Category: Finance

March 11, 2010

How Finance, Sexual Wrongdoings Challenged One Church

A pastor's worst nightmare leads to a new beginning.

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My lawyer said, "Just follow my lead and answer the questions he asks, and everything will be okay." I clung to his advice as I entered the smartly decorated boardroom lined with towering bookshelves. The first thing I noticed was the videographer and stenographer setting up their equipment. Then the opposing counsel, who to me represented evil incarnate, walked into the room.

"Please state your full name for the record." His tone and mannerisms suggested this was strictly routine. For the others in the room, this was just another work day. They pushed buttons on the camera, they typed on the stenograph machine, they served coffee, they represented their clients—this was a 9-5 job for everyone in the room. Everyone, that is, except me.

I cleared my throat and said, "Ralph Webster Neighbour III."

"I am sure your lawyer has explained to you the deposition process, but let me explain it again for the record …"

There was that phrase again—"for the record." I thought: This is high stakes. The church's reputation and my future are on the line here! I also knew this deposition was just the beginning; we would walk at least another year through this legal maze.

I couldn't believe this was happening to me—a seventh generation pastor. But here I was, giving a deposition in a sexual misconduct lawsuit. This was not what I signed up for!

This article first appeared in Leadership journal. The full version is available at LeadershipJournal.net. For additional resources on embezzlement and sexual misconduct issues for churches, please visit:

- Secure Your Church Finances
- The Essential Guide to Church Finances
- Sexual Harassment in Your Church
- Boundaries for Healthy Church Relationships
- Child Sexual Abuse Response Plan
- Safe Mentoring Relationships
- Reducing the Risk, a child abuse prevention training program for church leaders.

March 2, 2010

10 Tips for Last-minute Tax Filers

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Here are the Internal Revenue Service's top 10 tips that will help your tax filing process “run smoother than ever this year.”

1. Start gathering your records. Round up any documents or forms you'll need when filing your taxes: receipts, canceled checks and other documents that support an item of income or a deduction you're taking on your return.

2. Be on the lookout. Gather any W-2s and 1099s that were mailed to you by your employer. You'll need these to file your tax return.

3. Try e-file. When you file electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. E-file is now the way the majority of returns are filed. Last year, 2 out of 3 taxpayers used e-file.

Continue reading "10 Tips for Last-minute Tax Filers" »

February 25, 2010

Family Money Matters: A Look at Christian Household Finances

“State of the Plate” shows debt levels, giving patterns for families.

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What really matters in an economy is not what the media says, but what people’s personal wallets say. As part of the second annual “State of the Plate,” 750 Christian households provided an inside look into their income, employment, debt, and giving/tithing.

I'm conducting this research with Christianity Today International’s Church Finance Today and Leadership journal. Based on preliminary results of this research, I've found that the average Christian family, though directly impacted by the economy, remains committed to faithful and generous giving to their church and ministries as a major priority.

Here's a closer look at four findings:

1) Income: The majority of families have either lost ground or remained flat financially this past year. For many years, most families saw their income increase. This is no longer the case as more and more families that completed the survey personally felt the effects of the sluggish economy:

- 33 percent of households said their incomes went down this past year.
- 43 percent of households saw no increase in their income.
- Only 23 percent of households saw their income increase.

2) Jobs: The negative effects of the economy are being felt in people’s homes and church. Almost everyone knows someone who has been negatively impacted by the economy. This financial pain has been felt in people’s immediate families, and everyone is mindful of other families in their church who are facing financial and employment struggles, too:

- 97 percent knew someone in their church who had lost a job in the past 12 months.
- 42 percent indicated they know people in their church who had to move away to find work.
- 33 percent of families had someone in their household whose job was negatively impacted by the economy.
- 30 percent know people personally who have lost their homes.
- 26 percent personally know people who declared bankruptcy.

Continue reading "Family Money Matters: A Look at Christian Household Finances" »

February 18, 2010

Church Finances Remain Pinched in Early 2010

Nearly a third say December giving fell short of expectations.

A “new normal” is emerging in the church world when it comes to giving, budgets, and generosity initiatives, according to an ongoing survey conducted by Maximum Generosity and Christianity Today International’s Church Finance Today and Leadership journal.

Nearly 800 churches have responded so far to the second annual “State of the Plate.”

