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SubscribeNews International Missions Board Addresses Financial Crisis
Antioch, TN—The Board of Free Will Baptist International Missions met December 9-10, 2009, in the Antioch, TN, offices. All board members were present: Danny Williams, Randy Wilson, Tom McCullough, Paul Creech, Nelson Henderson, Sherwood Lee, Jeff Manning, Rob Morgan, and Jerry Norris.
Financial Crisis
The board reviewed finances and an analysis of those numbers. As a result of four months of significant giving shortfalls and two years of brutal currency exchange rates, the Mission is facing a dire financial situation. Donor income for the months of August through November fell well below budget and income goals. As of November, year-to-date receipts are more than 8% below 2008 receipts. In addition to the income shortfall, we have fought a valiant two-year battle with the ongoing devaluation of the U.S. dollar against other major world currencies. Mission donations are received in dollars, but most spending is in Euros, yen, rupees, and other currencies that continue to escalate against our currency, inflating ongoing “fixed” expenses.
Missionaries and stateside staff cut expenses, spending much less than budgeted amounts to lessen the impact of currency exchange rates. Yet, over the last two years currency exchange rates inflated the amount of money needed to operate overseas to more than $630,000 additional U.S. dollars. The Mission was holding its own in the face of the recession and these drastically increased exchange rates, however the unparalleled drop in donor income has pushed the Mission to take unprecedented action to avoid compromising the financial integrity of the Mission. Even though spending across the Mission has been held in check (more than $250,000 below 2008), the Mission is likely to suffer a significant net asset loss for 2009.
Stateside Staff Reductions
The board approved a budget of $7.2 million for 2010, well below the $8.5 million initial framework budget approved in April and adopted by the National Association in July. To cut the budget to this degree, painful spending reductions were necessary. While nearly all spending areas were reduced, the following specific and extremely difficult stateside personnel decisions were made:
• The position of communications project coordinator will be eliminated for 2010. Elizabeth Willhite, who has resigned to pursue another career, filled this full-time role. She will not be replaced.
• IMpulse and other video programs will be suspended. This decision terminates our contract relationship with Brian Ellison, our video producer, in March.
• The part-time position of video assistant will also be eliminated for 2010. Victor Albright served in this role.
• The director of member care position held by Dr. Neil Gilliland will be eliminated as a full-time staff role beginning in January. To continue serving the needs of our missionary family, the Mission will enter into a contract with Dr. Gilliland to provide some services as a consultant.
Salary and Benefit Cutbacks
In addition to the specific positions eliminated, all IM employees have been affected by the following additional tough decisions:
• All IM personnel, both stateside and field-side, will experience a 5% reduction of their base salaries in 2010. The board froze salaries and issued no raises in 2009.
• For the second year, retirement contributions for all personnel (home office and field) will be reduced from 5% to 3% of base salary. This is the minimum required by the Board of Retirement to maintain an active account status and retain the life insurance provision.
75th Anniversary Celebration Scaled Back
The financial crisis facing FWBIM will also affect plans for the celebration of the 75th anniversary of the Mission in 2010. IM recently announced the decision to cancel the missionary Gathering in Tulsa. Further painful decisions were finalized in the board session:
• The plan for all missionaries to return to the States to participate in the celebration has been cancelled. Only those missionaries scheduled for stateside assignment will be brought home at Mission expense in 2010.
• The annual Celebrate! banquet is cancelled for 2010.
• The museum and gift shop planned for the National Association in Oklahoma City will be pursued only if sponsorship funds underwrite the costs.
• Only international guests whose travel and expenses are provided by donors, or who are paying for their own expenses, will be able to attend the celebration.
Additional Board Decisions
• The board approved a revised handbook outlining policies and procedures of the Mission and personnel. The extensive changes reflect the Mission’s newly adopted purpose statement and core values (approved at the April 2009 meeting), as well as the restructured funding system.
• The board reappointed the following workers to their assignment locations: Dale and Sandra Bishop, Mirial Gainer, and Debbie Griffin to Japan; Robert and Judy Bryan to France; David and Annette Aycock to Brazil; Molly Barker to Uruguay; and Clint and Lynette Morgan to Creative Access.
• The board accepted the resignations of Paige Autry and Cindy Hall. Previously appointed to Brazil, the young women had been unable to obtain visas and are currently enjoying successful service in St. Croix, Virgin Islands.
• The board granted affiliate status to Rachel Dennis who will be seconded to ELIC for a two-year term.
• The board received a report of the progress of the Go10 Walk for the World and commended Joe Wilson (project manager) and his volunteer administrative partners Bill Ezell (TN) and Jim Daniels (GA). The board, particularly impressed by the website (www.go10 walk.com), expressed amazement and excitement at the progress achieved since the walk was approved in April.
• The board commended Neil Gilliland for “the amazing work of ministry he has accomplished among us” and for the work he will continue to do.
“The board dealt with many heavy issues in an extremely short period of time. I speak for the whole IM leadership team,” stated James Forlines, general director, “in expressing great appreciation for the board’s diligence in advance of the board meeting, as well as their thoughtful, thorough, and prayerful approach throughout the two days. Please pray for all of us as we seek to continue to work on tight budgets. Ask God to provide all our needs according to His riches in glory.”