Left-Shoulder Giving

Posted on May 28, 2013 Written by

The blog post “Bell Curves and Giving” discusses the average age of your givers and shows that donors in their 50s are the single largest contributors to churches and non-profits. That is the age range on which churches most rely to support their current and future programs. If you visit a church where the average age is older than 60, then that church is likely in decline (unless there is a major endowment supporting the church).

The top of this bell curve are the 50-somethings. The 60-somethings and older form the right shoulder and it is shoulder with a steep downward trend. The overall amount of gifts from 60-, 70-, and 80-somethings declines very quickly for several reasons

  • they are not earning as much as they used to and therefore can’t give as much
  • they are trying to not outlive their money so they restrict what they give to their church and instead will give it as a bequest (if the church cultivates that gift)

The left shoulder is formed by 20-, 30-, and 40-somethings.

  • They are just getting started in their marriages, careers, and families
  • They often make poor financial decisions about cars, houses, and furnishings they purchase.
  • Many end up paying off credit card balances for years or decades.
  • Others are paying down college debt or establishing college funds for their own children.
  • Some are doing all of the above!

Left-shoulder donors have less disposable income than they want to have. They really, really want to give to their church, they just can’t. Churches should and must help them – almost no one else is doing something to address this need. When a church helps a left-shoulder giver get out of or decrease his debt, many pay it forward through their church. This seems self-serving but there is a biblical viewpoint to this – helping people, especially young adults, to understand that our society makes an idol out of money and that distracts them from worshipping God.

Every church with young people (hopefully that means every church) should have classes on Dave Ramsey’s Financial Peace University or Crown Ministries. Everyone in the church should read Randy Alcorn’s The Treasure Principle and/or Andy Stanley’s Fields of Gold. These classes and books provide resources that help people approach money from a rational and biblical point of view, not just an emotional one.

This is an important and urgent matter. If you don’t think it is, try this: take the current giving levels on your bell curve and fast forward 10 or 20 years to see how much money your church will have (realizing that many right shoulder donors will die). That should be a wakeup call to see how significant it is to develop left shoulder donors as fast as possible. Then, when these left shoulder givers are in their 50s or even before, they can be generous givers to their church and the causes that appeal to them.

 

Lead On!

Steve

Filed Under: church finances, generosity, leadership, wisdom, young adults Tagged: , , ,

Decision-Making Committees and Working Teams

Posted on May 14, 2013 Written by

Churches need to differentiate between committees and teams. Most churches have one or the other but in reality they have both. However, they don’t distinguish between the two whereas I think there is a difference.

  • Committees
    • Committees make decisions. Committee members should have expertise in the areas to which they are assigned. For example, you need numbers people reading financial statements.
    • Committees always have an indefinite existence.
    • Examples of committees are:
      • Personnel
      • Finance
      • Strategic Planning
      • (that’s really all there are – everything else is a Working Team)
      • Working Teams
        • Working Teams accomplish a specific project. They may have an indefinite lifespan, but they have a specific job to do. Most of the teams do not require skills, they require willingness to serve.
        • Examples of Working Teams are:
          • Ushers
          • Teachers
          • Greeters
          • New Building
          • Fundraising
          • Missions
          • And dozens more, however many the church needs to accomplish its tasks

Many Working Teams should have a sunset clause – when the building is built, when the mission trip is over, etc. Committees never end. One of the key differences is that decisions by Committees may have legal consequences whereas the Tellers’ Team and other teams don’t make decisions with legal concerns.

Working Teams don’t need to have a rotation schedule but Committees must have one. It may be a three or four year rotation with the opportunity to re-up for another term or not, but rotation is important. Committees need a balance of institutional memory (members who have been around a while and know the church’s history and politics) and new blood (members who can bring fresh ideas and current concepts to help the church adapt to the present and future). The easiest and best way to get that mix of history and new is to rotate members. Frequently this rotation helps to keep the average age of a committee in the late-40s and that is a pretty good mix of ages.

 

Lead On!

Steve

Filed Under: leadership, strategy Tagged: ,

Last Will & Testament of Churches

Posted on May 7, 2013 Written by

Does your church have a will? What will happen to the church when the time comes to close the doors? No one wants to think about that; it’s too emotional. After all, this is the building where you were married, your children were baptized, your dad’s funeral was held, and your children ran down the halls despite your threats. This is a building full of emotion. So how do you make a rational decision about an emotional subject? The answer is, you don’t at the time. You make those decisions before it becomes overwhelmingly emotional.

