End of Calendar Year Gifts

Posted on November 19, 2019 Written by

When it comes to end of year, you need to have careful attention to some details:

  • What is the date on the check?
  • When did it come into the possession of the church?
  • When did it cease to be in the possession of the donor?
  • If it was mailed, what is the postmarked date (and keep the envelope for future reference)?

The IRS says that you can give tax credit for gifts that are not in the possession of the donor as of 1/1 @ 12.01 a.m. So, if someone makes an online donation at 11:59 p.m. or earlier on 12/31, then the gift can go toward that year.

If someone puts a check in the mail on 12/31, then it is no longer in the possession of the donor. The IRS considers it valid for the prior year. It may be postmarked in the new year but it should go toward the prior year, unless the check is dated for the new year. If the postmarked date is January 3, 4, or 5, use your best judgment to decide if it was still in the donor’s possession in 2019 or if it was mailed in 2018. You may even need to call the donor.

For depositing money received in the new year but credited to the prior year: make the deposit to the bank as early in January as possible; in your accounting software put a deposit date of 12/31 so it will show up on the income statement for the prior year. It will show up in the bank reconciliation as a “deposit in transit.”

The date that the money is in the bank is not important; the date that it ceases to be under the control of the donor is. Dealing with stock gifts at this time of year is especially tricky in determining what year to credit it to because you have to factor in when the donor gave instructions to the broker to sell the stock. Talk with the donor and the broker to ensure you have accurate info regarding last minute stock gifts. 

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: accounting, budget, church administration, church finances, church financial statements, communications, future, generosity, planning Tagged: , , , , , , , ,

Send Donor Statements More Frequently

Posted on November 5, 2019 Written by
Startup Stock Photos
  1. Let your donors know regularly how much they’ve given. Send contribution statements five times: the first week after each quarter ends plus an extra one the first week of December. A statement in early December reminds people of how much they’ve given (or not given) to the church so far that year and provides a reminder to make a contribution. Emailing statements is feasible with most church database systems at no or low cost.
  2. Every time you send out donor contribution statements, include a cover letter which tells 2 or 3 very short stories (tweets size) about the ministries of the church. This keeps people informed about what is going on. Also, the cover letter tells the donors who to contact the church office to correct erroneous data.
  3. For churches that mail offering envelopes to donors, send those out four times year.  Handing out or mailing offering envelopes just once a year means most people are aware of giving just once a year. Also, some people lose their packet of envelopes in a month so getting packets four times a year helps those people.
  4. Five contribution statements plus four mailings of offering envelopes = 9 times a year that members are being reminded to give.

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: accounting, budget, church administration, church finances, communications, future, generosity, leadership, strategy, young adults Tagged: , , , , , , , , ,

First Time Donors

Posted on October 22, 2019 Written by
  1. Coming to a church for the first time means giving up several hours of your day (getting dressed to come, driving, being there, and going home). People have to be willing to attend something where they don’t know what is going to happen and who’s going to speak to them. It can be intimidating. People who visit your church for the first time should be acknowledged. The best way to do that is with a word at the door of the church by one of the ministers or, if you get their contact information, a brief note thanking them for giving their time to attend.
  2. When someone gives to the church for the first time, they not only are giving their time but also their labor. That is a big deal and it, too, should be acknowledged. The church’s finance office can tell the pastor who are first time donors because they’ll have to enter their info in the database. Most of the time the church can capture the donor’s information from a check or the email from digital donation. Send first time donors a note thanking them for their gift – they’ll be pleasantly surprised.
  3. An extra step to thank donors is to give them a book. A couple of good ones are The Treasure Principle by Randy Alcorn and Fields of Gold by Andy Stanley. The cost of the book and mailing will be about $10 but it will send an important message to the donor-the church is investing in you and we thank you for your gift with one of our own.

These are effective methods to recognize and thank first-time donors in a way that doesn’t embarrass them and may actually encourage them to give again.

Lead One!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: church finances, communications, future, generosity, leadership, planning, strategy, young adults Tagged: , , , , , , ,

Planned Giving & Endowment

Posted on October 8, 2019 Written by
  1. When each of us die, we will give away 100% of everything we own – it is the most generous we will ever be. But estate planning is NOT only for end of life decisions. Remember the joy you see at Christmas or birthdays; imagine being able to see that joy with things in your estate: land, money, possessions.
  2. Churches should have an annual emphasis whereby members are asked to include their family, friends, and the church they love in their will. Some churches even provide attorneys who prepare wills and the church pays part of the cost (if the church is included).
  3. Hospitals, civic organizations, non-profits, universities, and even high schools are asking people to give to them in their will. But none of them will do the funeral or even send a representative. The church will do the most for people at the end of their life – why not ask them to remember the church they love in their will.
  4. Let people know the causes/purposes in the church budget which the endowment can support financially such as missions, worship, fellowship, and programs for children and youth. People will readily give to those.
  5. During the annual endowment emphasis, tell stories in writing and from the pulpit of how the previous generations planned for the future and how we are blessed by their gifts. Storytelling is powerful and people will remember their impact.

