Report of the General Assembly Council

To the 167th General Assembly of the Cumberland Presbyterian Church in session in Louisville, Kentucky, June 16-20, 1997.

The General Assembly Council (GAC) under the direction of its officers, President Herbert Carlock, First Vice President Judi Truitt, Second Vice President Jill Carr, Secretary Jamie Lively, and Treasurer Davis Gray, Jr., met three times since the 166th General Assembly: August 9-10, 1996; January 18-20, 1997; and April 18-19, 1997.

The following members were elected for three year terms and are eligible for re-election: Wesley D. Brantley, Jr., Evelyn Brodeur; Jill Carr, and Major Snow. Iva McCutchen has served three years and is not eligible for re-election. Susie Wong has served four years and has asked not to be elected to another term.

The president of GAC, the Rev. Herbert Carlock, will act as representative of the Council and Davis Gray, Jr., will attend as the executive director.

The 165th General Assembly directed the General Assembly Council to report to future General Assemblies the Task Force Report creating the General Assembly Council in 1993, or the essence of that report in summary. The following is the purpose statement from the Bylaws which include nine responsibilities.

Article LB. The purpose of the General Assembly Council shall be:

1. To identify the Cumberland Presbyterian Church's vision for ministry and to help its General assembly boards and other agencies, synods, presbyteries, and congregations develop an understanding of their particular roles in the implementation of this ministry;
2. To be the primary long and short range planning agency for the Church, striving to assure that all segments will be working on a common mission and that duplications and gaps in the Church's ministry will be minimized;
3. To promote the effective distribution of human and material resources in order that the various facets of the Church's ministry be carried out in an effective and efficient manner;
4. To provide and/or insure that the General Assembly has all relevant information concerning programs, budgets, and the general work of the church in order that the General Assembly may make wise and informed decisions;
5. To unify the planning, programming/implementing, and budgeting of all General Assembly boards and other agencies for the purpose of achieving an integrated, coordinated, and prioritized Church program and to submit all such budgets to the General Assembly for approval;
6. To review the reports and coordinate the recommendations of all General Assembly boards and other agencies and to advise the General Assembly concerning such reports and recommendations in light of the Church's prioritized program;
7. To be responsible for Our United Outreach by planning and recommending Our United Outreach income, and distributing Our United Outreach in accordance with actions and budgets of the General Assembly;
8. To have authority in management of Church Center property.
9. To participate through an active consultative role with General Assembly boards in the process of employing principal executive officers who serve on the General Assembly Council.

For the past two years the General Assembly Council has been gathering information from across the church at all judicatory levels and from congregations. The Council appointed a Funding Task Force to evaluate options to achieve a broader financial base to achieve stronger financial stability for congregational, presbyterial, and denominational ministries.

The Council's strategy for the past two years has been

1. to refine the process for short range planning, but place primary emphasis on long range planning.
2. to identify and recommend a vision of ministry with priority goals for the first decade of the 21st century. 3. to identify and recommend foundational stewardship ministries to achieve better financial stability in all parts of the church.

1. Refine the process for short range planning, but place primary emphasis on long range planning. The GAC's Coordinating Committee, comprised of all board/agency executives, is to:

a. Determine a common format for boards and agencies to report programs, cost, and priorities. This is scheduled for review by the Council in its August 9-10, 1997, meeting.

b. Develop a cooperative effort to provide support to presbyteries and congregations over an extended period of time. The Coordinating Committee is developing an approach for beginning this service. The initial concept is to select two presbyteries and concentrate staff (from all boards and agencies) to support in revitalization over an extended period of time to determine the effectiveness of this approach. This effort is in response to information provided from the Forum of the 1995 General Assembly on needs of presbyteries and congregations, and the goal adopted by the 1996 General Assembly on congregational revitalization.

c. Identify programs/services/ministries required to support the priority goals being proposed for the first decade of the 21st century; coordinate board/agency efforts in implementation; help presbyteries and congregations identify their roles in achieving these goals.

2. Identify and recommend a vision of ministry with priority goals for the first decade of the 21st century (2000-2009).

The 165th General Assembly adopted a Vision of Ministry with goals and objectives as presented by the General Assembly Council. These have provided a framework for existing denominational programs to operate and function. However, as we prepare for and move to the first decade of the 21st century, the Council has identified a new Vision of Ministry and Priority Goals. The intent of a long range, but bounded time frame, is to focus the church's planning for the next two years on this vision and the three goals to maximize our limited resources for the first decade. We intend this to involve congregations, presbyteries and denominational boards and agencies. The following is presented to the 167th General Assembly for your consideration.

VISION OF MINISTRY

Biblically-based and Christ-centered,
     born out of a specific sense of mission,
     the Cumberland Presbyterian Church strives
           to be true to its heritage:
           to be open to God's reforming spirit,
          to work cooperatively with the larger Body of Christ,
          and to nurture the connectional bonds that make us one.
The Cumberland Presbyterian Church seeks
     to be the hands and feet of Christ in witness
          and service to the world.
Above all, the Cumberland Presbyterian Church
          lives out the love of God
               to the glory of Jesus Christ.

RECOMMENDATION 1: That the 167th General Assembly adopt the proposed Vision of Ministry for the Cumberland Presbyterian Church for the first decade of the 21st Century (2000-2009).

PRIORITY GOALS

Based on information gleaned from the Forum at the 165th General Assembly, the FutureTrends Survey completed in January 1997, reports from the Funding Task Force, and reports from a few Presbyterial Forums, the General Assembly Council presents these Priority Goals to the 167th General Assembly for consideration.

