Tellers

Posted on March 26, 2012 Written by

Most congregations have some form of tellers that count the Sunday offerings. There are no regular patterns:

  • some count on Monday, some on Sunday
  • some count during the service, some count after worship
  • some copy checks, some write down all the info
  • some enter data into the database system, some fill out forms and leave the docs for the finance office
  • some take an hour, some take almost an entire day to count
  • some teller teams have been disbanded leaving the job for the finance office staff and some teller teams will never give up their prize job

The purpose in having a Teller Team is to ensure that all funds are counted and deposited. It is a carry forward from days when the church didn’t have a staff to count the money – volunteers took turns counting the Sunday collection and depositing the money. In many, if not most, churches, those days are long past but the committee lives on and on and on and on. Most tellers will tell you they feel they are protecting the church by ensuring that no one steals the money. Funny story – I worked at a church where the extremely zealous Teller Team never wanted the church staff to touch the money and they cited a story from 50 years ago when money was stolen – but it was stolen by a member of the Teller Team!

Let me suggest the easiest way possible for both the Teller Committee and for the Finance Office staff. This will save time, improve accuracy, cut down on gossip, and make everyone happy – yes, it sounds too good to be true!

  1. Once the tellers have the offering, they should spread it out on a table
  2. The tellers should go through the pile and gather all loose dollars and coins
  3. All loose plate cash should be added and written on the deposit slip on one detail line
  4. Then the tellers should stack and open all envelopes (but not pull out the contents)
  5. Envelopes with checks should be placed in one stack and envelopes with cash in a separate pile (envelopes with both, which is rare, should be in the cash pile first and then moved to the check pile after the cash has been removed and noted on the envelope)
  6. Cash in the envelopes should be removed and the amounts written on each envelope
  7. All envelope cash should be added and written on the deposit slip (same one as #3) on a detail line
  8. Then total all the cash and coins and write them on their respective lines at the top of the deposit slip. Two members of the teller team should initial the deposit slip so that an alternate slip is not made.
  9. You now have one deposit slip and all cash (currency and coins) for the bank
  10. A member of the teller team can take the cash deposit to the bank or leave it for the staff to deposit
  11. Next, rubber band all the cash envelopes together and another stack of the check envelopes
  12. Take the stacks of envelopes to the finance office in a locking bank bag
  13. The tellers have now finished their job and can leave.
    1. Because the tellers do not see the amounts on the checks, they do not see what various people give. All too often I’ve seen tellers discuss a gift by Mrs. Smith and that this week’s check is bigger/smaller than last weeks and then wonder aloud what that means about her. Confidentiality is paramount in dealing with church money and if you have gossipy tellers, you’ve got a problem. Removing the temptation by removing the checks solves that problem!
  14. The financial assistant will then scan the checks (if you don’t have a check scanner, you’ve gotta get one – they’re not terribly expensive but they are incredible timesavers!).
    1. In every church I’ve seen, the financial assistant and a scanner are 10 times faster and more accurate than the tellers. All too often tellers make a (very human) mistake which means their total is not equal to the finance office total and that make the assistant have to search for the error – time she/he could use on something else.
  15. When the financial assistant scans the checks, she/he can also scan the envelopes and the software will record an image of both check and envelope should you ever need to refer to them again (that happens more often than you think)
  16. After scanning, the assistant gets a report from the software and prepares a deposit slip for the checks (the cash is on a separate deposit – see #8-10).
  17. Ideally, someone other than the financial assistant will take the deposit to the bank to prevent embezzlement.
  18. The offering/deposit totals are then recorded in the General Ledger of the church’s financial journal.
  19. The finance office now has a record from the computer of the Sunday offerings and that paper record is rubber banded with the deposit slips and kept for seven years (that’s what a record retention schedule recommends). If you have scanned the offering envelopes, then shred them; if not, keep them with the deposit slips.
  20. The financial assistant can now move on to the next project, probably payroll or accounts payable.

These steps are pretty easy to do. The tellers can do their job in about an hour. The financial assisant can do her/his job in about an hour IF there is a scanner (again, get one!). In two hours (maybe 3 for a big offering), all the church receipts can be totalled, prepared for deposit, and entered on the church’s database. That will save loads of time that can be used elsewhere.

