United Church of God, an International Association
Council of Elders Meeting Report
Wednesday, February 26, 2003 – Cincinnati, Ohio

The Council of Elders began its current round of meetings Wednesday with the traditional administrative reports from the president, treasurer, and media operations manager. David Register joined the meeting by teleconference to further refine plans for the annual meeting of the General Conference of Elders (to be held May 3-5 in Cincinnati). Beginning with today’s session, the Council Reporter’s baton has been passed to Don Henson. Mr. Henson pastors the UCG congregations in Pittsburgh and Meadville, Pennsylvania, and Wheeling, West Virginia. He brings a wealth of writing experience (both secular and church-related) to the job, in addition to his many years of pastoral work.

-Doug Johnson

President’s Report

In the first report of the day, Roy Holladay gave a wide-ranging summary of activities and recent developments:

• The Church has completed the $1 purchase transaction of the 3.6 acres of hillside property that adjoins the office building.
• John Elliott and Dave Baker have returned from a trip to Kenya. This was a transitional visit, as Mr. Elliott will assume responsibility for the Church’s work in Kenya and Tanzania. Mr. Elliott has submitted to Mr. Holladay a strategic plan for the region.
• Mr. Baker has been contacted by the Church of God of Israel (which is located in India) expressing interest in the United Church of God. There are issues concerning the day on which they observe the Passover. Mr. Baker sent copies of United’s doctrinal and study papers on the Passover, but has not yet received their response.
• The Ambassador Bible Center school year is off to a very positive start, with 41 students in attendance. Gary Antion reports that this year’s class is an especially responsive and attentive group, with a great deal of interest and enthusiasm.
• Due to imminent possibility of war, the theme for the March-April issue of The Good News has been changed. The cover story is “After Iraq, What Next? America Faces a Dangerous World.” Articles include the following titles: “Iraq and the Middle East: A Century of Turmoil Continues;” “Prophecy Being Fulfilled: The World Divides Into Three Spheres;” and “Homeland Security: What Crucial Piece is the United States Missing?”
• Bonnes Nouvelles, the French edition of The Good News began publication in January.
• Work is underway to develop “first contact” literature which will explain church teachings in very simple, brief form.
• A mailing list will soon be compiled for a monthly e-letter from the President, similar to updates currently sent to members. This will be a virtually free method of staying in close contact with Good News subscribers. The goal is to establish a mailing list of about 100,000.
• Our fully redesigned web site will be online within the next two weeks.
• Members continue to be faithful and supportive in tithes and contributions. Category 1 income (first tithe) is running at a 2.8 percent increase over last year, just ahead of the budgeted increase of 2.4 percent.
• The proposed budget for 2003-04 calls for an increase of 3.7 percent over the current budget. Highlights include a $263,000 increase in the budget for proclamation of the gospel and a proposed 5 percent cost of living allowance (COLA) for all employees.
• There are currently 1,906 coworkers and 4,347 non-member donors on file, who account for 16 percent of the Church’s income.

There is an interesting development in South Africa. After lengthy discussions with two of our pastors in the area, Andre van Belkum and Bill Jahns, two elders from our former association have expressed their full agreement with UCG teachings. They, along with several other members, have begun attending the United congregation in Johannesburg, where attendance had been in the 70-80 range, but is now over 100.

Pilot public Bible lectures were presented in the Seattle-Tacoma, Washington area on the weekend of Feb. 22-23 by Dennis Luker, Howard Davis, Randy Stiver and Rex Sexton. Letters had been sent to Good News subscribers inviting them to the lectures and a series of 60-second radio commercials were run on local stations. On Saturday night, Feb. 22, a presentation titled “What’s next for America?” was given in Bellevue and Tacoma. In Bellevue, 55 new people attended and the lecture in Tacoma attracted 24. At the Sunday night lectures, titled “The Kingdom of God,” there were two more new attendees and 22 who returned in Bellevue (for a total of 57 new people for the two nights) and in Tacoma two came back for the second night while 15 attended for the first time (for a total of 39 new people). The presentations included a 22-minue video titled “The Real America Heritage,” emphasizing that our nation is descended from Israel. Most of the new people who attended had heard about the lectures through the radio spot ads.