Goal: Revitalize and equip congregations and presbyteries to fulfill the mission (vision) of the church.

Rationale: The General Assembly Forum revealed a concern about the role, or lack of role, laypersons often play in their presbyteries. "How do laity fit into presbytery? Ministers run presbytery!" many participants commented. Those presbyteries which held follow-up forums found that the laity responded enthusiastically to the free and open discussion format. Laypersons often suggested that forums be held more often. If the church's presbyteries are to be revitalized, laity must be prepared for the decision-making process and the process must be open to them. Congregations can play an important part in educating the church about the responsibility of elders as decision-makers at all judicatory bodies.

A major area of revitalization (from the Forum and the FutureTrends Survey) is worship. Styles of worship, times of worship, and types of music were listed as concerns. Congregations will need to re-think worship-as-usual, especially since, as reported in the survey, seven of ten laity and five of ten leaders were not reared in a Cumberland Presbyterian tradition. This also raises the issue of increased teaching in a host of areas: Cumberland Presbyterian history; Presbyterianism; connectionalism; the Confession of Faith, and others.

There are a number of other points from the Forum and FutureTrends Survey which will provide input as congregations and presbyteries plan for equipping themselves to fulfill the mission (vision) of the Church. Denominational boards/agencies will need to be sensitive to ensure their programs and services will support these revitalizing and equipping efforts.

Goal: Establish new congregations.

Rationale: Someone has said that the Christian church in the U.S.A. has come full circle: the mission field is just outside the front door of the church. The 166th General Assembly instructed the Board of Missions to develop a plan to start a new church in each presbytery by the year 2000. A summary of this report was shared with the General Assembly Council by the executive of the Board of Missions. In his analysis of the FutureTrends Survey, Dr. Reginald Bibby concludes, "There is considerable support for the establishment of new churches, with a strong preference for these churches being created in the United States, versus elsewhere." Based on these observations, our Church's specific sense of mission, and to be true to our heritage, the General Assembly Council places new church development as a Priority Goal. This will require much planning and coordination in all parts of our church. We will need: organizing pastors and laity; funding for startup; land and buildings; education for clergy and laity; a choice of easily-understood models for new church development; educational materials for church schools, elders of new churches, members of new churches, etc. We will need all ofthe expertise of staffs from our denominational boards/agencies in this effort.

Goal: Recruit, educate and nurture clergy and laity for their specific ministries.

Rationale: Leadership education in our church will need much discussion at all levels (sessions, presbyteries, denomination). The FutureTrends survey points out that seven in ten laity, and five in ten leaders within our denomination do not have a Cumberland Presbyterian background. Add to that the approximately 550 churches with fewer than one hundred members and approximately 230 churches with one hundred or more members. These realities imply a need both for diverse types of leadership and a common body of knowledge and skill. Education for leaders (both lay and clergy) for new church development will need to be provided for those called to this ministry. This will require a cooperative effort from all boards and agencies of the church. Churches will need to be more intentional in their efforts to witness to God's call of persons to ministry. Presbyteries will need to become more sensitive to their role of nurture and guidance to persons under their care. Our emphasis must be to empower individuals to carry out their call to ministry.

RECOMMENDATION 2: That the 167th General Assembly adopt the proposed three Priority Goals for the Cumberland Presbyterian Church for the first decade of the 21st Century (2000-2009).

3. Identify and recommend foundational stewardship ministries to achieve better financial stability in all parts of the church.

a. Planned Giving

In April 1995, the General Assembly Council appointed a Funding Task Force to study current giving sources and identify other sources for funding churchwide programs. Members of this task force were: Cromer Smotherman, chair; Elinor Brown, vice chair; Nolan Allen, Margaret McCarty, Joe Matlock, Don Wilson, Larry Dailey, and Davis Gray, Jr., executive director of the General Assembly Council.

The Funding Task Force recommended to the General Assembly Council the creation of a Planned Giving position and the Council referred this to its Coordinating Committee to determine how to provide funding and implementation.

Rationale: Nationally, over the next decade, from three to ten trillion dollars in assets will be transferred from one generation to another. The recipients of those dollars are less inclined to philanthropic and stewardship endeavors and less inclined to volunteer services. Once transferred, competition for those dollars in the possession of persons whose giving is less liberal, even with discretionary funds, will be greater than ever. Someone whose responsibility it is to communicate, promote and implement planned giving opportunities within the Cumberland Presbyterian Church would be a wise investment for the Church. It would likely pay dividends immediately thus the use of the term planned giving rather than deferred giving.

In the FutureTrends survey analysis, Dr. Reginald Bibby states, ...the survey has documented widespread receptivity to planned giving programs, but an alarming level of unawareness of their nature and range. This also has to change quickly. Planned giving programs represent a very significant potential source of revenue for the Church, but they need to be given extremely high priority, and pursued with urgency. As most religious groups increasingly realize, the reason for 'the hurry' lies in the advancing ages of many of today's most loyal and committed members. For the Cumberland Presbyterian Church and others, such people represent an invaluable and irretrievable financial resource.

