Bahá’í News/Inserts/Issue 399/Budget Message 1964-1965/Text

[Page 1]

Dearly Beloved Friends:

Our National Convention received with tremendous enthusiasm the new Nine Year Plan presented to the Baha’i World by the Universal House of Justice. There was ample evidence that the delegates and visitors who attended were aware of the great challenge presented by the opening chapter of an entirely new epoch in Baha’i history under this divinely guided institution. It was abundantly clear that once again the United States was accorded a major role in this magnificent project, and that to a large extent the Plan’s success or failure will depend upon our response.

It was also obvious that the Fund is one of the key ingredients of the new Plan. The United States is assigned numerous goals involving direct placement of pioneers and assistance to other National Spiritual Assemblies in important teaching programs. We are asked to purchase a Temple site, Haziratu’l-Quds and National Endowment in Charlotte Amalie, Virgin Islands, where property values are high, as well as to assist other National Spiritual Assemblies in the purchase of thirteen other pieces of real estate. An accelerated home front teaching program is required to almost double the number of Local Spiritual Assemblies and to increase the number of local centers to 3,000. Finally, the Universal House of Justice is looking to the United States for a sharply increased annual allocation to enable it to carry out its heavy responsibilities in meeting the expanding needs

NATIONAL BAHA’I FUND

Nine Year Plan — First Year

Budget Message — 1964-1965

of the Cause throughout the world, accelerating the embellishment of endowments in the Holy Land, and developing the institutions at the World Center, All of these goals require substantial sums of money for success.

Heavy Demands, Weak Current Condition

These expanded needs and requirements catch our National Fund in a condition of great weakness. Frankly, the year just passed has been a financial disaster. The rush of contributions in the last few months that turned our position from crisis to triumph in 1961-1962 just did not materialize last year. In only two months, December and January, did income, including amounts from estates and trusts, approach or exceed the budget. Even an important reduction in expenditures in certain fields did not save us from a shocking deficit, as is shown by the following unaudited figures for the year:

Regular contributions $404,102.00 Special contributions 79,640.00 OTA actccinrnsyere wo es a ee $483,742.00 Estate funds and other income 38,369.00 Yi Bf oy lcs oh ee Pana Nate hl. $522,111.00 Actual expenditures 653,360.00 A HY Oe scree hug ose S igtteee $131,249.00

Since this deficit represents an actual excess of outgo of funds over income, it has been paid from an accumulation of working capital reserve laboriously built up over many years. In one stroke it has practically wiped out this reserve. If the def icit continued at the rate of the past few months, the remaining reserve would be gone in less than two months. Our only remaining bastion of strength is some funds which were bequeathed or given to the Fund as permanent reserve or emergency, funds, and which are invested on a long term basis. Even these are limited in amount, and the National Spiritual Assembly feels strongly that these should be kept for special emergencies or permanent reserves as they were intended. When these have gone we have nothing to fall back on.

Faced with this critical condition, the National Spiritual Assembly was very tempted to play it safe, and propose a budget keyed to the recent rate of giving. Yet considering that a substantial portion of our requirements are fixed and not subject to our control, such as support of the Universal House of Justice, maintenance of the Temple and other

properties, insurance, national administration, and subsidy for the Baha’i Home, such a policy would

mean a sharp drop in allocations for those activities directly related to teaching and the fulfillment of our goals under the new Nine Year Plan, to the point where these allocations would be wholly inadequate for the purposes intended and the chance of failure would be high, thus jeopardizing our spiritual primacy in the Baha’i World. We just could not contemplate this as a serious alternative and therefore went ahead with a budget designed to meet, on the basis possible,

most economical [Page 2]those needs which we consider indispensable. The overwhelmingly favorable response by the Convention delegates to the announcement of this budget would suggest that we had read correctly the feelings of the American Baha’i Community.

Analysis of Budget

The resulting budget of $775,000 is listed on page 5. Because at the moment we have had inadequate time since receiving the Nine Year Plan to develop a program in detail, there is less specific breakdown given than usual. The World Center Fund has been doubled to $100,000, the minimum figure which we feel meets the specifications of the Universal House of Justice. We hope that as soon as contributions match or exceed the total budget it will be possible to increase this figure. It must also be borne in mind that the Universal House of Justice has taken over the task of assistance to National and Regional Assemblies, which last year cost us $22,500, and that this year we do not have the $50,000 allocation for the Frankfurt Temple.