The tellers will need some equipment such as:

  • A room where the tellers can lock themselves inside to preclude anyone from randomly walking in. Safety and security are paramount.
  • The room should have tables so the offering can be spread out
  • The offerings should ALWAYS be in the possession of two unrelated people. No husband-wife only teller teams or any other familial combinations; if a husband and wife are present, then a third completely unrelated person MUST be present.
  • Locking bank bags are good. If the tellers count right after or during the service, then the offerings should be placed in the bank bag after counting and the bags locked tight.
  • If the tellers finish on Sunday, then the bank bags should be placed in a safe; if the tellers won’t count till Monday, then the bank bags should be placed in a safe on Sunday morning. Then, on Monday morning, two people should go to the safe to retrieve the money.
    • To prevent people from stealing money while it it in the safe, purchase a safe that has two combinations and then give the two combinations to separate, unrelated people. Those two people will always have to be present to unlock the safe. (An envelope containing both combinations can be sealed and stored offsite with a church trustee or a bank official.)
  • Since the tellers are only counting cash and coins, not checks, they shouldn’t need any adding machines. Even if you got $1,000 in cash, two different people can add that up in their head or writing down figures. Save some money and storage space – don’t buy the machines.

Some churches have completely disbanded the tellers and that is fine SO LONG AS you have enough internal controls to prevent one person from handling all the money by him/herself, especially the cash. Checks are not easily stolen (they can be but it is really hard) but cash is easy to pocket. Take adequate measures to protect the staff and tellers, but make the work as easy as possible.

Lead On!
Steve

Filed Under: church administration, church finances Tagged: ,

New Year’s Letter

Posted on January 1, 2012 Written by

I’ve got a job for the leader of your faith community: write a letter to your congregation about your dreams for 2012. Technically it is not a “New Year’s Resolution” letter but it is a letter about your hopes and vision for the church for the new year. Call it a “New Year Vision Letter.”

What should be in this letter? Well, it should be no more than one page – please don’t get long-winded or else people will stop reading after about two paragraphs (if you’re lucky). Use a 12 point font to make the letter easier to read – don’t cheat by using 8 point font to cram in more words! Make the letter no more than five paragraphs long using the following template:

  1. Intro Paragraph – Write about 2011 and where the congregation has come in the past 12 months and even the years before then. Be brief, be very brief in this synopsis – this is NOT the purpose of your letter; this is just a starting point so that everyone is on the same page.
  2. Next Two or Three Paragraphs – give three concrete (lots of details) ideas of what you want to accomplish in 2012. Flesh out each idea in one paragraph with financial costs, numbers of volunteers needed, dates by which the goals need to be met, and the promise of a party when each goal is reached. (I believe the church doesn’t party enough – we need to celebrate accomplishments more often but that requires knowing where the finish line is in each goal.)
  3. Final Paragraph – a prayer of blessing on each reader and an acknowledgement of the generosity by the family of faith which has permitted the church to do all is has done so far. Being sincerely thankful is very important.

This letter should go out to every person in the church because it will help set the tone for the church in 2012. A good way to send out the letter is to include it in the 2011 statement of contributions which every church mails out to every member (at least to every donor) of the church. Every person will open that letter because they want to see how much they can write off on their taxes – when a letter from the pastor falls out, they’ll read that, too. Who knows, your letter may spark some dialogue with people – it can certainly be a conversation starter with your leadership. I know they want to know what your dreams are and how they can participate in making them happen – to benefit the church and the Kingdom.

Lead On!
Steve

Filed Under: church administration, church finances, church financial statements, communications, leadership, strategy Tagged: , , , , ,

IRS Tax-Exempt Ruling Letter

Posted on November 29, 2011 Written by

Whether or not a church should obtain its own 501(c)(3)ruling letter from the Internal Revenue Service (IRS) is a question with some confusion. It is a simple question with a multi-layered answer so here is my take on this issue.

  1. The IRS considers, by definition, all churches to be exempt from federal income taxes. Thus, just because you are a church, the IRS will not tax the organization for income tax purposes. AND
  2. Most churches that belong to denominational bodies fall under an umbrella that covers all churches in the regional, state or national organization. For instance, the local Episcopal diocese has a letter with the IRS which covers all churches in the Richmond diocese. That way, churches do not have to obtain their own ruling letter from the IRS.     HOWEVER
  3. Times are changing and church finances are getting more complicated every day. In 2008, some churches have intentionally sought to violate the IRS requirement that churches not endorse a political candidate. In 2004, the IRS revoked the non-profit status of 56 churches (albeit temporarily while there was an investigation).  THEREFORE
  4. Because some churches are getting involved in national politics, I am of the opinion that each church should control its own destiny as regards the IRS. I would hate for an umbrella letter (covering hundreds of churches) to be revoked because a few churches in that group decided to flaunt the IRS. My worst case scenario would be that the IRS would revoke the tax-exempt status of the entire umbrella while there is an investigation. In the end everything will work out fine, but in the meantime there can be some heartache because of the actions of other churches. So, my recommendation is that each church obtain its own ruling letter from the IRS. Yes, it is a pain to fill out the forms, get things approved, write a check for a few hundred dollars, and wait on the IRS for a few months, but think about the headache and hassle it could save the church later. Again, I feel it is important to control your own destiny and not potentially suffer because of the actions of other churches.
I hope that helps you and the decision by your church. I’ll be happy to talk with anyone about this.
Lead On!
Steve