Based on the report from the Funding Task Force and the FutureTrends Survey, the Coordinating Committee of the General Assembly Council has put forth a cooperative venture with presbyteries to employ three regional, part-time employees to promote and assist Cumberland Presbyterians with Planned Giving opportunities in congregations, presbyteries, and denomination. The General Assembly Council has proposed a line item in the 1998 Our United Outreach (OUO) budget to fund one half the cost for three part-time positions, with the presbyteries in those proposed regions funding the other half. If the 167th General Assembly approves the OUO budget, then presbyteries will be contacted and the program concept explained. They will be asked for their participation not only in funding, but defining job responsibility, interviewing and selection of persons for the planned giving positions. These persons would live in the regions they support. The following is an example of a possible approach. This would be finalized with presbytery input from each region. The intent is to begin these positions July 1, 1998.

The following ideas are presented simply as examples of what might be involved in approaching development staffing in terms of three part-time laypersons in three separate locations, rather than one central person:

EMPOWERING THE LAITY

We often invest considerable zest in the phrase empowering the laity but our opportunities for service in the church for laypersons often make the same demand on them that we make on ministers, i. e. that they enter full-time work. The work we then offer is such that the compensation requires an inordinate sacrifice on the part of laypersons considering such positions. If we are beginning to recognize the need for tent-maker positions in ministry to provide ministerial services, can we not also recognize the potential in tent-maker positions of service for the laity?

Three tent-maker development/planned giving positions would provide three opportunities for laypersons in our church to devote a portion of their energies in service to the church without having to forsake their full-time employment, its compensation/benefits, and opportunities for advancement.

SAVINGS IN TRAVEL TIME

While three persons committed to an average of 8 to 10 hours per week would not equal a 40 hour per week position, the three locations should mean that there would be less time invested in travel and more time invested in actual contacts and presentations, e.g. such persons might make luncheon presentations to third-age groups in area congregations with only minimal disruption of their schedules.

OTHER EXPENSES

There should be quarterly meetings of such persons with other development staff in the church. There would need to be funds for any necessary training and continuing education. Such persons might attend the triennial conference of the Council on Gift Annuities and/or the biennial North American Conference on Christian Philanthropy. Savings in the areas of office space and benefits would provide some of the funds needed.

PARTICIPATION OF THE LARGER CHURCH

A plus of the three locations is that such staff could more readily be viewed as serving their areas/presbyteries. In fact, the selection process would involve representatives of the presbyteries to be served, creating an initial sense of ownership and providing the beginning of contacts in the area to be served. Three persons could more likely make the presbytery meetings and/or presbyterial board meetings in their areas. The experience of Cumberland Presbytery with its four one-quarter-time staff positions has been expressed by some as providing four one-half-time positions in terms of the work actually done.

POSSIBLE LOCATIONS

The possible locations given below are just examples of three places in which such persons might be located. A major consideration in terms of the three suggested locations, other than travel times and airline availability, is that there should be a person meeting our needs among their current membership.

b. Investment Loan Fund Program

The General Assembly Council reported to the 166th General Assembly that its Funding Task Force was doing research into this type of program. In the fall of 1996, the Funding Task Force asked the executive secretary of the Board of Stewardship, Foundation, and Benefits to assist in evaluating this program as to how it may operate within existing structures and within existing computer applications. The evaluation was very positive and the General Assembly Council submits the following document for the 167th General Assembly's consideration.

Investment Loan Program:
An Analysis and Recommendation
Table of Contents

Introduction
Stewardship Rationale
Executive Summary
    This brief summary covers the highlights of the program.
Organization Summary
    A brief description of proposed organization and how it could function. (501(c) 3 Subsidiary)
Market Analysis
Population statistics and target %
Needs Analysis and Projections
A description of projections over the next ten years.
Current availability of funds
Offerings and Service Analysis
    A description of products and services to be offered.
Strategic Plan
    A brief description of how the program would be implemented.
Financial Analysis

INTRODUCTION
In the fall of 1995 the Funding Task Force began to explore options for increasing available capital for New Church Development and existing church expansion. We learned that seven other denominations were either currently using or planned to use an Investment Loan Corporation to raise and loan funds. All of these are chartered as 501(c) 3 non-profit corporations. We have consulted with three of these denominations and gathered information about their programs. We have evaluated our situation to determine how best this type program could fit our needs and into existing organization structure.
    The following plan is not a legal document nor exhaustive, but includes adequate information for the reader to understand the program and its operations.
    The plan is for discussion and decision by the General Assembly.

STEWARDSHIP RATIONALE
As a denomination of smaller churches with a history of being predominately rural, the Cumberland Presbyterian Church has always looked toward the community model of a small town. The idea of community has meant that we know, appreciate and utilize the example of the Apostle Paul to work with one another united in a call to minister to "whosoever will" come to Christ. Just as Paul called the members of Corinth to come together working as one body with each part having a unique and gifted talent, we too as Cumberland Presbyterians have called our churches and members to work together. (See 1 Corinthians 12:12-31) Our United Outreach is a prime example with the statement "Doing together what we cannot do alone."

So too, this Investment Loan Program offers Cumberland Presbyterians the opportunity to do the mission of the Cumberland Presbyterian Church to further the kingdom of God here on earth. It offers both an opportunity to invest funds wisely and to build new churches as well as strengthening established ones. Building new churches gives us as individuals a chance to answer Jesus' call to "Go therefore and make disciples of all nations    " (see Matthew 28: 19)

As the Master in the parable of the talents in Matthew calls the servants to boldly invest his money for the future, God calls us to invest in the future in a bold, new way. (See Matthew 25:14-30) Through this Investment Loan Program, Cumberland Presbyterians are enabled as individuals, churches and presbyteries to invest wisely in the future of the Cumberland Presbyterian Church. As we come together as stewards of all God has given us, we can better answer God's call to minister to the world in better and more creative ways.

