Financial Resolutions 4

Posted on January 4, 2010 Written by

The next set of financial resolutions from Brad Leeper of Generis.com

6. The church must intentionally build greater trust with its people

Most church giving, especially project-driven giving, is in direct correlation with the trust account balance with its people. How often and how creatively can you build the trust connection that gives people instant freedom to say yes to a spiritual investment? Your people might love the primary teaching pastor. They most certainly love the people of their church. Significant trust comes from neither of these sources. Shaping confidence is a neglected art.

·No bank account replenishes itself automatically after a withdraw. So too must church leadership constantly make trust deposits.

·How can we increase our trust account?

·Tell people frequently how their financial gifts are being used.

·Teach how they are building treasure in heaven.

·Celebrate generosity at each offering.

·Help people understand how financial accountability is a big deal in your church.

·Maintain an open atmosphere about your finances.

·Unapologetically spend money on an annual, independent audit and proclaim the results of the clear audit. Make audit copies available in your lobby.

·Leaders appropriately share how they give.

·Send a thank you note to a household after their first gift to the church.

As we swim in these economically turbulent waters, consider more radical moves to build trust.

·Stop ineffective ministry even though you will take hits. People are having to adjust their budgets by stopping spending that they would rather not stop. Model for them how to adjust spending patterns.

·Redeploy budget line items to more practical human needs. Food banks, justice ministries, fighting child slavery, mercy ministries and other such works are perceived as far more important than operating expenditures. If the economy worsens, you will need to support some in your church to ride out the storm. Consistently building trust accelerates generosity.

Lead On!

 

Filed Under: budget, church administration, church finances, church financial statements, generosity, leadership Tagged: , , , ,

Change the Future

Posted on December 5, 2009 Written by

This morning I made a presentation to the church’s strategy council. Actually, the church treasurer, church finance committee chair, and I made the presentation. I’m deeply grateful to them for making the time and having the passion for this presentation; I also appreciate the pastor inviting us to make the presentation.

What I said is that I view the three of us as the proverbial canaries in the coal mine – we’re not shouting fire in a crowded theater but we are warning our colleagues and friends about the future of the church’s finances.

My worst-case scenario is that in ten years we’ll look back at 2006, 2007, and 2008 as the golden years. In ten years, at the present rate, we will have closed some of our ministries and laid off several staff. In ten years we’ll begin survival mode.

Unless we increase the conversation about money things will get worse. We need to talk about tithing, stewardship and generosity on a regular basis from the pulpit, our website, and our written pieces. We also need to open up the ways that people who already want to give to us can give to us. We’ve put in barriers so that people can’t give to us – shame!

Within two years we need to increase our revenues by $1 million (a 30% increase) in order just to sustain what we are currently doing. If we want to fund the dreams of the future, then we have to receive even more income. Let’s talk about money – anytime you talk about something, two things will happen. Those who don’t like what you’re saying will leave and those who do like it will step up to the plate. If you don’t talk about it, you’re ignoring the gorilla in the room.

We have a very good church with very good leaders. But great dreams need great leadership. My request to my colleagues and fellow church members is that all of us need to step up our leadership. Yes, we will get shot at, but that is leadership – just ask the President of the US. We need to look beyond our past and gaze at our future. We need to set our sights on how we can lead (and fund) this church to greatness.

Lead On!
Steve

Filed Under: budget, future, leadership, strategy Tagged: , , ,

Email to a Colleague at my Church

Posted on October 23, 2009 Written by

I thought I’d share an email to a fellow minister. My goal is to get ministers and members to think “outside the financial box” and think if new ways to get money for church needs, especially capital needs.

For a couple months I’ve heard you all getting info about new drop down backboards for the gym. The latest figures I have are costs in the $24K range which is way out of anyone’s budget and designated funds. That got me to thinking about asking the Upwards parents if they would be willing to make a gift or contribution to this project.

