5 steps to funding a sustainable ministry

5 Steps to Funding a Sustainable Ministry

Pastor’s ConferenceArkansas Baptist State ConventionApril 2009

Why should I care?

“At least one out of five American Christians – 20 percent of all U.S.

Christians – gives literally nothing to church, para-church, or nonreligious

charities.”

- Passing the Plate

Why should I care?

“Americans spent nearly twice as much on first-day sales of the video game “Grand Theft Auto IV” as the SBC and the IMB would need

to share the Gospel with all the world’s unreached people groups by 2010.”

- Empty Tomb

Why should I care?

Charitable donations as measured by per capita giving of disposable income has remained

the same since 1967 – 2.5%.

- Giving USA

What does this mean?

The individualistic, independent American Spirit has influenced

our perspective on church giving. Churches risk losing the funding

necessary to carry forward the work it has been given to do.

What does this mean?

The church can’t fail.

There is no Plan B.


Summary

Help pastors evaluate and implement giving tools and strategies that resultin fully funded budgets and long-term

sustainable ministry.


More Money. More Ministry.

Session Goals

1. Highlight tension between ministry and money. (funding)

– Discuss the role of pastor as organizational manager. (sustainability)

– Reveal the disconnect between the pulpit and the pew. (engagement)

– Provide some guiding principles to systematically address challenge. (responsibility)

– Restore the role of stewardship as a strategic effort within local church ministry. (transformation)


Step 1:

Establish a systematic strategy.

Establish a systematic strategy

Let’s be honest about tithing:

The Church is a nonprofit organization that exists through the donations of its

membership.



The habits of giving begin with the worldview of the giver.



Churches have an advantage over every other nonprofit: weekly interaction with

membership.



Churches are the WORST at capturing the dollar and fail to consistently

provide a “call to action.”



If churches continue to be silent, the giving levels needed to operate this complex organization will not exist.



Giving is an outward sign of an inward commitment. Measuring giving is one

way to measure the health of your church and your membership.



Church giving is connected to your ministry plan. People want to support a

cause or organization that accomplishes something they can’t do

on their own.


Step 2:

Start talking about it.

Start talking about it

In 1995, there were 600,000 nonprofit organizations and 370,000 churches. In

2005, there were over 1.8 million nonprofit organizations and 370,000

churches.

- Not Your Parents’ Offering Plate


The more we remain silent with respect to the subject of money in the church, the more mysterious it

becomes.


5 steps to stop stuttering over money

Step 1: Embrace your role as chief broker of opportunity.



Step 2: Expose yourself to the unfamiliar.



Step 3: Seek out professionals in the financial or fund development

industry sectors.



Step 4: Surround yourself with a few trusted advisors from your church

membership.



Step 5: Practice. Practice. Practice.


Step 3:

Set expectations.

Set expectations

Why isn’t the church leading the way in generosity?

Set expectations

Why isn’t the church leading the way in generosity?

Bill Gates foundation recorded a 20% loss in asset value in 2008 but

plans to give even more in 2009.

Set expectations

3 habits that establish expectations of your membership

Habit 1: Personal Testimony

Hint: Your church will give as much as you do.

Set expectations


Habit 2: Annual Stewardship Series

Set expectations


Habit 3: Celebrate Success


Step 4:

Make the ask.

Make the ask

Two shifts have taken place within American Christianity.

1. The tithe is no longer solely reserved for the church.

Make the ask

Two shifts have taken place within American Christianity.

2. Christians want their tithe to count.

Make the ask

5 systematic tools you need to consider

1. Offering Envelopes

Make the ask


2. Online Giving

Make the ask


3. Contribution Statements

Make the ask


4. Special Offerings or Major Gifts

Make the ask


5. Planned Giving or Estate Tithing

Make the ask

3 brutal facts about giving grounded in the Pareto Principles (80/20 rule)

Make the ask

Brutal Fact #1:

When your long-term funding strategy is hung on the giving

habits of a small percentage of your membership, you are tempting fate.

Make the ask

Brutal Fact #2:

Providing things like offering envelopes and online giving are primarily designed to encourage

giving and make it easy for the 80% to do so.

Make the ask

Wikipedia raised $2 million dollars in the final three weeks of December

2008 with an average donation of $40.

How much money are you leaving on the table?

Make the ask

Brutal Fact #3:

Stewardship is more important than your sermon preparation.

Make the ask

Crown Financial Ministries reported as many as 17,000 salvations in one

year as a result of people participating in their program.

Make the ask

If stewardship is equivalent to discipleship, then a call to be a steward deals directly with the

Lordship of Christ.

Make the ask

When people are asked to commit their time, talent and treasures to

advance the kingdom of God, spiritual transformation takes place.


Step 5:

Report the results.

Report the results

In a time when consumers are demanding more corporate

accountability and transparency, this same sentiment is being

applied to traditional nonprofits and churches alike.

Report the results

“They” want to know your church’s spending habits.