EXECUTIVE SUMMARY
The business entity which will operate the Investment Loan Program will be a subsidiary corporation of the Board of Stewardship, Foundation and Benefits of the Cumberland Presbyterian Church.

The mission/purpose of this program is to provide below market loans for capital needs to the church from funds invested at competitive rates. Participants in the program will be individual members, congregations, presbyteries and boards/agencies of the Cumberland Presbyterian Church.

This Program is being proposed to increase substantially the amount of capital available for loans within the Cumberland Presbyterian Church. The Funding Task Force survey identifies capital needs over the next ten years of from $57 million to $97 million for existing churches. The 166th General Assembly directed the Board of Missions to pull together a consolidated plan to establish a new church in every presbytery by year 2000 and present the plan to the 167th General Assembly. Our estimate of capital required for 20 new churches would be from $12 million to $15 million for a first building unit.

On the basis of other denominations experience we think that $50,000,000 or more may be invested over time. The motivation for investors is Mission and the strengthening of our church in response to God's call-even though the return on investment will be less than could be realized with a pure dollar return motivation. This allows the investor to be personally involved in expanding mission in the Cumberland Presbyterian Church.

From an operational and records standpoint the Investment Loan Program would be very similar to our Cash Funds Management Program and the Church Loan Phase of our Endowment Program. We would need to provide form 1099's for individual investors but since we already have programs requiring form 1099's this would only cause an increase in volume. We would also have some state reporting, and that would vary by each state's regulation. We can reach 87% of our stateside active members by registering our offering in just six states.

The objective of this program would be to provide one place to obtain total funds for church renovation and expansion. The intent would be not to place a cap on loans as long as the church can qualify and the presbytery guarantees the loan. This will simplify the process for churches and presbyteries. The program will continue to require a first mortgage on property and be limited to 80% of the approved value of the collateral.

A second objective would be to free up endowment funds, currently used for church loans, to be invested at higher rates of return and corpus growth. We currently have $6.8 million of endowment funds invested in church loans. By freeing these funds, over time we would expect this to significantly increase the endowments through greater earnings. This will also translate into more income to boards/agencies of the church over time.

The Investment Loan Program will payout to its investors an amount equal to or greater than the average CD rate of - banks in - area. Funds will be loaned out to churches and presbyteries based on a two point spread from the CD rate. One percent of the spread will be used to support the Program operation with the other one percent used to build a reserve.

The offerings for investment by the Investment Loan Program would be on demand, three year, and five year products. The on demand would draw interest based on the average CD rate of - banks in - area. The three and five year accounts would draw a rate of interest above the on demand accounts for their term. This may be one half percent for the three year term and one percent for the five year term. The loan rate would be based on the highest interest rate paid.


ORGANIZATION SUMMARY
The Investment Loan Program will be managed by a subsidiary corporation of the Board of Stewardship, Foundation and Benefits which is a 50l(c) 3 corporation of the Cumberland Presbyterian Church. The Board of Directors of the subsidiary corporation will be the Executive Committee of the Board of Stewardship, Foundation and Benefits. The reason for a subsidiary is to provide a buffer to protect other funds invested by the Board.

The day to day operation of setting up accounts, deposit of funds, reporting, and investing will be integrated into the current staffs. This will allow for minimum expense up front. As the fund grows, additional staffing may be required but will be paid from one percent of the two percent spread between rates paid to investors and rates loaned to borrowers.

This approach will also not require another denominational entity but will utilize the expertise of people already involved with investments and church loans.


MARKET ANALYSIS
Historically and currently most churches obtain their loans from commercial banks because building cost normally requires in excess of our loan limit. The banking industry is going through major changes because of technology, legal, and population shifts. When congress passed legislation to allow banks to have branches across state boundaries the focus shifted from local to state/regional/national and global. Technology provided the tools for just-in-time service but loan services and approval became more complex and removed when consolidation of services was relocated to regional or national offices. The trend toward mega banking will lessen the banks interest in financing church buildings. There will continue to be some local banks interested in community service but it is not clear how they will manage to compete.

Historically, our church has provided funding by authorizing the Board of Stewardship, Foundation and Benefits to loan endowments to existing Churches (currently a cap of $300,000) and New Church Development (without a cap). Based on the formula of using up to 40% of endowments for church loans we could loan approximately $11.8 million. We currently have $6.8 million loaned, which leaves approximately $5 million available. However, large loans (over $300,000) at present are borrowed from commercial banks. With the cost of property and buildings, new churches and existing church expansion will most likely cost over $500,000 per loan.

From the Funding Task Force Survey the identified need for capital over the next ten years, from 200 respondents, is within a range from $57 million to $97 million. We do not know if these are net figures. Most churches raise from ten to twenty percent and some even more of the amount needed. We are attempting to quantify these figures by sending a request to churches for further information for inclusion in their annual report. Based on the 166th General Assembly action, requesting a consolidated plan from the Board of Missions to begin a New Church Development within all presbyteries by year 2000, it would require starting 19 stateside and 4 overseas churches (not including Liberia). This would require an estimated capital outlay of between $12 million and $15 million for land and a first unit. If we add these cost estimates to the needs from the survey, we have $63 million to $112 million. If we say twenty percent will be raised prior to construction we would have a net borrowing need of between $50.4 million and $89.6 million. If these numbers are only 50% accurate this would require between $25.2 million to $44.8 million. This does not include existing church loans from commercial banks which could be converted.