Filed Under: church administration, church finances, strategy, wisdom Tagged: , , ,

Fundraisers for Youth Events

Posted on October 19, 2011 Written by

 

Fundraisers have two purposes:
  • To make money in an effective and efficient manner
  • To build unity among the participants and interested people around a specific goal

 

All fundraisers need to have a balance between these two purposes and do it in a fun way (that’s the “fun” in fundraising). Too often, the group putting on the fundraiser focuses on one purpose to the neglect or even exclusion of the other purpose. That is not good and will harm future efforts. For instance, if you put on a concert and ask a bunch of people to work really hard in all the areas of the concert but then receive only $350 after all that effort, the volunteers will probably come away disillusioned about the results (but have good memories of the event). They achieved one purpose but nearly killed themselves without achieving the other purpose. On the flip side, if you put on an event and raise lots of money with little vested support, people may not feel as committed to the cause but feel incredibly proud of how much money they raised. Balance is good. Balance is key.

Another key to fundraising is to spread out the “ask” over a period of time such as several months. Some organizations do a “blitz ask” but they’ve done months of preparation (and received gifts during the prep time, too). Success is always, always a factor of how much effort you put into it. Every good fundraiser will require lots of effort on everyone’s part – make sure that you get enough “return on your investment” to have made all that effort worthwhile.
Some fundraising ideas for youth events:
Penny War
  • Boys versus girls. Every penny placed in the girls or boys jar is one point towards them. Every dollar added to a boys’ or girls’ jar is a negative 100 points towards them. After a month of war, the winners will be decided by who has the most points. The loser will then have to prepare dinner for the winners.
  • This is easy to do and raises a few hundred dollars without a lot of effort. This is a good balanced way to raise money in that every week you can promote it and even have a running total. Frankly, I do suggest that the money jars are emptied each week for two reasons: to announce the weekly running totals to egg on each side and to not have money sitting around in a jar which can walk off.

 Spirit Nights

  •  I know that both Chik-Fil-A and Tropical Smoothie have spirit nights we can tap into where during a certain time period, receipts taken will yield a percentage (normally 10 to 15 percent) to the student ministry. TS will even let us host a plinko game which raises a lot of funds.
  • The secret to working with local vendors (and some companies will sponsor car washes) is volume. The kids are going to have fun at the store and that will build unity – that is certain. How much money is raised is entirely dependent on getting people to come and/or buy tickets ahead of time. Kids need to be “in my face” about buying tickets. This a good idea and it can be held multiple times between now and when you need the funds without getting old and stale.

Yard Sale

  • The church rents out parking spots in the parking lot where people can host their own yard sale on the church’s property (the church makes money off the rent of parking spots). In another part of the parking lot, the church sells items that people donated for the yard sale (the church makes money off the sale of items). The church can sell concessions and make some money. There is always a fear of someone selling something offensive, but that can be addressed with the individual and you can let them know what we won’t let them sell (like porn magazines or offensive t-shirts).
  • This requires a LOT of effort and extreme coordination. Advertising is the key, too – get the word out that there is a community yard sale and people will buy reasonably priced parking spots ($10 is suggested) if they know there will be crowds coming. This can be a huge unity event for the youth as they work ahead of time and spend the entire day helping. It will raise at least a couple of thousand dollars.

Auction

  • This is my favorite way to raise money for youth functions. People bring in items that are of good value – other items should go to the yard sale! In one evening, there is a silent auction followed by a live auction (with a real, live auctioneer). Every year I’ve seen this done, the church raises over $12,000. The youth sell tickets beforehand and they drum up interest; the youth spend the Sunday and Wednesday before moving items; a team of volunteers helps coordinate the event; the youth work the auction by serving food and telling their story from the stage while people mill around.

