10 Financial Ratios (part 2 of 10)

Donor Giving Curve

  1. Definition: gather 52 weeks’ of donors’ budget gifts and the ages of the donors; add the donors’ gifts into 10-year age brackets; plot the gift totals on a graph.
  2. Results
    1. Your bell curve should peak with the 50-59 age bracket
    2. Optimum: the left shoulder (20s, 30s, & 40s) should be higher than the right shoulder (60s, 70s, & 80s). Younger folk have more debt and less earnings but seniors are trying not to outlive their retirement funds.
  3. Consequences: Look at your graph and move it forward 10-15 years and determine the financial viability of your church.
    1. What will your church’s budget be like in 10-15 years and are you getting ready?
    2. Is your church too dependent on seniors so that when they stop giving your church will have significant financial difficulties?
    3. Is your church developing the younger generations by establishing expectations for them in leadership & volunteer positions and doing continual stewardship education?

Now What? So What?

  • Compare your church’s financial ratios to the optimum range for each ratio.
  • Develop a 2-3 year plan to bring your ratios in line with best financial practices.

Lead On!