Running the Church as an enterprise - Viable and sustainable Church communities and church buildings
HBCDO - Running the church as an enterprise - pdf
Churches as 'Going Concerns'
We need to recognise that each Church community needs to be a 'going concern' in terms of both ministry and buildings.
An important issue which needs to be clarified is the distinction between viability and sustainability. This applies to both Church communities and church buildings. It is at times all too easy to poor in loads of time, energy and money to sustain something that just is not viable in the first place!
Beginning with the dictionary, the Shorter Oxford English Dictionary has the following:
Sustain: To succour, support, back up; To keep going, to keep up, to carry on;
Sustainable: Supportable, maintainable;
Viable: Capable of living, able to maintain a separate existence;
Viability: The quality or state of being viable
Before making any judgment about a church building's sustainability or how to make it sustainable, some sort of assessment needs to be made about the Church community's viability. Ideally there should also be an assessment within the context of the local ecumenical situation as well as the deanery.
Because of the importance of retaining the mission and ministry across the country, Deanery and Diocesan Synods, in response to the recommendations of their respective Pastoral Committees, can choose to sustain those Church communities which might not be viable as individual units. This can be done by subsidising ministry by the use of national and diocesan funds, including the cross subsidy between parishes by Parish Share. This provides all the more reason to ensure that such Churches are run in a business-like manner and that there is openness and clarity in their management.
Money
There are two main aspects to the finances for any Church:
- ministry costs and
- building costs.
The principle to work towards is for the living Church to meet the costs of the living Ministry and for the buildings to pay for themselves.
The local Church community needs to generate income and spend money in two separate categories: ministry and buildings. Clear separation of the ministry budget and buildings budget is recommended.
The main costs of the ministry is properly the responsibility of the Church members. The funds for the buildings may need to come from a wider constituency. However, this will only happen if people want the building enough and / or the building(s) can generate an income and so 'wash its own face'.
Ministry budget
Ministry costs include Parish Share, administration, heating, lighting, insurances and all the general costs of providing for services and the life of the Church. The payment of Parish Share should be a high priority and essential commitment for every Church community.
Given the pressures on Church finances, many Church communities will need to take every opportunity to encourage Gift Aid donations from Occasional Offices (weddings, funerals etc.) and events. Each PCC will need to maximise the potential to generate income from all aspects of Church life, especially when people want the Church for what the building or their services offer.
The local Church needs to continually review the stewardship giving of the members and ensure that there is a positive and well informed attitude regarding the financial situation. It would also be sensible to regularly review the various opportunities to generate revenue from sources other than the existing members of the congregation.
Buildings budget
Building costs should be split into three categories: Regular Maintenance; Capital Repairs; Improvements and New Work. The first two categories are cyclical; regular maintenance being a short cycle from every three months to five years and the capital repairs running from five years upwards.
- Regular Maintenance (e.g. cleaning rainwater goods, lightning conductor test, gas installation servicing and test, electrical test, paths maintenance) and minor repairs (fixing things that break or wear out, 'little but often' repairs e.g. pointing, painting metal work etc.).
- Capital Repairs - this is the repair and / or replacement of major elements of the building and site (e.g. roof coverings, stone work, electrical installation, central heating installation and lavatory and kitchen fittings, boundary walls, gates and railings).
- Improvements and New Work - these items consist of alterations to the existing building to meet changing legislation (e.g. Disability Discrimination Act requirements, fire regulations, asbestos regulations) or liturgical needs (e.g. nave altars, space for musicians) together with the changing expectations and desires of contemporary Church life and society in general (e.g. lavatories, refreshment making facilities, sound amplification, computer technology).
When these budgets are prepared in conjunction with the architect and the QI report together with realistic cost estimates, they will provide the basis of an Asset Management Plan which is an essential part of successfully managing any church building.
Friends Groups
These are an excellent way to generate interest, support and income for the church building from a much wider group than the regular congregation and fringe members. Friends Groups gather support from people who are keen to see the building looked after but do not want to be involved in the worshipping life of the Church. When they are set up with the appropriate governance structures and effective communications among the various stakeholders, the PCC can often be relieved of a significant fundraising task.
Loans and Grants
There are loans and grant funds available from the Church and other supportive organisations.
- Diocesan Sites and Buildings Funds makes loans of up to £10,000 available and larger amounts can be borrowed from the Central Board of Finance. Contact Judith Nex at the Diocesan Office for more information
- The DAC secretary John Dentith has a list of Grant Making Bodies
Managing Buildings and Property
Buildings and property are a fact of life in the Church of England. The legislation of the Faculty Jurisdiction Measure for their proper management is another fact of life in The Church of England. People who say they are not prepared to engage with the joys and sorrows of church buildings and their management perhaps don't understand the Church of England's unique role as the national church in every community.
If the church building is listed, then it is subject to another layer of legislation and interest from people outside of the Church community. We ignore this fact at our peril - it is a criminal offence to make changes to a listed building without consent from the appropriate authorities! Church communities will save themselves a lot of bother if they recognise the importance of establishing and maintaining effective working relationships with the outside organisations and individuals who have a legitimate interest in church buildings.
Look after the assets
The church building is usually the local Church's biggest asset. The church building is the premises from which, and within which, the local Church community conducts their core activity. This is why the church building needs to serve the mission of the local Church, not inhibit it.
Church communities need to be in control of their property assets, otherwise they will find that events associated with the property assets will control them. The PCC has a duty in law to protect the assets from loss or damage.
All buildings, but especially old buildings, need regular preventative maintenance. The greatest hazard to a church building is from water getting in at the wrong place. Every church building needs a 'dry hat and boots', which requires a watertight roof, working rain water goods and well pointed external walls.
Putting in place a forward looking Asset Management Plan for the management of the church building will be of considerable benefit to every Church community and their church building.
Getting the building to earn its keep
Grants of public money for the repair or maintenance of a church will come with various requirements including:
- to put in place and carry out a management plan of preventative maintenance for the church building in the future;
- open the building to the public on a regular basis
The Church community will need to be confident that there are sufficient resources (human and financial) to meet such requirements. The maintenance agreement requires funds and opening the building requires people on site.
Wider community use of church buildings can provide for their long term sustainability. Busy churches are often able to earn an income and, because of the various activities going on inside, are self policing.
Community use of church buildings requires the Church community to 'give the building away and allow people in on their terms'. Some Church communities will need to work through the issues associated with letting go of their territory.