Scholarships

  • Asking people to sponsor a kid or part of a kid for a trip always works. By this I mean informing people how much it will cost and then flat out asking them to fund ¼, ½, or the whole cost of a trip. People will do that. Afterwards, you can have the kid(s) that got the scholarship(s) to write a thank you and say how much the trip meant to him (them).

Sunday morning doughnuts

  • Krispy Kreme will sell doughnuts on the cheap for fundraisers and then you can re-sell them on a Sunday morning by the box.

What other successful ideas have you been a part of?

Lead On!
Filed Under: budget, church administration, church finances, young adults Tagged: , , ,

Capital Budgeting

Posted on August 9, 2011 Written by

The List
Every church needs more money for it’s capital projects. Oh, I presume that you have a list of capital needs which means you’ve already done a study of them. If not, here’s what you need to do:

  • Itemize
    • Make a list of every thing you need to do in the next ten years. 10? Yes, because I guarantee you do not have the money do it all this year so you need to have a plan of what you’re going to do over the next decade. Equipment will break down and need to be replaced. Keeping a list of your HVAC (heating, venting, and air conditioning) equipment and what needs to be replaced in the next few years will help you set money aside for those needs.
    • Also, there are things that you don’t see now that you will need in the future. In 1990, no one had any idea of the power of the internet – now it is an indispensable part of every office. Who knows what the next 10 years will bring – be prepared to control the future rather than having the future take control of you.
    • The list needs to items that you know about but also what others see. No one person knows all in a church, consult with others (both staff and lay members) about what should be on the capital needs list.
    • Most capital needs lists are physical plant items: air conditioning units, roofs, paint, furniture, buildings, etc. There is nothing keeping a church from establishing a capital needs list with items related to non-physical needs – items that will help others outside the four walls of the church and/or will enable members to go farther and do more. I wish more capital needs lists had other items such as
      • Endowment or foundation funds: this would be a pool of funds to meet present and future needs of the church whether it is a physical plant need or a ministry need.
      • Mission fund for a specific trip coming up or to take care of a ministry need somewhere else.
  • Prioritize
    • After you’ve got a list, put them in some type of order. The best order is one which indicates their priority for being accomplished – the priority of need. This order is very fluid – some things will drop in priority while others will rise according to the needs of the church at any given time. For instance, new interior signage may drop in priority when people realize that the condition of the children’s furniture warrants more attention and funding.
    • This does not mean that you’ll do the items on the list in that order. Several things may interrupt such as
      • A donor sees something on the list that tickles his or her fancy and the donor decides to take care of that item(s). There are donors like this in every church – let members know about the list and you may be surprised by how many items are “just taken care of.”
      • Some items are so big that you can’t do them in one year; instead, items are taken care of in phases over several years. I’m doing that right now with several items: installing electric shades in the dining room and gym; replacing all copper gutters and downspouts with aluminum ones with gutter guards (so I never have to pay for the gutters to be cleaned again); putting in new windows throughout the church; etc.
  • Monetize
    • Put a dollar figure beside each one. The dollar figure is very much a guess, but an educated one.  Do not spend the time now to get quotes for every item, just take a stab at how much each item will cost (aim a little high, too!). That way, when people see the list, they’ll understand the scope of the needs. Also, if someone wants to “own” one of the items, they’ll know how much to give to the church to cover that specific item.
  • Date-ize
    • Establish goals as to when items will be done.  These dates can be fluid, of course. But if you don’t put some type of date/goal, then it may never get done. Put it on the list with a desired “due by” time frame even it is done piece-meal over several years.
  • Publicize
    • Tell people what the list contains, why items are on the list, ask them for additional items for the capital needs list, be willing to alter the list as needed, and continue to tell people about the list. The more publicity you can create, the better. You’re not “poor-mouthing” the church, just making people aware of items that they may not know about or may have over-looked. Help people be aware of the needs – then they’ll support you in your efforts to meet these capital needs.
    • One of the ways that I make my list available is to put it in a rack just outside my office door. I totally believe in transparency so I make all financial info available to anyone who comes to my office (and a limited amount online at the church’s website). That rack contains four items:
      • The latest audit by the independent audit firm
      • The most recent monthly financial statement
      • The current capital needs list
      • Give away books on stewardship and generosity (The Treasure Principle by Randy Alcorn and Fields of Gold by Andy Stanley)
    • When a project is underway, let people know what is being done and why it is being done. AND, thank them for their financial gifts which made that work possible. Acknowledge their generosity every way you can whether it is in print or from the platform.
  • Review-ize
    • Every few months (definitely once a year), go over the list. Move things around in priority, re-value items as you have new info about their cost, change the “due by” dates as needed, move items to the bottom “already done” category, etc. The capital needs list is organic – don’t let it be static.