Five major developments are emerging from the survey, which asks church leaders and pastors to report on how their giving efforts concluded in 2009 and began in 2010:

1) The poor economy is hurting a growing number of churches. While the headlines may say the economy is improving, its impact hasn’t shown up yet in the offering plate:

- The number of churches reporting a decline in giving this past year has increased to nearly 36 percent of churches surveyed, compared to 29 percent at the same time a year ago.

- Only 38 percent of churches saw giving increase this past year, compared to 47 percent a year ago.

2) Many churches say December year-end giving fell short. While Rick Warren’s December appeal to more than 100,000 e-mail recipients helped his church adequately close the gap on a year-end budget shortfall, many other churches weren’t so fortunate. In the “State of the Plate,” 30 percent of churches surveyed said that their December year-end giving “missed” their expectations. Only 24 percent of churches indicated that year-end giving surpassed their expectation. With nearly a third missing expectations at the end of 2009, many churches likely entered 2010 looking for ways to slow their church spending.

Continue reading "Church Finances Remain Pinched in Early 2010" »

February 10, 2010

6 Trends in 2010 for Grants

What churches should remember while seeking outreach funds.

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If your congregation plans to seek grant funding for programs in 2010, keep in mind that the grants picture has changed quite a bit in the past 12 months due to the economic downturn. As I research local (Minneapolis-St. Paul) and national funders for several clients, and talk to a variety of churches and ministries about their grant-seeking efforts, I notice the following developments. They are worth noting in the weeks and months ahead:

Grantmakers generally have less money to give. Due to the downturn in the stock market, and reduced corporate profits during the past year, available funds are down. Funders are handling this in several different ways. Some are not making grants to any new organizations, which means if you don't already have a relationship with the funder, 2010 will not be a good year to try. Others are cutting the size of their grants. I occasionally encounter one organization that plans to stop making grants altogether for the coming year. So, when you call or e-mail a funder about applying for a grant, it will be important to ask, "Will you be making grants to any new organizations this year?"

It is important to frequently check funder websites.
A number of funders have changed their guidelines and focus areas, sometimes without much notice. The foundation that looked like a perfect fit for your after-school program six months ago may have changed its focus to programs providing food and shelter. A few months ago, one foundation that I monitor abruptly changed its focus areas over a weekend, taking everyone (including the foundation staff) by surprise!

Continue reading "6 Trends in 2010 for Grants" »

February 2, 2010

Struggling Cities Eye Taxes, Fees for Churches

Budget shortfalls bring tax-exempt status under fire.

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Like countless other municipalities throughout the country, Fort Wayne, Indiana, is struggling to find ways to bridge the gap between declining tax revenue and the costs of maintaining infrastructure and services.

What makes Fort Wayne stand out is the city’s mayor, Tom Henry. Henry is leading the charge for the Urban Mayor’s Caucus of Indiana to tax nonprofit and church-affiliated ministries to help solve his region’s revenue shortfall.

Nearly every town in America is feeling the strain of the economic crisis. As a result, while becoming a 501©3 is a relatively simple process, maintaining a completely tax-exempt status may become increasingly difficult for churches.

Continue reading "Struggling Cities Eye Taxes, Fees for Churches" »

January 25, 2010

Discerning Eyes for Church Law, Finance, and Administration

Known, respected leaders to help guide CTI resources.

Christianity Today International's church management division, which publishes Your Church magazine, the Church Law & Tax Report and Church Finance Today newsletters, plus resources, such as the annual Church & Clergy Tax Guide and ChurchSafety.com, recently formed two important boards for its publications and resources.

CTI invited well-known and well-respected members from church legal and financial circles to an Editorial Advisory Board to bring authoritative and qualified eyes to its work.

The 14 advisors will regularly contribute to the church management division’s publications, websites, and resources, and also will regularly provide ideas, thoughts, and feedback, shaping the articles, videos, books, blog posts, and other resources that guide church leaders on important legal, financial, safety, and administrative decisions.

Noted church and business leaders who will lend their expertise include:

Continue reading "Discerning Eyes for Church Law, Finance, and Administration" »

January 14, 2010

Stetzer: Churches Lag in Economic Recovery

New LifeWay research says churches ''still waiting for recovery."

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Ed Stetzer, president of LifeWay Research in Nashville, wrote a post today highlighting new research regarding continued economic pressures on U.S. churches. LifeWay gathered the research in November through phone surveys with 1,002 church pastors.

The overarching message: Churches are still waiting for a recovery.