Every church will close, and every church building will crumble. That’s a fact. Yes, there are some churches that are over a thousand years old, but most of those are historical structures (think cathedrals in Europe) that are tourist sites and thus get a lot of their funding from visitors (FYI, it costs money to get into St. Paul’s Cathedral and Westminster Abbey in London but St. Peter’s in Rome is still free though donations are encouraged).

First Church, Jerusalem was pastored by James, the brother of Jesus. This guy, not one of the disciples, was so revered that he was elevated to be the leader of the most important church in the new group called The Way (aka, Christianity). To see how important James was, just read about the very first business meeting of the church (Acts 15) and that when James spoke, everyone listened and followed what he said. First Church, Jerusalem probably met in a home, albeit a house big enough to handle over 100 people. At some point the Jesus Movement became institutionalized with buildings and structures but early on, it probably met in a house. Here’s the kicker, we don’t know where that house is today – it’s somewhere under all the buildings currently in Jerusalem. Surely God would have saved the meeting place of First Jerusalem just to show everyone how important church buildings are, but God didn’t. That building is now rubble, somewhere.

If God didn’t save First Church, Jerusalem, He won’t keep your building and your church around till Jesus comes. So, what is your plan when the time comes? I urge you to think about it – and I mean “think.” When the time comes the decision will be so overwhelmingly emotional that most people will not be able to deal with the subject in a calm manner. That is expected, this is an emotional subject.

Put together a plan now to answer questions related to closing the church

  • How small will the congregation have to be so that the doors are closed?
  • How small will the budget have to be?
  • What options will be pursued prior to closing the church? Options include merging with another church; becoming a mission point of another church.
  • What will happen to the assets of the church?
  • Will you sell the building and grounds to a developer or donate the property to the local denominational governing body?
  • Will you take action before the buildings begin to deteriorate such that their upkeep means they are the single largest expense?
  • Who will originate the discussion?
  • Who will make these decisions? The trustees? The deacons? The church members themselves?

There are a dozen other questions to be asked of any congregation and a dozen other questions which are congregation-specific. I encourage every church’s leadership to have a well-thought-out and well-documented conversation now, while your church is in good shape. Then, when the time comes to begin a painful conversation, you’ll be ready to address this subject.

 

Lead On!

Steve

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

What Are You Reading?

Posted on March 26, 2013 Written by

Getting your staff to read together is really important. I recommend that all staffs read two or three books together every year. It will help keep everyone on the same page, and they’ll talk about it in the halls and at lunch in addition to the planned discussion times. Some of these books may be good for some key committees to read together, and that will help the key leaders be on the same page, too.

I suggest a variety of books on different subjects. Church staffs expect to read books about churches, but what about good biographies of strong leaders (Rockefeller, Jobs, Roosevelt(s), missions stories (Peace Child), business (Good to Great, The E-Myth Revisited), social justice , prayer (The Prayer Circle), or the status of the church in America (American Grace). There are thousands of good books to choose from on any number of subjects—and not only with church-related themes. Fiction such as the Narnia series, the Lord of the Rings trilogy, and even the Harry Potter series provide Christ-centered truths. The reading list does not have to be limited to C. S. Lewis (good as he is).

Well-written books will also help your staff members speak and write better as they see some best practices. Book discussions will help the staff communicate more and better with each other to explain their point of view in a non-threatening way (after all, it is “just” a book). And, eventually the staff will have a bookshelf which will impress office visitors (that’s my weakest argument!).

Get the staff to make suggestions. The reading list may start with the pastor’s choice, but it must include good and worthy selections submitted by other staff. The pastor will certainly want to use a book to help the staff focus on a specific topic, but the pastor should not be the only person selecting titles.

Finally, it will be interesting to see just how people read the books—in print or electronically. Each has advantages and detriments. Each method appeals to different types and ages of people. That alone can be worthy of a discussion of how society and the church are changing, and then you can discuss the contents of the book!

 

Lead On!

Steve

Filed Under: church staff, leadership, strategy Tagged: , ,

Saying Thanks!

