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: , , , ,

The Church At Play

Posted on December 11, 2010 Written by

I really wanted to address two separate but related issues: church staff and the church itself.

What I mean by “at play” is very simple – how do church staff (and members) do fun things together on company time. Here’s why: years ago I had a boss who said that the only time he gets worried about his staff is when he did not hear laughter in the halls of the church office. Laughter is an indication that the staff is having fun together and not taking life too seriously. If you don’t hear laughter, you’re going to hear gossip. Laughter is much better.

Most church staffs do church together. Nothing else. That is not healthy – they need intentional times when the church approves (and funds) the staff going out on the company clock to do something memorable together: bowling, watching a movie, painting pottery, playing golf (if you like chasing a little white ball) or frisbee golf, playing softball or flag football, going fishing or sailing, etc. You get the idea. Do something that does not involve church. That will the staff something to talk about for months (years?) to come that does not involve “talking shop.” Give your staff something else to remember – not just last week’s worship and Bible study. After all, church is very stressful – giving your staff permission to play will reduce the stress and give them good memories and a pleasant shared experience. You’ll never regret it.

That leads to the church at play. I know a couple of churches that intentionally shut down their doors on Sundays for the entire church to go on a retreat over Labor Day or Easter. It’s the same principle as above – give the church members something to remember, an experience to share that is out of the ordinary. Going through seminary I worked for a large hospital company – 7000 employees. Each year during the state fair, the company rented a large tent, provided free food (served by top management), and gave away free admission tickets to the state fair to all employees and their families. Many churches do a picnic once a year and that is very healthy.

Most churches know that fellowship is a key component of a healthy church. Most churches view fellowship as punch and cookies after a Sunday music function or the Wednesday supper. Sorry to burst your bubble, that is not fellowship – that is a church program (church programs are quickly becoming a “four-letter word” to me – more in another post). The best fellowship invovles getting away from the church buildings – do something out of the ordinary and out of the four walls of your church. Get out, go away, make memories, take pictures, and have FUN!

Lead On!
Steve

Filed Under: church staff, generosity, leadership, planning, young adults Tagged: , , , ,

Resources, Insources, and Outsources

Posted on November 7, 2010 Written by

Several years ago, Dr. Al Sutton of the 6th Avenue Baptist Church in Birmingham, Alabama, spoke to a group of church administrators. D. Sutton used the biblical text of Jesus feeding the 5,000 men (or about 25,000 men, women, and children). It was getting late and the people were hungry. The disciples asked Jesus to send the crowd away. The disciples wanted to outsource the problem but Jesus insisted on “insourcing” the situation. Then the disciples said they didn’t have any money and Jesus replied, “what resources do you have and lets see how we can use that.” Dr. Sutton thanked us administrators for putting up with pastors who want to imitate Jesus by insourcing problems and by telling the finance people to just use whatever you’ve got (without fully knowing what there is to begin with). I’m not doing Dr. Sutton justice with this brief paragraph, but you get the idea.

Every day Christians (and non-Christians) ask God to make personal problems go away. If the issue will only disappear, then there won’t be a problem, right? We even throw Jesus back at God, “If we have faith the size of a mustard seed, God will solve everything.”  God wants us to deal with issues – not run from them. God wants all of God’s disciples to get involved, to get our hands dirty, and to “insource” problems. God doesn’t outsource – God uses you and me. BTW, I’m not talking about medical, ethical, or legal problems – those have tangible consequences and are a matter of much prayer; sometimes God does intervene in human events in miraculous ways to cure diseases and take care of situations far beyond our powers and require divine resources. But what is within our control, God wants us to confront and deal with directly – not push aside.

Next, Jesus asked about the resources available. All too often we tell God that we don’t have enough; that if he’d only provide more we could do more; that the problem is too big for our meager resources. Jesus isn’t about what we have – he’s about what God has. I don’t like it one bit when God tells me to start out on a project when I know that I don’t know the way or have the material goods to finish – I even tell God about the parable of the king who went to war without counting the cost. Invariably God tells me to keep going and trust him. I know it sounds corny and trite, but it is true (about trusting God for daily needs – not daily wants).

