Report from the Board 12 March 2015

Present at the Board meeting:

Dan Svanell, Patrick Amofah, Ingegerd Berg, Kristina Gustafsson, Marco Helles, Johan Sahlén, Stephen James, Göran Johansson, Lina Mattebo and Johannes Nilsson.

Administrative Report, Annual Accounts, and Consolidated Accounts for 2014

In conclusion, the Immanuel group reports a profit of 8.5 msek for 2014, despite the congregation having a loss of -4.9 msek, due to lost interest revenues from Probitas during the fourth quarter. All subsidiaries show profit, and gifts and offerings have increased by 200 ksek, compared to the previous year. The Board of Directors’ Report, which describes significant events during the year as well as more details about the financials, is attached at the end.

Document on the structure of the church is ready

A large work for the Board during the autumn, and especially for its Special Sub-committee, has been to clarify the structure of the organization of the church. There is now a proposal, revised after suggestions made by the different language groups, which will be presented at the Annual Meeting. The document describes the overall structure and nomenclature of the church, the work of the Councils, Committees and Groups and the organization of the staff and their responsibility towards the Councils and Committees.

A new Company shall manage the Portfolio of Securities of the Congregation

The Board has decided to propose to the congregation that the subsidiary Stensnäs Konferens AB is changed to Immanuelkyrkans Förvaltnings AB with the sole purpose to manage the congregation’s portfolio of securities in a satisfactory manner. The board of this company, unlike the other subsidiaries, will be appointed by the Board of the Congregation, and two of these Board members will always be selected from the Board of the Congregation’s financial committee.

Members of the Board of directors of Probitas

The Board assigned the following persons to be members of the Board of Probitas: Sven Mannervik, (chairman), Claes Eriksson, Karin Sandström, Lennart Berglund, Johannes Nilsson, Johan Sahlén, Göran Johansson and Karin Pettersson. Göran, Johan and Karin are also members of the Board of the congregation.

Policy for written communication from the Board

In order to make it possible for the congregation to follow the work of the Board between the Annual Meetings, the Board member responsible for communication (at present Lina Mattebo) will write a report after every Board meeting. This report will be published both in Swedish and in English on the website of the church. The person responsible for communication will also make sure that minutes from Congregational Meetings and Annual Meetings will be published on the website, and that the information from the Board is updated. In order to clarify its written external communication, the Board has during the autumn been working on a communication policy, which is now ready.

This was the last Board meeting before the Annual Meeting on 12 April. We hope to see you there!

Management report

The Board is hereby submitting its management report for the year 2014. The report has its basis in the Board’s responsibility for the ministry of the church, its staff, finances and overall responsibility for the company group of the church.

The Ministry

General information on the ministry

Immanuel church is a Christian fellowship for people from the whole world. The church invites people to worship in many forms and traditions, values diversity and wants to be marked by cordiality, love and respect. The mission of the church is to spread the Gospel of Jesus Christ to all.

Every Sunday four worship services in three different languages are held: English, Korean and Swedish. On average 700-800 people gather every Sunday for worship in the premises of the church. During the year there have been joint worship services on three occasions, but also other common activities.

In 2014 the prioritized ministries of the church have been in focus: children and youth, people in vulnerable life situations in our city, and increased fellowship between the worship groups. These were the ministries that were focused on some years ago when the Board and the members of the congregation together discussed what ministries should be prioritized in the coming years.

The church owns a company group with activities within real estate, hotel, senior flats and nursing home.

Important events during the year

Work among children and youth

The work among children and youth continues to play an important role. A renewed work with confirmation has given very positive results, as a group of 16 young people have now begun their confirmation studies.

Work among people in vulnerable life situations

During the year the church has focused more on EU-citizens in Stockholm, and especially the large group which has come to our country from Romania. The church square gives them a place to rest and once a week it is possible for a group of women to take a shower and change clothes in the premises of the church. They are also offered a simple meal. This work is carried out by volunteers who are there every week to help these people who would otherwise have great difficulties to cope with their personal hygiene. Our work among the homeless, mainly in cooperation with Ny Gemenskap and other churches on Norrmalm, has continued as before. Immanuel church is responsible for the homeless lunch one Saturday a month, when many volunteers from the different ministry groups of the church are there to serve food for about 300 persons every time.

Our church also supports Café ministry in Korskyrkan every weekday morning together with Korskyrkan and Ny gemenskap. During the year similar activities have also developed on Mariatorget in southern Stockholm, and on Östermalm.

Increased fellowship between the worship groups

The third area of focus is to increase the fellowship between our worship groups. There have been some activities, like a picnic in Humlegården, but there is still a lot to be done within this area. To strengthen the fellowship between the three language groups will be an important task for the Board in 2015 and 2016.