Potential investors will be individual church members, churches, presbyteries, synods, and boards/agencies of the Cumberland Presbyterian Church. The 1995 yearbook lists stateside active membership as 47,215 in seventeen states. There are nineteen presbyteries and 716 churches stateside. A number of our churches and presbyteries currently have funds invested in the Cash Funds Management Program. This Program currently has approximately $10 million invested. It is estimated that as much as eighty percent of the Cash Funds Management Program could possibly be converted to the Investment Loan Program. We believe this type fund will be attractive to investors because all of the money stays within and supports the Cumberland Presbyterian Church community.

Membership Statistics	Active Members	% Total
Tennessee	21,535	45.6
Western   California, Arizona, New Mexico, Texas, Oklahoma	8,580	18.2
Kentucky	6,773	14.3
Gulf South   Mississippi, Florida, Alabama, Georgia	5,526	11.7
Arkansas	2,309	4.9
North Central   Illinois, Indiana, Iowa, Michigan	1,723	3.6
Missouri	769	1.6
Total	47,215

OFFERINGS AND SERVICES
The Investment Loan Program will initially offer three products-funds on demand, three year term, and five year term. The on demand investment would draw interest based on the average CD rate of ­banks in area. The three and five year investments would draw a rate above the on demand rate for their term. This may be one half percent for the three year term and one percent for the five year term. The loan rate would be based in relation to the highest interest rate paid.

The minimum investment for each offering will be $1,000. It is hoped that the average investment by individuals would be $5,000.

The earnings and the loan rates formulas will be set by the Board of Directors of the Investment Loan Program subsidiary corporation of the Board of Stewardship, Foundation and Benefits of the Cumberland Presbyterian Church.

Loans would be available upon acceptable application from churches, presbyteries, or synods. In the case of churches, presbyteries would be co-signers.

These loans will be attractive to borrowers because

• Lending rates below market rates of commercial banks
• Capacity to provide total loan amount for projects
• Availability of funds to churches without a track record.
• All the interest paid stays within the Cumberland Presbyterian Church community and supports all elements of the church.

The spread between the rate paid investors and the rate loaned to borrowers will be used for operation of the Program and to build an adequate reserve.


STRATEGIC PLAN
The Investment Loan Program will be a church wide program. However it will be implemented sequentially across the church by state. We must file in each state in order to offer the proposed products. In order to reach the largest number in our church we will file and offer products in Tennessee first. By filing in Tennessee we can offer the products to 45.6% of our active members. This also allows us to market and present our products by initially holding regional meetings then expanding to presbyteries and local church groupings. This first offering could take up to two years to present and market using existing staff.

We would then move to the other five states to obtain the 87.6% of active members.

The following chart shows the probable sequence of implementation.

State	Active Members	Securities complaince by category
Tennessee	21,535	Requires securities registration	No problems anticipated
Kentucky	6,773	No filing required	Can offer when circular available
Texas	5,095	No filing required	Can offer when circular available
New Mexico	1,454	No filing required	Can offer when circular available
Alabama	4,215	Requires securities registration	No problems anticipated
Arkansas	2,309	Requires securities registration	No problems anticipated
Total	41,381

We would plan to have the offering circular completed by January 1998 if the 1997 General Assembly approves. This would allow us to begin marketing prior to the 1998 General Assembly.


PROJECTION ANALYSIS
Assumptions

• Twenty percent of active membership participation in the program is estimated.
• The average investment for participants is estimated at $5,000.
• The initial implementation of the program will be in Tennessee then Kentucky, Texas, and Alabama.
• Eighty percent of churches and presbyteries will convert from Cash Funds Management to the Investment Loan Program. This would put approximately $8 million in the Program.

Participation Projections

State	Active Members	20% Participating
Tennessee	21,535	4,307
Kentucky	6,773	1,355
Texas	5,095	1,454
Alabama	4,215	843
Total	37,618	7,524

Implementation Projections
20% Phased Over Five Years by State

	Tennessee		Kentucky		Texas		Alabama
Year	%	# participants	%	# participants	%	# participants	%	# participants	Total
1	10	430							430
2	15	645							645
3	25	1075	10	135					1210
4	25	1075	15	203	10	102			1380
5	25	1075	25	338	15	153	10	84	1650
Total	100	4300	50	676	25	255	10	84	5315

Projected Investment Dollars

Year	Total Projected Participants	Annual Investment(1)	Cash Funds Management Conversion Projection(2)	Accumulative Investment(3)
1	430	$2,150,000	$800,000	$2,950,000
2	645	3,225,000	1,200,000	7,375,000
3	1210	6,050,000	2,000,000	15,425,000
4	1380	6,900,000	2,000,000	24,325,000
5	1650	8,250,000	2,000,000	34,575,000
Total	5315	$26,575,000	$8,000,000	$34,575,000

(1) Annual Investment is calculated at an average of $5,000 per investor.
(2) Cash Funds Management is projected to be 80% of the fund, approximately $8,000,000. The conversion projection calculation uses 10% the first year, 15% the second year and 25% each of the remaining three Sears.
(3)The accumulative column is Annual Investment plus Cash Funds conversion by year. We anticipate a withdrawal factor of 10% in any year.
(4) With one percent of the interest earned going toward a reserve, the value of the reserve would be approximately $846,500 in five years.

