executive reports
Category: Purchasing
February 18, 2010Church 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" »
How One Question Can Make the Recession an Ally
A Harvard concept may help churches clarify, prioritize
During this season of economic turmoil and ambiguity, one question may have the power to bring clarity—and better priority-setting—for the churches where executive pastors, business administrators, and pastors serve.
That question: What exactly are we trying to accomplish?
David Fletcher, the executive pastor of The Chapel in Akron, Ohio, and a Your Church contributing editor, shared the question last week at his annual XPastor.org conference in Dallas, where about 125 people gathered.
The concept, dubbed “Question Zero,” comes from the Harvard Business School. Fletcher said the timing couldn’t be better for churches to use it. In good times, church leaders usually ask how to make a program or event bigger and better, or how to create the next big thing. But this often results in a focus on “the number of cups of coffee served, rather than the number of people who come back for a second cup,” he told participants.
“We get confused when we try to cater to people,” he said. “We lose track of our mission … How are lives being changed?”
Now, with the hardest economic environment to hit the United States since the Great Depression, church leaders have an opportunity to establish a better focus. “You want the recession to help your church,” Fletcher said.
Continue reading "How One Question Can Make the Recession an Ally" »
FCC Ruling May Affect Many Churches
Microphone systems must comply with June 12 deadline.
Editor's note: Since this posting appeared on January 22, Your Church has published a more in-depth article on the FCC's ruling: "Racing the FCC Mic Deadline."
The Federal Communications Commission has set a deadline of June 12 for organizations to stop using any wireless systems, including microphones, currently operating in the 700 megahertz (MHz) frequency.
The restriction includes churches.
In its prepared statement, the FCC didn't indicate what penalties, if any, organizations might face for not complying. The FCC says the deadline will help eliminate potentially harmful interference with public safety systems now using the frequency. The deadline also will allow companies that purchased slices of the spectrum in 2008 to now pursue next-generation 4G wireless devices, the FCC says.
Church leaders who aren't sure whether their systems use the frequency can find out on a website created by the FCC.
The FCC's announcement shouldn't come as a surprise, but that may not ease the sting for church leaders who now face the prospect of replacing or modifying their current microphone systems to comply. Your Church covered this looming possibility in May, and included some possible solutions that may not require buying a new system.
In a Pittsburgh Tribune-Review article, two church leaders indicated they'll likely need to replace equipment. One estimates it will cost the church $2,400 to replace four mics affected by the changes.
Most telecommunications providers currently use 3G standards, which allow simultaneous voice and data transmissions at faster rates of speed. The upgrade to 4G will accelerate the speeds of those transmissions and widen the types of services those providers can offer. Companies, including AT&T and Verizon, paid the FCC billions of dollars through a 2008 auction for the rights to portions of the spectrum.
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
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
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" »
Smart, Inexpensive Church Building Design Ideas
How to create superb ministry space for less.
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.
Consider Adding Windows 7
Church offices should benefit from Microsoft’s new operating system.
Ministry Business Services Inc., the church consulting firm I started in the 1980s, began testing Microsoft Corporation’s Windows 7 Professional in January. On Tuesday, MBS announced it adopted Windows 7 Professional as its preferred operating system, and it recommends churches to do the same.
This may surprise some, since the challenges with Microsoft’s Windows Vista, the preceding operating system, have been many. Clarence White, the chief information officer for the Salvation Army’s western territory, even asked me on a recent podcast if MBS really believed in Windows 7 Professional. The answer is yes. I told him it’s almost like Vista was a beta for Windows 7, or that Windows 7 is the first service pack for Vista that really fixes it.
Corporate customers have embraced Windows 7’s release as well. The Gartner Group recently said the operating system is ready (Gartner also recommends a 12- to 18-month integration process, saying earlier this month that organizations should start now), and a recent Softchoice study with ComputerWorld found that 88 percent of corporate PCs are capable of running Windows 7. That means many churches and ministries likely are in a position to upgrade to it as well.
Reading the Fine Print
Tips and tactics to remember when it comes to contracts.
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:
High Tech, Low Budget
How one rural pastor uses technology without spending a lot.
