Two Cool Solutions

Posted on February 24, 2012 Written by

[guestpost]This blog was written by my wonderful wife, Jennifer, and I asked if I could post it under her byline. These two products, DropBox and CrashPlan, are cool apps for church IT. Check them out.[/guestpost]

I’m no expert on IT issues, but I’ve done some independent research lately on electronic file backup and storage options for homes and small businesses. It seems to me that these solutions might also be helpful to churches. There are a number of options out there, and many bloggers and tech review sites offer opinions/reviews. When I research things online, I prefer to consider a combination of review types because I like to look for consistencies among them. Bloggers tend to be individuals who offer advice based on personal experience; tech sites usually offer composite reviews either from other users’ experiences or from their own tests. I’m careful not to pay attention to those sites that are sponsored by software companies or related online services, as they likely present biased opinions depending upon their sponsors.

That said, I’ve discovered there are two really amazing online services offering extremely affordable solutions for storage and file sharing (I say they’re amazing because to some degree they are free, and they offer a lot of helpful features even at no cost to the user). The two I find most interesting and promising are Dropbox and CrashPlan. At first, I thought I’d want to choose between one or the other; what I discovered, though, is that they are two different animals.

This isn’t a tech blog, so I won’t list specific plans and options. You can check those out by doing an online search of your own (try entering “CrashPlan vs. Dropbox” or some similar text, and you’ll find all that). Dropbox is a free, online service that allows you to store up to 2GB of files in their cloud (you can purchase more space if you need it) and access those files from any of your devices–and it syncs them automatically in real time. You can also share folders with other Dropbox users–a huge plus for people working on a project together. I use Dropbox on my iPad, iPhone, iMac, and PC laptop. There’s an Android app for it too, and all their software and apps are free. Because I work both from home and an office, I am able to keep folders with all my work files in Dropbox and work on them no matter where I am, and they sync automatically to all my devices. I use Word and Excel files almost exclusively, though I do put some some photo files there, and after about a year I’m still using only 3% of my available free space. If you use multiple devices for your work and haven’t tried Dropbox, you simply must take a look at it. It also allows you to access your files using your password via their website, and you can do that from any computer when you’re online at any location.

CrashPlan is an efficient and inexpensive way to back up all the files on your computer. They offer a free plan that allows you to back up from one computer to another (if you want to back up, say, from your home to your office computer), but if you want to use their online (off-site) storage cloud, you have to subscribe. Their top plan for users who have up to 10 computers–with unlimited file storage–is only $72 per year. You can set the backups to occur as often as you want (they recommend nightly, but you can do it more often if you choose). CrashPlan is more secure than Dropbox, as everything is encrypted.

Many reviewers recommend using both of these services together. The one caution is about Dropbox and its security; if you are dealing with highly sensitive, confidential information, you probably won’t want those files on Dropbox. Even though they are accessible only to your devices on which you’ve loaded the software, anyone who uses your devices can access them. I plan to check out CrashPlan’s free trial soon and potentially use it to back up all my computers. With these great options available, I seriously wonder about the need for organizations to maintain local servers and whether we’ll see a change in that practice in the future. But as I said, I’m not an IT expert. I just enjoy finding and using new options in technology that make my work more efficient, secure, and simple.

Lead On!
Steve

Filed Under: church finances, strategy Tagged: ,

Outrageous Generosity

Posted on February 12, 2012 Written by

Generosity is one of my favorite words because it so describes God’s nature. Actually, outrageous generosity is a much better descriptor. Think about – humans have offended and humiliated God in every possible way yet his response is pure love. What’s up with that? It’s a good thing humans are created in God’s image because if God had a human image, then God would react in a vengeful way and who could blame him after they way humans have treated him?

So, let me encourage you to think about God’s Outrageous Generosity. Actually, do more than think about it. I challenge you to do a sermon (or sermon series) on this topic. And the best time to start with it is Easter Sunday 2012. Take the month of April and preach on this subject and challenge your listeners to “be imitators of God,” the person in whose image they were created.

Humans are born with two life-sustaining instincts (something that every human baby does): grasping (taking hold) and sucking (taking in). God’s instinct is to give everything away (read the Bible, you’ll see that pretty soon). The greatest example of how God personified Outrageous Generosity was on Good Friday on a cross – Jesus opened his hands for the spikes and his arms for the cross and died for all humanity. That’s OUTRAGEOUS!