That message is consistent with predictions Stetzer gave to Your Church back in May, when we hosted a roundtable discussion on our 2009 Church Budget Priorities research:

"Effects of unemployment tend to lag a bit for churches that emphasize tithing, but as the unemployment rate continues to increase, more congregations will get hit financially. Churches need to be ready for this impact," Stetzer said.

Fast-forward to the new LifeWay research released today and covered by USA Today and the Christian Post, among others:

Continue reading "Stetzer: Churches Lag in Economic Recovery" »

January 12, 2010

To E-Give or Not to E-Give

There's something psychologically important about writing a check and putting it in the plate.

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I stopped tithing a few months ago. Okay, no scandal here. I got married in September, and my husband and I moved to a new area and wanted to find a church. As we slowly combined our finances, it became painful. (He’s a cheapskate, and I didn’t want him to see every pair of earrings I splurged on.)

Within a few months we found a church that we really liked for various reasons. As the new year approached, we resolved to streamline our finances. Eager to get in our giving before 2009 ended for tax purposes, we talked about back-tithing. We decided to tithe the four months we had been married, which felt like a lot of money. It was daunting to put the check in the offering plate and watch the money pulled from our bank account. I then vowed to talk with someone about having our tithing automatically deducted from our account so we wouldn’t think twice about it.

On one hand, you could argue, “It’s not your money to begin with, so pretend like you never had it.” On the other hand, there’s something psychological about physically writing a check and putting it in the brass plate. If we all paid our taxes once a year instead of having them automatically deducted from our paychecks each pay period, we would probably feel the pinch much more. I often wonder whether I should stop the deduction so I could invest the money during the year and then pay up later. (But that, of course, requires some self-control.)

The authors of Freakonomics, economist Steven Levitt and journalist Stephen J. Dubner, report that economist Milton Friedman came up with automatic tax withholding from employees’ paychecks. Americans weren’t paying their income taxes, as I would imagine it’s hard to remember to save up a huge chunk every year. Levitt and Dubner also write a lot about the importance of incentives: We need a really good reason to eat our vegetables (think Vitamin C) and to resist the temptation to speed (think a $100 ticket).

To continue reading, please visit the original post "Confession: I Stopped Giving to the Church," on Her.meneutics, a blog for our sister publication, Christianity Today.

January 6, 2010

New Survey on Church Staffing

Understanding how lean personnel costs are--or aren't.

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How lean is your church staff? How does it compare with other church staffs? If you've ever wondered about these questions, here's your chance to find out.

The editors of Christianity Today International's Your Church magazine and Leadership Journal are collaborating with Leadership Network to learn about healthy ways churches keep staff costs down. If you'll take a few minutes to tell us about your church, you'll receive a copy of the findings, showing you what other churches have said.

Your replies will be held in the strictest confidence. The final report, and any subsequent articles and presentations, only will give group totals.

Please complete the survey by January 25, 2010. If you have questions or comments, there is contact information provided on the first survey page.

December 21, 2009

Your Church's Top 10 Articles of 2009

Looking back at the articles you read most this past year.

Last week, we wrote about the Top 10 most-read posts on TheYourChurchBlog.com during 2009. This week, we're taking a look at the Top 10 most-read articles from YourChurch.net, the website for Your Church magazine.

For a year riddled with bad economic news, there are a few surprises in these results (hint: Our No. 1 ranked story has nothing to do with the economy, or finances for that matter). What can we conclude from this? Probably not much. Except the fact that church administrators, executive pastors, pastors, and lay leaders wrestle with a variety of challenging, and often complicated, questions on a wide array of topics.

As a not-for-profit ministry, Christianity Today International is thankful it's in a position to help you answer these questions through Your Church, YourChurch.net, and TheYourChurchBlog.com, as well as Church Law & Tax Report, Church Finance Today, ChurchSafety.com, BuildingForMinistry.com, and YourChurchResources.com.

It's our desire to help you keep your church safe, legal, and financially sound. Here's looking forward to 2010!

And now, the Top 10 most-read articles on YourChurch.net during 2009:

10. Why Church Secretaries Quit

9. Virtual Sanity

8. E-give and Take

7. Unoriginal Sin

6. The Technophobe's Survival Guide

Continue reading "Your Church's Top 10 Articles of 2009" »

December 17, 2009

The Top 10 Church Administration Posts for '09

A look at the hottest topics facing pastors and administrators.

