Embracing Change: A New Chapter in Episcopal Financial Stewardship

In an era marked by significant shifts within the Episcopal Church, the departure of Kurt Barnes signals more than just a change in leadership. It heralds a pivotal moment that will shape the future of the church’s financial management and strategic direction. Barnes’ legacy is built on unwavering commitment, expert oversight, and a steadfast approach to fiscal responsibility. His retirement sets the stage for a new era of innovation and adaptation in church finances.

The Pillars of Financial Oversight

Barnes’ tenure as CFO was characterized by his dual role as treasurer of both the General Convention and the Executive Council. These positions placed him at the heart of the church’s financial decision-making processes. He played a crucial role in managing the churchwide budget, ensuring that revenues and expenses aligned with the approved financial plans. This meticulous attention to detail was instrumental in maintaining the church’s financial health, even during challenging times like the onset of the COVID-19 pandemic.

One of Barnes’ notable achievements was his ability to provide clear, concise financial reports that offered transparency and reassurance to the church’s leadership. His philosophy of “no surprises” became a hallmark of his presentations, reflecting his belief that stability and predictability are essential components of sound financial management. This approach not only instilled confidence but also fostered trust among stakeholders.

Redefining Diocesan Contributions

During Barnes’ time as CFO, the Episcopal Church underwent a significant transformation in how it collected funds from dioceses. Initially, dioceses were asked to contribute 21% of their revenue, although these contributions were voluntary. By 2004, only 43 out of 100 dioceses had met or exceeded this target. Recognizing the need for a more sustainable funding model, Barnes spearheaded efforts to shift from a system of requests to one of expectations. In 2015, the church introduced a new policy that gradually reduced the diocesan assessment rate to 15%, while exempting a portion of each diocese’s revenue from these calculations.

This change not only increased compliance but also strengthened the church’s financial foundation. Today, diocesan assessments contribute approximately $30 million annually to the church’s operations. Barnes and his team have successfully cultivated a culture of shared responsibility, where nearly every diocese commits to paying the full 15%. This shift has been critical in ensuring the church’s financial resilience and adaptability.

Investment Management and Fundraising Initiatives

Beyond managing the church’s budget, Barnes oversaw the investment portfolio, which plays a vital role in supporting the church’s activities. Annual returns from these investments contribute about $13 million to the church’s budget over the next three years. Barnes’ expertise in investment management ensured that the church’s resources were not only preserved but also grew over time, providing a stable source of income for various programs and initiatives.

Additionally, Barnes was responsible for overseeing the Office of Development, which coordinates fundraising campaigns such as the Annual Appeal. Under his leadership, the office developed comprehensive strategies to engage donors and secure the necessary funding for the church’s mission and outreach efforts. Barnes’ experience in finance and development was instrumental in enhancing the church’s ability to mobilize resources effectively.

A Legacy of Leadership and Service

Barnes’ career spans more than four decades, including two decades with the Episcopal Church. Prior to joining the church, he held senior financial roles at Inco Limited and Morgan Stanley, and began his career as an economist at the RAND Corporation. His diverse background equipped him with the skills and knowledge needed to navigate complex financial challenges. Barnes’ dedication to the Episcopal Church was further recognized in 2019 when he received the Bishop Quintin Ebenezer Primo Award from the Union of Black Episcopalians.

As the Episcopal Church prepares for Barnes’ retirement, it also faces broader changes under Presiding Bishop Sean Rowe. Rowe’s term began in November 2023, and since then, several key leaders have announced their departures. This period of transition coincides with a structural realignment aimed at reducing staff costs by over $3.5 million over three years. Barnes’ willingness to assist with the leadership transition underscores his commitment to ensuring a smooth handover and continued financial stability for the church.