RECOMMENDATION 3: That the 167th General Assembly approve the Investment Loan Program for implementation in the Cumberland Presbyterian Church as outlined in the Investment Loan Program analysis above and authorize the Board of Stewardship, Foundation & Benefits to seek a charter and take other necessary actions to implement the program.

c. FutureTrends Survey

The FutureTrends Survey was completed in January 1997 and has been distributed to all congregations. Plans are to distribute the Survey to presbyterial and denominational boards and agencies. This is the most extensive professional survey every done within the Cumberland Presbyterian Church. The return rates by each category except candidates and licentiates are large enough to allow generalizations to be made to active members and ministers respectively with a high level of accuracy. The General Assembly Council believes these analyses and Dr. Reginal Bibby's conclusions can be extremely helpful to all judicatories as they plan for the 21st Century.

We believe Dr. Bibby's Final Note is important for us to consider and is one reason the General Assembly Council is recommending we concentrate our resources in the first decade of the 21st Century on three Priority Goals:

The relatively fixed size and fixed financial resources of the Cumberland Presbyterian Church means that it will face limitations as it attempts to minister. There's no reason, however, why the Church cannot be known for traits like excellence and integrity. Perhaps the CPC cannot do as many things as larger groups, but there is no reason why it cannot be known as a denomination that does fewer things extremely well. There unquestionably is a place on the American landscape for such a Church.

The complete FutureTrends survey was provided for all commissioners with some copies available at General Assembly through the Stated Clerk's office.

III. ACTION ON REFERRALS

A. The 164th General Assembly referred Recommendation 2 of the Moderator's Report to the General Assembly Council (p. 24, GA Minutes). This recommendation asks for a study of the role and shape of the General Assembly, with special consideration of the frequency of meetings. The General Assembly Council referred this to its Coordinating Committee. The General Assembly Council adopted their recommendation that a meeting of the General Assembly every other year would not be a viable option.

B. The 166th General Assembly referred Recommendations 2-13 of the Moderator's report to the General Assembly Council (pp. 25-26, GA Minutes) for consideration and review. The General Assembly Council has reviewed recommendations 2-13 and will take them into consideration as we review and coordinate activities of Boards/Agencies involved in revitalization of congregations.

C. The 166th General Assembly referred Recommendation 21 (pp. 327, GA Minutes) to the General Assembly Council. This recommendation was in connection with the Commission on the Ministry's report (pp. 134-137, GA Minutes) about establishing a Church Leader Institute. The General Assembly Council referred this to its Coordinating Committee which, after discussion with Bethel College referred this back to the Commission,on the Ministry and Bethel College with instructions to consider Recommendation 19 (p. 327, Minutes), then re-submit to the Council.

D. The 166th General Assembly referred Recommendation 20 (pp. 323, GA Minutes) to the General Assembly Council. This recommendation called for the creation of a Technology Committee to investigate how technology may best be used by boards/agencies and to share that information with the church. The General Assembly Council appointed Sarah Barron, Jamie Lively, and Judi Truitt (members of the Council) to serve on the Technology Committee.


IV. ACTIONS TO ASSIST BETHEL COLLEGE

The General Assembly Council has taken the following actions in support of Bethel College:

• The General Assembly Council, acting for the General Assembly under II.B.2.c. of the bylaws, adopted a resolution enabling the loan to Bethel College which was approved by the General Assembly at its June 1996 meeting.
  
• The General Assembly Council, acting for the General Assembly under II.B.2.c. of the bylaws, guarantees OUO funds in the amount of $306,685 for as long as necessary, up to but not exceeding 20 years, to complete repayment of any loan arrangement by the Board of Stewardship, Foundation, and Benefits in compliance with the action of the called meeting of the 166th General Assembly in April 1997.

These actions were necessary to fulfill previous actions taken by the General Assembly.


V. BOARD AND AGENCY PROGRAMS FOR 1998

The General Assembly Council has reviewed plans for the following programs of boards and agencies and submits these to the 167th General Assembly in support of the proposed Our United Outreach allocation to boards and agencies. The General Assembly Council has ranked all programs by priority and provided the rankings to boards and agencies to consider as they implement programs in 1998.

BOARD OF CHRISTIAN EDUCATION
Curriculum Development Interpretation/Promotion: Curriculum development/interpretation/promotion focuses on designing curriculum, producing curriculum resources and interpreting/promoting those where careful attention is given to: the biblical and theological perspectives; the educational approach; the scope and sequence of content to ensure age appropriateness and consistency with Cumberland Presbyterian beliefs. These high-quality curriculum resources: reflect and enrich our theology as a presbyterian and reformed church; enhance our worship; and enable all persons to grow in knowledge, faith, and in their relationship with God, Jesus Christ, the Holy Spirit, church, others, and all God's creation.

Leadership Development/Support: In this program, staff initiates, implements planning, and creates activities and resources for leader development, support, and spiritual renewal of church leaders - laity (teachers, elders, deacons, worship planners, etc.), professional church educators (including pastors), members of presbytery and synod Christian education agencies, and volunteer Christian education consultants.

Children's Ministry: This program is to enable and support those activities specifically designed to address the needs, joys and concerns of children. Children's ministry is also addressed in other program areas such as curriculum development and leader development, but these activities are specific to this age group.

