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TEACHING NOTE
CASE 15
The United Methodist Church
Overview
The United Methodist Church, a union of the Evangelical Brethren Church and the Methodist Church, was
founded in Dallas, TX in 1968. The genesis of its theological traditions was in the Protestant Reformation
and Wesleyan ideals that had been established in Great Britain for over 200 years. Methodism was
organized in America in the late 1700s on the basis
of the ministries of the English missionaries John and Charles Wesley. These men had begun a renewal within the
Church of England that stressed inclusion of the poor or average person, a systematic approach to building the
person, Arminian doctrine, and a deep conviction for missions. Although early Methodist followers spanned all
levels of society, Methodist preachers took the message to laborers and criminals, who tended to be left outside
organized religion at the time. Under the leadership of John Wesley, the Methodists became leaders in many
social issues of the day, such as prison reform and abolition.
The United Methodist had approximately 11 million members at its inception in 1968, making it one of the
world’s largest Protestant Churches. Over time the United Methodist gained a global following with conferences
in Africa, Asia, and Europe, as well as in the United States. In the following years, there was significant
membership growth in Africa and Asia but membership declined in Europe and the United States. Similar to
many mainstream denominations, the United Methodists struggled with several controversial social issues such
as AIDs, evangelism, abortion, sexuality, the environment and world mission. By 2008, the Church’s membership
in the United States had fallen by 3 million since its beginning in 1968. The Church reported in 2012 that central
and southern European nations had a decline in membership of 25.6 percent and the United States had suffered
a 7.8 percent decline. Obviously a major problem with the declining membership was decreased giving from the
shrinking congregations.
The United Methodist Church depends upon congregational giving for the majority of its income (between 96
and 74 percent). The Church calculated that an average congregation needed about 125 members so support a
full time pastor. In 2007, fewer than 8,700 of the 33,000 United Methodist Churches had average attendance of
100 or more congregants. A result of the declining membership and worsening financial condition of the Church
was a surplus of about 800 pastors in the United States. The general trend from 2000 to 2010 in the United
Methodist Church was declining membership in Europe and the United States, and increasing membership in
Africa, and the Philippines.
This highly interesting case includes a description of giving to religious organizations, the shifting characteristics
of church members, changing societal views as they affect organized religion, and an excellent description of
religious organizations in the United States. This is a case with which all students can identify, and it presents a
real and current problems that affects almost all students and their families.
: Challenges
to its Ministerial Mission in 2014*
*This teaching note reflects the thinking and analysis of Professor David Turnipseed, University of South Alabama. We are most
grateful for his insight, analysis and contributions to how the case can be taught successfully.
Case 15 Teaching Note The United Methodist Church
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Suggestions for Using this Case
The United Methodist Church case is an excellent vehicle for introducing students to strategic analysis of not-for-
profit organizations. The majority of students will be familiar with at least one of the denominations discussed in
the case. Also, students tend to have very divergent opinions on the issues presented, which will make for a lively
class discussion. The relatively short 7- page length of the case will please students, and they will easily grasp the
nature of the problems facing the United Methodist Church and all denominations of organized religion. Because
the analysis of the United Methodist case is not as demanding as some other cases, it is very suitable for use in
the first half of the course, essentially any time after class members have covered Chapters 1-6.
The assignment questions and teaching outline presented below reflect our thinking and suggestions about
how to conduct the class discussion and what aspects to emphasize.
Optimal Use of Assignment Questions. It is quite difficult to have an insightful and constructive class
discussion of an assigned case unless students have not only read the case but also conscientiously worked their
way through a set of well-conceived assignment or study questions before they come to class. In our classes, we
expect students to bring their notes to assigned study questions to use/refer to in responding to the questions that
we pose. Moreover, students often find having a set of assignment or study questions useful in helping prepare
oral team presentations and written case assignments—in addition to whatever directive questions you supply
for these assignments.
To facilitate your use of study questions and making them available to students, we have posted a file of the
Assignment Questions contained in this teaching note on the instructor resources section of the Connect
Library.
Utilizing the Guide to Case Analysis. If this is your first assigned case, you may find it beneficial
to have class members read the Guide to Case Analysis that immediately follows Case 31 in the text. The
content of this Guide should be particularly helpful to students if your course is their first experience
with cases and they are unsure about the mechanics of how to prepare a case for class discussion, oral
presentation, or written analysis.
Suggested Assignment Questions for an Oral Team Presentation or Written Case Analysis.
The United Methodist Church case can be effectively used for written assignments and oral team
presentations. We recommend the following assignment questions:
nAs a recent business school graduate, you have been asked to assist the Sustainability Advisor Group of
the United Methodist Church in developing a plan to confront the challenges to its ministerial mission.
Specifically, the committee is seeking assistance in assessing the external environment in which
religious organizations exist and the internal situation of the United Methodist Church. Your 5-6 page
report should also include an action plan that addresses the strategic issues facing the denomination.
