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?
Science confirms those with less give more
I have always found it strange that those with the least to give are more likely to give when compared with those who have considerably more. While it seems counterintuitive, it’s true. Research from organizations like Giving USA supports an indirect correlation between a person’s estate value and their giving habits. The greater the estate value, the less a person is likely to give.
Here are some thoughts that immediately come to mind on the subject:
1. People with money aren’t bad. I think organizations (churches especially) are better at talking to people who are struggling financially than those who are financially successful. Therefore, the lack of conversation, perspective, and investment in relationships with those with the greatest resources results in a lack of giving from the group most likely to make a significant impact through their gifts.
2. Poor isn’t better than being rich. Money as an object is not bad. Having money or not having money is not indicative of sin or virtue. We must see ourselves as catalysts for change and find ways to increase the margin in our lives (time, talent, and treasure) so we can share more with others to multiply ministry opportunity and increase Kingdom impact. Everyone can do, give, and lead something. We must determine what we have the capacity to do and then do it.
3. People don’t have a giving problem. Some of the wealthiest people in the world are making some significant commitments. I hope others follow suit. The preservation of money should never outweighs a person’s desire to leverage their margin for greater social impact. What people struggle with the most is reasoning why they should give to you. With so many options available to the individual today, it’s important that we provide a compelling reason why your cause or organization is the best investment they could make.
4. Giving must be cultivated. The idea that people will just give to anything or anyone is not an assumption a church or organizational leader should never feel comfortable making. All gifts — even the smallest — must be cultivated through relationships and consistent interaction and participation with organizations and causes that connect with the giver. If you’re waiting for Mr. and Mrs. Wealthy to find you and save the day, then you’re in trouble.
How you talk about and approach the subject of money matters. Are you prepared? Your funding depends upon it.
Jeff Brooks on those with the greatest giving potential
Jeff Brooks is a really smart guy when it comes to fund-raising. (And not just because he listed Church Giving Matters as one of his top 10 fund-raising blogs to read.) He posted recently, How many people are likely to give — now and in the future. He makes a clear distinction between actual donors and the age groups with the highest giving potential.
I think his observations are correct. It follows a consistent trend that those who are older are most likely to have the highest liquidity in your congregation and most likely to be the largest giving segment. That group, therefore, has the highest giving potential. The false security in this is to assume members of this age group will give to your church. The reality is no one in your church HAS to give to you. In fact, Passing the Plate defines the average American Christian’s posture toward giving as “discretionary obligation.”
While it is good to keep in mind that your communication strategy should be segmented by member preferences and be audience specific, the only way to build the giving capacity of your church is to strive for engagement instead of awareness.
Take the church bulletin for example. All it does is send messages into the already cluttered mind of the member, if he or she even reads it. The church bulletin is not engagement; it’s an exercise in awareness.
Take the announcement time, still very popular in churches. Again, all you are accomplishing is sending more messages into an already saturated environment where everyone and everything is trying to grab the attention of your members. The announcement time on Sunday morning is not engagement; it’s an exercise in awareness.
Awareness is important, but engagement is primary. Engaged people want to be aware, but awareness doesn’t always lead to engagement.
Engagement only happens in relationships like in small groups, mission projects, and outreach efforts. When you stimulate an environment where groups of people are gathered together to reach a specific goal or complete a specific task, engagement is more likely to happen then than at any other time.
How is your church engaging others? What groups within your church are you currently engaging? Are there are segments of your membership that are disengaged?
Engagement will always increase giving capacity.
4 things to do BEFORE you start a campaign
Most of the church leaders I meet with think that pre-campaign planning begins with the campaign itself. It actually begins before the campaign is even conceived.
The fallacy or risk in not strategically approaching the pre-campaign process is grounded in the assumption that everyone will say “yes” and support this new effort (mission project, new building, etc.). Even if you know the congregation on a whole will say “yes,” it’s common courtesy in a relationship to ask and not assume or demand anything.
Think about how weird it would be to get married without asking the other person to marry you. It doesn’t make sense in personal relationships, and it certainly doesn’t make sense when considering the relationship of the member to the church. No one…I mean no one…likes to be told what to do. A personal invitation will make all the difference.
Here are 4 things I recommend all church leaders do before you start any type of campaign:
1. Gain clarity about where your church is today. Jim Collins would say, “Face the brutal facts.” There is a HUGE chance that the perception of the person in the pulpit is SLIGHTLY different from the person in the pew. You need to know if the people in the pew (those who will execute and, ultimately, fund the effort) perceive the same need in the same way you do. The easiest way to accomplish this is through a guided discovery process that uncovers all financial, interpersonal, and ministry aspects of your church. This should be completed by an outside party because the church leader is too close to the situation to have any real perspective.
2. Meet with the people in your church who are your pillars of influence. Influencers may or may not be high-capacity givers. I would suggest that all your high-capacity givers are influencers but not all influencers are high-capacity givers. You need this group behind you. When you know you are on the same page, you have the confidence you need to move forward and you know others are ready to defend the direction you are heading when (not if) “the static” begins.
