Church of England

The Church of England is the officially established Christian church in England and acts as the mother and senior branch of the worldwide Anglican Communion as well as a founding member of the Porvoo Communion.

Financial situation

The Church of England, although an established church, does not receive any direct government support. Donations comprise its largest source of income, though it also relies heavily on the income from its various historic endowments. As of 2005 the Church of England had estimated total outgoings of around £900 million.

Related Topics:
Established church - As of 2005

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Historically, individual parishes both raised and spent the vast majority of the Church's funding, meaning that clergy pay depended on the wealth of the parish and parish advowsons (the right to appoint clergy to particular parishes) could become extremely valuable gifts. Individual dioceses also held considerable assets: the Diocese of Durham possessed such vast wealth and temporal power that its Bishop became known as the 'Prince-Bishop'. Since the mid-19th century, however, the Church has made various moves to equalise the situation, and clergy within each diocese now receive standard stipends paid from diocesan funds. Meanwhile, the Church moved the majority of its income-generating assets (which in the past included a great deal of land, but today mostly take the form of financial stocks and bonds) out of the hands of individual clergy and bishops to the care of a body called the Church Commissioners, which uses them to pay a range of non-parish expenses, including clergy pensions and the expenses of cathedrals and bishops' houses. These funds amount to around £3.9 billion and generate income of around £164 million each year (as of 2003), around a fifth of the Church's overall income.

Related Topics:
Advowson - Prince-Bishop - Church Commissioners - As of 2003

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The Church Commissioners give some of this money as grants to local parishes; but the majority of the financial burden of church upkeep and the work of local parishes still rests with individual parish and diocese, which meet their requirements from donations. Direct donations to the church (not including legacies) come to around £460 million per year, while parish and diocese reserve funds generate another £100 million. Funds raised in individual parishes account for almost all of this money, and the majority of it remains in the parish which it raises it, meaning that the resources available to parishes still vary enormously according to the level of donations they can raise.

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Most parishes give a portion of their money, however, to the diocese as a 'quota'. While this is not a compulsory payment, dioceses strongly encourage and rely on it being paid; it is usually only withheld by parishes either if are unable to find the funds or as a specific act of protest. As well as paying central diocesan expenses such as the running of diocesan offices, these diocesan funds also provide clergy pay and housing expenses (which total around £260 million per year across all dioceses), meaning that clergy living conditions no longer depend on parish-specific fundraising.

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Although asset-rich, the Church of England has to look after and maintain its thousands of churches nationwide — the lion's share of England's built heritage. As current congregation numbers stand at relatively low levels and as maintenance bills increase as the buildings grow older, many of these churches cannot maintain economic self-sufficiency; but their historical and architectural importance make it difficult to sell them. In recent years, cathedrals and other famous churches have met some of their maintenance costs with grants from organizations such as English Heritage; but the Church Commissioners and local fundraisers must foot the bill entirely in the case of most small parish churches. (The government, however, does provide some assistance in the form of tax breaks, for example a 100 percent VAT refund for renovations to religious buildings.)

Related Topics:
English Heritage - VAT

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In addition to consecrated buildings, the Church also controls numerous ancillary buildings attached to or associated with churches, including a good deal of clergy housing. As well as vicarages and rectories, this housing includes residences (called 'palaces') for each of the Church's 114 bishops. In some cases, this name seems entirely apt; buildings such as Archbishop of Canterbury's Lambeth Palace in London and Old Palace at Canterbury have truly palatial dimensions, while the Bishop of Durham's Auckland Palace has 50 rooms, a banqueting hall and 30 acres (120,000 m²) of parkland. However, many bishops have found the older palaces inappropriate for today's lifestyles, and some bishops' 'palaces' are simply ordinary 4-bedroomed houses. Many dioceses which have retained large palaces now employ part of the space as administrative offices, while the bishops and their families live in a small apartment within the palace; and in recent years some dioceses have managed to put their palaces' excess space and grandeur to profitable use as conference centres. The size of the bishops' households has also shrunk dramatically and their budgets for entertaining and servants form a tiny fraction of their pre-20th-century levels.

Related Topics:
Lambeth Palace - Canterbury - Auckland Palace

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