The Money
I tell my vendors that while I cannot afford a new piece of equipment this year, I can pay for it in five years by setting money aside. Where does this money come from? Lots of sources – and that is key: tap various areas of the church’s finances in order to pay for the various projects. Finding different pools of money to do things will let you do more. Here are some examples:

  • Use the church’s reserve funds for things that are needed. That’s what the reserve funds are there for. Don’t deplete the reserve funds, but also don’t let those funds just sit there when they can be used for immediate and/or pressing needs. If necessary for a big project, tap the entire reserve fund with the understanding that the money will be put back if the church ends the fiscal year in the black.
  • If the church ends the fiscal year in the black AND it has fully funded the reserve accounts it needs, then use the excess to pay for capital needs. Make sure that the governing body of the church authorizes this expenditure and as often as possible, let the congregants know about this project and how it was paid for out of their generous gifts to the budget.
  • The church’s foundation was asked for money for the renovation (complete gutting) of the oldest bathrooms in the church. The foundation was informed that the total need is $100,000 and they would be approached five years in a row for $20,000 each year to do this work. The foundation agreed to fund this.
  • The gym needed new equipment. The need was made known to parents during Upward Basketball games and over the course of about 9 months, over $12,000 was received for this need. This money came from people outside the church so these gifts didn’t affect the church’s budget receipts – this was “gravy money” which we would not have received otherwise.
  • Talk about specific needs with various members of the church who you know have the gift of generosity. Twenty years ago a family donated funds to enhance a room in memory of a loved one. The room is increasingly out of date and needs some re-touching. I approached the family and they are more than willing to underwrite the cost of renovations to this room. In fact, I gave the family a ballpark of how much this would cost and they said that money is not a hinderance. They are a wonderful family and example of generosity.

In summary, keep a list (with lots of input), check it twice and thrice, find the money from lots of different pockets, spend the money while you tell people what you’re doing and why, and say “thank you” lots of different ways.

Lead On!
Steve

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

Training and Conferences

Posted on July 31, 2011 Written by

Training is underrated in most church office venues. I think that most churches don’t want to spend the money on doing the training when it is incredibly beneficial. Every year I attend a national conference of my peers and I learn so much at each one even though I’ve been doing this work for over 15 years. Sometimes what I learn re-enforces what I already know, but that is a good feeling, too.

Ministers and other management staff need to go to at least one training conference a year. If for nothing else, it is good for their morale to get out of the office and to hang around peers. Usually money is budgeted for these positions so the people can go if they’ll only make it a priority. It is up to the supervisor to make the subordinate attend a conference – too many say they can’t fit it into their schedule. Everyone has excuses, just find the time to go!

Administrative Assistants (Admins) are on the low end of the totem pole and rarely are they included in a training budget. That is wrong. I work with about a dozen ladies – all of whom are very committed to their work and to the church. They are consummate professionals – very skilled at what they do and anxious to do it right, the first time.

When I came to my current church, I was told that the church database was insufficient for the church’s needs and that one of my priorities was to get new software. I had used that software for over 10 years so I knew what it could and couldn’t do. What I soon learned is that the Admins were not knowledgeable about the software. I began to remedy that immediately.

First, I brought in an expert to lead all-day classes for the ladies. We set aside time and they brought in questions. It cost me about $1,000 for the consultant and for the lunches. I probably recouped that money within three months – what the Admins learned they implemented immediately and they became more productive and efficient.

The second year, I brought in the same consultant for a half-day training session. After lunch, the consultant spent about 30 minutes in the cubicle of each person addressing her needs and concerns. The third year, I brought the consultant again. By now the ladies were pretty knowledgeable about the software and the complaints from the ministers and managers had diminished but I knew the ladies wanted to know more. This time, the consultant spent 45-60 minutes with each person – there weren’t classes for everyone, just individual sessions. After the consultant left, I met with the Admins and they drafted a series of documents to help new Admins and as “cheat-sheets” for the current Admins.

