Frequently Asked Questions
Here are some of our most frequently asked questions about financial management:
Where does the Church's money come from?
Do you get any money from the State from taxes?
So what is the income of the Church and where does the money go?
About the Derby Diocesan Board of Finance
Q. Where does the Church's money come from?
There are several sources of income for the Church:-
- Fees for services (weddings and funerals);
- Historic investments and land holdings;
- Support from the Church Commissioners’ investments nationally;
- Money given by the worshipping community across the Diocese, either in the Church collection plate, by regular giving methods under 'Gift Aid', or through legacies left to the Church in peoples' Wills.
NB: Find out more about 'Gift Aid' and why it's important to charities like the Church of England. A page within the HM Revenue & Customs’ web site gives you full details.
Q. Do you get any money from the State from taxes?
No. The only money the Church receives from the Government is occasional grants for Church 'heritage' buildings. We do not receive any State money for Ministry.
Q. Is the Church rich?
No. But on paper, our historic income and land holdings may make us look wealthy. In fact, we can only spend that income because people made these gifts in trust to ensure that future generations would also benefit.
Think of a person living on the State Pension alone (as some of our members do). Their income will be under £7500 a year (even with the minimum pension guarantee) and barely covers the necessities of life. Yet they would otherwise need around £150,000 in capital to produce that 'pension level' of income. Their capital might then make them look wealthy but that would give a false impression.
Q. If you receive grants to help maintain your buildings, why does the Church give the impression that buildings maintenance is such a burden?
Because it is a heavy financial burden despite the grants. We receive grants for some buildings, but the majority receive nothing. Even where grants are given, major funding must still be raised locally.
We are preserving heritage assets for the nation, which is a privilege but it can also present a great burden.
Q. So what is the income of the Church and where does the money go?
We run an annual budget of £7.9 million (2012).
We pay around 170 people, mainly in direct ministry (e.g. our parish clergy) to the communities of Derbyshire.
We maintain 190 houses, mainly for occupation by clergy.
Ministry by parish clergy costs £6 million, of which parishes contribute £4.9 million from members' giving. This giving must increase above inflation, because although we work closely with professional advisers to maximise our income from 'historic' sources, that income is quite limited in relation to our total needs.
The Derby Diocesan Board of Finance
The Board of Finance is responsible for managing all aspects of finance for the Diocese of Derby. It is a Registered Charity. It develops the Diocesan Budget, on which financial contributions from parishes/Mission & Ministry Areas are based. It uses that income, together with income from historic resources and investments, to pay the parochial clergy and fund the wider work of the Diocese.
In addition, it has two sub-committees:
- The Glebe Management Committee, which manages the (mainly) agricultural land owned by the Church of England in this Diocese for regular income and capital growth.
- The Parsonages Committee, which manages the purchase and maintenance of clergy homes
Through an initiative entitled 'Talking Money' we are all challenged to increase our support of 'The Diocese in Action'.
