Church Cuts

Posted on January 20, 2015 Written by

Churches spend money on three things

  • Staffing: church personnel form the heart and brains in leading the work of the church
    • If you cut staff, you may need to replace with untrained volunteers
  • Buildings are the skin and skeleton of the church that holds everything in place and in its place
    • If you cut buildings, you save on infrastructure but it is expensive to tear down and re-build
  • Programming is the blood and muscle of a church; this is what gives the church energy and motion and dynamism
    • If you cut programming, you end up with staff sitting in their offices and nothing to attract people and give the church a mission

 

Where does a church cut its budget when it desperately needs to cut?

 

My first answer is, nowhere. Instead of cutting, the very first thing you do is to raise income. Do all you can to encourage generosity among your members, show them the results of what they’ve done in the past, help them experience the joy of giving, and let them see the people who have been helped by their tithes and offerings.

 

My second answer is, everywhere. IF you absolutely must cut AND you have really tried to raise funds, then you are at a critical point in your church’s future.

  • It may be time to close the church down. Seriously – if people are not willing to give more to help the ministry of the church, then perhaps it is time for the church to close its doors. Think about it – actually, you probably already have thought about closing down the church.
  • The other option in the “everywhere category” is to cut a staff person, and the programs overseen by that person, and shutter the rooms used by that ministry area (lights, AC, heat, cleaning, etc.). This is an “All of the above” strategy.

 

Often churches cut everything by 10% or 20%. That won’t resolve the crisis because you keep doing the same ministry and programs with the same staff in the same rooms but now you’re trying to do it on the cheap. Ministry on the cheap results in cheap ministry. That is no way to do ministry. Death by inches is what people do when they are afraid to lead.

 

When gangrene sets in and antibiotics don’t stop it, sometimes the only option is amputation. It is dramatic, traumatic, painful, and requires learning a new set of skills. But you can get a prosthetic limb. It won’t be as good as the original but it will give you much (not all) of the same functionality you had before. Churches need to be willing to sever some staff & programs (and close down building wings). Cutting one or two of the three isn’t enough. Decide what is the main focus of the church and provide staffing, buildings, and programming money for that. Anything that isn’t a part of the Main Thing is removed. It might be replaced later but if it is not needed now, it is done away with.

 

Before you cut, raise money. But if you cut, cut strategically and not indiscriminately.

 

Lead On!

Steve

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

Church Business Meetings (part 3 of 3)

Posted on October 14, 2014 Written by

This the third part on church business meetings. In the first section I talked about how to make the membership reports more engaging; the second post was about church programs and reporting how they use their resources, both financial and people, to carry out the church’s vision. This post will be on church decision-making and voting.

Decisions: most decisions should be made at committee levels, since they have more time and information to get into the nuts and bolts of why a decision is necessary. For instance, financial decisions are the realm of the Finance Committee, decisions affecting the church’s staff are the responsibility of the Personnel Committee, etc. It is the duty of each committee to bring to the church a report (see part 2 in this blog series) detailing the actions and reasons. The committee can be asked questions, but the responsibility lies with the committee. If the church body at large disagrees with the committee, then the church body can vote to either replace the committee and/or overturn the committee’s action.

Decisions which affect the entire church body are the ones that should be intentionally brought before the entire church. This requires a lot of education of church members ahead of time. It usually means that information is shared at one meeting, time is built in for members to think about the decision and gain more knowledge, and then everyone comes back to a subsequent meeting for a vote. Asking members to show up at a meeting, get up to speed in 15 to 20 minutes and then vote is not reasonable. If a decision is important enough to be brought before the congregation, then it should be a deliberate decision and not a hasty one. Give people time and you’ll see the “wisdom of the crowds.”

Implementing all or parts of these recommendations will make church business meetings flow more smoothly, be more enjoyable, and lead to better actions by the church. Try to do one of these at a time and incorporate these ideas over a period of months, if not years, and then gauge the attitude toward business meetings.

 

Lead On!

Steve

 

 

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

Church Business Meetings (part 2 of 3)

Posted on October 7, 2014 Written by

This the second part on church business meetings and how they should change. The reason for the change is so the members and guests see the church as dynamic, not as static and boring. I believe that business must be engaging and not merely a recitation of fact and figures. Business meetings should consist of stories of people and how the church is helping them. My first post focused on the membership report. This post will focus on the programming reports.

Reports: the church is about the business of helping people see how much God loves them. The most common way churches do this is through their programming and activities. But if you’re not involved in one of those areas, you probably don’t know what is going on. Why not use the church business meeting to share with the entire church all of the successes (and failures) of the past and the exciting things that are planned for the future?