Finally, for the past several years I’ve sent at least two Admins to a national conference. These two get to spend a week out of the office in a nice hotel with company-paid meals and travel (that is a huge morale booster for them). They hang around other Admins for the week and get to know the software developers and technicians – now when the Admins call for help, they can put a face with the name. It does cost about $3,000 to do this each year but that money is recouped within six months in efficiency, effectiveness, shared knowledge with the other Admins, and morale.

A side benefit to all this is that the turnover of the Admins has been pretty low (less than the ministerial staff turnover). Every year they talk about who is going and they pretty much self-select – I don’t have to make the choices. They are a wonderful group of Admins who can now do just about anything on the software – there are no complaints about what the software can or cannot do. The Admins know it all!

Lead On!
Steve

Filed Under: church administration, church staff Tagged: ,

10 Ways for a Church to Have More Money, Guaranteed (part 2 – getting money)

Posted on June 24, 2011 Written by
There are two different ways for a church (or any organization) to have more money: spend less and receive more. I want to give five ideas in each category that every church should implement so they can have more money to spend on their God-given mission.
5 Ways to Make Money
  • Tell stories of how money is being used
    • The offering time is the most worst used time in a worship service. I rarely use absolutes – but this one is true. Offerings are usually filled with a prayer and special music. Boring!
    • People in the pew are dying to know how their money is being used – they have no idea what is being done with it. They’re not going to read a financial statement nor should they have to. Instead, it is your obligation to tell people how their offerings are being used.
    • Find 52 compelling stories and insert those in the offertory time. If you don’t have 52 stories, then you have really big problems. Work with the worship leader to coordinate where in the worship the offering time will fall so that the offertory and its accompanying story add synergy to the service. Insert stories that relate to the sermon, to the liturgical calendar, to the school year, to seasons of the life of a church, etc. Make the story/offering time a key element of worship, not just a way to kill three minutes.
    • Give every ministry a chance to be on the platform telling one (and only ONE) story. Tell the story about real people, real events. Give your ministries the face time with the congregation that they’ve been wanting to announce about an upcoming youth event, a mission trip, Vacation Bible School, small groups, Christmas and Easter activities, etc. This time is a “thank you” time (not an announcement time).
      • Thank you for your gifts which will enable us to send three kids to summer camp from our inner city ministry. Your money will let Sam, Sarah, and Julie spend a week in the mountains – they’ve never seen a mountain! Thank you so much for your gifts.
      • I’d like for you to see what our youth did on their summer mission trip to Boston. Because of your gifts, 23 of our kids spent a week that will change the next 60 years of their lives. Thanks! Roll it. (then comes slide show with cool music)
      • In two weeks, we’re going to launch several new small groups. We want you to be in one of these groups. If you can’t afford the book for the group, the church’s offerings will buy you a book – we feel it is that important for you to get in a group that we’re not putting up with any excuses. Heck, we’ll even pay for babysitting so you can be there. And yes, thanks to everyone’s contributions who are making this possible.
    • Is this different and will you get some flak, probably. But if you make each story compelling and have each presentation polished, you’ll begin to see results very, very quickly. Soon, the offering time will be something that people look forward to, not dread.
  • Send out statements of contribution five times a year
    • I send out statements of contribution five times: the first week after each quarter ends plus an extra one the first week of December.
      • Some churches send out statements only in January for tax purposes. Those churches see statements of contribution purely for purposes of helping members report their taxes.
      • Most churches send out statements four times a year after each quarter. Those churches are reminding people four times a year and this is a good approach.
      • A better way, without being accused of hammering the issue, is to add a fifth time the first week of December. People already feel the end of the year coming and they realize they should be more generous with their church. A first of December reminds people of how much they’ve given (or not given) to the church and provides a reminder to make a contribution. Yes, it will cost you a few hundred dollars to snail mail and email out the statements, but I guarantee you’ll get thousands of dollars you weren’t expecting.
    • As I explained in the previous post, email your statements of contribution each time so you don’t spend any money you don’t have to.