Assistance to the Continental Fund of the Western Hemisphere is the same as last year, but in the interest of economy we have eliminated the nominal assistance to the other four Continental Funds voted in past years. Budgets for National Administration, the Baha’i Home, International Miscellaneous, and Free Literature are the same as last year. Trusteeships have been increased from $75,000 to $90,000 because of increased costs of maintaining the House of Worship at Wilmette, and the necessity for beginning a rehabilitation program at Green Acre because of the seriously deteriorated condition of the property after years of under-maintenance.

The total allocated for National

Committees has been reduced from $28,215 to $20,000, primarily because of anticipated economies in activities in the House of Worship.

Plans are not yet sufficiently developed for the major sectors of homefront teaching, international teaching and acquisition of real properties to do more than provide for a total of $275,000 as an estimate of the combined cost in these areas. We know that the 110 pioneers still in the field in connection with our European and Latin American goals in the World Crusade are being subsidized at the rate of about $165,000 annually. It is hoped that gradually they can be moved to our new goals or brought home without jeopardizing the goals in these present territories, but the extent and timing of this is quite uncertain. New Pioneers will of course also be needed, though it is hoped that many of them will be wholly or partially self-supporting. It may be necessary to amend the total commitment for these categories as more specific plans are developed.

In addition, we felt that it was incumbent upon us, as trustees of the funds under our care, to seek to replace the reserves which have been lost because of the deficit for this period. Finally, a provision for contingencies of $10,500 gives us the total budget of $775,000, or $64,583 per month.

Contributions Must Rise 50%

This represents an increase of $50,000 from last year’s budget, and is about a quarter of a million dollars or 50% more than the amount actually received last year. These are the figures which must be kept constantly in mind when making financial plans for the coming year.

Such a vast discrepancy raises the

question of whether this budget is realistically within the capacity of the American Baha’i Community. We think most definitely that it is. In the first place, after allowing for changes in the purchasing power of the dollar and increases in our membership, it is actually less demanding on a per capita basis than five out of our last ten budgets, as is shown in the table below the detailed budget statement. Here the last ten budgets, plus the current one, are adjusted for changes in the Department of Commerce index of the purchasing power of the dollar, and the adjusted figure is divided by the total membership, adult and youth. The figures in the last column refiect the average amount asked per believer in terms of purchasing power. It will be noted that five of these figures are higher than those for the current year. (Because of the adjustments, these figures have significance only relative to each other, not as literal requirements per capita in terms of current dollars.)

Another meaningful way to look at this is to relate requirements to the gross income of the individual believer. If every adult believer gave $70.00 in the year to the National Fund, we would make the budget. If two thirds of the adult believers gave $100 we would almost make the budget. The latter figure is cited because it is known that many of the believers on the voting lists are completely out of touch with the Faith or inactive, or aged, ill and with very limited resources. To expect an average response of $100 from two thirds, however, seems not at all unreasonable. If the average income of Baha’is in the U.S. should be $5,000, which is below the national family average of over $6,200 at the present time, the amount requested for the National Fund would be only [Page 3]2% of gross income. If one assumed that an equal amount would be given to the Local, International and Continental Funds and spent directly on unreimbursed Baha’i activities, the total Baha’i expenditures would be only 4% of gross income, on the average. When one considers that this is the Cause of God, the most important force for good in the world today, the Cause for which thousands of martyrs gave their lives and all their worldly goods, and that the immediate progress of this Faith depends to a great extent upon the financial and personal support of a few thousand Americans, the request that we give an average of 4% of gross income to our beloved Faith seems hardly extreme enough to be deemed sacrificial. If true sacrifice were involved we ought to be able to spare several times that. And it certainly seems reasonable to conclude that the higher one’s gross income, the greater the percentage of that gross income one can afford to give without undue hardship and with miraculously effective results. It is our great bounty to have had the opportunity to be of such great service to this magnificent Cause, if we could but realize it.