As 2009 draws to a close, here's a fun look back at the year's 10 most-read posts on TheYourChurchBlog.com. Doing this kind of review often helps us understand the most pressing issues facing church administrators, executive pastors, pastors, and leaders.

And, it's a nice way to showcase topics that you may have missed the first time around.

Here's the Top 10:

10. How to Interview Your Next Church

9. Report: Giving Steady at Two-Thirds of Churches

8. Prevent Volunteer Burnout

7. Free Excerpt: The Essential Guide to Church Finances

6. 5 Leadership Books Worth Reading

Continue reading "The Top 10 Church Administration Posts for '09" »

December 16, 2009

The Top 7 Resources to Combat Church Embezzlement

Best practices and guidance to protect your church's money.

Earlier this month, we looked at two recent cases of church embezzlement, and the "zero tolerance" stance judges are starting to take against these crimes.

Unfortunately, yet another big headline has since emerged—this time, the leaders of a 150-member Greek Orthodox Church in Connecticut discovered someone potentially embezzled more than $1 million. Federal authorities investigated the claims, and in an arrest made Tuesday, authorities say the suspect, who oversaw the church's investments (including managing the building fund and endowment) allegedly used the money for his businesses, according to the New Haven Register. The church's attorney, and federal documents released with the arrest, allege the 50-year-old man stole more than $2 million from three parishoners, and potentially millions more from the church, the paper reported.

As incidents such as these continue to spring up, we've compiled the Top 7 resources church leaders should use to prevent embezzlement opportunities and combat individuals who might attempt to steal:

Continue reading "The Top 7 Resources to Combat Church Embezzlement" »

December 3, 2009

IRS Announces Standard Business Mileage Rate for 2010

Rates slightly drop as transportation costs ease.

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The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

* 50 cents per mile for business miles driven;
* 16.5 cents per mile driven for medical or moving purposes;
* 14 cents per mile driven in service of charitable organizations

Continue reading "IRS Announces Standard Business Mileage Rate for 2010" »

Zero Tolerance for Church Embezzlement

Extended sentences put churches on notice.

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A sad story emerged last week out of Indiana, where a 37-year-old woman accused of stealing more than $350,000 from a church while working there as an employee received the maximum sentence allowed by the state.

According to an article in the Greencastle Banner-Graphic, the local paper, the woman was convicted on six counts of Class C felony charges and six counts of Class D felony theft, resulting in 10 years in the state jail, followed by 5 years of probation.

The woman began stealing from the church shortly after getting hired in late 2004 as the church's financial and administrative secretary, according to the article. She forged signatures on 192 checks, doctored bank receipts to cover it up, and also made unauthorized charges on church credit cards, the paper said.

This case is similar to one covered by Richard Hammar in November's Church Finance Today in which a woman employed as a church office manager for seven years stole $450,000. She received a 15-year sentence, which included an upward adjustment "for misrepresenting that she was acting on behalf of her church," according to the article.

What's the takeaway for church leaders from these cases? Aside from the need to implement strong financial controls, if such controls aren't already in place, Richard explains three reasons why church leaders should learn from cases like these:

Continue reading "Zero Tolerance for Church Embezzlement" »

November 23, 2009

Is It Time To Build? 10 Questions to Ask

Key questions an administrator or executive pastor should consider.

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In early 2008, we made the decision at Fairhaven Church to move forward with an $8 million construction project, even as the signs of recession popped up everywhere. Reports of other churches delaying or canceling plans for expansion were easy to find. We concluded that we should move ahead carefully, yet confidently.

Why? What questions did we wrestle through that led us to conclude that moving forward was the right decision?

Below are 10 questions to help you galvanize the issues that are important in balancing the uncertainties of the economy with the need for building expansion:

Continue reading "Is It Time To Build? 10 Questions to Ask" »

November 18, 2009

Smart, Inexpensive Church Building Design Ideas

How to create superb ministry space for less.

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Walk the streets of Disney World, and visitors are transported into a magical world of creativity and inspiration. Mel McGowan, a former Disney Imagineer and now president of Visioneering Studios, a national church architecture firm, brings this same expectation for creativity and inspiration to ministry facilities.

When McGowan speaks at the Cornerstone Knowledge Network conferences, WFX, and other facilities-related events, he shows slides of churches he has designed. Invariably there is murmuring in the crowd: "Those are really neat churches, but they must have cost a fortune." "We could never afford a church like that?"