In my years as a church administrator, there have been countless times when people wanted to make a gift and asked me what are some pressing needs. My experience is that people want to give back to a ministry or the church that has blessed them or helped them. Unfortunately, the church too often feels that “we can only do it if we pay for it” or “that’s rude to ask people for money.” Both of those concepts are wrong – we shortchange people when we don’t give them the opportunity to give. People want to return the favor, we just need to be open to it, especially to be open to new ways of paying for the church’s needs. Having been in church business for my entire life, I can see a distinct pattern downward in the typical way of funding church – the offering plate is drying up.

I’ve been in multiple conversations with members of the church’s financial leadership team, Ministry Coordination Council members, and the senior pastor on the subject of developing new streams of revenue for the church. The senior pastor asked an MCC member and me to make a presentation to MCC in November on the why and how of new revenue streams. This is a subject that is gaining importance and visibility within our own church.

The Minister of Recreation and I partnered recently on a basketball camp that was a tremendous success and we split the revenue – some for the Rec Ministry and some for the building maintenance (to fix holes in the walls from “stray” basketballs). This is a great model for how we can move forward to fund needs of various ministries and the buildings. I would like to propose that you consider yet another stream of revenue to help meet a need of the Rec Ministry – the backboards.

The idea is that for two of your eight Saturdays during the Upward games, you will distribute a half sheet of paper with the message below. The message is not threatening or guilt-inducing. Instead is makes known a need and gives people the opportunity to respond if they want to. It tells them how they can help a ministry of the church and thanks them for letting us be a part of their life. This is not a solicitation (which our church’s by-laws won’t let you do), it gives people an chance to respond. I truly believe that it is right, ethical, and scriptural to give people the chance to express their gratitude without any form of compulsion. To not give people a chance to give is to limit people and God.

In future years (or even this year), I can easily see the gift request during Upward to be for ministry opportunities in a church in Richmond, or with one of our foreign mission partners, or another recreation oriented need beyond our walls. Perhaps alternating years (between our church and another need) or even doing a split offering in the same year for two separate needs? There are many opportunities and tremendous needs out there – the real question is how can we think creatively to help meet these needs.

Will the Rec Ministry be willing to distribute this message below to its parents? Who knows what God will do through this. Thank you.

New Basketball BackboardsThe Recreation Ministry would like to install four new basketball backboard so that future Upward Basketball seasons can have better equipment. These goals will hang from the ceiling and replace our aging and hard to move floor level goals. Each new backboard costs about $6,000 or $24,000 for the entire project.

Gifts to this project are being accepted by Recreation Ministry if you would like to help. Checks can be made payable to the church and write “basketball backboards” in the memo line and given to a staff member. These tax-deductible donations are not required – it is our joy and privilege to have your child in the Upward program. Thank you for entrusting us with your most precious gift. We hope you and your family have enjoyed it and we hope to see you next year.

Lead On!
Steve

Filed Under: budget, church finances, church staff, generosity, leadership Tagged: , , , ,

Six Generations In Church – Part 2

Posted on October 15, 2009 Written by

The trend is for each successive generation to want to be more actively involved and see tangible results. They want control over when, where, and how each dollar is spent. Younger generations want to know, see and touch where their monies are go AND they want their monies to go to causes that change lives in direct, tangible ways. Several secular non-profits are successfully reaching younger generations who feel they can (and must) “save the world.” The questions for today’s church are:

  • Remove Roadblocks
    o How does the church change its governance, bylaws, and policies to facilitate giving?
    o How does the church develop new channels and methods of giving that are in line with younger generations’ patterns?
  • Tell Your Story
    o How does the church communicate (using Websites, social networking, and even printed media) its programming opportunities and building needs in ways that appeal to younger adults?
    o How does the church encourage financial support from non-members and non-attendees who believe in our causes?
  • Be Creative
    o How does the church (ministers and members) change its mindset from funding programs and activities through the annual budget to each one being self-funding?
    o How does the church expand the types of revenue streams so that we have a diversified portfolio and are less vulnerable to risk? See “The Baker’s Dozen.