Immanuel church with its four different worship groups and members from about 50 nations is unparalleled in Swedish Christianity. Integration and xenophobia are high on the agenda in our society right now. In this situation we as church and congregation have a great responsibility to show what the Christian message of love really means. A Christian church can never sit still and be silent when human dignity is questioned. The diversity of our church is evident every Sunday and must be even more visible in the years to come.

Staff matters

In March 2014 there was a celebration of pastor Choong-Il Cho, who has been a pastor in the church for 20 years, responsible for the Korean worship group. We are glad to see how young people continue to come to this fellowship.

Jodi and Doug Fondell concluded their service as pastors in the International fellowship at the end of 2014. The Fondells have done an impressive work in our church for 17 years. Under their leadership the International worship group has grown and today 350-400 people gather for worship every Sunday. The recruitment of new pastors for the International fellowship began at the end of 2014. Until there is a permanent solution, pastor Steven Armfield will serve as pastor.

Statement of Income and Financial Status

The congregation reports a loss of -4.9 msek for 2014, which primarily is a consequence of lost interest income from Probitas during the fourth quarter.

The most significant financial event during the year is that the congregation’s real estate company’s debt of 219.3 msek to the congegation has been fully settled. During the past years, the congregation has received 19.7 msek in interest income every year from Probitas, which corresponds to approximately 2/3 of the congregation’s total revenues. This income stopped as of September 30, 2014. The reason for this is a change in the tax legislation which does not make these interest costs deductible for Probitas any longer. The congregation has invested 100 msek as a shareholder’s contribution in the fully owned company, and the rest has been invested in the congregation’s financial assets.

The congregation has received 3.9 msek in gifts and offering for its own activities, and this corresponds to an increase of 0.2% compared to the previous year. Furthermore, the congregation has received a property through a testament which has been registered at its tax assessment value of 2.4 msek. This property will be sold during 2015. The costs for mission activities increased by 3 msek to 36 msek. The staff costs account for 2.7 msek of this increase, and the rest consists of increased depreciation costs, which have to do with the investment in new sound equipment. The staff costs have thus increased by 2 percentage points and now represent 54% of the total cost for mission activities.

Interests and dividends from the company group are equivalent to 16.3 msek, which is 4.9 msek less than the previous year. The dividends from the portfolio of stocks amount to 2.4 msek, which is slightly lower than the previous year. The difference between the book value and the market value of the portfolio of stocks is equivalent to 15.8 msek, which corresponds to an increase of 5.6 msek.

The Company Group

Since the renovation of Provisorn 4 and Hotel Birger Jarl to the amount of 457 msek was concluded in December 2013, it has been possible to run the business without any constraints due to repairs this year. The different companies report the following earnings before income taxes (EBT): Hotel Birger Jarl AB 6.1 msek (1.3 msek), Hotel Tegnérlunden AB 3.0 msek (3.8 msek), Immanuelskyrkans Vård AB 1.5 msek (1.1 msek), and Probitas – Immanuelskyrkans Förvaltnings AB 14.7 msek (14.5 msek).

A real estate property, consisting of 25, primarily smaller, rental apartments was acquired .

When the debt to the congregation was settled, the debt to the capital market increased by 135.0 msek, and was 958.4 msek at the end of the year. Due to new accounting regulations regarding fixed assets and their depreciation, Probitas – Immanuelskyrkans Förvaltnings AB has been able to do additional depreciations which temporarily reduces the company’s income tax. As a consequence of this, the parent company reports a fiscal loss of -13.3 msek (4.6 msek).

More information regarding the company group can be found in a separate, detailed annual report.

Thus, the whole group, with the congregation as the parent association, reports a net income after taxes which amounts to a profit of 8.5 msek (17.2 msek).

The work of the Board

During the year the Board has had ten regular meetings and one themed weekend. The Board also had one meeting with all the pastors. The Board has three committees, the Financial committee, the Personnel committee and the Special committee. The committees prepare items for the Board together with the Senior pastor and the administrative leader and make decisions on delegated matters within their respective areas of responsibility.

The Board gives directives to the company group and nominates Board members of the parent company. However, the parent company nominates the Boards of the three wholly owned subsidiaries.

Important events after the business year

Renewal of the church square

The work to renew the church square has begun. A special committee consisting of members and staff has been appointed. The committee has presented a first draft of ideas to the congregation.

Future development

A church is in constant change. Important in the coming years is among other things the renewal of the church square so that it will in a better way meet our needs to be able to welcome all those who come to our church. The Board hopes for a decision regarding this in 2015.

The work among children and youth, and the diaconal work with focus on people in vulnerable life situations will continue to be in focus. Both these areas are crucial for the future and credibility of our church. The diversity of people in our different worship groups continues to be our most important resource. There the Board sees a great potential for development. A clearer work procedure through the three Councils and a review of the organization will strengthen participation and transparency. Every member of Immanuel church shall have the possibility to contribute to the ministry of the church and take part of care and fellowship.

Finally, the Board would like to thank all staff members and volunteers who have made the work possible in 2014 and wish everyone God’s richest blessing.