Mr. Holladay updated and covered the eight mandates given him by the Council. In connection with that, he provided the Council with a history of the Christ Centered Servant Leadership project.

Mr. Holladay concluded his remarks by pointing out that there have been many exciting developments in recent months and that God is certainly granting His blessing.

The Treasurer’s Report

Treasurer, Mr. Tom Kirkpatrick, reviewed the current status of this year’s budget and then gave a summary of the proposed budget for 2003-04.

Regarding the current fiscal year, Mr. Kirkpatrick, reported the Church’s financial situation remains unchanged. So long as the upcoming Holy Day offerings meet projections, we are on track to meet the budget of $18,240,000 for the current year. The biggest question marks are the final totals for member assistance and insurance expense. At this point we are 64% of the way through the current fiscal year and anticipate ending the year almost exactly on budget. That is quite a blessing, especially considering the weak and uncertain national economy at the time this budget was drawn up.

With only a couple of exceptions, each organizational unit of the church is at or slightly below budget for this year.
• The Public Proclamation function is slightly over budget at this point because of expense of the tape program for Bible Study Course graduates.
• There have been a few adjustments in international subsidies due to unanticipated developments, but they will come in within 1% of so of budget.
• The Assistance fund is under budgeted projections, because some who were receiving assistance have been able to find sources to help meet their needs.
• Insurance and healthcare will end the year slightly over budget. This is a difficult expense to predict. Even though self-insurance is the most economical insurance option, after each employee pays his deductible and co-pay portion, the Church pays the next $70,000 of medical expenses before insurance takes over. There have been several major insurance expenses this year, but at this point all have been paid.
• Other cost centers (such as Ministerial Services, Festivals, General Conference, Council of Elders) are on budget.

Budget proposal for 2003-2004
It should be emphasized that what follows is a summary of the discussion of the proposed budget. The Council discussed many of its details, but has not yet approved it to be sent to the General Conference for consideration. That step will be taken before this Council session concludes.

The proposed budget for the next fiscal year, starting on July 1, stands at $19.0 million, which represents a 3.7 percent increase over this year. Interestingly, the last 12 months show a 3.8 percent increase compared to the income for the corresponding previous 12 months. More specifically, in the last 12 months, Category 1 income has increased 2.0 percent while Category 2 (Holy Day offerings) is up nearly 8.3 percent, whichis significantly greater than the percentage increase in festival attendance. Category 3 income is even. A comparison of running-year totals is not the only measure, but it indicates that a 3.7% increase in the budget for the new fiscal year is very reasonable.

The budget includes a proposed 5 percent cost of living adjustment for all employees. It is the first such across-the-board COLA in the eight year history of UCG. The largest increase ($263,000) is for Public Proclamation. International subsidies would increase by $127,000 over last year.

Other highlights of the presentation:
• The total of international subsidies would increase, however in specific instances, some areas will see a decrease as their own income will provide greater support for their needs.
• The Ministerial Services budget would include three new hires.
• Among other things, the Public Proclamation budget allows for the printing of two new booklets, sustaining a 500,000 Good News subscription list and a printed version of the Youth magazine. It does not specifically include the production of the “first contact” literature, but that could probably be accomplished within the budget.
• Cost of insurance and healthcare has increased by 26% in the last two years.

Report from Media Communications Services

Peter Eddington gave a detailed report on the progress and plans of the Church’s media efforts. He provided information on The Good News, the Bible Study Course, booklets, Good News radio, Internet, Web site redesign, television, World News and Prophecy and an analysis of our donors and coworkers and income sources.