The Baker’s Dozen – Ways to Increase Church Income
1. Undesignated Gifts
2. Wills, bequests and planned giving
3. Grants and foundations
4. Endowments, reserves, investments, and interest income
5. Fees for service
6. Rental income
7. Event registration
8. Cost recovery
9. Special offerings
10. Capital campaigns
11. Designated gifts
12. Sale of materials or resources
13. In-kind services

Lead On!
Steve

Filed Under: budget, communications, young adults Tagged: , , ,

Money-Saving Tips

Posted on October 8, 2009 Written by

Flourescent Lights

  • Change your incandescent lights to compact flourscent bulbs and remove all incandescent lights (except those you need for formal rooms with lamps).
  • Change your flourescent tubes from T-12 to T-8. T-8 tubes use 30% less power but put out as much or more light as T-12 tubes.

Motion Sensors

  • Install motion sensors which turn on lights when people walk into a room or down a hallway. While these motion sensors do cost to install, they will pay for themselves within a year or two.
  • If you need to phase in the motion sensors due to the cost of installation, start with hallways, then go to closets and bathroooms (where people frequently forget to turn off lights), and then go to classrooms and offices.
Lead On!
Steve
Filed Under: budget, buildings, facilities Tagged: , ,

Strategic Budgeting

Posted on September 29, 2009 Written by

It’s that time of the year – church finances committees racing against the clock and sometimes against the staff and members to present to the church a balanced budget. In most cases, the budget looks similar to last year’s budget with a few changes.

There are many ways to create a budget for the next year

  • Last year plus budget – take last year’s numbers and add or subtract a certain amount or percentage in order to get a figure for this year’s budget. This is simple, quick, and easy. That can be good but you’ve got to realize going into the process that you’re taking the easy way out.
  • Zero base budget – this is more complicated and eventually more satisfying. Start with a clean slate for each ministry area (music, education, administration, missions, etc.). Then, plan and put a price tag on every event and activity you’ll do next year. Don’t leave out anything.
  • Strategic budget – this type requires a lot of financial and leadership backbone. Don’t go here unless you’re ready to lead. Like the zero base budget, start with a clean slate. Then, decide what part of your church’s mission is “that which you cannot live without” – what part of your church’s purpose is so integral to your critical path that should you not do that, your church will cease to exist. After deciding what is number one, then determine number two, and number three, etc.
  • Put everything on the table – remove from the equation all positions and people. Think rationally and not emotionally about what it takes to accomplish your church’s mission and vision. Ask questions such as, “Do you need a senior pastor (or can you show videos from a mega church)?,” and, “How many administrative assistants and ministers do you need to carry out each long-term strategic mission goal.”
  • When you have settled on your number one priority, then determine how much money you need to fund the programs and personnel for that mission. Okay, now set money aside from your anticipated next year’s revenues for that goal. Move on to the second goal, determine what it is and fund it appropriately with personnel and programs. Go to number three, four, etc. Do this until you run out of money (most finance committees can tell you how much money the church will recieve next year).
  • There, you’ve created a strategic budget. The nitty-gritty details of how the budget line items will come about are done through the zero-base budgeting process. That is the second step to creating a strategic budget. Zero-base budgets can be done alone but in the long run it will help the church more if they are done in conjunction with a strategic budget.

Here’s the bad news. The financial leadership teams of most churches and the senior pastors are unwilling to develop a full-blown strategic budget. It requires a lot of time and effort. It may require terminating staff and programs that are loved by members. It can be very painful.
Here’s the good news. A strategic budget of this magnitude only needs to be done every 3-5 years. That is about how often corporate America re-structures its management. Business wants to ensure they are going in the rigth direction for their organization and that they have the right staff to make it all happen. For the in-between years’ budgets, you can rely on a zero-base budgeting process.
After all the behind the scenes work is done, church members will see what are the church’s primary goals, how they are funded, how they are staffed and what programs will be done to make them happen. Members can talk about what their church is doing (and not just “being”) and they can buy into the vision, both as volunteers and as donors.
Oh, how many goals should a church have? Probably no more than a handful (3 or 4) and each goal should have no more than handful of programs. Keep it simple, keep it focused.

Lead On!
Steve

Filed Under: accounting, budget, planning, strategy Tagged: , , ,
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