Feb. 9, 2009 issue
MCC cuts budget as revenue declines
By Celeste Kennel-Shank Mennonite Weekly ReviewMennonite Central Committee is cutting its budget by 10 percent — including $2 million from its international program — for the fiscal year beginning April 1 after losing revenue in recent months.
While donations and relief sales — such as the Michiana one at which Elaine Frey, quilt chairman, and Donna Sommers of Sturgis, Mich., talk Sept. 26 — have continued to support Mennonite Central Committee, the organization will cut its budget, largely because of market turmoil and the drop in the U.S.-Canadian exchange rate. — Photo by Celeste Kennel-Shank/MWR
While MCC relies on diverse sources of income, financial market turmoil lessened its reserves. Additionally, much of MCC’s revenue comes from Canada while its work globally requires U.S. dollars, so the drop in the U.S.-Canada exchange rate took a toll.
“This budget is an opportunity and a challenge,” said Arli Klassen, MCC executive director. “We’re being forced to be more clear about our priorities.”
In early to mid-January MCC reviewed its December financial statements as an indicator for the coming year, Klassen said in a phone interview Jan. 30.
The $2 million in cuts will affect MCC’s international program of relief, development and peace work in 50 countries.
“We can’t cut this much from our budget without it having severe impact on our partners, and who they can hire and how they can carry out their program,” Klassen said.
MCC U.S. and the regional MCCs will cut 9 percent from their budgets. It is not yet known what the reduction will be for MCC Canada and the provincial MCCs, where the fiscal year ends Aug. 31.
“Our hope, still, is that the generosity of donors will enable the MCCs in Canada to meet their financial commitments to the people we serve,” said Don Peters, MCC Canada executive director, in a statement.
Donations to MCC have been fairly steady, with people contributing even as many of them also face more limited resources, Klassen said.
More donations would help MCC to preserve more of its program, she said. MCC will likely adjust its budget during the coming fiscal year and hopes the changes will account for more revenue than it is currently projecting.
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