Archbishops Letter to the Clergy of the Diocese of Natal

During the course of late 2018/early 2019, it was recognised that the Diocese of Natal, due to various factors, had begun to incur increasing cash flow deficits. These deficits necessitated drawdowns being made from Trust funds that, in the long-term, are not sustainable. Various commissions were instituted to analysis the cause of the deficits and the primary reason for the worsening financial situation in the diocese was attributed to the significant increase in the number of ordained clergy in the diocese over the preceding three years. This increase saw 40 additional clergy engaged in the diocese at a cumulative payroll cost of approximately R10.8m per annum.
This increase in clergy numbers was however only part of the problem. The other part, although there were a number of contributing factors, was the number of parishes that were not in a position to pay their parish assessments in full. This had seen the level of parish assessment arrears escalating and with it, the value of assessment arrear write-offs. In 2020 the onset of COVID-19 has only exacerbated the financial crisis and in the absence of remedial action, the outlook for the diocese is bleak.

Read more of the Archbishops Letter to the clergy of the Diocese of Natal dd 18.07.2020