Churches as Businesses

Posted on December 1, 2010 Written by

Every so often someone will tell me that “the church is not a business and shouldn’t operate as such.” Just as frequently, I get the comment, “the church really is a business.” So, which one is correct? Well, let me say unequivocally, both are right. Here’s why and why not.

Churches are businesses in that they have the same basic building blocks of a business – every church has:

  • operating budgets
  • staffs
  • “products” (in churches it is “intangible religious benefits” in IRS terms)

Churches are not businesses in that they have a different purpose

  • Their goal is to give to people, not get from people
  • Their goal is empower people to give away more to other people

The foundational structure of every church is business-like. The programming of churches is not necessarily business-like. However, I need to clarify one area there where churches should be more like a company: evaluation.

Churches shy away viscerally from evaluating their programming. They hide behind the phrase “but if it helps just one person, it was worth it.” After 35 years in church work (I worked in a Christian bookstore as a teenager), I feel that churches must evaluate almost everything they do. They can’t hide behind the trite phrase of helping just one person – I do not believe God honors that (or better said, God blesses even more those ministries that are regularly evaluated and improved). The church today must evaluate its staff, buildings, and programming.

Staff: many churches do an acceptable job of evaluating staff but it is frequently a look back and not setting goals for the future. Staff (from the pastor on down) need to be assessed on what they did in the past 6 or 12 months against goals that were established for those staff. Too infrequently bosses fail to set expectations for staff so that there is nothing against which to measure the staff. Then you have the hard part, staff that is not performing need to be encouraged/mentored if they have potential. But if there is no chance that a staff member is going to succeed in your church’s environment, then that person needs to be terminated. Termination is very hard on everyone but in the long run it is beneficial to the rest of the staff and the church. In the words of Spock from Star Trek, “the needs of the many outweigh the needs of the few, or the one.” Pruning is hard, but it leads to greater growth in the next season.

Building: this represents sunk costs. A church has already built and paid for those bricks and mortar. But the evaluation should be, “is what this building was originally built for still a viable option or should we change the building to meet future needs?” Buildings can be retro-fitted (for a price, yes) for needs that the church leadership feels is coming up. Do not be wedded to the past “just because we’ve always done it that way.” Years ago I learned how the new anti-termite pesticides work: the chemical inhibit the termites from shedding their old skin when they outgrow it. Thus, the termites strangle inside their old skins. Don’t let your church do that – change your skin as often and necessary to keep the church from killing itself.

Programming: by far, this is the most politic- and emotion-laden area of church work. People have invested their own blood, sweat, and tears in their pet ministries and feel that any mention of cutting them is a threat to them personally. Evaluation is not acceptable and they play their trump card almost immediately – “God is using this ministry.” My grandparents decided that a car was better than a horse and buggy; my parents decided that telephones are better than letters; my generation decided that computers are better than typewriters; the next generation is totally committed to the internet (which is replacing just about everything!). Change is painful but evaluation is an absolute necessity if a church wants to grow or not lose ground.

Evaluation is a matter of opinion – not everyone will evaluate the same program or person the same way. Church leadership needs to determine how the evaluation will occur and how the results will be implemented. That cannot be explained in a blog – every church has a unique culture and that culture must form part of the decision-making/evaluation process. But please heed this note of warning: to do nothing, to not evaluate things on a regular basis, is to ensure that the church will continue its present track with no heed to the future of the church. If you want a biblical example, read Acts 15 when the church in Jerusalem struggled with whether or not to permit Gentiles to be part of the church. Enough said.

Lead On!
Steve

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

Business Books

Posted on June 9, 2010 Written by

Why don’t ministers read more business books? There are some classics out there by gurus such as Tom Peters, Peter Drucker, and Jim Collins. There are lesser known authors or newer authors such as the Heath brothers (right now I’m reading their book, Made to Stick – great stuff). Popular business books from the past few years are very readable and enjoyable.

If I could, I’d challenge every minister to read one business book for every two books he or she reads on theology or church life. Think outside the box! After all, a minister is the CEO of a corporation. An aside, a minister once told me that the church is the only organization in the world where the customers (who pay the bills) are also the stockholders (who control the company) which leaves the staff in the middle.