When the church’s financial report is given, the treasurer interviews ministry leaders saying, “The church has given you X dollars; can you tell us how you’ve used that money?” Then, the ministry leader talks about what they did with the money using pictures, music, children and youth, other adults, and any resource he or she has. The treasurer presents financial information about each ministry area and uses that a lead-in to ask what is going on with that money.

By the end of the business meeting, attendees have seen and heard what their church is doing, who is involved, how much money has been spent and for what, and what is going to happen in the next few weeks and months. Everyone leaves the meetings having been informed about events outside their areas of interest.

At every meeting, the reports from the main ministry areas are a must: missions, age-level programming (adults, young adults, youth, and children), pastoral care, administration, fellowship, and worship (the five purposes of the church). Then, reports can be given by other ministry areas as there is need and time.

One caveat: all reports must be engaging and the treasurer/interviewer must be energetic in asking questions and encouraging the presenter to be enthusiastic. Reading dry reports should not be permitted; the church must be an exciting place to be and the reports must reflect that.

Next post: decision-making!

 

Lead On!

Steve

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

Protectiveness

Posted on September 23, 2014 Written by

One aspect of the life-cycle of churches has to do with their possessions.

  • Early on the church has almost nothing. The church is typically pretty open about sharing its resources (loaning chairs and tables for instance) with others.
  • When the church gets buildings and even more possessions, the church develops policies which guide when and how the building can be rented and items loaned. The ultimate goal is to protect the church from litigation, but these procedures usually evolve to protect the church from outside groups or non-members who might damage the building or items.
  • Finally, a church shrinks so that eventually everything it has is given away in its last act of generosity. Its possessions and buildings are sold or handed to another church.

All churches struggle with providing a balance between being generous with what it has to help its own members, its community, and other churches—being cautious so that what it has accrued over the years is not lost or damaged. That is a fine line to walk, and it requires a lot of active decisions.

I can’t offer an easy answer to this. I can ask churches to share as much as possible with others just as others shared with them when they were a young church. Don’t give everything away, but don’t be stingy either. Develop a balance by asking one question: What is the motive or reason someone wants to borrow or use something your church owns?

If it is meant to help one person have personal profit and it isn’t church related, then the church should walk away from that. But if the goal is to help the community or another church, then the church should seriously consider (but not rubber stamp) that opportunity. Be generous, but don’t give away everything. Don’t be greedy, but seek times when you can genuinely help others and other organizations.

Lead On!

Steve

 

Filed Under: generosity, strategy, wisdom Tagged: , ,

Unnecessarily Complicated

Posted on July 29, 2014 Written by

Relationships get complicated mostly because people can be complicated. However, work product should be as simple as possible. Over the years I’ve seen things at work made complicated because people (it always boils down to people being involved!) make things complicated so they can be the ultimate problem solvers, since they are the only ones who know how it was all put together.

I’ve seen “unnecessarily complicated” in

  • Accounting – where financial statements and chart of accounts were so complex that even CPAs couldn’t follow the figures.
  • Governance – where the decision-making process was perceived to be democratic but when analyzed, ultimate authority was in the hands of a few people.
  • Technology – where hardware and software where installed to “protect the church” but it was so much that it meant the staff could be spied on and that slowed down the computing power causing inefficiency
  • Banking – where bank accounts were created for individual funds (instead of using the accounting system) which resulted in additional bank fees and nightmares in transfers between accounts
  • Staffing – where a church won’t terminate an unproductive staff person so that person’s work ethic implodes staff morale resulting in even more personnel problems

And there are more, lots more – but you’ve got your own list.

Keep it simple and not complicated. When there is a problem, confront the problem. Gather some people who are good in this field or bring in a consultant/auditor who can cut through the personalities and get to the heart of the matter. Then, deal with the real problem – and that might involve letting some staff go or changing vendors – and then clean up the mess.

Get rid of what is unnecessarily complicated. It does nothing for the church or the Kingdom. It serves only to make some people feel good and/or support their egos. That has nothing to do with the goals and purposes of the church. Keep it simple and keep it aimed at God.

 

Lead On!

Steve

Filed Under: strategy, wisdom Tagged: ,

Sabbaticals and Jubilee Years for Churches?

Posted on June 24, 2014 Written by

In Leviticus 25, Moses receives farming instructions from God:

‘When you enter the land I am going to give you, the land itself must observe a Sabbath to the Lord. For six years sow your fields, and for six years prune your vineyards and gather their crops. But in the seventh year the land is to have a year of Sabbath rest, a Sabbath to the Lord.”

A few verses later, “Count off seven Sabbath years—seven times seven years—so that the seven Sabbath years amount to a period of forty-nine years. The fiftieth year shall be a jubilee for you; do not sow and do not reap what grows of itself or harvest the untended vines. For it is a jubilee and is to be holy for you; eat only what is taken directly from the fields. In this Year of Jubilee everyone is to return to their own property.”

