Cashflows in the Church

The Church of England
COMMUNICATIONS UNIT

Where does the money come from?

Church members promise to give a certain amount in a regular and planned way, either through weekly envelopes or banker's order. Many who pay income tax also sign a Deed of Covenant so that the church can claim back the tax they have already paid.

Others contribute in lump sums through the Gift Aid scheme and some straight from their wage packets through Payroll Giving. Then there are the collections that are taken in church and gift days.

In addition to giving during their lifetime, some agree to leave a proportion of their assets to the church through a legacy in their Will.

Fund-raising activities, such as jumble sales and fêtes are held in many parishes. Some give away the money raised to other charitable work.

Part of the fees paid for weddings and funerals goes to the church. Visitors make contributions and there is the rent from letting church halls. The church also receives income from any profit on the parish magazine and/or church bookstall.

The other major source of income is the tax recovered on covenants, the interest on money invested, grants (perhaps from the local council towards the upkeep of the churchyard) and income from special trust funds.

From time to time churches appeal for funds for special projects, such as new buildings or repairs.

Almost a quarter of the Church's money, about £150 million each year, comes from the Church Commissioners:

The Church of England has been fortunate in having the income from historic resources to help fund it.

The Church Commissioners was set up by Parliament and the Church to be responsible for the investments and the property the Church has owned for, in some cases, almost 1,000 years.

Until these assets were looked after centrally, the wealth of the Church was not fairly distributed and, while some clergy were well off, some were a lot poorer.

The Commissioners' primary responsibility is to manage the investments entrusted to them to maximise the financial support for the ministry of the Church of England, especially in areas of particular need or opportunity.

The Church has, over the years, given them additional responsibilities and asked them to look after matters related to clergy housing, pastoral reorganisation and boundaries between parishes and dioceses, redundant churches (which to close and what use to put them to), administering clergy stipends and meeting the cost of pensions.

The rest of the Church's income comes mainly from investments held by dioceses and cathedrals.

Where does it go?

The worship of the church has to be paid for. Depending on the size of the parish and the style of worship, expenses might include the organ, organist, choir, music, books, robes, candles and Communion elements.

Like a house, the church building incurs costs for heating, lighting and insurance. Some have to pay water rates.

Larger parishes may employ someone to look after parish administration. Printing, stationery and postage have to be paid for.

It is right that parishes should pay the expenses incurred as part of their priest's ministry in the parish. In most cases this includes the cost of running a car.

Most Church Councils are responsible for the upkeep of the vicarage or rectory. Even if church members do the work themselves, money has to be spent on materials.

Church buildings must be kept in good repair, too, and regular inspections arranged. Sometimes, this becomes a large expense for a small parish.

Finally, though perhaps most importantly, comes outward giving, the charitable contributions the church makes. Many churches try to give away at least a tenth of their income.

Some people may feel that local costs are all the local church should be responsible for but the whole Church also has to pay for:

• the stipends or salaries of clergy serving the parishes and the pensions of retired clergy and their dependants.
• training new clergy for future service.
• the work of the central church organisation on behalf of all the parishes, negotiating with government departments, working with other Churches and running the General Synod.
• and all the help given by diocesan officers to parishes.

How does it get there?

Each diocese has a Board of Finance that, as the financial executive, works out an annual budget. It receives money from three main sources:

• its own investments;
• a contribution from the income of the Church Commissioners shared out according to the wealth of the dioceses so that the poorer ones benefit most;
• a contribution from the parishes known as the quota, family purse or parish share. This is worked out by dioceses in different ways that all aim to be fair in sharing the burden between richer and poorer parishes.

This is used for training new clergy and funding the Church's national response to matters such as education, social responsibility, communications, mission, ministry, ecumenical relations and so on.

So, the quota that each parish contributes to the diocese is used to pay for:

• the Church organisation and ministry available to parishes, which are administered by the diocese;
• clergy stipends, administered by the Church Commissioners;
• national church responsibilities and training new clergy, administered by the Central Board of Finance.

This is one of a range of leaflets available explaining the working and beliefs of the Church of England

Edited by Steve Jenkins
Published by the Communications Unit
General Synod of the Church of England
Church House, Gt Smith Street, London SW1P 3NZ