Now, how can you be generous, even outrageously generous?

  • In your personal life
    • Be generous by spending more time with your kids helping with their homework
    • Be generous with the time you give your spouse; go on a date once a month and a weekend away at least once a year
    • Be generous with other generations: call your parents or kids in college at least once a week
    • Be generous with yourself: take your family on a memorable vacation – you need to get away from work and be with the ones who love you and whom you love
    • Be generous in creating memories. Every present you give on Christmas morning will end up in a landfill but the memories you give them will last a lifetime!
  • In your professional life
    • Be generous with the credit at work: give someone else credit for a job even though you did 90% of the work
    • Be generous with someone else’s career: let someone else get a promotion
    • Be generous with your words of praise: encourage someone talented to start their own business or go for a new career
  • In your pocketbook
    • Be generous in how you give, not just how much. Think long and hard about the recipients and even do some homework by calling, visiting, and even studying the financial records of the organizations who get your money
    • Be generous with why you give. In the US we get a tax break for our gifts but that shouldn’t be the reason for giving. While giving benefits other people, giving actually benefits you far more because it makes you wrestle personally with the amount and recipient of your hard-earned cash. Get the right motivation for giving and a tax-break (more money for you) is not a good enough reason.
    • Be generous with when you give. Yes, you can wait till you die and leave everything in your will. That’s kind of like saving all the Christmas presents and giving them away in your will. Isn’t the greatest gift of Christmas morning seeing the joy in others when they open a gift from you. Give NOW so that you can see the joy that others experience.
    • Be generous with how much you give. Believe me, you won’t miss it.
  • In your faith
    • Be generous with the knowledge that every person is searching for God. Humans by nature seek God (we’ve never found chimpanzees worshiping or creating any type of religious icon!) – that makes us unique among all animal (every single human culture on earth has some form of faith).
    • Be generous in your own search. Most people inherit a faith from their parents. I believe a faith that isn’t questioned isn’t a faith worth having. Ask hard questions even if it means wondering about the foundations of your faith. And when you have solid answers, hold on to that faith
    • Be generous in asking others about their own faith. It’s a tough conversation but if you care about someone, it’s a necessary one. Everyone is seeking something; encourage that search.
    • Be generous with God. You may have questions about God and you may not like him at all for a bunch of reasons. But God can say the same thing about you and yet he loves being with you. Why not give God a chance and spend some time together?
Lead On!
Filed Under: budget, generosity, strategy 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: , , , , ,

Leadership and Followship

Posted on December 10, 2011 Written by

Recently I came across a couple of really good articles on leadership:

  • Leadership in Church:
    • http://www.healthychurch.org/doorpost/enews-december-2011
    • Oh, those are sticky wickets to address but every single one of them is a potential minefield for both the church and its leaders. And, minefields don’t go away. A study of minefields (the ones used in wars) show that mines become more unstable over time and the least little pebble can set them off. This is also true of church life – any event can set off a long-dormant mine. Dig up the mines (carefully); confront the elephants in the church (carefully) – they won’t go away on their own but need to be led/taken gently out of harm’s way.
  • Leadership in Sports:
    • http://www.washingtonpost.com/sports/in-sports-theres-no-faking-leadership/2011/11/30/gIQAnoksGO_story.html
    • Actually, the “cover story” is about sports but the article cites some research on what followers want: “According to Hogan’s research, followers want four things: integrity, confidence, decision-making and clarity. But just as important is what followers don’t want: irritability, moodiness, untrustworthiness, indec­i­sive­­­ness, needless micro-management and excessive authority. They perceive these things as incompetent, and pretty soon the leveling mechanism kicks in and there is a subtle rebellion.” Those are very powerful words for leaders to remember – all the time.

I also saw a short (less than one minute video) with the former CEO of Xerox. She turned the company around from death’s door to being financially successful. When asked about leadership, her answer was that leadership was dependent on followship – how those who actually do all the work see you and follow you.

Years ago I heard that one of the problems of leadership is that sometimes people are following you and sometimes they are chasing you. Obviously, followers are much better than chasers but sometimes you need both to keep you on your toes.