So here’s my stewardship lesson for all who read this – all Christians must get involved using every bit we’ve got. Asking God to take the issue away won’t solve anything. Problems are opportunities for God – stop telling God to take some issue away that you don’t want to deal with. Next, use all the resources (time, energy, money) to address the opportunity at hand. As you’re in the middle of the issue, you may be surprised to see God at work and multiplying resources more than you thought possible. Or it may be like the disciples, only after the event is over and some time (hours, days, or months) has passed, will you be able to reflect on that event and see how God was at work. But rest assured of this, God is always at work!

Lead On!
Steve

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

Book Review

Posted on May 7, 2010 Written by

Just finished reading “The New Context for Ministry: Competing for the Charitable Dollar” by Lyle Schaller. He wrote this at the end of 2001 and it was published in early 2002. In the book, especially in the last handful of chapters he makes some predications about the future of church economics. It is uncanny how accurate he was and is.

Schaller gives all churches (and non-profits) a warning shot across the bow about the way they’ve always done church finances versus the new economy and how they need to re-shape their church’s finances. It is also hard to acknowledge that the church is not prepared for the future. What is worse, is that no one seems concerned about the future enough to do anything about it.

About once a year someone pulls the fire alarm in my church. It is always a false alarm. Everyone knows it is a false alarm. So, no one moves the exit; no one gets the kids out of the building; no one runs to investigate the source of the alarm. In this book, Schaller is pulling the fire alarm for churches because there is a real fire. Unfortunately, churches believe that “God will provide” the financial resources they need. Well, God will but the church must actively work and search for it.

I recommend the book (even though it is not particularly readable) with an emphasis on his recommendations at the end of the book.

Lead On!
Steve

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

A Penny Saved …

Posted on April 28, 2010 Written by

I just filled up my gas tank (for future history, today gas was selling at $2.759 in Richmond, VA). Whenever I get gas, I look around the ground for pennies. I didn’t find any today. I haven’t found any pennies (dimes or nickels) for several months. This is one of my indicators of the economy.

A few years back, when the economy was doing quite well, I almost always found loose change when I filled up with gas. It seems that in those days, it wasn’t worth the effort to pick up pennies or nickels and people just left them when they were dropped. Not any more.

About a two years ago I noticed that there were fewer and fewer coins on the ground. About 18 months ago I noticed they were almost all gone and officially, in spring 2009 there wasn’t any more loose lying around. Here’s my prediction, when you fill up with gas (or go through a fast food drive through) and you see coins on the ground, then you’ll know that the economy is back and healthy. Here’s my second prediction, you really won’t see those coins on the ground until about six to nine months after the economy has turned the corner.

What I’m talking about in the context of churches is this question, “When will people feel generous again?” For church economics, two things have to change:

  1. The economy has to turn around in a visible, tangible way. Actually, as of right now (barring a major economic or terrorist event), the global economy is making steady headway out of the mires of 2008-2009. In about 3 months (summer 2010), the US and other first world countries will be on the financially-healthy rebound. But just because things are better financially does not mean people will be charitable or generous.
  2. The second thing is that people have to feel financially-healthy in order to be generous. The feeling of angst that people have right now (will I have a job tomorrow?, will I have enough to pay my bills?, etc.) must be eased a lot before they will respond to church pleas to give more. Churches need to help educate members to get in a more personally financially-healthy place (Crown Ministries and Financial Peace University). When churches do that, then their members will feel more generous. It takes people about 6-9 months after the economy has turned around for them to feel charitable.

