WT UK part I: IBSA trustee reports and financials

by expatbrit 19 Replies latest jw friends

  • expatbrit
    expatbrit

    The WT has several UK entities, of which this was one. IBSA was recently closed down. The reports and financial statements are fairly lengthy documents. Since a lot of the material is standard legal and accounting jargon common to all reports, I’ve extracted the sections that I think relevant to the Watchtower in particular. I’ve bolded anything I think especially interesting. Any spelling mistakes are mine, and my apologies for the difficulty of reading the figure sections. If anyone knows how to get these to line up, please let me know. Other WT UK entities will follow shortly.

    Note that the figures given are in £. Current exchange rates are approx. £1 = US$1.44 = EURO1.63 = AUS$2.72 = CAD$2.21= DM3.2 = YEN177.75.

    As before, the scanned original documents are available to those who would like them.

    Expatbrit

    INTERNATIONAL BIBLE STUDENTS ASSOCIATION.

    DIRECTORS AND TRUSTEES

    S.A. Hardy President
    J.S. Andrews Vice-president
    M.G. Henschel (Resigned 3/11/99)
    L.A. Swingle (Resigned 3/11/99)
    J.A Wynn
    J.D. Dutton (Appointed 3/11/99)

    REPORT OF THE TRUSTEES
    Year Ended 31st August 2000.

    Objects and activities
    The principal activities of the Association are to support congregations of Jehovah’s Witnesses and others, in connection with their spiritual and material welfare, in Britain and abroad, within the charitable purposes of the Association. This is achieved mainly by the provision of facilities for the printing and distribution of Bibles and Bible based literature, the housing of volunteers engaged in this activity, the promotion of the Christian religion by purchasing and distributing religious literature free of charge and by holding conventions for Christian education.

    Governance
    The four Trustees of the Association also have key managerial roles at the charity headquarters. They meet every week, and at the same time confer closely with the Trustees of Watchtower Society of Britain, as the activities of the two charities are closely related. Their decisions are then based on these joint strategy meetings.

    Reserves policy
    The Association has a reliable donation base, being primarily the 1,400 congregations of Jehovah’s Witnesses in the U.K. Hence, we can plan confidently with relatively small reserves, having in mind that we charge Watch Tower Society for the cost of running the HQ complex, and we respond to the need for funds overseas, after filling our domestic requirements. When it comes to relocation, we are confident that Watch Tower Society will be able to underwrite any costs that we cannot meet ourselves.

    Investment policy
    Funds are invested with several major financial institutions, using money market instruments. Donated stocks and shares are managed or sold, according to professional advice on the soundness of the institution and in harmony with our Christian principles.

    Relationship with connected charities
    The Association works closely with Watch Tower Bible and Tract Society of Britain and The Kingdom Hall Trust. It permits Watchtower Society to use it’s premises for the Society’s charitable work and provides accommodation for the volunteers. A service and maintenance charge is made. The Association purchases religious material from the Society and donates these to congregations of Jehovah’s Witnesses. The Association makes donations to The Kingdom Hall Trust, enabling it to further its work, primarily in the French speaking world.

    Review of the year and financial position
    The financial results of the year’s activities are shown on page 5. The direct charitable expenditure included the purchase of Bibles and Bible study aids, from Watchtower Society of Britain, at a cost of £3,033,127. These were then distributed free, through congregations of Jehovah’s Witnesses. The charity was also able to make donations of cash and goods to overseas charities, primarily in the developing world totalling £3,228,277 and £2,108,090 to The Kingdom Hall Trust, all of this to assist in the worldwide work of Jehovah’s Witnesses, advancing the Christian religion.

    The work of the Association continued to increase, because of the need to provide still larger facilities for Watch Tower Society, due to the demand for its printed matter. Further residential accommodation has been purchased, financed in part by a loan from Watch Tower Society. Internal alteration and upgrading of the Association’s buildings at Watch Tower House and IBSA House has been undertaken, in order to cope with the growing community of volunteers and increased work-load. This is scheduled for completion in early 2001.

    The search has continued for a suitable site to relocate entirely. Funding alternatives are being considered, such as a short term sale and leaseback arrangement for the present property. Watch Tower Society would be closely involved with the relocation, and is willing to assist us in any way necessary, to finance it.

    By order of the Trustees

    S.D. SMITH
    Secretary

    February 2001.

    STATEMENT OF FINANCIAL ACTIVITIES: 2000/1999

    INCOMING RESOURCES
    Donations and contributions £7,491,176 / 7,308,504
    Convention donations 515,219 / 545,844
    Legacies 1,063,269 / 262,521
    Interest and dividends received 359,742 / 360,521
    Mortgage interest received 0 / 7,546
    Service charges made to WT Society 2,086,774 / 1,806,016
    TOTAL INCOME 11,516,180 / 10,290,952

    RESOURCES EXPENDED
    Costs of literature 3,280,248 / 3,631,021
    Donations made 5,594,116 / 3,942,770
    Operating expenditure – charged to
    WT Society of Britain 1,671,717 / 1,730,116
    Depreciation 738,520 / 492,987
    Interest payable on connected
    charity loan 128,267 / 0
    TOTAL 11,412,868 / 9,796,894

    NET INCOMING RESOURCES 103,312 / 494,058

    OTHER RECOGNIZED GAINS
    Realized (loss) on disposal of
    Freehold properties (29,524)/ (27,388)
    Other gains 7,499 / 0
    Gains on stocks and shares 111,130 / 96359
    Donated overseas properties 1,718,750 / 10,091,054

