IMB tapped reserve funds to cover 2002 expenses

The International Mission Board (IMB) spent nearly $37 million more in 2002 than it received in income, according to the treasurer of the Southern Baptist Convention (SBC) agency.

In his report to IMB trustees May 7, Treasurer David Steverson explained reserve funds had been tapped to pay the bills in 2000, 2001 and 2002. The $37 million draw down in 2002 covered 13 percent of total expenditures for the year.

“We are fortunate in that we had reserve funds that could be drawn upon to support our work in 2002,” he told the board. “These reserve funds were available because of additions to reserves in the 1990s when we experienced good investment returns.”

Steverson said the board tapped those reserves “some” in 2000, “more” in 2001 and then drew down “significant amounts” in 2002.

“When we spend reserve funds, it not only is reflected in a reduction in our total assets, but it also reduces investment income available to be budgeted in future years,” he added.

The recent downturn in the national economy has hit the IMB hard, as it has hit many nonprofits. Steverson reported the IMB’s total cash and investments at year-end were $66 million less than the previous year-end. More than $50 million of that loss was due to sagging investment.

“We had $25.5 million in investment income [planned] in our 2002 budget and not only did it not earn that amount, we actually had unrealized losses on our investments of just over $25 million,” he explained.

Unlike many religious agencies that have experienced declining contributions on top of decreased investment income, the IMB has continued to receive more money each year from Southern Baptists. In real dollars, combined contributions to the IMB through the Cooperative Program (CP) and Lottie Moon Christmas Offering (LMCO) have increased $58 million (32 percent) from 1998 to 2002.

In 1998, Southern Baptists send the IMB $181 million. In 2002, the CP and LMCO provided $239 million to the IMB.

However, expenditures have increased more rapidly, as the board sought to send out more than 1,000 new missionaries annually. The 1,000 goal includes both long-term and short-term workers, with short-term workers accounting for about 60 percent of those sent.

(ABP)