Posted on January 5, 2013 Written by

Here is a link to a good article about thanking your donors. Thanking, explaining, sharing stories, and helping others know what is going on in your church is vital to your church’s finances. People liked to be thanked – please do it often and use as many platforms as you possibly can:

  • Personal letters
  • Articles in the church bulletin
  • Social media
  • Webpage
  • Hallway conversations

If you make this part of your daily attitude, that same attitude of gratitude will flow into your staff and your church members. After all, it is well known that every organization takes on the attitude of the top dog. So, be grateful, tell others thanks, and encourage everyone to follow your lead.

http://www.guidestar.org/rxa/news/articles/2012/9-clever-ways-to-thank-donors.aspx

1. Write a Greeting Card, Not a Business Letter
2. Share Recent Progress, However Small
3. Add an Invitation—But Not to Something That Requires Another Donation!
4. Use a More Creative, Personal Opening
5. Include Results-Oriented Photography
6. Record a Video Message
7. Send a Postcard from Behind the Scenes
8. Be Specific about How the Gift Is Being Used
9. Change Who’s Saying Thank You   Lead On! Steve

Filed Under: church administration, communications, leadership Tagged: , ,

RACI

Posted on December 18, 2012 Written by

A friend and colleague of mine gave me an acronym that is used in his church whenever a decision is made. They assign RACI to actions and I like this so much I want to share it as a tool to help church staffs. RACI stands for:

  • Responsible
    • This person is in charge of the activity. All subsequent decisions go through this person to ensure that everything is working together to meet the desired outcome. This person can delegate intermediate steps but in the end, the buck stops with this person regarding the entire project. The responsible person must also have the trust and authorization to carry out the duties assigned to him or her. Anything less will set that person up for failure and perhaps even his or her departure from the church.
  • Accountable
    • This person is accountable for his or her actions (or inactions) and that accountability will affect his or her annual evaluation. An accountable person may or may be in charge of one aspect of the project or may be the responsible person, also. The accountable person must have the resources to carry out the task assigned to him or her whether those resources are financial, time, knowledge, or people. Accountable people need to know to whom they are accountable – that must be deicded initially; it is frequently the person who is responsible for everything.
  • Consulted
    • This is a person or group of people who have information which can help move the project further along the road. This may be specialized persons (lawyer, architect, teacher, pastor) but they are not part of the decision-making process. Their value is in providing additional knowledge which will help others who are decision-makers. Information is always a two-way street in the section: those who are consulted, by definition, should provide feedback to ensure the proper information is getting to the responsible or accountable person(s).
  • Informed
    • These are people who should be told what is happening along the way. This may be a person (such as the pastor or other leader) or a group of people (such as the congregation or key committee). They are not necessarily part of the decision-making process but keeping them informed can help the decisions go faster and easier. Information is usually one-way but sometimes it can flow back if it will help.

Sometimes these four are mixed and matched. For instance, someone who is consulted may also be a accountable. Sometimes you don’t have all four – one of the above may be omitted if it is not appropriate or unnecessary.

Use this terminology to ensure that everyone understands and knows their role in the decision-making process. Keeping this clear will help people know what they are supposed to do and what they should not do. It can minimize conflicts (“eliminate” is probably too much wishful thinking). Use this tool to help you become a more efficient and effective staff – and one that communicates better with each other.

Lead On!
Steve

Filed Under: church staff, leadership, wisdom Tagged: , ,

Spears, Tridents, Pitchforks, and Rakes

Posted on October 30, 2012 Written by

I am concerned about the focus of the church, or its lack of focus. There was a time when the church in the United States was relatively financially flush and spent its money on a variety of ministries. Churches had food pantries, libraries, gyms, etc. I’ve even heard of a church that had a minister of softball!

My concern with this is that lots of organizations do those same things. Some of those organizations are Christian, while others are completely secular; some do it well and some don’t. But there are others out there doing this work. So, why does a church feel the need to replicate what is already being done by others especially in today’s very tight financial economy? I fully believe that churches should be involved in social ministries, I just don’t think those ministries have to be located inside and paid for by the church. Take advantage of the economies of scale of several groups working together.

Here’s my challenge to churches: stay on your mission-critical path. Focus on those things that no one else is doing. Concentrate on what you were tasked to do by Jesus Christ. Do what is in the marrow of your bones. Stay away from things that lead to mission creep.

Instead, if a church member wants to start a ministry, ask that person to find out what other groups are doing the same type of work in your area. The other groups may or may not be Christian, but that doesn’t matter; we don’t always work with Christians, we work for Christ. Next, find out which of those groups is the most effective, most efficient, and financially transparent in what they are doing. Finally, ask them if they could use additional volunteers and perhaps an occasional financial gift–and then partner with them.

Churches don’t need to use their resources to accomplish everything. They need to use their resources strategically. There are three main resources a church has: buildings, money, and people. When a church uses one, two, or all of these for a ministry within their own walls, they may take away resources that could be used for the church’s critical path needs. And, when a church uses some of its resources in a ministry outside its buildings, it gets its people and money to be involved and invested in the community–exactly what Jesus asked us to do.