Youth Ministry: This program is to enable and support those activities specifically designed to address the needs, joys and concerns of youth. The Youth Ministry Planning Council composed of young people from the Cumberland Presbyterian Church and the Cumberland Presbyterian Church in America is the group responsible for making plans in this ministry area. Youth ministry is also addressed more broadly in activities of other programs.

Adult/Family Ministry: This program is to enable and support those activities specifically designed to address the needs, joys and concerns of adults and families. Both adult and family ministries are addressed more broadly in activities of other programs.

Cumberland Presbyterian Resource Center: CPRC provides a location for walk-in, telephone, FAX, and mail orders; consultant services; distribution of curriculum resources; and church furnishings and supplies.

COMMISSION ON THE MINISTRY
Pastoral Care: To provide pastoral care for clergy/clergy families.

CUMBERLAND PRESBYTERIAN CHILDREN'S HOME
Development Program: Build mutual service relationships with supporters to ensure resources for services
needed.

Residential Child Care: Provide basic care for up to 32 children who need out of home placement. Support Services: Provide counseling, health, post-high school, and family support services for residents and alumni.

HISTORICAL FOUNDATION
Acquire and Preserve Church History, Cumberland Presbyterian Church and Cumberland Presbyterian Church in America: This program provides a service oriented depository and research center to house valuable records so that the collected Cumberland Presbyterian witness can be permanently preserved to benefit future generations of our own denomination as well as the Christian Church as a whole. It also provides a learning center where clergy and laity further their knowledge of our denomination as well as a research center to all people who seek information related to Cumberland Presbyterian Churches.

Promote Historical Awareness and Appreciation: To increase awareness among Cumberland Presbyterians and others of our rich heritage and the prominent historical position of the Cumberland Presbyterian Church fostering the growth of appreciation for generations of Cumberland Presbyterian contributions to Christian witness.

Historical Site Administration and Support: To promote the registration, preservation, and denominational awareness of sites important to the history of the mission of the Cumberland Presbyterian Church and to promote research into the history of said sites.

BOARD OF MISSIONS
Evangelism/Missions Services: Serving congregations by enabling them (1) to grow in awareness of the biblical theology and imperatives for evangelism/missions, (2) to identify local, national, and international evangelism/missions frontiers, and (3) to develop and implement effective evangelism/missions strategies and programs.

Humanitarian Service and Justice Ministries: To provide resources and opportunities for Cumberland Presbyterians to feed the hungry, house the poor, clothe the naked, bind the wounded, lift the downtrodden, share talents, and work against all forces that oppress and hold captive individuals and societies.

New Church Development and Church Development Partnership: To extend the gospel in the USA by establishing new congregations and to enable qualifying established congregations to develop an effective growth and evangelism strategy for achieving quantitative and qualitative growth through a commitment to an approved and supervised redevelopment plan.

Special Services: To provide special services for the church-at-Iarge, including some General Assembly boards, agencies, and institutions.

International Missions: To extend the gospel of Jesus Christ and the ministries of the Cumberland Presbyterian Church to people of other cultures and in nations outside the USA, encouraging, initiating, coordinating, and supervising field programs in terms of evangelism, new church development, church development, and other means of Christian witness, induding, when necessary, enlisting, employing, training, and deploying personnel.

Cumberland Presbyterian Women (CPW): Enabling Cumberland Presbyterian women to create opportunities for Christian enrichment, to provide awareness of involvement and service in the mission of Jesus Christ, and to work for the worldwide outreach of the Church.

OFFICE OF THE GENERAL ASSEMBLY
Administration and Support for General Assembly: To provide organizational and administrative support for the General Assembly so that organizational life and mission may be effective.

General Assembly Records and Publications: To record/edit and publish official General Assembly documents.

Commissions and Committees: To fulfill specified functions on behalf of the General Assembly.

Office of the Cumberland Presbyterian: In that we are a one, holy, catholic and apostolic church, the purpose of the Office of The Cumberland Presbyterian shall be to promote the peace, love and unity of all God's children and to faithfully be a witness, by means of open and effective communication through The Cumberland Presbyterian and This Week to the Gospel of Jesus Christ.

BOARD OF STEWARDSHIP, FOUNDATION, AND BENEFITS
Christian Stewardship Education and Promotion: To nurture in all Cumberland Presbyterians a holistic understanding of Christian stewardship under the guidance of and in accordance with the statement on Christian Stewardship in the Confession of Faith for Cumberland Presbyterians (Sections 6:10-14) which begins with the acknowledgment that all of life and creation is a trust from God, to be used for God's glory and service.

Financial Foundation Development and Management: To secure a firm financial undergirding for the ongoing ministry of congregations and the agencies of presbyteries, synods, and the General Assembly as they bear witness to the saving love of God, the grace of our Lord Jesus Christ, and the fellowship and communion of the Holy Spirit.

Employee Benefits Administration and Research: To support the lay and ordained employees of the Cumberland Presbyterian Church as they venture to be faithful under the call of Christ and the church to the daily demands of providing leadership to congregations and church agencies who are the incarnation of the Body of Christ, the family of God at work in the world.

BETHEL COLLEGE
Undergraduate Instruction: Educate those seeking bachelor's degree.
Graduate Instruction: To educate teachers at master's level.
Academic Support: To administer and support undergraduate and graduate programs.
Student Services: To support students in their college activities.
General Administration: Operation of College.
Auxiliary Programs: Provide housing and food for students.
Special Programs: To serve the church and community.