You should use whatever tools of analysis outlined in Chapters 3 and 4 you believe appropriate to
support your recommendations.
nPlease prepare a 2-3 page executive summary of recommendations to improve the organizational
performance of the United Methodist Church. Your recommendations should be supported by facts
disclosed through an analysis of the United Methodist Church’s external environment and internal
situation. You can attach tables, figures, and other exhibits to support your executive summary. Tools
of analysis and concepts presented in Chapters 1-5 are appropriate for this assignment.
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Assignment Questions
1. Describe the trend in membership for the United Methodist church, and its implications for sustainability of
the Church.
2. Describe the trend in charitable giving to religious organizations.
3. What are the driving forces in religious organizations?
4. What is the financial condition of the United Methodist Church from data presented in the case?
5. What actions would you suggest to the General Assembly to help improve the United Methodist Church’s
situation and keep it a viable denomination?
Teaching Outline and Analysis
1. Describe the trend in membership for the United Methodist church, and its implications
for sustainability of the Church.
The United Methodist Church membership trend in the United States has been negative since its inception
in 1968. That year (1968), the Church had about 11 million members, which made it one of the largest
Protestant churches in the world. Over the next several years, the United Methodist Church increased its
Between 2000 and 2010, total membership for the United Methodist Church world-wide increased from
9.6 million to 12 million; however the source of this growth is significant. Membership in the United States
declined from 8.3 million to 7.6 million (8.7% decline) while the largest growth was in the Central Congo
(251% increase), West Africa (298% increase), Africa (171% increase), and the Philippines (156% growth).
In summary, the negative trend in membership for the United Methodist Church in the United States and
other developed countries had significant negative implications for the sustainability of the denomination.
2. Describe the trend in charitable giving to religious organizations.
Giving to religious organizations has been in decline for several years. The composition of membership
is changing with negative results for organized religion. The majority of giving has historically been done
by members over the age of 50. In 2013, Baby Boomers were the largest segment of the United States
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The “Generation X” group, born in the early 1960’s to early 1980’s was the third largest membership group
(24.4%) in U. S. Churches. This group was less religious than the older generations and the group most
adversely affected by the economic recession. Many members of this group experienced a significant decrease
The Pew Research Forum’s study reported that in the 18 – 29 year age group in the United States, 1 of 4
individuals chose no religious affiliation, compared to 16.1 percent in the entire population. This group
3. What are the driving forces in religious organizations?
nChanging social views and norms
nBreakdown of the family unit
4. What is the financial condition of the United Methodist Church from data presented in
the case?
The United Methodist Church financial condition must be considered serious. There is a strong down-trend
in member contributions both domestically and internationally. After the 2007 – 2009 recession, the cost
structures of many United Methodist Churches could not be supported by congregation contributions. Many
congregations were struggling to remain viable as they faced serious membership declines. According to
Research by the United Methodist Church in 2010 revealed that the current compensation packages and
infrastructures were beyond the capabilities of many Churches. By the end of 2010, only 15% of United
The General Conference budgeted $149 million in 2011 for use by the annual conferences, but due to
decreased member contributions, only 87.6% of the budgeted amount was collected. Congregational giving,
as a percent of church income, varied among the conferences but ranged from 74% to 96%. Consequently,
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5. What actions would you suggest to the General Assembly to help improve the United
Methodist Church’s situation and keep it a viable denomination?
The first action the General Assembly must take is to decide what the United Methodist Church will be
in the future. Will the Church remain true to its Biblical and historical roots, or will it follow and accept
social trends to keep members? Either choice will have its fervent supporters and detractors. Making the
There are several options available that may help the United Methodist Church regardless of the Church’s
decision on a future path, although they would probably be met with some resistance:
nThe General Assembly should deliver a very accurate appraisal of the trends in membership and
financial contributions to all members of the Church. The Church should communicate the unambiguous
message that business as usual is no longer an option for the Church. The sale of the Episcopal Church’s
nThere is no reason presented in the case to suggest an improvement in the financial condition of the
United Methodist Church. In fact, there is evidence that the financial distress will worsen, in large
part due to decreasing membership in the United States, Germany and Northern Europe (the countries
nAccording to the Church’s Sustainability Advisory Group, in 2010, a church needed 125 congregants
to provide the funds needed for a full-time preacher. In 2007, only about 26% of churches (8,700 of
33,000) reported average attendance of 100 or more. The result was a surplus of about 860 clergy in
nGiven the down trend in the Church’s membership and financial situation, the Church could begin a
nThe United Methodist Church should consider merging congregations. This would likely be a very
emotional topic met with significant resistance and the possibility of exacerbating the membership
decline. The Church should make its financial situation well known to all members and over a period
of perhaps a year, be very public in disclosing the trends. This, coupled with pastor sharing, may ease
Epilogue
There were no new developments concerning the growth and direction of the United Methodist Church at the
time this note went to press.