One of the significant changes in legislation coming from this year's General Assembly relates to 'insolvent' congregations. Within the newly amended Presbytery Mission Plan Act, you will now find a section entitled Financial Sustainability Review. Such a review, which will run over a period of time up to three months, will be triggered where a congregation:
- is not able to pay its debts as they fall due; OR
- does not maintain payment of its Giving to Grow Contributions; OR
- has accrued a shortfall, meaning unpaid Giving to Grow or Ministries and Mission Contributions, which it is unable to pay.
The review is intended to bring to light what is happening financially within a congregation with the intention of putting into place a realistic scheme for payment of Contributions and other debts due. It will be undertaken with the help of the Stewardship & Finance team and the Presbytery.
During that three month period, there would also be an exploration of whether an adjustment would be helpful and/or whether the shortfalls might be justified by the Presbytery. For the latter to happen, the Presbytery will be guided by the Core Principles set out in the Code of Practice for Mission Planning, with a particular focus on financial responsibility and will not be able to justify shortfall unless the congregation is otherwise able to meet its debts as they fall due and is complying with its legal obligations.
If, after the review, it has not been possible to resolve the financial issues the charge will be declared insolvent. But it is anticipated that this step would only ever be taken as a last resort.
Guidance is currently being drafted around the process by which Presbytery would sever the pastoral tie (with six months' notice) in the case of an insolvent charge where there is an inducted minister in place. There is no question that the pastoral support of any minister finding themselves in this situation (together with any family) will be critical and we will share the guidance as soon as we can.
What are the next steps?
The Property & Finance Convener, Mike Leys, the Planning & Deployment Convener, Tony Stephen, and I met to discuss these provisions. Every month we receive a shortfall report, which outlines any historic shortfalls and payments made during the year. At the end of June, we estimate that around 30% of congregations in the Presbytery are behind on their payments for the year. We are planning to be in touch with these congregations to begin a conversation about their financial health. We want to identify those congregations who are likely to face a financial sustainability review in 2026 and to work with them to determine how best to resolve the financial issues which are impacting them.
What can every congregation do?
Previously I've highlighted the Bearing Fruit health-check tool which was launched earlier this year. Every congregation can use it get a sense of where they are and what they can do to become financially sustainable. It is only really by asking the questions and facing up to the reality of financial challenges that a solution can be prayerfully and suitably developed.
If you have concerns about your congregation being in the 30%, or have questions about this legislation and what impact it may have on you, please do get in touch.
Rev Stella