Don’t run away from the chasers, turn and ask them point-blank (in a nice way) what they want to follow. You may be surprised by how reasonable their answers are. And you will certainly take the wind out of their angry sails. Make the chasers your followers; make the followers your disciples; make your disciples your new leaders; make the new leaders your successors.

Lead On!
Steve

Filed Under: future, leadership, strategy, wisdom 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: , , ,

Leap of Faith

Posted on October 15, 2011 Written by

 

For several years I have felt that my gifts and experience in church and non-profit finance could be used to help numerous churches and other organizations. In the 6 ½ years I’ve been at my current church, I’ve accomplished a lot in getting the church’s finances and facilities where they need to be. I’ve helped the church operate more efficiently, effectively, and use technology better; I want other churches to use their resources in the best ways possible. I want to be able to offer my “services” to other places, so I need to make myself available. I believe this will free up some of the church’s resources in order to hire a facilities manager and/or executive pastor–two positions which the church needs but doesn’t currently have.
Because of this, I am resigning my position as Church Administrator of my church effective January 2, 2012. From now on, I am actively seeking a different challenge–and we (my wife and I) hope that will be as a self-employed consultant where I can work with multiple churches and non-profit organizations.
One of the joys I’ve had in the past few years is authoring this blog on church finances, which has had over 2,000 hits (not bad for a site focused only on church finances). I know there is a need for my services, but it will be up to God and prayers for churches to be willing to accept some outside help with their internal finances.
So, in January 2012 I’m launching a career in financial coaching/counseling for churches who need sound financial advice (how to save money, how to bring in more money, how to make the finances and offices more streamlined, efficient, and effective). I don’t know of anyone else doing this (maybe there’s a reason for that!) but it is a passion of mine. In today’s economic strain, churches must become even better managers of the resources they have.

As you can imagine, this is a huge step of faith for us as a family and for me as a professional. We ask for your prayers as we go through this change and for your creative ideas about places that might be able to use my expertise. Please contact me (steveplaw@gmail.com) to discuss financial coaching/counseling for your church or organization.

Lead On!
Steve

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

Budget Percentages

Posted on September 12, 2011 Written by

Below is a recent email exchange with a friend of mine (names omitted).

 
Email Question:
I have a church that wants help examining their budget allocations by categories: missions, personnel, programs, etc. They want to look at similar size churches with similar size budgets. They want to know whether their allocations are in line for their type of church. Basically, they want to benchmark their distributions. They suspect that their personnel budget at 67% is high, but the church doesn’t know any different. And they want to know why they do not have any money to do actual programs.
 
Do you have access to any sort of database like that from any of your connections?
 
My response:
  1. No, I don’t know of any authoritative written source of ratios. Sorry.
  2. My experience tells me the following makes commons sense

 

a.      Personnel
                                                              i.      Range of 40-60% of undesignated receipts
                                                            ii.      Ideally about 50%
                                                          iii.      This includes the ministers and administrative assistants – people key to accomplishing the goals, mission and vision of the church
b.      Facilities
                                                              i.      Range of 15-25% of undesignated receipts
                                                            ii.      Ideally about 20%
                                                          iii.      This includes facilities staff costs
                                                          iv.      The percentage will be higher if a church has debt; lower if there is no or low debt.
                                                            v.      A church should spend annually about 2% of the cost of replacing the building on maintenance. If you have a building worth $1 million, then spend about $20,000 on maintenance. The rest of the percentage will be spent on salaries, utilities, cleaning supplies, commercial property insurance, capital reserve funds, etc.
c.      Programming
                                                              i.      Range of 20-35% of undesignated receipts
                                                            ii.      Ideally about 30%
                                                          iii.      This includes education, worship, missions, funds budgeted for allocation to outside organizations (Cooperative Program/Missions), etc.
That being said, these percentages go wild in various types of churches. New, emerging, highly growing churches have very high salary percentages and loads of debt. Older, established churches have paid off their debt so their programming is high and salaries have stabilized in the 50-60% range. While there is no “one size fits all” there are well-grounded rules that will help a church stay out of fiscal trouble. Hope this helps.
Lead On!
Steve
 
Filed Under: accounting, budget, church finances, church financial statements, leadership, strategy 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: , , , ,
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