Analysis of Last Year's Receipt

Yes, the National Spiritual Assembly is satisfied that what is asked is reasonable and well within the capacity of the friends. But recently it has not been forthcoming. For the first eleven months of last year an analysis was made of contributions to the National Fund from Local Assemblies. These show that although the results were reasonably satisfactory with respect to the percentage of their gifts sent to the National Fund (73% sent 50% or more of their total receipts to Wilmette) and regularity of contributions, (73% sent contributions in six or more of the

eleven months), the results were very disappointing with respect to size of contributions. 54% of the Assemblies sent in less than $400 during the eleven months, and even more importantly, 70% averaged less than $40 per believer. Though admittedly these figures are incomplete without taking into account the contributions sent directly by individual believers to the National Fund — which we have been unable to analyze to date —it is clear that the size of most of the contributions recently received falls well short of the amounts needed to attain our current budget. Our three-fold problem is (1) to motivate those believers who are currently giving regularly but at rates below those needed to attain our goals, (some of the friends and Local Assemblies are already giving at rates well above the required average and on a truly sacrificial basis — their numbers should be increased); (2) to revitalize the interest of those believers who are on the rolls but inactive and not carrying their share of the responsibility toward the Fund and toward teaching activity; and (3) to greatly increase the number of believers, including some from higher income groups, so that there will be more shoulders to share the burden. Possibly one reason we face such a financial problem now is that we did not bring in the masses of new believers the beloved Guardian called for years ago.

The National Spiritual Assembly desires to assist the friends to meet this financial challenge in every way it can. In answer to past messages a number of suggestions and comments have come from Local Assemblies, Groups and concerning ways to motivate the friends to respond more fully to the Fund appeal. A selection of several

individuals

these will appear in an early issue

of Baha’i News, U.S. Supplement.

Resolve Plan Reinstated

One idea which has been advanced frequently of late has been adopted by the National Spiritual Assembly for the current year, namely, the renewal of the Resolve Plan, which was used with some success in the early days of the World Crusade. In effect, this is a program to show the believers the number of gifts of various sizes needed to cover the budget in full. It offers a hypothetical schedule to which the friends can relate their own efforts if they so desire. The program is outlined on page 7. It is suggested that the local Assemblies set their share of the budget at $350,000. The first schedule shows how this much can be raised from 360 Assemblies and Groups giving in various amounts from $100 to $5,000. These are merely suggestions, and actual resolves can be based upon different figures, after earnest consultation on the nature of the emergency and the capacity and willingness of the Assembly or Group to respond. It might be possible for Assemblies and Groups to ask for estimates from each believers of the total he believes he can give to the Local Fund this year. After deducting estimated local expenditures these can be used to determine the Resolve for the Assembly or Group. The balance of $425,000 could come from individuals sending directly to the National Fund in addition to their contributions to their Local Fund and the International and Continental Funds. This table assumes that 5,000 believers respond in this manner, though we hope that the number will be much larger. Estimates of gifts to the Local Fund should assume that a fair proportion of the believers will also be contributing directly to the National Fund. If they intend giving only through the Local Fund, they should increase the amounts proportionally. [Page 4]All Assemblies, Groups and individual believers are asked prayerfully to consider their responsibility and capacity, and the degree of sacrifice they are willing to assume at this critical crossroads in Baha’i history, then to record their intention on the form and send it to the National Treasurer. The information from these forms will be tabulated and reported in BaHA’f News, so that all can see at a glance whether the response is sufficient to achieve the budget. However, the resolve is merely a resolution on the part of the sender. No effort will be made to record separately the extent to which each resolve is actually fulfilled. Each Baha’i will know how faithfully he has fulfilled his obligation. But the program will enable everyone to relate to the total requirements and see in advance whether the response is adequate.

It should be noted that, to achieve a budget of this magnitude, an increase in the size of gifts at all levels is needed, and particularly at the higher levels. 105 Assemblies and Groups are asked to give $1,000 or more compared with 46 who actually did this in the first eleven months of last year. The same response is asked of 40 individuals, almost double the number last year. And it is hoped that quite a few Assemblies, Groups and individuals can contribute several thousand dollars each, for these large donations have been an important source of support in the past, yet in total showed a considerable drop last year, in spite of outstanding support from three families.