    • One other idea: ask your offering envelope service to mail envelopes once a quarter. Here’s the math: 5 statements of contribution plus 4 mailings of offering envelopes = 9 times a year that you’re subtly reminding people to give to their church. It works – try it for a year.
  • Have special offerings for specific issues a few times a year
    • Here’s a way for special offerings not to affect your undesignated gifts. During the offering time, tell the church that “On Sunday, May 16, there will be a special offering for the purpose of funding Vacation Bible School. While there is money in the budget for VBS, we need additional monies to pay for additional supplies and events that are planned. Let people know that the first $32,000 that is given will go to the regular budget but that all monies given over $32,000 will go for VBS. Thank you for your generosity for our little ones.”
    • The $32,000 needs to be whatever the treasurer feels is a regular Sunday offering – the amount that would normally come in that Sunday for basic operations. Anything above that would be gravy as far as the treasurer is concerned.
    • Then, promote that special offering for about four Sundays before the date by using the offering time to show slides of last year’s event, interviewing kids about their experience last year, etc. Take up the offering (while having kids promote this year’s VBS).
    • Any money that you get over your threshold amount will help lower your budget. If you don’t spend all you received, then you can set it aside for next year’s VBS and take up a special offering for something else.
    • Caution: you can only do one or at most two special offerings a year before you hit donor fatigue. Alternate what you do each year so there is variety and so these offerings don’t get old. Some key emotional draws are children and mission trips – these are always powerful.
  • List of capital needs – items that the budget cannot afford
    • Make a list of items that the church needs for its ministries. This should be a list that encompasses all ministry areas and which ranges from small amounts to very, very large amounts. Update that list every year by adding to it, subtracting from it, or changing items. Make the list dynamic and, very importantly, make sure this list supports the vision of the church so that no item on the list detracts from the focus on accomplishing the church’s goals.
    • Publish this list and make it available to everyone. Let people know what you would do with the proverbial “lottery jackpot” should you ever receive it. People will talk about the list in the halls and every so often, someone will approach a minister to ask for more details about an item on the list. Then, there is a good chance that this person will write a check.
    • Sometimes people will surprise you by writing a check for something that you don’t see (because you see it so often, you’re blind to how bad it is) or that is lower in your priority list. That happened to me a few months ago – an anonymous donor gave $20,000 for a specific need that we didn’t see. Fortunately, the donor also gave us the freedom to use it for something else – but we went with the donor’s original intention. I expect that later this year, when this donor gets his/her bonus, we’ll get another sizable gift because we followed the original instructions last year.
    • Another way to find money for this list is to use any left over funds at the end of a fiscal year. Sometimes churches have more money that is given than is spent. I use those funds, with the permission of the Finance Committee, to address some of the needs on the capital needs list. Since we don’t know how much money we’ll have, we select the items on the capital list after we have a figure. We tell the church how we’re going to invest their money back into God’s building and needs.
    • Some items on the list are so expensive and/or extensive, that funding these is done over several years, in phases. The trick here is to continue to do them and not quit halfway.
    • Remember: itemize, monetize, prioritize, publicize, and thank you-ize!
  • Develop a relationship with wealthy individuals
    • I addressed this in a prior post, “Robbing the Rich.” I’m not going to re-hash it here but please read it.
    • I cannot overemphasize that every church has wealthy attenders and members. The wealthy don’t have a problem talking about money – the problem in having a conversation about money lies with us, not them.
    • I encourage every pastor to develop a list of the top 25 (pick a number) of donors to the church and once or twice a year, have coffee or a meal with them. Do NOT ask for money – just be their friend.
    • I can guarantee that if you befriend them, they will see and hear your heart just as you will know theirs. At some point, they will ask you about giving money long before you are ready to ask them for it!
    • Read the post for more details.
Now, go implement 2, 3, 4 or even 5 of these ideas. If you want more details about them, email me: steveplaw@gmail.com and we’ll talk. I guarantee you’ll get results!
Lead On!
Steve
Filed Under: church administration, church finances, church financial statements, planning, strategy Tagged: , , , ,