    NET MOVEMENT OF FUNDS 1,911,167 / 10,654,083

    Fund balances brought forward 40,928,440 / 30,274,357

    FUND BALANCES AT 31 AUGUST 2000 42,839,607 / 40,928,440

    BALANCE SHEET: 2000 / 1999

    FIXED ASSETS

    Land and buildings 26,978,051 / 23,373,757
    Overseas properties 13,096,994 / 10,091,054
    Fixtures and fittings 41,475 / 37,315
    Plant and machinery 624,712 / 506,450
    Motor vehicles 209,109 / 131,534
    TOTAL FIXED ASSETS 40,950,340 / 34,140,110

    INTANGIBLE ASSETS

    Copyrights 2,000 / 2,000

    INVESTMENTS

    Quoted investments 507,008 / 275,546

    CURRENT ASSETS

    Stocks on hand 97,487 / 116,860
    Debtors and accrued income 1,052,703 / 705,433
    Building society and bank deposits 5,239,416 / 5,874,255
    Cash at bank – current accounts 1,323 / 14,105
    Congregation contributions in transit 152,943 / 100,635
    Creditors falling due within one year (672,767)/ (300,524)
    NET CURRENT ASSETS 5,871,105 / 6,510,784

    Creditors falling due after
    more than one year 4,490,845 / 0

    TOTAL ASSETS LESS LIABILITIES 42,839,607 / 40,928,440

    NOTES TO THE ACCOUNTS

    3. PERSONNEL
    The association has no employees but engages only volunteers providing them with free board, lodging and an allowance for personal and other expenses. During the year there was an average of 417 (286 in 1999) persons engaged. The trustees received no payments or re-imbursements in their capacity as trustees.

    7. FIXED ASSETS
    The net book values of land and buildings comprise freehold properties at £26,764,936 and leasehold property with a right to purchase, at £213,115. The Association’s interests in land and buildings situated in Britain had been valued at £37,798,000.

  • MacHislopp
    MacHislopp

    Hello Expatbrit,

    excellent post! I don't understand why
    you don't get many ...opinions!
    I'll prepare a conversion for this one and the Pennsylv.
    one , in many currencies. The amount is almost incredible!

    Agape, J.C. MacHislopp

    P.S. Please, continue this kind of search
    and share it with us. Thanks.
    It needs to be publicized in EUROPE!

  • Yerusalyim
    Yerusalyim

    I've noted an appaling lack of charitable contributions in the EXPENDITURES column, both in the UK and in the US. I wonder why?

    Yeru

    YERUSALYIM
    There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy.
    Shakespere: Hamlet

  • expatbrit
    expatbrit

    Hi Mac:

    I don't really expect too many opinions.

    The figures kinda speak for themselves.

    Expatbrit

  • LDH
    LDH

    Mac,

    They mention 11,000,000+ in the 'donations made' column.

    Does anyone have any idea what these 'donations' are comprised of? Certainly not pensions for retired 'bethelites'?!?!?

  • Sage
    Sage

    Greetings. I have a question if I may.

    You stated that "IBSA was recently closed down." What happened to it. There have been rumors that the Society has been dissolving the IBSA in other places, a few years ago in Canada. Do you have the specifics, was this documented anywhere?

  • expatbrit
    expatbrit

    LDH:

    Donations made in 2000 per above were £5,594,116.

    According to the notes to the financial statements, this is made up as follows:

    Donations to The Kingdom Hall Trust 2,108,090
    Donations to overseas branches for Christian work 3,228,277
    Donation to Watch Tower Society of Britain 257,750

    Expatbrit

  • Tina
    Tina

    Excellent expat!! Thanks for the informative data!,hugs,Tina

    Carl Sagan on balancing openness to new ideas with skeptical scrutiny...."if you are open to the point of gullibility and have not an ounce of skeptical sense,you cannot distinguish useful ideas from worthless ones."

  • slipnslidemaster
    slipnslidemaster

    Total assets minus liabilities = roughly $61 million US.

    61,000,000 * how many countries? = ???

    Plus the roughly $250,000,000 from the PA corp. alone that was posted the other day on the board for the 1997/1998 financial period.

    So just for kicks, using round numbers and rounding down.

    If each country averages 50,000,000 / year in assets and there are 100 countries that the JW's have assets in thats $5 BILLION!

    Ok, maybe I'm a little high.

    If each country averages 25,000,000 / year in assets and there are 50 countries that the JW's have assets in thats $1.25 BILLION!

    Slipnslidemaster: Doin' the humpty hump...just doin' the humpty hump...

  • expatbrit
    expatbrit

    Try it this way:

    Net assets in US (known)600,000,000 divided by 1,000,000 publishers = $600 per publisher.

    Net assets in UK (known) 100,000,000 divided by 120,000 publishers = $833 per publisher.

    Use the lower figure of $600.

    Total publishers in following countries, rough:

    US 1,000,000
    UK 120,000
    Canada 105,000
    Australia 60,000
    France 110,000
    Germany 160,000
    Japan 220,000
    Italy 225,000

    TOTAL FOR 8 countries = 2,000,000 multiply by $600 = $1,200,000,000

    The above is a complete estimate. We do not have any figures for WBTS of New York, so it's almost certainly a conservative estimate.

    Expatbrit

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