2005

2005. The General Fund, the Education Fund, and the Church Multiplication Fund shall be determined annually by a percentage (2005:2) of the base income of all churches for the previous fiscal year which shall be computed in the following manner (2005:3):

(1) Base Income. The base income shall be the total of a local church’s receipts of tithes and offerings given without restriction for the work of the church (465; 470).

(2) Fund Allocations.

(a) The percentages for determining the General Fund, the Education Fund, and the Church Multiplication Fund shall be fixed by the General Conference (1590:8). The percentage in each case shall be applied to the assessable income as defined in 2005:1 except as provided for in 2005:3, 4.

(b) In the event of an emergency during the interim of General Conference sessions, the General Board may alter the percentages of the General Fund by a two-thirds majority vote of all its members (1655:23).

(3) Limits for Capped Churches.

(a) Assessment Limits and Maximum. By Conference Year 2026, all churches shall be subject to full assessment on all assessable income up to $550,000. Above that level, there shall be a graduated reduction in the percentage applied. For that portion of a church’s assessable income between $550,000 and $1,100,000, there shall be a reduction of one in the total percentage divided proportionately between the General Fund, the Church Multiplication Fund, and the Education Fund. For that portion between $1,100,000 and $2,200,000, there shall be a reduction of two in the total percentage divided proportionately between the three funds. The percentage in each case shall be applied to the same base income as defined in 2005:1 subject to the exceptions set forth in 2005:4a, b.

(b) Annual Rate. The General Board shall set and publish the annual rate for capped churches based on the increase or decrease of consumer price indices for the previous year or 3 percent, whichever is less.

(4) Exceptions for Developing and Urban Churches.

(a) Developing Church Exception. Whenever a developing church is deemed, by the district board of administration, to be under financial duress, that board may subtract up to $50,000 from the USF base income used to calculate the USF obligation.

(b) Urban Missional Church Exception. Whenever a local church is designated as an urban missional church, the USF obligation for that church shall be set at 25 percent of the regular assessment (523).