So, please read some business books. Here is a sample:

  • Me, Myself, and Bob by Phil Vischer (story of the rise and fall of Veggie Tales)
  • In Search of Excellence by Tom Peters (a management classic)
  • Made to Stick by Chip & Dan Heath (communicating your message)
  • Switch also by the Heath brothers (how to bring change to your organization)
  • Good to Great by Jim Collins (and the 30-page monograph dealing with non-profits)
  • How the Mighty Fall by Jim Collins (how to detect and stop the decline of your organization)
  • Y-size Your Business by Jason Dorsey (not read it yet but gets rave reviews about including the next generation of 20-somethings)
  • and too many others to count but this list will get you started
Lead On!
Steve
Filed Under: leadership, wisdom, young adults 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 5

Posted on January 4, 2010 Written by

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

7. Potential larger gift donors need pinpoint coaching and encouragements

As leaders, we hear an outstanding vocalist and we encourage them to move into the music ministry. We find a young leader gifted as a communicator and we prompt them into ministry options. Yet, we find a person with financial capacity to give large sums and we go into silent mode. Churches that coach and elevate the gift of giving contribute vast resources for Kingdom work. Rather than showing the rich man favor, we actually raise the bar of discipleship for them and release enormous sums toward those things that stir the heart of God.

Most potentially larger gift donors are often paralyzed about their giving. They often are ill-equipped to know how to give, where to give, and the mechanics of making wise gifts. Appropriate financial guidance can multiple a gift to your church while legally minimizing tax liabilities. Our government tax code subsidizes our giving.

Although people can earn huge dollars, they are not automatically inclined to know how to give wisely. A wealthy person who understands how much is enough can substitute giving for lifestyle and release untold resources to valuable ministry needs. Churches that disciple high capacity donors multiple vast amounts of resources.

8. Leaders must model sacrificial giving

We cannot lead people where we ourselves are not going. Our people are hungry to view authentic leaders living and giving in the context of faith. Leading by example inspires. How we model and appropriately demonstrate generosity can be tricky. It is done with integrity and humility in generous churches.

Lead On!
Steve

Filed Under: generosity, leadership, wisdom Tagged: , ,

Financial Resolutions 1

Posted on January 4, 2010 Written by

These financial resolutions are a great way to start the year. I didn’t write these resolutions – Brad Leeper did in www.coop.org (Brad is Generis Senior Strategist and can be reached at brad@generis.com). Here are Brad’s (and mine) financial resolutions for churches for any and every year.

Whether whispered silently in our heads or energetically wrestled through in leadership meetings, economic fears challenge churches. We offer hope and meaning to our communities and a world growing more restless in finding truth. What a terrible price to miss authentic ministry because we lacked financial resources, especially when our neighbors may be driven to their most open spiritual moments in years because of their personal financial stress.
As we move toward 2009, the financial uncertainties force us to ask the most penetrating questions about stewardship that we have asked in decades. Churches can be abundantly resourced during the most challenging times. How can your church position itself to maximize financial resources even in troubled fiscal climates? Growing and courageous churches should consider these 10 issues in preparation for the coming year.
1. A bold vision with meaningful results will rarely be underfunded
Now is not the time to shrink back from pursuing your neighbors in need. Even in the midst of personally challenging time, donors still want to make a meaningful mark on others. Internally, there is always that personal drive to live beyond ourselves and influence others. The church that vividly tells its story and challenges Christ-followers to live beyond themselves attracts financial resources.

 

Evidence shows that in down economic times, many church members do not treat giving as an expendable luxury item. They are inclined, however, to become far more selective in their giving outlets. The church that consistently and creatively articulates a compelling vision and celebrates the successes will attract giving in hard times.

 

2. Conversations about giving must move beyond stewardship toward spiritual formation
Generosity is a spiritual issue of the heart. A person cannot move toward spiritual maturity until he or she understands that “where your treasure is, there your heart will be also.” Our culture works overtime to convince us that there is no correlation between our faith and our finances. A first-time reader of the New Testament could not miss the plentiful teaching about our faith directly impacting how we live not only now, but also how we build our treasure in heaven.

 

In conversations with pastors, I am constantly amazed at how fearful these leaders are in shepherding people in the area of finances. Spiritual leaders yield far too easily to the myth that is it inappropriate as a pastor to interact with people about their possessions. Certainly, we would not give preference to the rich man as admonished in James 2. But we must not be passive about teaching how the incorrect image of money can prompt wanderings from the faith. (I Timothy 6:10)

 

The last frontier in American Christianity is the conversation about money. Spiritual transformation’s last obstacle is our wallet. Asking for money without the backdrop of spiritual formation will hit minimal financial results. The church that aligns spiritual formation and money will never lack. One cannot help but to give generously if there is a vibrant connection with their faith and finances.

Lead On!
Steve

 

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