10 Ways for a Church to Have More Money, Guaranteed (part 1 – saving money)

Posted on June 22, 2011 Written by

There are two different ways for a church (or any organization) to have more money: spend less and receive more. I want to give five ideas in each category that every church should implement so they can have more money to spend on their God-given mission.

5 Ways to Save Money

  • Install Motion Detectors Everywhere!
    • Humans are quite imperfect especially when it comes to turning things off (or on). That’s where motion sensors come in. I use motion sensors for everything: dispensers for paper towels and soap in bathrooms; for urinal flush valves on toilets and urinals; for lights in halls, bathrooms, classrooms, and offices; and soon for thermostats in classrooms and offices.
    • Motion sensors save money by ensuring that lights and thermostats are on only when a human is present; that toilets get flushed; that only a certain amount of paper towel and soap is dispensed; and that lights are on only when people are moving around. Yes, it costs money to install these, but they pay for themselves in both dollars and in public relations.
    • Motion sensors for lights have cut the electric bills in the church I work by 20% per year. Members think it is cool that their church is so progressive – they like to “show off” their church and talk about how “green” we are. It’s a way cool thing!
    • Full disclosure – you’ll need to buy batteries for the sensors but in the long run, you will save money with the sensors.
  • Invest in Energy efficient lighting and less inventory
    • Most of the building I administer has 4 foot fluorescent lamps. In the past two years I’ve been a multi-year process of changing all my T-12 lamps to T-8s (and in a few years, once the price has come down, to T-5s). I’ve removed my 2×2 fluorescent fixtures and replaced them with 2×4 fixtures and put in T-8s.
    • T-8s are 30% brighter and are 30% more energy efficient than T-12s. I’m saving money, I’m helping the environment, I’m reducing the different types of lamps I have around here so I can buy just 4 foot T-8 lamps. I love the KISS principle – keep it simple, stupid. That’s what I’m doing!
    • Here’s how I found the money to make this happen: at the end of one fiscal year, I explained to my electrician what I wanted to do and asked him to come the first couple of weeks of my fiscal year. I gave him a budget of what I could spend on the project. When he had spend the total amount allocated for that year, he stopped installing T-8s. When I got his bill, I paid half of it out of the maintenance budget and the other half out of the utilities budget. My rationale is that the efficient fixtures are going to save money that would have otherwise been spent on electricity. I’m repeating this as many years as I have to and my electrician loves getting the money that would have gone to to the utility company!
  • Pay bills by ACH and online
    • Use technology to pay your bills without paper. I calculate that every paper check costs about $1 between the check stock, ink, envelope, and postage. Every ACH costs less than 30 cents. After writing several hundred checks a year, you’ll save hundreds of dollars.
    • Paying bills online also means you keep the money in your bank account longer. Keeping money in your account means more interest income during the year, too (well, that would be IF the banks were paying more interest than they are now at half a percent per year).
    • Paying bills online also means that you can track your payments and be assured that the money actually reached the vendor and didn’t “get lost in the mail.”
    • Work with your bank to make this happen. They’ll be glad to help.
  • Use Email and Voicemail Heavily
    • Communication with members must evolve from beyond the Ben Franklin post office system. That’s been around for 200 years, move on to something more efficient, effective and a whole lot cheaper!
    • I email statements of contribution to every person who gives money. Emailing statements of contribution saves me about $750 every time. I still snail mail 450 statements of contribution every time at a cost of $450 ($1 each for postage, envelope, paper, and ink). Believe it or not, I’ve not had any resistance to this method of getting statements of contribution – the business world has helped people become accustomed to email in all its forms.
    • Various ministries email or voicemail different groups (small groups, teachers, choir members, etc.) about upcoming meetings or opportunities. The ministers have learned which method is better to use with which group. Some age categories prefer a voicemail and we have PhoneTree to send out messages that way – it is slower than email but effective. Other ages like emails. Oh, I’m not (yet?) to tweeting or mass texting but I’m sure that will come along.
    • My administrative assistant also emails the weekly bulletin every Thursday or Friday to everyone in our database with an email (and give them the opportunity to “opt out”) and she also emails the monthly news-magazine. We use Constant Contact for some of our communications, too.
    • Find ways of using mass communication methods that don’t involve postage or paper. You can save some serious money by getting away from paper. It will save lots of paper and younger mindsets will appreciate the church helping the planet!
  • Bid out contracts regularly
    • Every 3 to 5 years put all of your regular contracts out to bid. This includes EVERYTHING from your food supplier, elevator contract, dumpster, commercial property insurance, copiers, postage meter, financial audit, custodian supplies, etc. I can’t stress this enough.
    • In times like this, some companies are so hungry they’ll really cut their prices just so they can get business to keep their employees (so they don’t have to lay off anyone). They know they won’t make a profit but they will also retain good talent.
    • Some companies gave you price when times were good and with a weak economy, they are willing to do anything just to keep you as a customer, even in the middle of a contract. They want you to stay with them and they’re willing to void a current contract, reduce their fees, and renew you for several years at a cheaper rate.
    • Recently I cut our commercial property insurance by 42% saving the church $18,000 per year. I got a smaller postage meter because we don’t have the same volume of letters as we did five years before. I upgraded to a color copier for less than what I was paying for a black & white copier. We talked with our bank and got a good rate on our fees. AND, I made sure that none of these savings affected the service we are getting.

Lead On!
Steve

Next post: 5 Ways to Make Money

Filed Under: budget, church administration, church finances, planning, strategy Tagged: , , , ,
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