Example: Texas Attorney General’s office just launched on online tracking service to let people see how charities

are spending the contributions they receive.

Report the results

It won’t be long before the same reporting tools are used to monitor

churches.

Are you ready?

Report the results

“Participatory Philanthropy” or the “Democratization of Philanthropy” are the phrases that best describe the changing climate of generosity.

Report the results

Example:

TripAdvisor.com asked the public to decide how to spend their charitable

giving funds.

Report the results

Example:

Subaru of America invited new car buyers the option to contribute $250

to a charity of their choice.

Report the results

What if our budgeting process looked like American Idol?

Report the results

3 approaches to reporting results

1. Develop a habit of measuring results.

Report the results


2. Treat church members like shareholders.

Report the results


3. Outline the connection between giving, program, and ministry

results.

Report the results

Don’t report results unless you are prepared to:

1. Reveal the results.

Report the results


2. React based on the results received.

Report the results


3. Request input from church membership.

Session Goals (in review)

1. Highlight tension between ministry and money. (funding)

– Discuss the role of pastor as organizational manager. (sustainability)

– Reveal the disconnect between the pulpit and the pew. (engagement)

– Provide some guiding principles to systematically address challenge. (responsibility)

– Restore the role of stewardship as a strategic effort within local church ministry. (transformation)

Questions

Questions?

Next Session: Electronic Giving – Future or Fad?

Electronic Giving:Future or Fad?

Pastor’s ConferenceArkansas Baptist State ConventionApril 2009

Session Goals

1.What is electronic giving?– Why should I care?– What are the characteristics of people who

give online?– What options are available to churches?– How can my church benefit from electronic

giving?

What is electronic giving?

Electronic giving is when an individual contributes money to a cause or organization using an electronic platform such as the internet, cell phone, dedicated kiosk, or computer terminal to originate and execute a transfer of funds.

What is electronic giving?

Electronic Giving is also known as:

• E-giving• Online Giving• M-giving

Why should I care?

“Some estimates indicate that 60% of people in the U.S. (and the percentage has been

growing every year) handle at least part of their financial lives through electronic

transfers.”

- Brian Kluth on Electronic Giving

Why should I care?

“Online giving grew four times as quickly in December [2008] than it did in other months.”

- Recent study published by The Chronicle of Philanthropy

What are the characteristics of people who give online?

When comparing average donor profiles through established giving channels to online

donors, we learn:

• Younger• Higher income earners• Better educated

What are the characteristics of people who give online?

When comparing giving habits of traditional donors with online donors, we learn:

• Higher average gift• Higher long-term “value” to organization• Lower retention rates• Often connected with national disaster or tragedy

(instant response)• Repeat giving through traditional channels

What options are available to churches?

The most common types of electronic giving available today:

• Internet• Electronic Bill Pay• Stock Transfers• Giving Kiosks• Computer Terminals• Cell Phones


Rethink Giving:

An emerging trend is empowering the membership base to encourage giving.

Example:Salvation Army

and the “Red Kettle Widget”


Churches should consider services that allow the church to:

• Specify the payment type• Customize to avoid confusion• Provide detailed standard reporting• Create an easy interface file for accounting• Handles administration on behalf church

How can my church benefit from electronic giving?

Electronic giving allows the church to overcome:

• Irregular church attendance habits• Bad weather Sundays• Givers who don’t attend (snowbirds, family, etc.)• People who don’t carry cash or write checks• Time delay when responding to tragedy or disaster• People who wish to donate but attend another

church (special offerings, funerals, parents, etc.)

How can my church benefit from electronic giving?

Electronic giving provides one more channel you can offer people to fund the ministry of

your church.

Think less “either-or” and more

“both-and”.

Warning!

Objections you should anticipate from your membership:

1.Offering envelopes are part of the worship experience.

Warning!


1.Offering envelopes are part of the worship experience.

– I don’t have a computer, and the only Web I have is a cobweb.

Warning!


1. Offering envelopes are part of the worship experience.

– I don’t have a computer, and the only Web I have is a cobweb.

– We don’t have any young people in the church.

Warning!


1. Offering envelopes are part of the worship experience.– I don’t have a computer, and the only Web I have is a cobweb.– We don’t have any young people in the church.– Our church shouldn’t encourage the use of credit cards.

Warning!


1. Offering envelopes are part of the worship experience.– I don’t have a computer, and the only Web I have is a cobweb.– We don’t have any young people in the church.– Our church shouldn’t encourage the use of credit cards.– Electronic giving reduces giving to the act of paying a bill.

Session Goals (in review)

1.What is electronic giving?– Why should I care?– What are the characteristics of people who

give online?– What options are available to churches?– How can my church benefit from electronic

giving?

Questions

Questions?

Contact Information

Ben Stroup

Twitter: @ben_stroupFacebook: Ben StroupWeb: benstroup.com

5 steps to funding a sustainable ministry

Economy & Finance