5 Steps to Funding a Sustainable Ministry Pastor’s Conference Arkansas Baptist State Convention April 2009
Why should I care? “ At least one out of five American Christians – 20 percent of all U.S. Christians – gives literally  n...
Why should I care? “ Americans spent nearly twice as much on first-day sales of the video game “Grand Theft Auto IV” as th...
Why should I care? Charitable donations as  measured by per capita giving of  disposable income has remained  the same sin...
What does this mean? The individualistic, independent American Spirit has influenced  our perspective on church giving. Ch...
What does this mean? The church can’t fail. There is no Plan B.
5 Steps to Funding a Sustainable Ministry Summary Help pastors evaluate and implement giving tools and strategies that res...
5 Steps to Funding a Sustainable Ministry More Money.  More Ministry.
Session Goals <ul><ul><li>Highlight  tension between ministry and money.  (funding) </li></ul></ul><ul><ul><li>Discuss  th...
5 Steps to Funding a Sustainable Ministry 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 ...
Establish a systematic strategy Let’s be honest about tithing: The habits of giving begin with the worldview of the giver.
Establish a systematic strategy Let’s be honest about tithing: Churches have an advantage over every other nonprofit: week...
Establish a systematic strategy Let’s be honest about tithing: Churches are the WORST at capturing the dollar and fail to ...
Establish a systematic strategy Let’s be honest about tithing: If churches continue to be silent, the giving levels needed...
Establish a systematic strategy Let’s be honest about tithing: Giving is an outward sign of an inward commitment. Measurin...
Establish a systematic strategy Let’s be honest about tithing: Church giving is connected to your ministry plan. People wa...
5 Steps to Funding a Sustainable Ministry 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 ove...
Start talking about it The more we remain silent with respect to the subject of money in the church, the more mysterious i...
Start talking about it 5 steps to stop stuttering over money Step 1:  Embrace  your role as chief broker of opportunity.
Start talking about it 5 steps to stop stuttering over money Step 2:  Expose  yourself to the unfamiliar.
Start talking about it 5 steps to stop stuttering over money Step 3:  Seek out  professionals in the financial or fund dev...
Start talking about it 5 steps to stop stuttering over money Step 4:  Surround  yourself with a few trusted advisors from ...
Start talking about it 5 steps to stop stuttering over money Step 5:  Practice .  Practice .  Practice .
5 Steps to Funding a Sustainable Ministry 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 va...
Set expectations 3 habits that establish expectations of your membership Habit 1: Personal Testimony  Hint: Your church wi...
Set expectations 3 habits that establish expectations of your membership Habit 2: Annual Stewardship Series
Set expectations 3 habits that establish expectations of your membership Habit 3: Celebrate Success
5 Steps to Funding a Sustainable Ministry 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 c...
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 5 systematic tools you need to consider 2. Online Giving
Make the ask 5 systematic tools you need to consider 3. Contribution Statements
Make the ask 5 systematic tools you need to consider 4. Special Offerings or Major Gifts
Make the ask 5 systematic tools you need to consider 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 yo...
Make the ask Brutal Fact #2: Providing things like offering envelopes and online giving are primarily designed to encourag...
Make the ask Wikipedia raised $2 million dollars in the final three weeks of December 2008 with an average donation of $40...
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 participat...
Make the ask If stewardship is equivalent to discipleship, then a call to be a steward deals directly with the Lordship of...
Make the ask When people are asked to commit their time, talent and treasures to advance the kingdom of God, spiritual tra...
5 Steps to Funding a Sustainable Ministry Step 5: Report  the results.
Report the results In a time when consumers are demanding more corporate accountability and transparency, this same sentim...
Report the results “ They” want to know your church’s spending habits. Example: Texas Attorney General’s office just launc...
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 descri...
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 c...
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 3 approaches to reporting results 2.  Treat  church members like shareholders.
Report the results 3 approaches to reporting results 3.  Outline  the connection between giving, program, and ministry res...
Report the results Don’t  report results unless you are prepared to: 1.  Reveal  the results.
Report the results Don’t  report results unless you are prepared to: 2.  React  based on the results received.
Report the results Don’t  report results unless you are prepared to: 3.  Request  input from church membership.
Session Goals (in review) <ul><ul><li>Highlight  tension between ministry and money.  (funding) </li></ul></ul><ul><ul><li...
Questions Questions? Next Session:  Electronic Giving – Future or Fad?
Electronic Giving: Future or Fad? Pastor’s Conference Arkansas Baptist State Convention April 2009
Session Goals <ul><ul><li>What is electronic giving? </li></ul></ul><ul><ul><li>Why should I care? </li></ul></ul><ul><ul>...
