In July we implemented our new system for covering missionary fielding cost. This new system was the topic of this article in the June issue of Together in Prayer. The motivation for changing the system was primarily to allow a portion of all support gift donations to be used for missionary allowances. Under the former system designated support funds were used to pay for missionary benefits first and then allowances. The new system allocates a portion of all designated support donations directly toward missionary allowance, and the remaining portion is used to pay for benefits. The portion that goes directly toward missionary allowances is 52 percent while the remaining 48 percent is used to pay benefits.
Under the new system all missionary benefits which include health care, housing, life insurance, pension, and social security taxes are paid for out of the newly created benefits fund. The benefits fund can receive money into it in three ways; (1) The home council can fund it using money from the estate fund (2) A portion of all designated support fund donations is put directly into the benefits fund, 48 percent. (3) Any donor can make a donation directly to the benefits fund. In July the benefits fund was started with a $300,000 transfer from the estate fund. An additional $36,676 was transferred into the fund from designated support fund donations. We also received $600 in donations to the benefits fund. During the month of July we paid out $81,491 in benefit expenses. After all of that the benefits fund ended the month with a balance of $255,782.
Under the new system missionary allowances will be paid for first out of designated support funds and then the missions’ general fund will be used. Missionary allowances for the month were $83,493. All missionaries received 100 percent of the target allowance in July. Designated support donations paid for $68,208 of the allowances and the general fund paid for the remaining $15,285. At the end of the month the general fund had a balance of $62,810.
The new system will mean a new way of reporting balances at the end of each month. For example the benefits fund balance is new and it is important to us. Under the old system I used to report the amount of estate funds used to supplement allowances. We will no longer use estate funds to supplement allowances with the new system. Estate funds will be used to fund the benefits fund occasionally as we did in July but not to directly supplement allowance payments. The report on missionary allowances will now look like this; In July we were able to pay all of our missionaries 100 percent of the target allowance. We used $15,285 from the general fund to meet all of the needs leaving the general fund balance at $62,810. At the end of July the benefits fund had a balance of $255,872. Thank you for your on-going support.