At first glance, people assume the level of excellence represented in these church designs equates to top-dollar budgets. McGowan is intent on busting this myth. With the right materials and intentional design, he contends, churches can create sacred space that captures their uniqueness within the parameters of their budget. Case in point: Crossroads Christian Church in Corona, California.

Continue reading this post on BuildingForMinistry.com.

November 11, 2009

Church Budgets: How Much for Staff, Buildings, and Ministry?

An executive pastor suggests a different analysis of expenses.

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Paul Clark, one of Your Church's contributing editors, wrote an interesting post this week on his blog. Paul is an executive pastor who at one time spent several years in a managerial role with General Electric. His business background gives him an interesting perspective on how churches operate.

This week, Paul challenges three common questions often asked among church administrators: What percentage of a church's budget should go toward personnel expenses? Facilities? Ministries?

He writes:

"Those are great questions, but they are a bit narrow in their scope. The reality is that a church budget is a reflection of the overall strategy and focus of the church in a given calendar year. That focus can change from year to year and consequently, the budget percentages will change accordingly."

Paul then illustrates what he means, making the case for projecting expenses further into the future to truly understand overall budget ramifications.

Earlier this year, Your Church did a comprehensive survey with church leaders regarding church budget priorities.

The average breakdown in expenses for church operating budgets, based on responses from 1,168 church leaders:

- 38% toward salaries and wages
- 12% toward buildings/facilities
- 8% toward utilities
- 7% toward ministries and support

Our survey participants mostly hail from small- to mid-sized churches; organizations like NACBA and Leadership Network, both of which typically survey larger churches, report salaries and wages, on average, take up 45% to 50% of church operating budgets.

Like Paul asks, how does your church assess these expenses, and how those expenses reflect--or don't reflect--the church's direction now and in the future? Is an analysis like Paul proposes more instructive for current and future church budget planning?

November 4, 2009

Top 5 Reasons Churches Wind Up in Court

Current legal trends that can help your church assess its vulnerabilities.

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For many years, I've closely reviewed litigation involving churches to identify patterns that pastors and leaders can use to assess their own risks and potential vulnerabilities. In 2008, the following five types of cases brought churches to court more than any others:

1. Sexual Abuse of a Minor (15 percent of cases). Sadly, this type of case is typically the No. 1 or No. 2 reason churches wind up in court every year.

2. Property Disputes (13 percent of cases).

3. Zoning (10 percent of cases).

4. Personal Injury (9 percent of cases). This is a Top 4 issue every year.

5. Tax (7 percent of cases).

Based on this ongoing analysis, churches should note the following major risk categories they face and work to evaluate (and to minimize) their own risks:

Continue reading "Top 5 Reasons Churches Wind Up in Court" »

October 29, 2009

Report: Finances Steady at Two-Thirds of Churches

New research: Giving flat or growing for many congregations.

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New research released this week by Indiana University's Lake Institute on Faith & Giving and The Alban Institute suggests giving remained steady--or grew--during the first half of 2009 for two-thirds of the 1,540 churches they surveyed.

More than three-fourths of those surveyed hail from Protestant denominations, the two organizations said.

Nearly 37 percent of congregations said their collections grew during the first half of 2009 compared to the same period of 2008, while another 34 percent said their collections remained flat year-over-year, the research showed.

The remaining respondents said giving declined in the first six months of 2009 compared to the same period a year ago--up 8 percent compared to survey results from a year ago, the two organizations said.

Other highlights of the research:

Continue reading "Report: Finances Steady at Two-Thirds of Churches" »

October 22, 2009

Facing a Financial Crisis: Three Experts Weigh In

Is your church struggling with a mortgage? Some tips on how to act—now.

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A headline I read earlier this week from the newswire service United Press International gave me pause: “More Churches Face Foreclosure.” Upon reading the piece, I quickly understood why: While the rate of foreclosed church properties continues to climb, thanks partly to some widely publicized defaults in Naples, Florida, and Temple Hills, Maryland, among others, the overall number remains small.

As the article points out:

“The scope of the problem is difficult to measure. Most of America’s 335,000 churches are well established, building costs paid off long ago. The situation among a minority of congregations, however, is certainly worse than it was last March, when the New York Times found that 0.31 percent of the 82,441 churches it studied were facing foreclosure.”

