7 reasons churches should talk more about money
I’m really excited to see another voice join the conversation of ministry funding. Yes, Money and Mission is targeted at the general nonprofit leader, but I think church leaders can learn from this dialogue, too. In fact, I share the same passion and point-of-view of the blog’s author: Money creates margin, and margin yields more mission and greater potential impact.
Here are 7 reasons churches should talk more about money:
1. The people in your pew are already talking about it.
2. No Money. No Ministry.
3. Silence risks allowing the money God intended to fund His kingdom to go elswhere.
4. Your personal inhibitions do not justify your silence.
5. Giving is an important spiritual discipline. It is equal to prayer, fasting, Bible reading, etc.
6. Stewardship and generosity will change the culture of your church.
7. It is one of the most universal realities that can be used to build a bridge to a lost world.
Are you ready to join the conversation of money, mission, and ministry? (Hint: It’s not optional.)
5 things I would tell small church pastors about giving
Recently, I was asked what five things I would tell small church pastors about church giving. I was a small church pastor for a couple of years. It’s tough being the primary one responsible for just about everything. Since most of the churches in America are small, it’s important that this group not be overlooked or left out of the church funding conversation. So here are five things (in no particular order):
1. Examine your own habits related to money–both personally and professionally. There are no generous churches led by pastors who are not generous themselves.
2. Commit to learning more about financial development and management. Ultimately, it’s the responsibility of the pastor to ensure the financial vitality and sustainability of the church. Read books, blogs, meet with other money professionals in your community, etc. Don’t use a lack of training as an excuse for not knowing and leading in this area.
3. Surround yourself with people in your church who are key influencers, faithful givers, and gifted in the area of finances. These could be entrepreneurs, accountants, investors, etc. Allow these people to leverage their God-given gifts to support you in an area where you’re most likely weak. Treat them as your pastoral financial advisors.
4. Adhere to a 90 day budget. It’s OK to have a 12 month budget plan. That’s a good habit. But leading a small church can be volatile when it comes to giving and finances. Commit to reviewing your financial condition (revenue, expenses, and operations on a 90 day basis). Adjust as needed.
5. Outsource your financial administration. You need to focus on doing the things only you can do as pastor. Plus, you avoid the awkwardness of a long-time member taking care of the books.
What would you tell small church pastors about church giving?
Get over yourself…people want to give
Church leaders let their personal inhibitions get in the way of assisting God’s people to give God’s money in God’s way to fund God’s work. I would suggest that if you fear the conversation of money because…
…it’s uncomfortable for you…
…you’re afraid people will leave the church over it…
…you believe people don’t want to hear about money in church…
…then you are consumed with yourself rather than the spiritual growth, development, and discipline of the people you are called to lead.
OUCH! That’s hurts. I know. But it’s the truth.
Don’t believe me? Listen to a pastor’s wife who together with her husband gives away as much as 60% of their annual income says about leaders who don’t ask them for a gift of any size:
“There’ve been times I’ve been part of fund-raising activities, and the development staff didn’t ask me for a gift, probably thinking that because I work for a nonprofit, I wouldn’t have much to give. I felt really hurt by that. I was there because I wanted to give.”
While you’re silence about money in church preserves your ego and fans your flame of frustration over funding, people are being robbed of the opportunity to be faithful to the commitments they’ve made to fund the work of the Kingdom.
Maybe the problem in the funding equation in your church is you, pastor.
People can give more than you think
One of the greatest challenges I face in helping pastors fund the vision God has given them is moving beyond the impression that no one in their church has money. I hear it from pastors of big churches and small churches…
“We’re just a simple church made up of simple people.”
“We don’t have anyone in our church who has a lot of money to give.”
“Our people are maxed out in their ability to give.”
And every one of those pastors would be…WRONG!
God’s funding capacity is unlimited. If we serve in God’s church, then our funding potential is also unlimited.
The reality is that people give…
…at the level of perceived need.
…to causes and organizations that have a plan and demonstrate impact.
…to people they know, like and trust.
I have never met anyone who has run out of money because they decided to give. In fact, some of the wealthiest people I know are the most generous givers I know. And they don’t live the high life. Instead, they choose to live quiet, simple lives with quiet, simple people.
The people in your pews can give more than you think. Are you prepared to present a compelling plan that would cause them to direct those resources to your church?