MEMPHIS THEOLOGICAL SEMINARY
Academic Education and training of persons for lay ministry and preparation for ordained pastors Student Nurturing and Care
Faculty Nurturing and Care
Program of Alternate Studies
Community Service
Support for Alumni/ae
Seminary 2000

VI. BUDGET

A. PROPOSED OUR UNITED OUTREACH GOAL

RECOMMENDATION 4: That the 1998 Our United Outreach goal be set at $2,745,000.

RECOMMENDATION 5: That the 1998 Our United Outreach allocation for boards and agencies be as follows:

Board of Christian Education Board of Missions Board of Stewardship, Foundation and Benefits Commission on Ministry The Cumberland Presbyterian General Assembly Office Historical Foundation Commissions & Committees *Bethel College Cumberland Presbyterian Children's Home Memphis Theological Seminary Planned Giving General Assembly Council Total:

$ 246,520 665,135 268,548 75,970 88,208 165,720 51,929 18,915 306,685 76,740 213,262 30,000 125,617 $ 2,333,249

* Guaranteed

Rationale: In prior years the total goal was allocated to boards and agencies on a percentage basis. In the past few years the actual distribution of Our United Outreach receipts was significantly short of the amount allocated. Also, there is an amount received at the end of the year that is not available to the boards and agencies until the beginning of the next year. The General Assembly Council policy is to allocate 85 percent of the goal to boards and agencies for program budgeting. The General Assembly Council has adopted the following rules for distribution of Our United Outreach amounts over or under the proposed allocation to boards and agencies:

• One half of any Our United Outreach amount over that allocated would be distributed proportionately to boards and agencies. Those which have guarantees would not share in overage.
• One half of any Our United Outreach amount over that allocated would be distributed to the Contingency Fund.
• Any deficit of the allocated amount of Our United Outreach would be shared proportionately by boards and agencies not receiving guaranteed funding.

B.OTHER
Because of the implications inherent in the 1996 General Assembly directive (p. 302, GA Minutes) on the use of OUO and also because of the administrative implications of this type of program, the General Assembly Council voted to express its support for recommendations 1 and 2 of the Board of Stewardship, Foundation, and Benefit's report to the 1997 General Assembly. We believe these recommendations provide workable and manageable solutions to the situation of unplanned pregnancies.

C. AUDITS
The General Assembly Council has reviewed audits from the Cumberland Presbyterian Center boards, Memphis Theological Seminary, and Cumberland Presbyterian Children's Home. We reviewed the books and [mancial statements of the Commission on the Ministry. The Historical Foundation and Bethel College audits were not available.

VII. CHURCH CALENDAR 1997-1998

July 1997

5-19 Program of Alternate Studies
7-18 Memphis Theological Seminary, Doctor of Ministry Term
7-25 Memphis Theological Seminary, Summer Term
12-18 Cumberland Presbyterian Youth Conference
30-8/1 Christian Education Consultant Training Event

August 1997

21-22 Memphis Theological Seminary, Fall Registration
25-26 Bethel College, Fall Registration
28 MTS Convocation
31 Quarterly Missions Emphasis
31-9/28 Christian Education Season

September 1997

21 Christian Service Recognition Sunday
21 International Day of Prayer and Action for Human Habitat Quarterly
30 Our United Outreach Report

October 1997

5 World Communion Sunday
12 Church Paper Sunday
14-16 Lecture Week, MTS
26 Native American Sunday
26 Reformation Sunday

November 1997

Any Sunday: Love Loaf Offering
Any Sunday: Commitment Sunday
2 Bethel College Day
6 World Community Day
9 Day of Prayer for People with AIDS and Other Incurable Diseases
9 Stewardship Day
11-14 Christian Education Conference
16 Bible Sunday
23-12/24 Advent
30 Quarterly Missions Emphasis

December 1997

Any Sunday: Gift to the King Offering
25 Christmas Day/Christmastide (through Jan.6)
31 Our United Outreach, year end report

January 1998

5-16 MTS, Doctor of Ministry Term
6 Epiphany
5-6 Bethel College, Spring Semester Registration
13 Bethel College, Convocation
18-25 Week of Prayer for Christian Unity
27 Memphis Theological Seminary, Spring Semester begins

February 1998

1 Denomination Sunday (Feb. 4, 1810)
15-21 Brotherhood/Sisterhood Week
22 Quarterly Missions Emphasis
25 Ash Wednesday/beginning of Lent

March 1998        
    6    World Day of Prayer    
    17-18    Ingram Lectures, MTS    
    31    Our United Outreach Quarterly Report    
April1998            
    5    Palm Sunday    
    6    One Great Hour of Sharing    
    9    Maundy Thursday    
    10    Good Friday    
    12    Easter    
    12    March of Missions begins (through May 31)    
    19-25    National Farm Worker Week    
    26    Seminary Sunday    
May 1998            
    1    May Fellowship Day (Church Women United)    
    3    Bethel College Commencement    
    3-10    Family Week    
    3-10    Planned Gifts Emphasis    
    9    Memphis Theological Seminary Graduation    
    17    Children's Home Sunday    
    17    Rural Life Sunday    
    24    Quarterly Missions Emphasis    
    31    World Missions Day    
    31    Pentecost    
June 1998            
    8-26    Memphis Theological Seminary, Summer Term    
    14    Children's Sunday    
    14-18    CPW Convention, Chattanooga, TN    
    14-19    General Assembly, Chattanooga, TN    
    21    Our United Outreach Quarterly Report