Not many can say 2009 delivered a banner year, but these types of headlines suggest a widespread financial problem among churches, which just isn’t the case. (As Dan Mikes from Bank of the West pointed out to me, his division has $1.3 billion in direct church loan exposure “without a single delinquency, loss, or foreclosure.”)

Nevertheless, these headlines remind me that some churches are struggling with how to make a mortgage payment. To help, we asked three lenders to tell us what churches facing a financial crisis should do if they aren’t able to make mortgage payments. Here are their responses.

Continue reading "Facing a Financial Crisis: Three Experts Weigh In" »

October 15, 2009

Free Excerpt: The Essential Guide to Church Finances

Most churches don't use a program budgeting method--and they're missing out

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Earlier this year, we released The Essential Guide to Church Finances by Richard Vargo, a professor of accounting in the Eberhardt School of Business at the University of the Pacific, and Vonna Laue, a partner at nonprofit accounting firm Capin Crouse.

Below is a free excerpt, which discusses the advantages of program budgeting and why churches that use incremental budgeting strategies put themselves at a disadvantage (and, if you like what you see from this excerpt, you can order your copy of Essential Guide to Church Finances here).

Continue reading "Free Excerpt: The Essential Guide to Church Finances" »

October 14, 2009

Building a Culture of Generosity in Your Church

An interview with Brian Kluth on teaching members to give to God.

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Some estimate giving to churches is on a 40-year decline. In contemplating the reasons why, here's a thought that should give church leaders pause: A church budget usually is set to the level of its people's unfaithfulness.

That's one of the messages Brian Kluth is taking to churches around the country.

Brian spent 10 years as the senior pastor of the First Evangelical Free Church of Colorado Springs. Nine out of those 10 years, the church ran a surplus budget. In the four years prior to Brian's arrival, the church never met budget.

Earlier this year, the church commissioned Brian to become a "generosity minister at large." In addition to developing his resources and writing a book, Brian now is touring with the Evangelical Council for Financial Accountability and its 14-city "recession-proofing churches and ministries" workshops.

Brian recently visited Christianity Today International and sat down with me to share more about the tour, and about developing a culture of generosity in your church. In our short interview, Brian makes several interesting observations, which you can hear by clicking the link below (the audio player you need appears with the rest of this post).

Continue reading "Building a Culture of Generosity in Your Church" »

October 8, 2009

Study: Donations Grow 42% With Face-to-Face Time

Research underscores the power of relationships for church leaders.

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A new study about the best ways to secure larger gifts from donors strongly reinforces the central theme of “Asking for Big Gifts,” an article in the current issue of Your Church: face-to-face time matters. A lot.

In fact, it matters so much, the study reveals “donors to religious organizations gave an average of $2,904, or 42 percent more, when they were asked in person by someone they know,” according to an article published Wednesday by Philanthropy Journal.

That stat provides a tangible reminder of the power of relationships. Of course, when it comes to ministry, face-to-face time should matter more than just to land a big-dollar donation. We were created for relationship with the Lord, and for relationships with each other. Relationships matter a great deal to Him. We should strive to maintain healthy, edifying ones with all congregants, regardless of their financial situations, because the fruits of such efforts are eternal.

Keeping that in mind, there are people in your congregation who feel the Lord has blessed them in terms of finances and resources. For a church leader, the key is to learn more about these people by listening to them, and to hear about how their passions might align with the church's vision.

Continue reading "Study: Donations Grow 42% With Face-to-Face Time" »

September 22, 2009

Raising the Bar in Tough Times

How church administrators can prove—and increase—the worth of their roles.

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In this uncertain economy, with so many churches scrambling to reduce expenses, the role of the church administrator inevitably will come under the bright light of scrutiny. Because of this uncertainty, church administrators need to spend time reflecting on ways to showcase—and increase—our value to the churches we serve.

Nearly half of the 1,168 churches surveyed by Your Church magazine earlier this year indicated giving at their churches was on the decline (click here for the full report). Personnel costs usually consume between 45 percent and 60 percent of a church’s budget, so that makes it fertile ground for reducing expenses. And as a senior pastor or key decision-maker looks across the staff, the cost of the church administrator might appear more tempting a fruit to pluck off the vine than other staff positions because the perception is that the administrator does not have the direct impact on ministry that other church positions offer.

The administrator usually doesn’t preach, doesn’t counsel, doesn’t meet with new families, doesn’t lead programs, or possess nearly as public of a face as other staff members. It could be suggested, albeit incorrectly in my opinion, that a church could release a church administrator and not see a direct impact to the ongoing ministries of the church. That kind of reasoning is wholly short-sighted, but perhaps understandable in tough economic times like these.