“Best practices” for generous churches
I’m asked frequently if there is a “magic” list of best practices for church leaders to follow who desire to cultivate a culture of generosity among the people they lead. My immediate answer is “no.” I resist “best practice” ideas almost immediately because nothing in life is the same in every context. There are just too many variables to consider for one person to say with confidence that if you do these things then it will absolutely, positively result in a generous culture.
The good news is that there is some great information out there for churches who are looking to better understand what a generous church looks like and discover the common characteristics found in churches who presently have a culture of generosity. In fact, I’m helping a couple of leaders in this area develop their ideas and experience into a book. I think it’s a valid conversation, and there is a need to capture the conversation happening in pockets of church leadership and present a common understanding to make the journey more accessible to every leader.
In the meantime, I stumbled upon Steps to a generous culture in the archives of Church Executive Magazine. My favorites are #4, 6, 7, 8. These are relatively easy to implement and consistently produce the greatest return on invested time and energy.
Becoming a generous person, practicing generosity as a leader, and cultivating a culture of generosity in your church is intentional in every way. It doesn’t just happen. Perhaps the best of the “best practices” (if there is such a thing) is grounded in being generous personally and looking for ways to pass that desire and energy to others with whom we interact and engage with regularly.
Recent articles in Fundraising Success and Your Church
I’m delighted to have the opportunity to share my thoughts with so many good publications. Most recently, I was given the opportunity to contribute to Fundraising Success Magazine’s e-newsletter and Your Church’s blog.
As I look back over the last six months, I’m amazed at all places where I’ve been published:
The Difficulty of Giving (Church Executive Magazine, January 2010)
5 Ways to Decrease Giving in Your Church (The Bean Creator, February 2010)
4 Ways to Use Social Media During Capital Campaigns (Christian Computing Magazine and Ministry Marketing Coach, February 2010)
Church Giving: The Rules have Changed (NACBA’s The Ledger, March 2010)
Finally, I’m consistently amazed at the number of downloads (reaching 2,000) of my e-book, Pushing the Limits of Church Funding, and the continued sales of Church Giving Matters.
My next e-book, developed in partnership with Church Community Builder and Lauren Hunter, along with a few other scheduled articles are due this Fall. Stay tuned!
Thanks for reading!
First-time givers: your game-changing funding strategy for 2010
Most churches have never thought about tracking first-time givers. While this is commonplace is traditional nonprofit settings, it’s rarely a priority in churches. I think most of it has to do with lack of training to pay attention to this group and lack of understanding on what to do with them once you know who the are.
When someone gives money to your church, it signals a commitment of some kind has been made. It doesn’t necessarily have to be a long-term commitment, but something connected with them and caused them to give to you instead of somewhere else. That action alone separates the first-time giver from the person who has never given at all. First-time gifts often come well after an individual or family has visited a church for weeks, maybe even months. This is their way of waving the flag and saying, “We identify with you. We want to support you. We are in this with you.” That’s a big deal and should be treated as such.
Once you know who these people are, you will want to follow up with them immediately. My suggestion to my clients is to – as best as possible – determine which front-line minister would be the most likely to interface with this individual or family on a regular basis. Remember, the first-time gift signals the beginning of what could be a long-term relationship. It’s still the responsibility of the church to stoke the flame and ensure it becomes a blazing fire.
Encourage the front-line ministry staff to connect in person or over the phone as well as via letter. Celebrate with the individual or family in the areas where God is actively working in their lives. Determine what the appropriate next step in their journey of engagement with your church needs to be. (e.g. Have they attended a new members class? Are they connected to a small group or Sunday School class?)
As stewards of the people God brings to our congregations, it’s vital that we respond to people as they respond to God’s movement in their lives. It could make the difference between a first-time giver and a last-time giver.
One caution that I have for you is not to underestimate the impact a first-time giver strategy could have on your overall church funding. A client told me recently that more than $100k was received in first-time gifts in one quarter. Just think if those same people gave that same amount consistently throughout the year. That might mean $400k or more in additional contributions. (I haven’t talked to a church yet who wouldn’t love to have an extra $400k to invest in Kingdom impact.)
Don’t miss the ministry opportunity with first-time givers. It could be your game-changing funding strategy in 2010.
