District Secretary-Treasurer
Jay A Herndon
2024 Annual Business Report
As it happens, I am writing this report on Tu B’Shvat, the Festival of Fruits. The Jews celebrate Tu B’Shvat by eating fruit and planting trees. The trees symbolize both Provision and Permanence. It occurs to me that this is synonymous with Increase, our theme for this year’s District Council. True increase is not provision for today’s needs only, it is the establishment of a resource that is permanent and renewable.
“He shall be like a tree planted by the rivers of water, that brings forth its fruit in its season, whose leaf also shall not wither; and whatever he does shall prosper.” Ps. 1:1
This past year has been a year of many miracles, stories of salvation, healing, spiritual growth, provision, and church revitalization. These reports are a stark contrast to the chaos, conflict, and pessimism that characterizes our society. And I am reminded that what we are doing (changing lives, planting churches) is not a temporary exercise, it is permanent. The church is here to stay. It’s time that we celebrate this increase.
Now, on to the report.
Ministerial Roster
Our roster number changed to 1,385 due to a net loss of two. 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) 3 due to transfers—by far the lowest number in more than 5 years! Perhaps we’ve seen an end to the Great Exodus. We also added 68 to the roster, which is a strong number.
I also want to recommend that pastors encourage their top youth to join our CALLED program, which now numbers 68 associates, and to our scholarship opportunities.
The most important factor affecting our credential number is, and always has been, the attitude of the lead pastor—when the pastor preaches about the call and encourages called-people to obtain credentials people tend to follow that lead. It’s not surprising how that works.
Changes to the Minister Roster
Additions
New: 49
Reinstated: 15
Subtractions
Resigned: -14
Deceased: -18
Lapsed: -30
Dismissed: -1
Not Renewed: 0
Transfers: Net Loss: -3
Net Change to Roster: -1
Final Roster: 1,385
Resulting Change to Roster: -2
Finance
Our Ministerial Tithe contributions totaled $2,373,799. which was $32,934 (1.4%) more than the prior year. Our One Fund contributions totaled $631,191. which was $9,971 (1.6%) more than the prior year.
We held expenses to budget in almost every area and our management reports show that General Administration ended “in the black” with $6,446, and all Operations with $9,254. Please see the charts at the end of this report.
Last District Council, I voiced an alert, “We are going to face a financial crisis in the future.” The issue we faced was not mismanagement or unexpected emergency. The issue is that our income (from tithes and church contributions) has not kept pace with inflation and cost increases, by a wide margin. In the past 25 years, cost of living has increased by over 100%, but our tithe income has increased by only 19%, and our church giving has increased by only 15%.
Furthermore, we are spending more money than ever on assisting and rescuing troubled churches and on benevolence for hurting ministers.
The root cause of our situation is lack of participation—nearly half of our churches don’t contribute to the One Fund.
I asked the members to pray and ponder the question, “what kind of district do we want to be?” I suggested that we remember the importance of our mission, and that we intentionally cultivate a culture of generosity.
I announced that a special Finance Committee would be hosting discussions related to proposals that we anticipated would be up for a vote at the 2025 council.
However, the committee concluded that we don’t need to change our revenue models. What we need to do is to work the tools we already have. Especially as related to church participation in the One Fund.
That course of action makes great sense for two reasons,
1) District bylaws already prescribe church giving at 1% level. (But we haven’t had great participation.)
2) The potential revenue from churches is far greater than the potential revenue from minister’s tithes. (Churches have more money than ministers!)
Consequently, we’ve turned our attention to church participation in the One Fund. We’ve been reminding our pastors that district bylaws (and many church bylaws) request that churches contribute 1% of their general tithe to support district ministries (we call it the One Fund.)
These funds no only support our departmental ministries, but it also supports Church Planting, Church Revitalization, Minister Coaching, Benevolence, Church Board Training, and more.
The response to our initial appeals has been positive. The number of churches contributing to the One Fund in 2024 increased by 4%. And the number of churches making full 1% pledges for 2025 has increased by 850%.
Theoretically, if every affiliated church contributed 1%, we’d be able to reduce our ministerial contribution by as much as $100/month!
Endowment
Our endowments now total over $5,649,163 in eight endowments! The increase of $533,791 is mostly due to a estate gift that was received (designated for endowments.) Earnings of $233,399 were distributed for various ministries and needs.
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):
BGMC (Children) = $3,014.20.
Speed the Light (Youth) = $44,282.63
Women’s Ministries = $148,221.52.
Light for the Lost (Men) = $16,284.30.
Total: $211,802.65
NCN Regional Connections
Church Statistics: 439
We added 12 new churches, but “closed” 20, for a net loss of 8. “Closed” is not necessarily descriptive.
Of the closed churches:
· Five PACs were closed by their parent church.
· Four “re-opened” as a new church.
· Four merged with another AG church.
· One withdrew.
In all these instances, the church “continued” but in a new form. Nevertheless, we list them as closed.
District Council
Minister’s Retreat - Monterey 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 2024 we assisted 15 future ministers a total of $7,600.
Bethany Legacy Scholarship
The Bethany Legacy Scholarship Endowment is now $656,628.32. In 2024, we awarded $10,131.29 to seven AG students enrolling full-time at AG colleges. Gina Bielch, Emma Cartwright, Ella Couch, Max Couch, Chaz Noonan, Abigail Schlipp and Micah Woodard.
Memoriam and Minister's Memorial Fund:
17 ministers and 6 spouses passed away in 2024.
Credentialed Ministers:
Henry H. Chan, Buckley D. Dikes, James (Jimmy) R. Firzlaff, Eumid N. Freeman, Alvin Hartman, Vaifale Ilasa, Johnny Mays, Larry Krake, Francis Myatt, William J. Oehler, Archie Phelps, Charles Slater, Lydia Solia, Tottie (Tim) Taito, Rodney Waters, Eugene (Dawson) Wheeler, David Yoder.
Credentialed Minister’s Spouses:
Judi Denney, Joyce Farley, Charlotte Ann Matlock, Judith Ann Mayton, Jerry Pack, Gail Wilson.
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 29th 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
I need to notify the members about one personal accomplishment this year: I passed the California State Bar Exam! First (and only) attempt! I am now a licensed attorney. (And my only client is the District!)
I want to acknowledge God’s help in this endeavor, and also the tremendous help of my fellow officers, staff, and my wife, who had to pick up extra duties while I was occupied.
This year marks 20 years of service as the District Secretary-Treasurer. It is one of the great privileges of my life to serve this district, and along side Superintendent Allen and Assistant Superintendent Huddleston.
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