We have made a beginning at the National Convention, through gifts totaling $836.00 earmarked for the acquisition of the Temple site at Charlotte Amalie, Virgin Islands. Donors are free to specify that their gifts be applied to our allocation for any of the major categories of goals in the Nine Year Plan.

Baha'i Budget Top Priority

This tremendous budget, representing almost a 50% increase over contributions given last year, can only be achieved if the needs it satisfies are uppermost in the minds of the believers at all times. Now we have a specific set of goals and objectives to work for. The effort should be consecutive and sustained. Too often we get behind in the early months of the year, and it is difficult to catch up. It is hoped that the friends will relate their potential total contribution to the over-all requirements early in the year, and maintain their support on a sustained and regular basis. It is also hoped that individuals, Assemblies and Groups will frequently ponder and consult concerning their relationship to the needs of the Fund and the following basic principles gleaned from the numerous messages on the subject by the Beloved Guardian:

1. The fund is the bedrock of all the institutions we are laboring so hard to construct.

2. Contributions to the Fund are completely and totally voluntary.

3. Contributions are a sacred obligation of each Baha’.

4. Every single Baha’i should participate by giving to the Fund, no matter how small the amount.

5. Regularity of giving is an essential consideration.

6. To be truly meritorious, contributions to the Fund should involve some element of sacrifice.

7. The Fund should be a regular subject of consultation at Feasts and assembly meetings.

Budget a Covenant

In effect, the Fund represents a covenant. As in the case of a legal obligation, such as a mortgage, payment against the covenant should be given priority in planning one’s personal expenditures. Failure to meet

the obligation will result in a chain of events far more painful than the physical losses involved in foreclosure of a mortgage. If we sustain another deficit this year even approaching that of last year’s magnitude, the National Spiritual Assembly might be forced to cut future plans to fit income, which could fatally undermine the effectiveness of our activities related to the Nine Year Plan goals. This is, truly, our ‘‘moment of truth.”’ Therefore, our personal share in this great common effort should be defined early in the year, and then paid regularly from the “top”? of our income from that time on. Meeting this financial goal through increasing our income and sharing the increase with the Fund, or increasing the Fund’s share of our current income and assets, is as great and as necessary a spiritual achievement as any other type of Baha’i activity.

In its message to the Baha’i World dated December 18, 1963 (BanA’f News, February, 1964) the Universal House of Justice said: ‘“‘The continual expansion of the Faith and the diversification of the activities of Baha’i communities make it more and more necessary for every believer to ponder carefully his responsibilities and contribute as much and as regularly as he or she can. Contributing to the Fund is a service that every believer can render, be he poor or wealthy; for this is a spiritual responsibility in which the amount given is not important. It is the degree of the sacrifice of the giver, the love with which he makes his gift, and the unity of all the friends in this service which bring spiritual confirmations.”

We have been given a glorious role to play in the greatest epoch in the history of mankind. Let us prove worthy of our trust.

Faithfully,

—NaTIONAL SPIRITUAL ASSEMBLY [Page 5]PROPOSED BUDGET FIRST YEAR OF NINE YEAR PLAN

1964-1965 WOREDICENIDRR BUND. oiaescsc. 40 uceseee dient qoesgnere $100,000 CONTINENTAL FUND OF THE WESTERN HEMISPHERE .. 7,500 NINE YEAR PLAN GOALS: International Teaching,

Homefront Teaching, Acquisition of Properties ............ 275,000 NFAT NAle AU IVININ TS PERCASEMOIN ices ce ots ain ess scorer ale « susie eteietortee oie!» 125,000 AEA RISTO NER ac. ccacsie en eaiere +5 cs eee oe wadaue letter sieseninteole some 10,000 TRUSTEESHIPS:

FILES TYNPILO oie ea 9 ia gis, os wg EWR » Aa CRIA, EIEN Vo i oeiwe etd $75,000

SOM OOIS sag ase ca sies ee es sriess was Sipee gee aiaee elas eoreions soles eras 15,000 90,000 NATIONAT, ‘COMMITTEES. .08%0.2 5. bo thet i autees oe een ees 20,000 PUBLIC RELATIONS, INSURANCE, INTER NAC TET © NEA este eps oe tte aac wea Son, oo AUER parte Gate cua Rape taesee 12,000 IESBRIOT GEES SEG eG ke sas bic eyenoee nce iace ie. vee Sorgen gue, Se RE ATE Tae ok 125,000 CONTRIEN.G BING oon esas ipeein vist peivinse singe Fiat oe eager BAS URSIN 10,500

PRO ATES WUD GE Mite. ia § «ccs gateis sityssake «sient UlnierEne Wal srk cece nl eore $775,000

COMPARISON WITH BUDGET OF PAST TEN YEARS Purch. Power ADJUSTED TOTAL ADJ. BUDGET

YEAR BUDGET INDEX* BUDGET MEMBERS PER MEM. 1964-1965 $775,000 92.9 $720,000 12,199 $59.10 1963-1964 725,000 93.7 676,000 11,047 61.10 1962-1963 625,000 94.9 592,000 9,659 61.20 1961-1962 590,000 96.0 529,000 9,375 56.40 1960-1961 375,000 97.1 364,000 8,596 42.50 1959-1960 400,000 98.5 394,000 8,242 47.85 1958-1959 450,000 99.4 446,000 7,995 56.00 1957-1958 425,000 102.1 434,000 8,243 52.60 1956-1957 500,000 105.6 528,000 7,728 68.40 1955-1956 550,000 107.1 589,000 7,578 77.60 1954-1955 475,000 106.9 506,000 7,618 66.50

• 1957-59 = 100

NINE YEAR PLAN BUDGET RESOLVE PROGRAM

1964-1965

“God does not ask from any soul except according to his ability... Whosoever comes with one good act, God will give him tenfold... O ye lovers of the Beauty of the True One! Become ye self-sacrificing. Become ye self-sacrificing.”

—‘Abdu’l-Baha TORATANAT I ON AIGEB UD Gin 5 nea eae: eels dee eee: $775,000.00 ESTIMATED CONTRIBUTIONS FROM TES ACS TAIND SG HOU S ora eco sraes a ae ts «Ses ules $350,000.00

Based upon evaluation of greatest capacity to support the Fund with full participation from all members of the community.

ESTIMATED CONTRIBUTIONS FROM TING EYE) Ais Bra BERS oes Sasteceltnne okay reds -ue]a ctoyteniRelin 425,000.00 $775,000.00

Every believer is asked to make a resolve directly to the National Fund through the Treasurer’s Office in addition to support of the International Fund in Haifa and his Local Fund. [Page 6]

PLEASE KEEP THIS MESSAGE AND STATEMENT AND STUDY IT FREQUENTLY DURING THE BAHA’I YEAR

INSTRUCTIONS FOR SENDING CONTRIBUTIONS

(Keep handy for reference) INTERNATIONAL BAHA’i FUND:

Every believer is privileged to send a contribution directly to the Universal House of Justice for the support of the World Center. Such a contribution may be in the form of a regular bank check or draft payable to International Bahda’i Fund. It should be addressed as follows:

The Universal House of Justice Baha’i World Center

P.O. Box 155

Haifa, Israel

NATIONAL BAHA’i FUND:

Contributions should be made directly by every individual, assembly and group in the United States, payable to:

National Baha’i Fund 112 Linden Avenue Wilmette, Illinois

The amount of such contributions should be related to the size of our national budget which is reported regularly in BaHA’i News.

CONTINENTAL FUND FOR THE WESTERN HEMISPHERE:

Contributions to this fund are encouraged from all believers and local funds. They should be made payable to:

Continental Baha’i Fund Zikhru’llah Khadem, Trustee 112 Linden Avenue

Wilmette, Illinois

LOCAL FUND:

Believers under the jurisdiction of a local spiritual assembly or group should contribute to the Local Fund through the local treasurer. Such contributions should be added to and not take the place of contributions made directly to the National Fund. A portion of local funds should also be sent to the National Fund, the International Fund and the Continental Fund.

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