3 reasons NOT to increase your church budget in 2011
Christianity Today recently published Should Church Increase 2011 budgets? This article captures a variety of thoughts from a wide cross-section of leaders. Some people believe in the scarcity of the dollar and some believe in the infinite surplus of money. Every church (and church leader) is different. There are some who have predetermined to decrease their operating budgets for 2011 and some that will absolutely, positively increase their budgets in 2011.
Here are three reasons why you SHOULD NOT increase your budget in 2011:
1. You (as pastor) haven’t fully embraced the role of chief fund-raiser. People give to people, particularly people they know, like, and trust. The pastor is the most visible staff member and the one to whom most members and attenders will make an immediate connection. The pastor is also the person who must ensure the financial integrity of the organization. If you’re not ready to deal with money openly and honestly, you won’t cultivate all that God has already provided in the people who sit in your pews.
2. You don’t want to preach/teach about money. Break the silence! Offer people an alternative perspective on money, one that is based on scripture instead of culture. The more the church remains silent on the subject of money, the more dollars that will continue to fly out of the offering plate only to help fund other organizations with money that God intended to support the work of the church.
3. You don’t want to engage with people about their giving potential. If you’re not confident enough to look someone else in the eye and ask them to financially support the work of your church, then you don’t believe completely in what you are doing. Talking to people about money is no different than talking with them about prayer, Bible reading, or church membership. All are part of the spiritual formation process. If you don’t challenge others to be generous, someone else (from another organization) will. In fact, it’s happening right now.
What are your church budget plans for 2011?
8 ways to turn contribution statements into dollars
It’s time to send out quarterly contribution statements. You have a decision to make. Will you choose to simply print a line-item record of peoples’ gifts, or will you use it as an opportunity to communicate Kingdom impact?
Here are 8 ways you can turn contribution statements into dollars:
1. Personalize the address. Any piece addressed to “Member” doesn’t work. Printing technology has advanced to the point that variable data printing is cost-effective even for small churches. People want to read something with their name on it.
2. Give me a reason to open the envelope. Direct mail fund-raising still produces the highest return on investment. The same rules apply to contribution statements. If you don’t give me a reason to open the envelope, then I’ll never see what’s inside. You could be creative or boring. Any copy on the outer envelope will achieve higher “open” rates than blank ones. Even adding “Please verify our records are correct for tax purposes.” is better than a plain outer or carrier envelope.
3. Design matters. Make sure the mail piece AND the contribution statement are appealing to the eye. If it looks like a tax return, I won’t read it. If I’ve opened the envelope, then you’ve overcome the most difficult obstacle. Don’t fumble the ball when you are on a touchdown run with no opponents chasing you.
4. Tell me a story. Very few people are motivated by financial reports. I’ve met those people before. There is a glimmer in their eye when they are flooded with data and numbers. Guess what? Those people are wierd and not normal. The person opening the envelope wants to hear a story. Do more with this mail piece than just offer a standard, record-based print out.
5. Leverage the letter. Use a cover letter as an opportunity for the pastor to retell the story of the church over the previous quarter, especially highlighting measurable moments of ministry impact. Then, close the letter with your dream of what God is going to do over the next 90 or 180 days. Most people never see the “big picture” like the pastor and staff does. Help them see and feel what you see and feel on a daily basis. (Note: The letter isn’t restricted to one page in length. As long as you provide great content, people will read it.)
6. Include a comparison to previous year giving to date. People like to keep score. Even my preschooler, who participates in a soccer program that doesn’t declare a winner or loser after each game, knows if his team won the game or not. The people in the pew are no different. It’s easy to forget to tithe when you are traveling on business or vacation. Seeing my current year giving next to my previous year giving becomes a subtle reminder to be faithful with what God has freely given them.
7. Ask me to do something. At the end of the letter, tell me exactly what you want me to do. You want each member to: review the information, submit any necessary changes, and/or make a gift. You can even include a statement on the reply envelope that indicates additional giving options such as online giving. (Note: You can add a sense of urgency to the reply envelope by printing a message like: “Please process this piece immediately.” or “Immediate Attention Required.”)
8. Include a postage-paid response envelope. Include an already addressed reply envelope. For even better results, make sure the reply envelope is postage-free for the member. When I don’t have to search for a stamp, it becomes an easy, quick decision. You don’t want the mail piece to get shuffled into a pile where it will be lost forever. You want the member to act instantly without hesitation.
How do you handle contribution statements? Have you done something creative that has dramatically improved your response rate?
