Financing
1. How is the church financed?
Income (total) of the church in 2023: CZK 630 million, of which:
- almost 1/3 from contributions and donations from church members (30%)
- 1/3 from the administration of church assets (33%)
- almost 1/4 from the state budget (asset equalisation with the state; 23%)
- the remaining approximately 1/7 of income from grants and other private sources (14%)
The church has no sources other than those mentioned above.
Expenditure in 2023: CZK 551 million, of which:
- almost 1/3 of the expenditure consists of personnel costs (31%)
- just under 1/3 consists of operating expenses (30%)
- just under 1/3 is used to create reserves/funds and to finance investments (31%)
- the remainder of expenditure (8%) is attributable to taxes paid and donations to other organisations
The ECCB is financed from several sources. Funding from the faithful, income from administration, grants and private sources account for 77% of the funds. The share of income from the equalisation of assets with the state has fallen steadily and accounted for only 23% of funds in 2023.
2. Money from the state
The church has been preparing for the gradual transition to full self-financing for a long time. The first step was the establishment of the Personnel Fund in 1993, almost twenty years before the 2012 Property Settlement Act, which gave a secure framework and new impetus to preparations for self-financing.
Law 428/2012 on the equalisation of assets with churches and religious associations and the corresponding agreements with the churches guarantee the ECCB:
a) Contribution to activities
2013-2015 CZK 83.0 million per year
From 2016 minus 5% per year
2018: CZK 74.7 million
2019: CZK 71.0 million
2020: CZK 66.4 million
2021: CZK 5.1 million
2022: CZK 53.9 million
2023: CZK 49.8 million
...
2029: CZK 25.1 million (last instalment)
2030: CZK 0
The contribution to the activity is always paid at the beginning of the year and serves as one of the sources for covering the salary costs of pastors and other church personnel in the year in question.
b) Financial equalisation
A total of CZK 2,266.6 million + inflation. The financing is divided into 30 instalments, the first in 2013 and the last in 2042 (the instalments are always due at the end of the year and are included in the following financial year).
2017: CZK 79.7 million
2018: CZK 80.3 million
2019: CZK 82.3 million
2020: CZK 84 million
2021: CZK 86.3 million
2022: CZK 89.1 million
2023: CZK 92.5 million
Most of the financial equalisation will be invested in investment funds and real estate in order to generate returns that will replace at least part of the state's current activity contributions in the future. The valuation of the investment funds for 2023 is estimated at CZK 54.8 million.
Of the equalisation payments received, 18.5% is allocated each year. These funds are intended for so-called diaconal and development projects, i.e. projects with a direct social impact (creation and development of regional communities, education, diaconal service, reduction of the ecological footprint of church buildings, etc.). In 2023, this part amounts to CZK 17.1 million.
3. The financial development of the ECCB in 2023
After difficult years characterised by the effects of the pandemic, Russia's war of aggression in Ukraine, high inflation and the ongoing recession, the ECCB's balance sheet stabilised in 2023 and points in a promising direction.
Income has increased significantly (by 23% compared to 2022, by 41% compared to 2021), although income from the equalisation of assets with the state has steadily declined. This positive development was driven both by the growth in so-called intra-church funds, i.e. contributions from church members (+3%), and by an increase in income from economic activities (+61%).
There is also an increase on the expenditure side (6% compared to 2022, 24% compared to 2021). In line with the adopted long-term strategy, personnel costs increased (by 7% compared to 2022, by 18% compared to 2021) and the accumulation of reserves was also higher (by 38% compared to 2022, by 17% compared to 2021).
In 2023, the congregations of the ECCB ended the year with a surplus of CZK 36 million. This was despite the fact that internal church levies increased over the course of the year (by CZK 7.4 million), which was only partially offset by an increase in income from contributions from church members, collections and internal donations (by CZK 2.8 million). The internal balance between income and expenditure therefore deteriorated by CZK 4.6 million.
The ECCB's General Congregation closed with a surplus of CZK 3.6 million. The results are described in more detail in the 2023 annual report.
4. Map of financial flows in the ECCB in 2023
For a better understanding of the interrelationships between the administration of the congregations, the General Congregation and external organisations, we present a map of the financial flows within the ECCB in 2023. This map does not include the income and expenditure of the congregations (which is why the amounts are lower than the totals given above), but only describes the basic flows between the various organisations within the ECCB. 