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: church finances, communications, future, generosity, leadership, planning, strategy, young adults Tagged: , , , , , , ,

Make Generosity Part of Your Church’s DNA

Posted on October 1, 2019 Written by
  1. People are naturally generous but too many people today are constricted from giving by other financial obligations: mortgage, college debt, cars, credit cards, etc. Having enough money to pay for utilities, food, and clothing stretches some families to the limit.
  2. Modern advertising tells people to spend money as fast as they can. Very few voices are telling people to spend responsibly, save at least 10%, set aside another 10% for retirement, and give away 10% to non-profits. The church can help with that void.
  3. Financial Peace University and Crown Ministries both teach people how to manage their money, get out of debt, and give away money. Churches should encourage people to go through the classes. While these programs have a biblical basis, their principles are good for anyone whether or not they attend church. FPU/CM will help people get their financial house in order so that they have more financial leverage in their lives and thus more disposable income to be generous with.
  4. Another resource is providing books for people to read on their own. A couple of good ones are The Treasure Principle by Randy Alcorn and Fields of Gold by Andy Stanley. Ask classes to read the books together and talk about them AND act on the principles listed in each book. Two good children’s books are Miss Fannie’s Hat by Jan Karon and The Quiltmaker’s Gift by Jeff Brumbeau; each of these beautifully illustrated books teaches lessons about the joy of giving.
  5. Having natural conversations about FPU/CM and these books will, over time, make generosity part of your church’s DNA. Intentionally talk about this in small groups, Sunday morning sermons, Wednesday nights programs, etc. Make that word part of your culture AND your expectations of your members.

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: church finances, communications, faith, future, generosity, leadership, planning, strategy, wisdom, young adults Tagged: , , , , , , , , ,

Develop 20-25 Relationships

Posted on September 24, 2019 Written by
  1. A study of several churches showed that approximately 50% of attenders don’t give any money to their church (for a variety of reasons), 25% make gifts of 3% to 5% of their income, and 25% are generous (give more than 5%). Another study showed that about 5% of donors gave about 50% of a church’s income.
  2. Too often the generous donors are ignored by pastors who try to ensure there is no favoritism and that is understandable. However, ignoring them altogether is not acceptable.
  3. Every pastor should have a list of the top 20-25 donors to the church. Ask the finance office to provide an alphabetical list of donors (this ensures the pastor doesn’t know how they rank). Most pastors will already know that list but there may be some surprises.
  4. Once or twice a year the pastor should have coffee or a meal with each person on this list. The donors will be pleasantly surprised to get personal time with the pastor. It is critical that the visit be entirely pastoral, not a solicitation for money. Pastors need to be pastors at the meeting; just be a friend and pastor.
  5. After a few meetings, the donor may ask the pastor about giving opportunities to the church. This happens because the member and pastor got to know each other as individuals, not as donor and recipient. These donors already believe and support the church and when they know the direction of the church better, they may seek to be more generous.
  6. At a minimum, it helps the member to get some pastoral time and it helps the pastor to be more in touch with members. There is no downside to developing these relationships.

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: church administration, church finances, communications, future, generosity, leadership, strategy Tagged: , , , , , ,

Capital Investment Needs

Posted on September 17, 2019 Written by
  1. Every church needs building or program improvements that cost more than the budget can afford. Every church needs to make a list of these capital items. This list should encompass all ministry areas and range from small amounts to very large amounts. Update the list every year, make the list dynamic, and make sure every item on the list supports the vision of the church (you don’t want someone’s pet project that doesn’t have widespread buy-in).
  2. Make the list available to everyone. Spend a Wednesday night or two soliciting church input and another night sharing the results. It will help members know that the leadership wants to invest in the facilities and activities that touch everyone.
  3. Update this list every year – do not make it static. Add and remove items as the church’s priorities change. Every year, attempt to tackle two or three items on the list depending on your church’s finances.
  4. There is a chance someone will write a check for an item that appeals to them. Also, sometimes churches have more receipts than expenses at the end of a fiscal year; use those funds for items on the list. Some items are so expensive and/or extensive that funding must be done over several years. Just continue to fund the project and not quit halfway. And, as each project starts tell people what is about to start and then celebrate it when it is done.
  5. Here’s a helpful way to make your list
    1. Itemize – make a list; throw everything on the table
    2. Categorize – group them by ministry or building improvement
    3. Analyze – decide why this is a need and not just a want
    4. Monetize – guesstimate the cost, use a vendor if necessary
    5. Prioritize – rank them from most important to least
    6. Publicize – tell people and solicit their ongoing input
    7. Review-ize – update the list each year
    8. Thank you-ize – celebrate milestones and even throw a party

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: budget, buildings, church administration, church finances, communications, facilities, future, generosity, strategy Tagged: , , , , , , ,

Use Offering Time To Tell Stories

Posted on September 10, 2019 Written by
  1. Donors want to hear how their gifts are being used in ministry. A financial statement doesn’t tell the whole story. Church leadership must share interesting stories of how offerings are being used.
  2. Find 52 compelling stories and insert those in the offertory time. If the church doesn’t have 52 stories, the church has bigger issues. 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.
  3. During the year, give every ministry a chance to be on the platform telling one (and only ONE) story. Tell a story about real people, real events. Give ministries time to announce an upcoming youth event, a mission trip, Vacation Bible School, small groups, Christmas, or Easter activity, etc. This is “thank you” time (not an announcement time).
  4. Tell the stories using different methods such as interviews, slide shows, testimonies, songs, handouts, etc. Be creative each time and vary the method the story is told from week to week.
  5. Here are some examples:
    1. I’d like for you to see what our youth did on their summer mission trip. Because of your gifts, 13 kids spent a week that will change their lives for the next 60+ years. Thanks! (then comes slideshow with cool music)
    2. In two weeks we’re launching new small groups and we want you in one of them. If you can’t afford the study book, the church’s offerings will buy you a book. We’ll even pay for babysitting so you can be there. And yes, thanks to everyone’s contributions who are making this possible.
  6. Make each story compelling and have each presentation heart-touching. Always use the words “thank you” and “generosity/generous” – those words have no negative connotations. Soon, the offering time will be something people look forward to.

Lead On!

Steve

www.churchbestpractices.org – all kinds of FREE church manuals and sample documents
www.financeforchurches.org – 400 plus blogs on every church administration topic you can think of

Filed Under: church administration, church finances, communications, generosity, young adults Tagged: , , , ,
Next Page »