Since 2002, we have been overtaken by changes—changes in the economy, in individual and congregational giving patterns, and in administrative business practices for not-for-profit organizations. These changes have led Church of God Ministries to adopt new procedures to better support the true cost of the management of missions projects. Working in partnership with Global Missions regional coordinators and following the advice of external auditors, Church of God Ministries will implement an 8 percent administrative support fee for Global Missions projects beginning with the 2010 World Ministries Budget.

In the history of the Church of God movement, the work conducted through the hands of a few, but resourced by the sacrificial gifts of the many, has enabled the message of Christ to expand across the globe and reach countless numbers with the message of hope that the gospel brings. One such method of support has been through the Project Link program, which enables individuals and donor congregations to connect with vital projects around the world and provide the essential support needed to enable their accomplishment. These projects directly support the ministry of Christ and truly change the lives of individuals, bringing transformation.

Historically, 100 percent of the dollars contributed went directly to support the various projects. However, the costs to manage, promote, and administer these projects was borne initially by the Missionary Board and then assumed by Church of God Ministries after the merger of national Church of God agencies in 1998. The dollars needed to provide the administrative support for the projects came from the unrestricted or “Basic” portion of the World Ministries Budget. As contributions to the unrestricted budget diminished, the availability of funds to allocate towards the administrative functions of the projects has declined.

To address this issue, in 2002, Capin and Crouse, the auditing firm retained by Church of God Ministries (CGM), recommended the adoption of a best business practice commonly used by not-for-profit organizations. They recommended that an administrative support fee be added to the mission projects in order to more accurately assess the true cost of the projects while also enabling the projects to ultimately become self-supporting. The 2008 audit by Capin and Crouse indicates that CGM’s overall administrative costs are less than 15 percent of total budget. In comparison, it is common practice for other not-for-profits to use 25 percent of funding to support administrative operations.

Beginning in 2005, the leadership of Global Missions implemented an 8 percent administrative fee for selected project categories. The leadership of Global Missions, in conjunction with the regional coordinators, put forth a recommendation earlier this year that all the fund goals for projects in all categories include a support fee of 8 percent. The changes will begin with the 2010 World Ministries Budget. There is an exception for approved educational institutions and approved capital projects, which will carry a 4 percent support fee. There is no administrative fee assessed on donations to the Living Link Program.

The power of transformation has been evident throughout the life of the Christian church. These necessary changes will enable the continuation of Project Link efforts to fund these vital missional projects and enable congregations and individuals from across North America to be linked together in seeking to fulfill the Great Commission of Christ and bring about life-changing transformation.

Article by David Farlow