Fast Facts: The Gap Fund
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Why is there a GAP fund?
Because Word of Life Hungary is facing a budgetary "gap" or deficit over the next few years. It is called the GAP fund because we are looking for partners to "stand in the gap" financially, so we can continue to "Go And Preach" the Gospel as we have done throughout Word of Life Hungary's history.
Why is there a financial gap?
For several reasons. First, the cost of living in Hungary has skyrocketed. A 2004 survey ranked the cost of living in Budapest as equal to Chicago, ahead of San Francisco and Munich Germany, and nearly at the same level as Berlin, Los Angeles and Amsterdam. Second, the dollar has lost more than 40% of its value in the last three years against the Hungarian forint, more than 10% since early Fall. Third, we have had to invest substantial funds in upgrading our facilities to meet higher EU standards. Fourth, the gradual decrease in the number of American missionaries on staff coupled with rising wages for Hungarians has resulted in further financial strain.
Is Word of Life Hungary unique in facing this challenge?
No! The same financial pressures are being faced by virtually every evangelical mission in Hungary. Many are operating in "crisis mode." We have watched with sadness as some evangelical missions have been forced to dismiss most of their national staff members in order to survive. This financial climate will remain for some time, and the future will require greater sacrifices in order to continue impacting Hungary for Christ.
What are we doing about this gap?
We have developed a clear strategic plan that will keep Word of Life Hungary's ministries on at least the present level until this time of economic transition is completed. Some key elements are: First, we have put a hiring freeze for physical workers, and future Hungarian ministry staff will have to raise support. Second, an austerity package is resulting in significant savings in such things as energy, food and purchasing. Third, vehicles and assets not essential to the core of this ministry may be sold. Fourth, American missionaries are raising more support for ministry funds. Hungarians are raising the equivalent of their current gross salary and benefits, and their future raises will be dependent in large part on their raising adequate support to cover this. Fifth, we will begin to pursue gifts and grants that are available in Hungary but do not restrict our ministry. Sixth, we are temporarily suspending further building projects in order to give full attention to solving the deficit. Seventh, the GAP fund has been established to give us the time to accomplish these goals.
How will the GAP fund work?
The immediate GAP fund goal is $100,000 for 2005. The annual amount will decrease by 20% per year...to $80,000, $60,000, $40,000, and $20,000 in its final year of 2009. The difference will be made up by increased support and income at Word of Life Hungary.
How can you take part in the GAP fund?
You can send checks to Word of Life Fellowship, Box 600, Schroon Lake, NY 12870. Make the checks payable to Word of Life Fellowship and write WOL Hungary GAP fund in the memo section. You may give a one-time gift to the GAP fund. It does not obligate you to regular support. If you have further questions you can email Alex Konya at akonya@eletszava.org or call Butch Davis at Word of Life Headquarters in the international ministries division, phone number 518-494-6000. Thank you for caring!
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