on a Sunday is a perfectly good way of giving.
If you have any further questions about how to give to the church, please ask Gordon Cochrane or Helen Bailey who will be happy to help you.
11) How to give anonymously
1. Fill out the small white ‘Unique Giving Reference Number’ form attached to this pack.
2. Snip off the bottom section to keep a record of your number.
3. Post the top section into the treasurer’s box.
If you give by Standing Order
1. Contact your bank and inform them to use your unique giving reference number when making payments to St Peter’s Church.
2. If you are also giving one off gifts, follow the instructions below.
If you give cash or cheques into the collection plate
1. Put your cash or cheques into a gift aid envelope.
2. Write you ‘unique giving reference’ number on the front.
3. Place it in the collection bowl.
Who will know what I have given?
Only the Treasurer will have access to the list of unique giving reference numbers and the people they represent. Church bank statements will contain your unique giving reference number, but will not show your name.
12) Legacies and bequests
If you would like to consider leaving a legacy or bequest to St Peter’s in your Will, the church would be deeply grateful. Sometimes lifelong members of a congregation are unaware that leaving a bequest like this is even possible. However, you can treat the church as you would any other charity and include it in your Will as a beneficiary.
Outi Hubbard, a member of our finance team who is a solicitor specialising in this area would be happy to give free confidential advice to anyone considering including a bequest to St Peter’s in their Will.
There are a few different kinds of gift you can leave in your Will. The most common are described below.
Residuary bequest
A gift of the remainder of the estate after all other bequests have been made and debts cleared is called a residuary bequest.
Pecuniary bequest
A gift of a fixed sum of money in your Will is called a pecuniary bequest. The value of pecuniary legacies will decrease over time, as the cost of living increases.
Specific bequest
A particular named item left as a gift in your Will is known as a specific bequest - for example, a piece of jewellery.
Contingent bequest
A gift in your Will that depends upon the occurrence of an event which may or may not happen is known legally as a contingent bequest. An example is a bequest to a charity which applies only if other beneficiaries named in the Will die before the testator (person who made the Will).
(Closing note: Thank you for the time that you have spent reading and considering the information contained in this pack. Although we have tried to be as comprehensive as possible you may still have a number of questions. Please don’t hesitate to contact the treasurer, any member of the finance team or the vicar if you would like to discuss any issue further.)
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Finance Team, 25/11/2008 |
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