What is electronic giving? Electronic giving is when an individual contributes money to a cause or organization using an e...
What is electronic giving? <ul><li>Electronic Giving is also known as: </li></ul><ul><ul><li>E-giving </li></ul></ul><ul><...
Why should I care? “ Some estimates indicate that 60% of people in the U.S. (and the percentage has been growing every yea...
Why should I care? “ Online giving grew four times as quickly in December [2008] than it did in other months.” - Recent st...
What are the characteristics of people who give online? <ul><li>When comparing average donor profiles through established ...
What are the characteristics of people who give online? <ul><li>When comparing giving habits of traditional donors with on...
What options are available to churches? <ul><li>The most common types of electronic giving available today: </li></ul><ul>...
What options are available to churches? Rethink Giving: An emerging trend is empowering the membership base to encourage g...
What options are available to churches? <ul><li>Churches should consider services that allow the church to: </li></ul><ul>...
How can my church benefit from electronic giving? <ul><li>Electronic giving allows the church to overcome: </li></ul><ul><...
How can my church benefit from electronic giving? Electronic giving provides one more channel you can offer people to fund...
Warning! <ul><li>Objections you should anticipate  </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering ...
Warning! <ul><li>Objections you should anticipate  </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering ...
Warning! <ul><li>Objections you should anticipate  </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering ...
Warning! <ul><li>Objections you should anticipate  </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering ...
Warning! <ul><li>Objections you should anticipate  </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering ...
Session Goals (in review) <ul><ul><li>What is electronic giving? </li></ul></ul><ul><ul><li>Why should I care? </li></ul><...
Questions Questions?
Contact Information Ben Stroup Twitter: @ben_stroup Facebook: Ben Stroup Web: benstroup.com
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5 Steps to Funding a Sustainable Ministry

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This was a presentation I gave in the Spring of 2009 on a tour through the Arkansas through the Arkansas State Baptist Convention's Stewardship and Cooperative Program Office.

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5 Steps to Funding a Sustainable Ministry

  1. 1. 5 Steps to Funding a Sustainable Ministry Pastor’s Conference Arkansas Baptist State Convention April 2009
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. What does this mean? The church can’t fail. There is no Plan B.
  7. 7. 5 Steps to Funding a Sustainable Ministry Summary Help pastors evaluate and implement giving tools and strategies that result in fully funded budgets and long-term sustainable ministry.
  8. 8. 5 Steps to Funding a Sustainable Ministry More Money. More Ministry.
  9. 9. Session Goals <ul><ul><li>Highlight tension between ministry and money. (funding) </li></ul></ul><ul><ul><li>Discuss the role of pastor as organizational manager. (sustainability) </li></ul></ul><ul><ul><li>Reveal the disconnect between the pulpit and the pew. (engagement) </li></ul></ul><ul><ul><li>Provide some guiding principles to systematically address challenge. (responsibility) </li></ul></ul><ul><ul><li>Restore the role of stewardship as a strategic effort within local church ministry. (transformation) </li></ul></ul>
  10. 10. 5 Steps to Funding a Sustainable Ministry Step 1: Establish a systematic strategy.
  11. 11. Establish a systematic strategy Let’s be honest about tithing: The Church is a nonprofit organization that exists through the donations of its membership.
  12. 12. Establish a systematic strategy Let’s be honest about tithing: The habits of giving begin with the worldview of the giver.
  13. 13. Establish a systematic strategy Let’s be honest about tithing: Churches have an advantage over every other nonprofit: weekly interaction with membership.
  14. 14. Establish a systematic strategy Let’s be honest about tithing: Churches are the WORST at capturing the dollar and fail to consistently provide a “call to action.”
  15. 15. Establish a systematic strategy Let’s be honest about tithing: If churches continue to be silent, the giving levels needed to operate this complex organization will not exist.
  16. 16. Establish a systematic strategy Let’s be honest about tithing: Giving is an outward sign of an inward commitment. Measuring giving is one way to measure the health of your church and your membership.
  17. 17. Establish a systematic strategy Let’s be honest about tithing: 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.
  18. 18. 5 Steps to Funding a Sustainable Ministry Step 2: Start talking about it.
  19. 19. 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
  20. 20. Start talking about it The more we remain silent with respect to the subject of money in the church, the more mysterious it becomes.
  21. 21. Start talking about it 5 steps to stop stuttering over money Step 1: Embrace your role as chief broker of opportunity.
  22. 22. Start talking about it 5 steps to stop stuttering over money Step 2: Expose yourself to the unfamiliar.
  23. 23. Start talking about it 5 steps to stop stuttering over money Step 3: Seek out professionals in the financial or fund development industry sectors.