The Good News
The March/April print run will be about 439,000. Our goal is to reach 500,000 but by the end of this fiscal year we will likely fall somewhat short due to the number of Waiting Room Program non-renewals. However, this will give us stronger readership demographics, since we will have more individual subscribers. Card-deck advertising has been very successful, yielding a $2.51 cost-per-response.

Statistics reveal that non-members most likely to renew their subscription are those who originally received the magazine as the result of a Reader’s Digest ad (35%), the television program (35%) or direct mail (33%).

We would like to mail four subscriber development letters each year to the Good News subscription list, but budget restrictions this year will limit us to two. In October a letter was sent to some 170,000 GN subscribers offering the Bible Study Course–netting a 10% response. In the four subscriber development letters, the goal is to offer the Bible Study Course in one and a booklet in each of the others. Along with the six issues of the GN, each subscriber would hear from us ten times a year. Of course there would be a much greater level of direct contact through the development of an e-letter, which Mr. Holladay also described in his report.

Bible Study Course
As of Jan 31, 23,333 are enrolled. Another 3,529 have completed the course and are currently taking part in the audiotape program. We anticipate another 3,000 will subscribe to the audiotape program in the next year.

Booklets
A booklet on the Middle East in prophecy is nearing completion. If the income holds up we hope to offer it soon.
Good News Radio
So far our radio program has yielded 6,100 GN subscribers. Programs are now sent to stations on digital audio CDs. Gary Petty will be in Cincinnati March 11 and 12 to record six or seven new programs.

Internet
Advertising on the Excite Network has resulted in 20,152 new subscribers at a cost-per-response of $0.99. In addition, several thousand GN subscriptions are added at no cost as people discover our Web site through search engines, and various ads. Of those who subscribe on-line, only 1 percent are members. They most commonly learn about UCG from the web page itself (28%), from a family member or friend (21%), from a banner ad (17%), or from another UCG publication (12%). They find the URL from the Good News (37%), from a banner ad (17%), from a family member or friend (16%), surfing the World Wide Web (16%), all other sources (13%).

In January, 2003 our Web site had about 135,000 visitors, an average of about 4,300 per day. By comparison, in 1998, we received about 300 visitors per day.

The new Web site design will be launched within the next couple of weeks. It will feature a revised and enhanced visual layout, a new navigation structure, links to world news sources and more.

Television
Cable access television programs produced by local pastors and member volunteers in Wisconsin and in the Pacific Northwest continue to provide Good News subscribers at a very favorable cost-per-response.

World News and Prophecy
The subscription list for WNP has increased by 15 percent in the last year. It is now offered to new coworkers and those who complete the Bible Study Course audiotape program. We hope to increase the number of non-member subscriptions to about 10,000 from the current level of nearly 5,000.

Analysis of Donors and Coworkers
As of the end of January, we have 4,347 donors and 1,906 coworkers on file, providing more than 16 percent of the Church’s income. Those most likely to contribute to the Church have come into contact with us through the internet, a gift copy of the GN, an insert card or a brochure. The promotional piece most likely to generate a donation is a subscription development letter.

Annual Meeting of the General Conference of Elders 2003
Over the last several months the Council’s Roles and Rules Committee (Gary Antion, Chairman) has worked with a task force committee (David Register, [chair], Diane Bailey, Peter Eddington, Charles Melear, Greg Thomas, Joe Horchak, Larry Greider, Randy Schreiber, Anthony Wasilkoff and Robin Webber) to prepare proposals for the 2003 GCE annual meeting.

Clyde Kilough led the Council, which was joined by David Register via telephone, in a discussion to make decisions and plans for the conference. This is the first year a task force was used in the planning process, which Mr. Kilough acknowledged, has saved the Council a great deal of work and provided many fresh ideas.

This year’s annual meeting of the General Conference of Elders will take place May 3-5 and the theme will be “Maximizing your Ministry.” The formal business session will occur on Sunday, May 4 starting at 2 p.m.

