1.1 In earlier times the finances of the Manx Church derived principally from two sources:
Until recent times there were no diocesan or parochial institutions of a kind we would recognise today, with general responsibilities for church finance or administration.
1.2 The first such institution at the diocesan level was the Church Commissioners for the Isle of Man, who were established as a joint Church-State administrative body(1). It had no general funds of its own, but was able to act as trustee of Church property, and came to administer numerous funds for specific purposes. It was also given a supervisory and management role in connection with episcopal and parochial endowments, and limited powers of pastoral reorganisation.
1.3 At the parochial level, the incumbent and churchwardens continued to hold and administer local trusts, but as part of the democratisation of the Church in the early 20th century, parochial church councils were established to take over a measure of responsibility for parish finance and administration(2).
1.4 A diocesan conference was established in 1925(3), and immediately a need was felt for a single diocesan financial institution under Church control, on the English model. The Sodor and Man Diocesan Board of Finance was established in 1929(4), and became trustee of certain episcopal, diocesan and parochial funds which had previously been under separate management, notably the "Impropriate Fund", a trust for augmenting the income of the parish clergy originally created in 1666.
1.5 The assets of the Board were to some extent rationalised in 1934(5), when the endowments of the See (except the Bishop's house) were transferred to the Board. The Board's funds for augmenting parochial incomes (including the Impropriate Fund) were merged into a "Diocesan Trust", the income of which (subject to payment of certain annual sums to specified incumbents) was to be applied "for such ecclesiastical purpose or purposes in the Diocese as the Board in its absolute discretion may consider advisable". Thus for the first time a diocesan body controlled funds which could be used for general, rather than specific, church purposes.
1.6 In 1983 the Church Commissioners for the Isle of Man became a solely Church body, instead of jointly representing Church and State(6). The anomaly of having two authorities responsible for the diocesan finances became more obvious, and in 1993 all the Commissioners' financial functions, endowments and trusteeships were vested in a reconstituted Board, the Commissioners becoming responsible for pastoral reorganisation only(7).
2.1 Schedule 1 to the Church Act 1992(8) sets out the membership of the Sodor and Man Diocesan Board of Finance, and makes general provision for its proceedings. It incorporates certain provisions of the Statutory Boards Act 1987(9).
2.2 The powers of investment of the Board are contained in section 4 of the 1992 Act.(10)
The principal function of the Board is to raise, manage and spend money for general Church purposes in the diocese (as distinct from funds applicable for specific purposes). This derives principally from annual contributions ('quotas') from the parishes, but also from the investment income of the Diocesan Trust and other funds.
In general there is no legal obligation on the parishes to pay their quotas.(11)
This money is spent as follows –
The system of remunerating the clergy is complex. Historically the income of the parochial clergy ('incumbents') derived from various sources:
These amounts varied between different parishes.
In modern times the income from these sources has either ceased altogether, or become insufficient to give the clergy a living wage. Today it is all, apart from Easter offerings, paid over ('assigned') to the Board, which pays a standard stipend to all incumbents, the difference being made up from the parish quotas. This arrangement has no basis in legislation, but will be formalised if the new terms of employment of clergy are adopted in the Isle of Man(12).
The Bishop's stipend is paid by the Church Commissioners for England.
The arrangements for clergy housing are no less complex. Most benefices include a 'parsonage house', which is the property of the incumbent for the time being and in which he must reside. Formerly he was also obliged to keep it in repair out of his income, and on his resignation or death he or his estate had to pay for any arrears of repair ('dilapidations')(13).
This is still the law, but it is a dead letter. Clergy incomes are insufficient to cover the cost of maintaining parsonage houses, so it is nowadays borne by the parishioners(14), subject to an undefined measure of supervision by the Board.
These arrangements will change, both in law and in practice, if the new terms of employment of clergy are adopted in the Isle of Man.
As noted above, the Board may act as trustee of any property or fund held for ecclesiastical purposes(15), and holds numerous funds in this capacity, in addition to those inherited from the Church Commissioners for the Isle of Man in 1992 (1.6 above).
The Board is also required to act as 'custodian trustee' of certain parish lands and endowments, ie. it is the legal owner, but control and day-to-day management are in the hands of the parochial authorities(16).
It acts in a similar capacity where a church building is declared redundant and is to be disposed of or used for another purpose, in which case it is automatically transferred to the Board on the coming into operation of the relevant pastoral or redundancy scheme(17).
The Board is required to pay compensation to a member of the clergy who loses office on pastoral reorganisation(18) or in case of a pastoral breakdown(19).
The Board exercises a measure of control over all transactions relating to Church land. Its consent is required to the acquisition of land by a parochial authority(20), and to disposals of land by the Bishop, any incumbent and any diocesan or parochial body(21). The sale price or other capital money arising on any transaction relating to Church land is to be paid to the Board, and has to be applied according to set rules(22).
The Board has power to make schemes for altering the objects, trusteeship, administration etc. of funds or property held for Church purposes ('ecclesiastical charities'), subject to the approval of the High Court or the Attorney General(23).
Certain fees payable to incumbents etc. (eg. for marriages, banns, licences, consent to monuments) are fixed by orders made by the Board, subject to the approval of the Diocesan Synod(24).
The Board has a number of other statutory functions relating to Church property or finance, eg.
K F W Gumbley
Chairman, Legislative Committee, Sodor and Man Diocesan Synod
March 2007 (rev. Nov. 2009)
(1). Church Act 1880. back
(2) Church Assembly (Powers) Act 1919 (Parliament). There was some doubt whether PCCs had any legal existence in the Isle of Man, but a High Court case in 1936 (Re Robinson) decided that they did. back
(3) Church Assembly Act 1925. back
(4) Diocesan Endowments Act 1929. back
(5) Church Act 1934. back
(6) Church Act 1983. back
(7) Church Act 1992 ss.1, 2 & 7. back
(11) The only element of the quota for which there is a legal basis is the contribution to the fund noted at 3.10(c) below. back
(12) Ecclesiastical Offices (Terms of Service) Measure 2009 (2009 No.1); Ecclesiastical Offices (Terms of Service) Regulations 2009 (SI 2009/2108. back
(13) Ecclesiastical Residences and Dilapidations Acts 1879 and 1897. back
(14) In England the cost of maintenance is borne by the diocese and shared among the parishes through the quotas. For this reason quotas are lower in the Isle of Man than in England. back
(15) Church Act 1992 s.3. back
(16) Parochial Church Council (Powers) Measure 1956 s.6, Incumbents and Churchwardens (Trusts) Measure 1964 s.3. back
(17) Pastoral Measure 1983 ss.28, 49, 51, 59. back
(18) Pastoral Measure 1983 Sch.4. back
(19) Incumbents (Vacation of Benefices) Measure 1977 s.13. back
(20) Parochial Church Council (Powers) Measure 1956 s.6, Incumbents and Churchwardens (Trusts) Measure 1964 s.4. back
(21) Church Act 1992 Sch.2 para.4. back
(22) Church Act 1992 Sch.2 paras.5 & 6. back
(23) Church Act 1992 Sch.3. back
(24) Ecclesiastical Fees Measure 1986 s.1. back
(25) Sharing of Church Buildings Act 1969 (Parliament) s.1. back
(26) Pastoral Measure 1983 Sch.7, Church Act 1969 s.5. back
(27) Inspection of Churches Scheme 1997. back