"Like good stewards of the manifold grace of God serve one another with whatever gift each of you has received.”
1 Peter 4:10
The Diocesan Budget
The Diocese of Bethlehem has an Operating Budget of $1,298,685 for 2017. The Operating Budget is presented annually by the Diocesan Council for approval by the Diocesan Convention. The Budget and other important financial information can be found in the 2016 Convention Journal.
To view the 2016 Convention Journal click HERE.
As in most dioceses, the largest source of revenue for operations is pledges from parishes (Assessments). Other sources of revenue include a special Acceptance, which is an offering by each parish over and above the assessment to help defray expenses in the diocese, and distributions from the Diocesan Investment Trust (DIT). The DIT contains roughly $26,000,000 in trust: $15,000,000 in trust for the parishes and $11,000,000 for the benefit of the diocese.
The Diocese of Bethlehem seeks to maintain a frugal budget for its operations. The largest source of income is parish apportionment pledges. Here is a breakdown of income for the current year’s budget:
Assessment Income - $931,612
Acceptance Income - $103,511
DIT Distributions - $259,062
Other Income - $4,500
Total Operating Revenues - $1,298,685
The diocesan budget’s largest expenses are for staffing, which is allotted to the Bishop’s Office and diocesan staff. The Diocese of Bethlehem continues to pay its full apportionment to the Episcopal Church, which is contained in Mission, Ministry, and Parish Life. Below is the breakdown of expenses in this year’s budget.
Salaries & Benefits - $660,720
Mission, Ministry & Parish Life - $348,885
Administrative - $137,640
Buildings & Grounds - $33,000
Retirees' Benefits & Support - $96,940
Convention & Meeting Expense - $21,500
Total Operating Expenses - $1,298,685
Diocesan Investment Trust (DIT)
As noted above, the DIT contains roughly $26,000,000 in trust: $15,000,000 in trust for the parishes and $11,000,000 for the benefit of the diocese. In 2014, the trustees embarked on a thorough process of evaluating the fund management and as a result selected new management in 2016. The management company is overseen by the Investment Committee of Diocesan Council.
After a six-month process, managed by the Finance Committee, the Trustees selected the Institutional Investment Advisors of BB&T. IIA had an average market performance over 2% per year higher than Cornerstone (our previous manager) over the last five years. This equates to a difference of $3,000,000. IIA costs were roughly half a percentage point lower which equates to a savings of almost $600,000 over a five-year period. Funds have been successfully transferred to the new manager. IIA recommended that due to higher average returns the Trustees could raise the guaranteed distribution amount from 4% to 4.5%.
Property owned by the Diocese includes Diocesan House at 333 Wyandotte Street, Bethlehem.
The property, adjacent to the Cathedral and its offices includes offices for the Bishop and other diocesan staff as well as meeting rooms and a chapel.