For years 49 and 50, Israelites were not allowed to sow or reap – the land was to lie fallow. The 50th year was celebratory year: all debts were forgiven, slaves were set free, etc. It was a year to remember and it usually happened once in a person’s life.

What if churches had Sabbath Years and Jubilee Years?

What if every seventh year a church:

  • Seriously evaluated every current program and completely overhauled it to set it up for the next six years. A church probably can’t totally stop every program for a year, but they can embark on a year-long study and serious assessment to determine if the program should continue or not.
  • Discerned what are the goals for the next six years and created new programs to meet those goals.
  • Visited other churches and non-profits to learn from what they are doing successfully and unsuccessfully to see if and how those ideas can be implemented in their own church.
  • Determined if its missions activities were successful and if it its missions funds (even the funds given to the denomination) were used for their maximum good.

What if every 25th year (a half-jubilee) a church:

  • Did an analysis of its staffing needs and current staff in order to implement a strategic blueprint to guide the church for the next generation (every 25 years) – that is a “half-jubilee” timeframe

What if every 50th year a church:

  • Studied its current facilities to determine

o   Whether the church needs to be in its current location or move to a new location

o   Whether the church needs to update or even gut and redo the current buildings

o   Whether the church needs to tear down its existing structures and/or build new facilities

This concept means the church intentionally designs and redesigns its resources (programming, staffing, and buildings) to meet the needs of the current and next generation(s). It follows a (biblical) model of intentionally evaluating why it is doing what it is doing and then decide what it needs for the next few years. Instead of just “keeping on keeping on” this makes the church really pray and study about what it wants to do going forward.

As to what date you start with, why not use the church’s year of origin as the basis?

 

Lead On!

Steve

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

Intentional

Posted on June 17, 2014 Written by

Stop doing things “because we’ve always done it that way.” Instead, be intentional – about everything. Have a good, solid reason as to why a church does everything. I’ve worked with too many churches who are just repeating what they’ve done in previous years and are getting the same results but they are fearful of changing the status quo lest they upset members. Frankly, staff members aren’t worried about upsetting a member, they’re worried about losing their jobs.

Even Jesus had serious problems with what had become tradition instead of faith and he got in trouble when he questioned why the Jewish leaders kept up practices that were outdated. Their answer was the same that churches use today, “because we’ve always done it that way.”

Ask questions of people—lots of questions—about why things are done. I’ve gotten dirty looks from people when I dared question why a church would spend over $100,000 on a library without ever asking if this library was in the church’s strategic plan. I didn’t get fired. “Attack the problem, not the person” is one of my favorite sayings.

Be intentional with the right motives: to make the church the most effective it can be. Analyze everything a church does. Ask about mission trips and their results. Determine if committees need to be dissolved or reconstituted. Don’t try to tweak and re-tweak programs – shut them down, assess their goals, and start new – that will get better results than continuing the same thing. Don’t be hamstrung by policies and bylaws which were created by previous generations but which aren’t relevant today. Ask why some positions and people rotate leadership roles and why new blood isn’t brought in. Ask why we use the same vendor instead of putting it out to bid. Ask what the financial numbers mean without any financial obfuscation.

The only thing sacred in a church is the text we all use – all the trappings of churches today are human creations and can thus be changed. That includes how we worship, study the Bible, establish church governance, etc. Don’t just let things happen – be intentional about everything in the church. Change may involve killing some of these sacred cows and that must be done carefully and intentionally. But ultimately the church will know there is a very good reason behind everything it does – to be the church God wants it to be.

 

Lead On!

Steve

Filed Under: budget, strategy, wisdom, young adults Tagged: , , ,

The Immediate

Posted on April 8, 2014 Written by

Western civilization, especially the United States, is an immediate culture. Since WWII, we have wanted things faster and better (and cheaper). If we’re not satisfied with the immediate, then we’ll move on without waiting to see if the intended results came in just a few minutes, days or hours – within a respectable time period. Instead, our society increasingly wants things now – news reports, weather updates, weight loss, health wellness, financial accumulation, home improvements, marital bliss, political change, etc.

This trend is extremely disturbing because the chase for the immediate will usually lead to frustration and dissatisfaction with the present and even with the eventual results, all because it didn’t happen right away.

Good doesn’t have to be immediate. Patience is often rewarded with great results. Slowing down life is much needed in our day and age – we are too much in a hurry and it is usually because of our desire for the immediate.

Let me challenge you to focus on the pursuit of excellence even if, as it usually does, require time and perseverance. Persistence is a good trait (but not stubbornness) in the hunt for wonderful outcomes. The immediate is tyrannical – it insists on getting its own way. Do not be ruled by the immediate.

Lead On!

Steve

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