GA06049

Committee advances GAC executive director-elect

Wrestles with 5 percent administrative fee and affirms restructuring of GAC

by Shane Whisler

BIRMINGHAM, June 17 — Without discussion, the Mission Coordination and Budgets committee unanimously recommended that the 217th General Assembly of the Presbyterian Church (U.S.A.) confirm Linda Bryant Valentine as the next executive director of the General Assembly Council (GAC).

Members applauded and many stood up to welcome Valentine into the room following the period of open hearing and voting. Valentine acknowledged the support with a broad smile and subtle wave as she sat by her husband Chris.

In other business, the commitee approved the recommendation for sweeping changes in the structure of the General Assembly Council designed to align it with the sweeping changes implemented at the General Assembly offices in Louisville, KY.

The new structure means a smaller size, 48 total with 39 voting members. Commissioners' learned that the smaller size should not affect the level of representation of Presbyterian diversity on the council.
In fact, the pool of eligible members was deepened by a change that would allow membership to be extended to any ordained synod and presbytery staff member, rather than just a synod’s or presbytery's executive.

By a margin of nine votes, the committee said no to eliminating the 5 percent adminstrative fee collected from donations to Extra Commitment Opportunities, One Great Hour of Sharing and similar funds. The overture prompted the most discussion in Saturday morning’s business meeting.

Executive Presbyter David Dawson, Shenango Presbytery, who spoke as an overture advocate for removing the fee, said a fee may be approriate, but its abitrary nature — from 1 to 5 percent — is problematic.

Joey Bailey, the chief financial officer for the denomination, said one reason the fee is not uniform is because if 2.5 percent of an organization's budget were used to promote the giving opportunity, then only 2.5 percent of donations would be designated for administrative costs.

The actual administrative costs are as much as 12 percent of the budget. The 216th General Assembly (2004) approved the 5 percent fee, which was offered as a compromise. In 2005, the first year the fee took affect, it generated slightly more than $800,000 to cover administrative costs.

Bailey noted the percentage is based on a moving average of costs and donations. This prevents any extraordinary windfall for a particular fund, such as the massive donations for Presbyterian Disaster Assistance in the past year. For hurricane relief and recovery, the administrative fee was capped at $170,000, instead of collecting 5 percent on $38 million in donations.

The primary need to establish a fee rose from the large decrease in unrestricted giving to the PC(USA) mission budget, from which administrative costs are taken. 

Some elders and ministers expressed frustration and concern that the fee was poorly interpreted and announced, let alone being levied in the first place.