District Secretary-Treasurer
Jay A Herndon
2023 Annual Business Report
In 1 Chronicles 12, the king’s chronicler pauses his recitation of the clans to issue a rare compliment, “of the Sons of Issachar, who had understanding of the times, to know what Israel ought to do.”
I believe that God has placed us in this season and situation for a similar purpose—to know what the Church ought to do.
These past few years have been challenging, but God is not mocked, nor is He hindered. The eternal principles still apply, and they still work.
And the challenges? They merely expose needs and provide opportunities. Indeed we are seeing genuine revival in many cities, and God is calling new people into service. And we are excited to see what awaits us in the coming year.
Now, on to the report.
Ministerial Roster
Our roster number changed to 1,387 due to a net loss of one. We continued to see a substantial net loss on transfers (14-in, 31-out, for a net loss of 17.) On the positive side, we are seeing an increase in new credentials added (68 total.) And so a net loss of (only) one is good news.
I reported last year that we had lost 9% of our roster over the past five years (a West Coast phenomenon) but it appears that we have stopped the decline. Nevertheless, I want to encourage our ministers and churches to continue to emphasize a call to ministry, and encourage those who respond to get the training and licensing.
I also want to recommend that pastors encourage their top youth to join our CALLED program, which now numbers ____ associates, and to our scholarship opportunities.
The most significant factor resulting in new ministers is always the attitude of the lead pastor—when the pastor preaches about the call, gives people an opportunity to respond to the call, and encourages their preparation, the church adds new ministers. It’s not surprising how that works.
Changes to the Minister Roster
Additions
New: 55
Reinstated: 13
Subtractions
Resigned: -6
Deceased: -18
Lapsed: -28
Dismissed: 0
Not Renewed: 0
Transfers: Net Loss: -17
Net Change to Roster:
Final Roster: 1,387
Resulting Change to Roster: -1
Finance
Our Ministerial Tithe contributions totaled $2,340,865. which was $5,974 less than the prior year. Our One Fund contributions totaled $621,220. which was $8,779 less than the prior year.
Despite the reduced revenue (and increased costs) our General Admin and all Operations ended “flat even” $0. (Yes, we had to do some end-of-the-year transfers to make all departments balance.) Some may be disappointed that we did not finish with a surplus, but given the circumstances, I count this as a win.
Which compels me to raise a concern—the district needs to have a thorough and informed discussion about our expectations and requirements going into the future. We are not currently in crisis, but I see a crisis coming. The short story is that our expectations (the things we expect the district to provide) exceed our revenue model (the way we fund the district.) Very soon we will find ourselves unable to afford the ministries and the support that the district has come to expect. At this point we have time to forge a new path, but if we wait too long, the path will be forged for us.
This is not a new discussion, when the district started in 1919 it had to ask the question, “What kind of services and support do we want, and how are we going to pay for it?” In our history, the district has commissioned several committees and studies to get a fresh answer to that question. For the past 75 years, the answer has been, “We want full-time officers, full-time ministry directors, and full-service support.” And so the district made decisions to raise the necessary revenue to fund those expectations.
But costs have increased substantially and the revenue model isn’t sufficient anymore. (Only half of our ministers contribute the regular rate.) And so we need to have that discussion again, while we still have options. If we wait too long, we will be out of options. It is time for us to be “Sons of Issachar who know what the district ought to do.” Because this NorCal Nevada region is too critical to the Kingdom, we cannot allow it to weaken and wane—it is our duty to keep it strong.
Endowment
Our endowments now total over $5,125,367 in eight endowments! The increase in 2023 is mostly due to an estate gift that was received (the cash was received in 2023, some additional property will be receipted in 2024).
Missions Support
As of this writing, the General Council has not completed the Missions Giving report. However, our departments succeeded in raising a considerable amount of support (these amounts only reflect funds donated via the DRC, and do not reflect funds sent directly to AGWM):
Women’s Ministries = $161,182.92.
Speed the Light (Youth) = $237,120.78
BGMC (Children) = $114,162.89.
Light for the Lost (Men) = $30,429.42.
Total: $542,896.01
NCN Regional Connections
Church Statistics: 447
We added 7 new churches, but closed 12. Of the closed churches:
· Three were PACs that were closed by their parent church.
· Three were District Council Affiliated Churches
· Two were General Council Churches.
· One was a trans-district PACs that were closed by their parent.
District Council
Minister’s Retreat - Lake Tahoe and Las Vegas
Scholarships:
Under 25 Education Assistance Program
Our district reimburses students under the age of 25, $100 for every course that satisfies credential requirements (regardless of the school). Most of these students are enrolled at Global University or Pathway, although any school that satisfies credential requirements will qualify. In 2023 we assisted 14 future ministers a total of $9,800.
Bethany Legacy Scholarship
The Bethany Legacy Scholarship Endowment is now $619,313. In 2023, we awarded $30,000 to six AG students enrolling full-time at AG colleges. Gina Bielch, Emma Cartwright, Ella Couch, Aleigha Fitzhugh, Chaz Noonan, and Micah Woodard.
Memoriam and Minister's Memorial Fund:
15 ministers and 6 spouses passed away in 2023. (And 1 (*) passed away in 2022).
Credentialed Ministers:
Garland R. Covington, Calvin R. Davis, David R. Davis, James Firzlaff, Paul D. Hale, Richard L. Hoover, Richard C. Howard, Deborah R. Johnson, Siaosi P. Kaihau, Elmer E. Kirsch, William E. Kowalski, Donald E. McMurray, Jerry Douglas Morris*, Bonnie S. Pace, Tottie Taito, Everett A. Wilson, Hannah O. Yoon, Joseph Yong.
Credentialed Minister’s Spouses:
Mary Ann Cole, Linda Galovich, Marcela Lagundino, Nardo Z. Natnat, Richard Owen, Judy L. Steinhaur.
We paid a total of $15,500 to the families of these ministers, as an expression of our affection and respect.
DRC Board Training - Hybrid Seminar
The next DRC Board Training Seminar is scheduled for Saturday, March 16th from 10 AM to 2:30 PM. This training is open to pastors, staff pastors, and current or prospective board members. Pastors are encouraged to bring individuals who are "in training."
Conclusion
Finally, I want to acknowledge the wonderful people who have helped me this year! To my fellow officers, Superintendent Allen and Assistant Superintendent Huddleston—it is a joy to serve with these tremendous leaders. I also want to acknowledge a transition in our office—Karen Carstens has retired after serving 25 years our longtime Accounting Assistant, my longtime Executive Admin Assistant, Sondra Miller has moved to a new role in the Accounting office, and Faith Gallup (former Admin to Char Blair) has moved into my office. I am grateful to have the assistance of this godly and dedicated group.
All of these people have had to carry a heavier load than normal, to allow me the time to finish Law School and prep for the Bar Exam. I could not have done this without their help.
To my Executive Administrative Assistant: Faith Gallup
To my three Secretary-Treasurer teams:
Legal Records: Leanna Sheley, Karla Cantu, Rosal Galindo, and Teri Herndon
Accounting Team: John Kim, Jerry Hannay, Sondra Miller, and a very special thank you to Karen Carstens, for her years dedicated to the District. Happy Retirement, Karen!
Credentials Team: Darryn Fisher and Mikhaila Nunes
Respectfully submitted,
Dr. Jay A. Herndon
District Secretary-Treasurer