That’s why we must demonstrate our value and find ways to further expand that value, not just to lessen the likelihood we’ll lose our jobs, but also for the far more noble desire to increase our impact in Christ’s Kingdom. We want to become more valuable because we can and, because in so doing, we’ll gain the fulfillment that comes from knowing we have made a difference in our world through the Gospel.

The role of church administrator is one of efficiency and productivity. It allows the church organization to function smoothly and effectively. It involves processes and systems that indirectly, yet significantly, impact the people we serve in our churches. The church administrator often works behind the scenes to ensure resources are wisely and efficiently used. The church administrator also creates and implements policies and systems that promote harmony, decrease ambiguity and confusion, and allow for greater productivity and impact toward the church’s mission.

Here’s how to showcase these very important qualities and raise the bar even higher:

Continue reading "Raising the Bar in Tough Times" »

August 28, 2009

Pinched Paychecks

Survey: Pastors, church staff nationwide see slight pay declines.

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About half the nation’s full-time pastors report they received no salary increase in the past year, continuing a downturn in salaries among top leaders in churches, according to a new survey published by Christianity Today International. In fact, the extensive survey, publishing this fall in the 2010-2011 Compensation Handbook for Church Staff, shows a slight decline or stall in pay levels for the majority of every church employee surveyed this year.

The Compensation Handbook was developed to provide church leaders and employees with a current and reliable picture of compensation practices across a broad spectrum of American churches. It presents survey data from nearly 5,000 churches representing more than 10,000 staff members in 13 ministry positions, both full-time and part-time, ranging from pastors to childcare positions. The survey was conducted in February and March from subscribers of various Christianity Today International magazines, e-newsletters, and web channels, including Church Law & Tax Report, Church Finance Today, and Leadership, a journal for pastors and church leaders.

Among the findings:
• After a slight bump up in salaries in 2008, the new survey finds a small decline reported in 2009.

Continue reading "Pinched Paychecks" »

Reading the Fine Print

Tips and tactics to remember when it comes to contracts.

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The deal sounded good.

About 50 churches in the Washington, D.C., area leased interactive electronic kiosks for their entrance areas so that members and visitors could check on activities and news and register for classes and meetings. The selling point? Church leaders say the kiosks were presented to them as “cost-free,” with the chance for their churches to potentially earn revenue from advertisers interested in reaching church audiences.

But in April, a lawsuit filed against three commercial leasing firms, an online services firm, and an interfaith digital network services firm by the District of Columbia churches suggested the deal wasn’t a good one. The churches say they received lengthy—and costly—leases and faulty equipment, as well as fees and termination expenses. All told, the lawsuit estimates hundreds of thousands of dollars in combined losses for the churches.

Officials from at least two of the firms deny the allegations. News reports indicate that the companies must prove the charges and expenses were disclosed—in the “fine print”—even as the equipment was advertised as cost-free.

The situation underscores why it’s important for church leaders to review any contract before signing it. Legal experts concede that contracts and agreements can be tough to navigate, but necessary to do nonetheless.

“One insurance coverage contract I reviewed was over a thousand pages long,” says Frank Sommerville, a Christian attorney based in Houston. “There was a lot of complex language surrounding liability coverage and exclusions, and that could create a lot of potential issues for the church.”

Church leaders don’t want to find themselves on the wrong end of a deal. Details really do matter. For that reason, it may be especially important to secure an attorney’s help with reviewing larger contracts. In addition, these seven items are important to remember when it comes to reviewing purchasing and leasing deals:

Continue reading "Reading the Fine Print" »

Making Comparisons for Church Purchases

Eight tips your church can use when making purchases.

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As a consumer in the marketplace, a local church faces the inevitability of making purchasing choices. Ford or Chevy? Plain or peanut? A lot or a little?

Wise choices are made from informed methods of comparison shopping. Executive pastors and church administrators identified these key principles to help your church make the right decision every time.

Continue reading "Making Comparisons for Church Purchases" »

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Poll

When it comes to persuading others about big-ticket purchases, which person (or group) is the toughest for you to convince?

  • The senior pastor.
  • The executive pastor.
  • The bookkeeper/treasurer.
  • The church board.
  • A purchasing committee.
  • The congregation.
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