In ministry, one can define stewardship as “maximizing the impact of every dollar.” In this economy, this definition takes on even greater meaning. And as the pastor of a small rural church, I have experienced this reality firsthand. Yet, even with added financial difficulties, I cannot forget that the above definition still includes the word “impact.” Our spending, regardless the amount, must make a difference.
One area often caught between stewardship and impact is technology. In my church, I have found that a little bit of technology goes a long way. Yet, the cost presents a formidable challenge to our budget. Unwilling to forgo the impact, I have tried to find creative ways to add technology without adding the typical high costs. Though not profound, the result of my efforts is five effective ideas for becoming high tech on a low budget.
The 2010 Wish-List
Five purchases churches might budget for this fall to buy next year.
Despite the lingering effects of the current economic maelstrom, next year’s church budget will soon become reality, and the need to disperse funds will be here.
Since a church budget should be assembled and managed wisely, it helps to know where trends are headed and how they affect resource effectiveness. For example, spending money on digital signs in the lobby may be a better investment than upgrading the paper quality of the bulletin, since many people have become acclimated to information video displays in airports and shopping malls and often prefer to receive data digitally.
Technology trends, then, give at least a general course directive on how to allocate funds and, while not a panacea, provide a useful tool in the service of worship when appropriately applied.
Here, then, are five current developments your church may find helpful as it considers purchases and next year’s budget:
What Computers and Phones Do Church Staff Need?
Answers to common questions about computers and phones.
Editor’s Note: The author’s consulting firm doesn’t sell or distribute any hardware or software, or receive any compensation for referrals. The firm’s work for many years with hundreds of churches led to the recommendations outlined here.
Many people make one of two mistakes about church technology needs. Either they underestimate the need and look for the cheapest possible solution (which often costs more because it’s the wrong solution), or they overspend on technology and overcomplicate the system.
We’ll look at some common questions regarding two office technology tools—desktop and notebook computers and mobile devices (such as smart phones)—with the hope that church leaders can avoid these mistakes on two essential categories of purchases.
Outside of megachurches, churches rarely have the budget for Information Technology staff. Some larger churches can add part-time staff to help support the technology needs of pastors and office personnel, but outside of that, most churches are best served by simple system and hardware strategies that increase reliability, which means less need for support.
When hardware purchases are strategized, they can drastically reduce the need for support and improve team productivity. And that’s especially important given our missions to share the Gospel and disciple believers.
The answers to these questions can help with those strategies for buying hardware:
Continue reading "What Computers and Phones Do Church Staff Need?" »
4 Reasons NOT to Cut Conferences
Why these events are important for your staff.
During tough economic times, many churches are looking at cutting all travel for training and events, but that may not be the wisest decision. Here’s why:
Care. The church is about people caring for people, so your most important resource is people! They need to be trained and equipped to not only care, but guard and protect. They need to know how to identify young leaders and raise them up. They need to develop an eye for gifting and calling as well as those on the margins. Investing in people is one of the best investments you can make.
Creativity. Conferences and events are a great way to infuse your staff with engaging, innovative ideas and energy. Many events offer workshops and practical advice on how to handle the challenges of economy as well as do big things on small budgets. In addition, conferences often provide a gold mine of best practices. Skipping out may cost you more in the long haul.
Communication. Conferences and events provide your staff with a common language. Staff members sometimes struggle to put into words what they want to see changed or developed in their church. When staff members attend events together, they develop a common vocabulary and shared experiences, which are critical ingredients for innovation, growing a team, and developing a healthy congregation.
Close proximity. More conferences and events are looking for regional options in 2009 and 2010. Like Passion a few years back, more events, including Catalyst, are looking at more regional, coastal, and one-day events. That means you may be within driving distance to an enriching event—saving time and money. Keep your eyes open for events and conferences in and near your area and encourage staff to attend. In addition, keep an eye out for conferences and events that offer online attendance options or let you purchase DVDs and CDs to share with your staff.
More than ever, now is a time to embrace best practices, innovative ideas, and the encouragement of gathering with others facing similar challenges in ministry.
Making Comparisons for Church Purchases
Eight tips your church can use when making purchases.
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.