Two questions for you:

  • Are you helping people get their financial house in line with God’s plan for their financial house so they can be more generous faster?
  • Or are you waiting till you see pennies on the ground as your indicator of when people are feeling more generous?
Lead On!
Steve
Filed Under: budget, church finances, planning, wisdom Tagged: , , ,

Financial Resolutions 6

Posted on January 4, 2010 Written by

The last set of financial resolutions for churches from Brad Leeper at Generis.com

9. Human need trumps brick and mortar
Pastors tend to like ministry and facilities large. People like church to feel small and relational. Pastors understand how facilities are tools to reach more people. Most people, however, are less concerned about the facility and more concerned about human need. It is the new normal now to include the human element in vision expansion projects. Church planting, multi-site, a clinic in Africa, homeless ministry in the community, and similar high human touch elements are increasingly expected in major projects. Human investment validates the construction.
A colleague worked with a client’s vision expansion project that had nothing to do with any construction undertaking. Every investment dollar flowed boldly to planting churches around the city. The multiple of annual income raised was incredible! A clear connection on how personal giving reduces human need throws gasoline on generosity.
10. Free yourself from the past. Your church members have.
The recent Barna report on giving in 2007 repeated the same theme from prior years. Just 5% of American adults tithed. The most generous segment, evangelicals only topped the charts at 24%. The numbers have remained steady over the decade. We are anemic as a church in prompting generosity.
Trends in giving, however, are shifting more radically than ever before. For those of us passionate about the local church, Barna sends up a bright warning flare. People are changing how they relate with the church. No longer content with standard church interaction, they are “expanding their circle of Christian relationships beyond local church boundaries.” People increasingly give their money to organizations other than the church.
I served a client this past year that had small groups unofficially connected with their church in multiple states. This strategy was not intentional nor were these groups even supported by the church. The groups emerged from a meaningful interaction with the church podcast ministry. These groups gave generously to this church without a hint of request by the church.
There is an increasingly sophisticated donor in an ever increasing competition for the faith dollar. A challenging economy will accelerate the competition. Many donors fail to connect how their attendance at your church translates into giving practices to your church.
If inspired, motivated, and simply prompted, however, people would still rather give to their church. Our silence leaves them uninspired, unmotivated, and believing that we have no need of financial resources. The church that shifts generosity dialog and practices to better match the shifting patterns will receive substantial resources.
Conclusion
As we consider ministry plans for the new year in the midst of economic uncertainly, understand the urgency of making adaptations to your giving practices. You will find the process engaging, energizing, and incredibly meaningful to your people. They will be transformed with an amazing collaboration with their investments and God’s call on your church.

Lead On!
Steve

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

Financial Resolutions 3

Posted on January 4, 2010 Written by
The next set of financial resolutions for churches from Brad Leeper of Generis.com
5. Churches can still raise financial resources for major projects if … Churches that successfully raise additional funds for major projects make an audible from classic campaign approaches. Donors are eager to give to the right projects if we adapt our methods from past practices. People eager to give generously look for certain qualities in a project before giving. Their decision making grid is radically different than even just a few years ago.

 ·Generous people look for more specific benchmarks and ask much harder questions in search for validation of the project.

 ·Does the project make sense? Is the reason to give sacrificially clear and compelling?

 ·Has the leadership thought this project through? Has the leadership done due diligence? Just because the pastor loves this project has little bearing on my love for the project.

 ·Would my investment directly help people? Buildings do not inspire me.

 ·There are far more attractive projects outside the church that appear more meaningful to me. Just because I attend church here does not mean that I automatically buy into your project.

 ·Does this project help the poor?

 Give a change of pace from predictable practices to foster generosity. Even though much of my work centers on capital campaigns, I fight hard to keep those two words from my interaction with clients. Most of my clients call their effort a “mission expansion project” or “vision expansion project”. Stewardship is replaced by generosity. Vision casting and telling gripping narratives begin months in advance not compressed into a five week package. Print media is replaced with moving video work that is viewed repeatedly on YouTube.

 

The traditional three-year giving period for a mission expansion project can be shortened. People are increasingly skeptical about long-term commitments. A fast growing church can actually be hindered with a long giving season. Churches that have made adjustments to converse with a new kind of donor still cultivate significant resources for their vision.
Lead On!
Filed Under: church administration, church finances, leadership, planning, strategy Tagged: , , , ,
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