3. Examine your personal inhibitions about money. Few church leaders find it natural to address the subject of money. However, your personal objections and inhibitions don’t erase the fact that Jesus spoke more about money than he did about sin and salvation. Part of the responsibility of leading God’s church is cultivating the resources God intended to fund the Kingdom. Generosity/stewardship doesn’t just happen; it’s intentional. I’m convinced that a leader who can’t ask for financial support from his congregation is not ready to lead a campaign. Period. End of discussion.
4. Connect the campaign to Kingdom impact. There is a rising tide of what I call the hybrid campaign. All the elements of a traditional campaign exist accept the total amount raised is parsed out among international mission efforts, local mission efforts, and on-campus/multi-site improvement or expansion. Whatever the elements of the campaign are, the goal is not the work in and of itself. People don’t want to fund more busyness. Rather, the goal is to increase ministry impact, expand Kingdom initiatives, and multiply ministry opportunities. The goal should be to create a more sustainable, high-impact Kingdom footprint than the church has today.
If this sounds like a lot of work, it is! If you’re thinking about skipping over the pre-campaign process, let me caution you to do the homework necessary to be ready to ask your congregation to support the direction you are headed (that will probably cost millions of dollars) when they have plenty of alternative giving options available to them.
Are you ready to lead your church through your next campaign?
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.
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?
I’m in Baltimore today talking about church funding
Thanks to Matt Steen, Ben Habeck, and the folks at the Baptist Foundation of Maryland/Delaware to making this event possible. See you there! Here’s the info:
Location:
The Baptist Mission Resource Center
10255 Old Columbia Road
Columbia, Maryland 21046
Date: Thursday, June 24 at 10 AM – 2:30 PM
Cost: $5 (Lunch included!)
Summary:
The recession has created a “new normal” when it comes to church giving. This workshop will explore the changing habits of the person in the pew and identify the characteristics of a game changing plan to ensure fully funded budgets and long-term, sustainable ministry.
Even if you didn’t register in advance, on-site registration will be available! Come on!!
20 reasons why you should use offering envelopes
Note: I wrote this while I was working at LifeWay Christian Resources. I still strongly encourage churches to think carefully about how they use offering envelopes. Direct Mail Fund-raising may not have the “cool factor” of more tech-savvy means of giving to churches, but it still produces the highest return on investment.
Just so you know, this was reprinted with permission.
20 reasons why you should use offering envelopes
1. Offering Envelopes are the MOST EFFECTIVE “call to action” tool ever designed by direct mail fund-raisers outside of individual “asks.”
2. Excellent way to communicate the identity of your church by using church specific information.
3. Easily customizable piece that highlights the funding priorities of your church.
4. Great record-keeping tool for church office to ensure contributions are recorded correctly.
5. Encourages systematic, faithful giving by inviting every member to participate simply by placing an offering envelope in their hands.
6. Consolidates church office mailing when contribution statements, pastoral letters, communication cards, and special offerings are included in the set. This is especially true for those who mail their offering envelopes to members.
7. Message series offering envelopes are designed to reinforce the Christian educational principles being taught through small groups, Sunday School, and other related Bible Study material.
8. Subtly reminds the church member of the financial responsibility of church membership.
9. Offering Envelopes are available with stock designs but are also completely customizable. Each church is only limited by its own creativity.
10. Churches who use offering envelopes, on a whole, have a broader and more consistent giving base.
11. Including mail-back offering envelopes allows the member to give even when they are not physically present.
12. Offering Envelopes serve as a symbol of how faithful giving is critical to establishing a long-term, sustainable ministry.
13. People don’t give unless they are asked to give. Offering Envelopes ensure an appeal is being made regularly.
14. Offering Envelopes are not sexy, but they are tried-and-true vehicle for church funding.
15. Multi-purpose offering envelopes such as the Welcome Offering Envelope can be used in the pew as a way to record a visitor’s information as well as a collection piece. This cuts down on pew clutter and maximizes the church’s investment.
16. Offering Envelopes are a tangible tool churches can use to teach the habit of giving in children, the next generation who will be called upon the fund the ministry of the local church. Laying a foundation of faithful giving begins today.
17. Offering Envelopes are an essential accountability tool that churches can use to measure general level of member commitment. If someone isn’t giving to your church, they haven’t fully committed to the ministry of your church. Chances are they also aren’t giving their time or investing their talents either.
18. Offering Envelopes are most effective with those who don’t fill church leadership positions but are often decided upon by those few faithful givers who would roll their weekly tithes into Worship in pennies if it was asked of them. The greatest temptation of the church leader (lay or paid) is the assumption that “everyone” in the church feels the same way about giving to the church as they do.
19. Offering Envelopes provide the basis for collecting not only dollars but also the giving habits of your congregation. Armed with enough giving data by giving unit, church leaders can use different methods of analyzing that information to uncover trends and make critical and informed operational and funding decisions with objective data instead of pure intuition.
20. Samaritan’s Purse, World Vision, and an endless number of good organizations doing good things are sending the members of your church envelopes asking for a portion of what God has blessed them with too. They just don’t call them “offering” envelopes.