Every manager knows that he or she can focus on 3-7 goals at any given time, at a maximum. Do anything more and projects began to suffer; resources get scarce. Businesses know to concentrate on no more than five major items at one time (for confirmation, read any book by business guru Jim Collins). ITT is a great example of business that decided it could do everything at the same time. You’ve never heard of ITT? That is probably because it went bankrupt decades ago.

Churches need to learn from businesses and remain focused on a primary goal: sharing the Good News of Christ. Extraneous ministries are good, but they can be done by church members volunteering at other well-run organizations. They will still be able to explain their motivation in helping others: because of their desire to share and exemplify God’s love.

Here’s an analogy: if you take one piece of steel, you can shape it into a spear, trident, or even a pitchfork and those one, three, or five points can make a very strong impact. Those points are always going in the same direction and are virtually unbreakable. That same piece of steel can be made into a rake which has 20 or 30 prongs which bend every which way and sometimes don’t even work together, bend at awkward angles, or even break off.

I challenge every church to be a spear,  a trident, or a pitchfork–singularly focused, very strong, and unified in its mission. Too many churches are like rakes going in lots of different directions with a wide variety of ministries. Use your resources strategically; use them for the Kingdom of God and the path on which God has set the church.

Lead On!
Steve

Filed Under: leadership, wisdom Tagged: ,

Generosity Index

Posted on October 5, 2012 Written by

You need to know about the annual Generosity Index  which is an interesting measure (at least to us numbers geeks) of how generous people are. This link is to the 2011 publication of the 2009 tax data. The compilers gather data from the US Internal Revenue Service (Canada is in the survey but in this blog I’m referring only to the US). They gather data by state:

  • Total amount of income on all the tax docs filed
  • Total number of tax filers
  • Total number of tax filers that made a charitable contribution
  • Total amount given to charities

The data is sliced and diced in two primary ways: 1) percentage of total aggregate income given to charity and 2) amount of average charitable donation. Those two are merged to get the Generosity Index and then states are ranked by each of these.

It is interesting to see the number of tax filers in a specific state but we don’t know if these donors gave $10 or $10,000 so I prefer to look at the percentage of income that is given to charities. That percentage is very telling about those who are inclined to be generous with their money. BTW, by far the largest recipient of charitable dollars are churches – no one else comes close.

  • The most generous state is Utah whose residents give an average of 3.09% of all their income to charities. The second is Georgia whose tax filers give away 1.85% of their collective income. There is a big drop from #1 to #2 and that is due to the Mormon emphasis on tithing.
  • The top ten most generous states are
    • 1. Utah
    • 2. Georgia
    • 3. Alabama
    • 4. Maryland
    • 5. South Carolina
    • 6. Idaho
    • 7. North Carolina
    • 8. Oklahoma
    • 9. Mississipp and New York (tie)
  • The top ten stingiest states are
    • 41. Ohio
    • 42. New Mexico
    • 43. Arkansas
    • 44. Hawaii
    • 45. Rhode Island
    • 46. West Virginia
    • 47. New Hampshire and Vermont (tie)
    • 49. Maine
    • 50. North Dakota

Generalizations are rarely correct but there are interesting patterns

  • Many of the most generous states are seen to be very religious (Utah & Idaho with Latter-Day Saints; Georgia, Alabama, South Carolina, North Carolina, Mississippi with Baptists and Methodists).
  • Many of the most generous states are seen as some of the poorest states
  • Many of the stingiest states are in the Northeast: Rhode Island, New Hampshire, Vermont, and Maine which is an area of the US that is considered less religious
  • Is there a correlation between faith and generosity – it would seem so (if we are looking broadly).

Years ago I read that research by Empty Tomb, Inc. showed some interesting statistics:

  • In 1932 the average Christian gave 3.2% of his or her income to the church. This is at the depth of the Depression, when people had less to give than ever before as a nation. It was a very, very tough time for the US.
  • Just before the economic collapse of 2008, the average Christian was giving 2.3% of his income to charity. During one of the most prosperous economic times in the US, Christians were more stingy than during the Great Depression. The figure of 2.3% has steadily dropped since, which means Christians are giving even less.

You can draw your own conclusions from this information. Here are mine:

  • More money does not make you more generous.
  • Generosity comes from the heart, not the wallet.
  • Being poor (a relative term in our country when we compare ourselves to other countries) means you understand better than others the importance of helping others.
  • A person’s faith and religion plays a large role in his or her generosity.

Lead On!
Steve

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