Sabbath service on May 3 will be from 2 p.m. to 4 p.m. The task force suggested that in the Sabbath service on May 3, a Council member and a non-salaried elder give split sermons. The Council decided it would be more appropriate for a Council member and a church pastor to give split sermons.

There will be a “Chairman’s Welcome Reception” Saturday night from 8 p.m. to 10:30 p.m. Light refreshments will be served and there will be a cash bar. During the evening Mr. Kilough will make a light-hearted slide presentation.

The task force had suggested Q & A sessions on the topic of proposed amendments and Council of Elders nominees on Sunday morning. The purpose would be to give elders more information about the amendments and the opportunity to know more about each Council nominee before balloting. After considerable discussion, the Council decided that it would not best serve the GCE to have either Q & A session.
• The primary objection, as voiced by Leon Walker, was that such discussions would only benefit those present for the conference (about half the total number of elders). Therefore those who were not present would not have the same level or information as those present and would have already cast an absentee ballot.
• Mr. Antion pointed out the danger of someone using such an occasion to “grandstand” or politicize.
• Mr. Kilough suggested that the solution is to acknowledge the need for more information but to suggest there are other means to gather it – for example, by using the Elders Forum, or by contacting the elders who proposed, supported or expressed opposition to an amendment. Similarly, elders could contact directly Council of Elders nominees they do not know.
• Jim Franks and Aaron Dean suggested that such a discussion might be possible in the future by taking advantage of technology that could reach and involve a greater number of elders, though there still would be difficulties because of differences in time zones.
• Gerald Seelig (Council secretary) pointed out that there was such a discussion before the vote to move the Home Office to Cincinnati. But to do so again would involve the expense of those not present voting by fax and/or the requirement of waiting several days after the conference to allow ballots to be cast via U.S. mail.
• Mr. Register emphasized that a survey of the GCE indicates the elders desire a more open Q & A style discussion on these subjects and that the task force committee was overwhelmingly in favor of the Q & A sessions.

A schedule was established for Sunday, May 4. The day will begin with international reports and will be followed by a “memorial service” for the 27 elders and wives who have died since United was formed in 1995. The business meeting will begin at 2 p.m. Sunday. After balloting, the GCE will be addressed by the Treasurer (Mr. Kirkpatrick), Director of Ministerial Services (Richard Pinelli), the Director of Media and Communications (Mr. Eddington) and the President (Mr. Holladay). Following a break, there will be three 20-minute presentations by elders. Two will be on the topics of “The Pastor as Friend” and “Serving smaller congregations.” The third will be either “If I could do just one thing differently in my ministry it would be…” or “What I know now that I didn’t know then” (on the subject of health). The business meeting will adjourn after the ballot results are announced.

There will be a Q & A with the Council of Elders Sunday night from 7:30 to 8:30 p.m.

Monday’s meetings will consist of a series of workshops from 9 a.m. to 4:15 p.m., with final remarks from the Chairman from 4:30 p.m. to 5 p.m.

Final decisions were not made, but likely topics for the workshops include the following:
• Maximizing our speaking skills
• Maximizing our counseling skills
• Maximizing our youth pastoring skills
• Financial planning (retirement planning)
• Qualities of leadership (two sessions)
• Keeping fit
• Healthy living
• Women’s role as ministerial wife and mother (two sessions)
• Bible software programs/internet
• The pastor as mentor
• Power point–how to use the product to prepare a presentation
• Power point–how to make a presentation using the product

In addition, Life Innovations (previously known as “Prepare/Enrich”) certification sessions will be offered for salaried pastors who have not yet received certification or who need to be re-certified. The certification seminar will require 3 ½ to 4 hours and will take place concurrently with the workshops listed above.

By unanimous vote, Council approved the plans for the 2003 GCE annual meeting.

Executive sessions

The Council met in executive session immediately before and after the lunch break and again at the end of the afternoon.

The Council adjourned for the day at 5:45 p.m.

-Don Henson

© 2003 United Church of God, an International Association