  24. 24. Start talking about it 5 steps to stop stuttering over money Step 4: Surround yourself with a few trusted advisors from your church membership.
  25. 25. Start talking about it 5 steps to stop stuttering over money Step 5: Practice . Practice . Practice .
  26. 26. 5 Steps to Funding a Sustainable Ministry Step 3: Set expectations.
  27. 27. Set expectations Why isn’t the church leading the way in generosity?
  28. 28. 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.
  29. 29. Set expectations 3 habits that establish expectations of your membership Habit 1: Personal Testimony Hint: Your church will give as much as you do.
  30. 30. Set expectations 3 habits that establish expectations of your membership Habit 2: Annual Stewardship Series
  31. 31. Set expectations 3 habits that establish expectations of your membership Habit 3: Celebrate Success
  32. 32. 5 Steps to Funding a Sustainable Ministry Step 4: Make the ask.
  33. 33. Make the ask Two shifts have taken place within American Christianity. 1. The tithe is no longer solely reserved for the church.
  34. 34. Make the ask Two shifts have taken place within American Christianity. 2. Christians want their tithe to count.
  35. 35. Make the ask 5 systematic tools you need to consider 1. Offering Envelopes
  36. 36. Make the ask 5 systematic tools you need to consider 2. Online Giving
  37. 37. Make the ask 5 systematic tools you need to consider 3. Contribution Statements
  38. 38. Make the ask 5 systematic tools you need to consider 4. Special Offerings or Major Gifts
  39. 39. Make the ask 5 systematic tools you need to consider 5. Planned Giving or Estate Tithing
  40. 40. Make the ask 3 brutal facts about giving grounded in the Pareto Principles (80/20 rule)
  41. 41. 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.
  42. 42. 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.
  43. 43. 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?
  44. 44. Make the ask Brutal Fact #3: Stewardship is more important than your sermon preparation.
  45. 45. 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.
  46. 46. Make the ask If stewardship is equivalent to discipleship, then a call to be a steward deals directly with the Lordship of Christ.
  47. 47. Make the ask When people are asked to commit their time, talent and treasures to advance the kingdom of God, spiritual transformation takes place.
  48. 48. 5 Steps to Funding a Sustainable Ministry Step 5: Report the results.
  49. 49. 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.
  50. 50. 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.
  51. 51. Report the results It won’t be long before the same reporting tools are used to monitor churches. Are you ready?
  52. 52. Report the results “ Participatory Philanthropy” or the “Democratization of Philanthropy” are the phrases that best describe the changing climate of generosity.
  53. 53. Report the results Example: TripAdvisor.com asked the public to decide how to spend their charitable giving funds.
  54. 54. Report the results Example: Subaru of America invited new car buyers the option to contribute $250 to a charity of their choice.
  55. 55. Report the results What if our budgeting process looked like American Idol?
  56. 56. Report the results 3 approaches to reporting results 1. Develop a habit of measuring results.
  57. 57. Report the results 3 approaches to reporting results 2. Treat church members like shareholders.
  58. 58. Report the results 3 approaches to reporting results 3. Outline the connection between giving, program, and ministry results.
  59. 59. Report the results Don’t report results unless you are prepared to: 1. Reveal the results.
  60. 60. Report the results Don’t report results unless you are prepared to: 2. React based on the results received.
  61. 61. Report the results Don’t report results unless you are prepared to: 3. Request input from church membership.
  62. 62. Session Goals (in review) <ul><ul><li>Highlight tension between ministry and money. (funding) </li></ul></ul><ul><ul><li>Discuss the role of pastor as organizational manager. (sustainability) </li></ul></ul><ul><ul><li>Reveal the disconnect between the pulpit and the pew. (engagement) </li></ul></ul><ul><ul><li>Provide some guiding principles to systematically address challenge. (responsibility) </li></ul></ul><ul><ul><li>Restore the role of stewardship as a strategic effort within local church ministry. (transformation) </li></ul></ul>
  63. 63. Questions Questions? Next Session: Electronic Giving – Future or Fad?
  64. 64. Electronic Giving: Future or Fad? Pastor’s Conference Arkansas Baptist State Convention April 2009
  65. 65. Session Goals <ul><ul><li>What is electronic giving? </li></ul></ul><ul><ul><li>Why should I care? </li></ul></ul><ul><ul><li>What are the characteristics of people who give online? </li></ul></ul><ul><ul><li>What options are available to churches? </li></ul></ul><ul><ul><li>How can my church benefit from electronic giving? </li></ul></ul>
  66. 66. 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.
  67. 67. What is electronic giving? <ul><li>Electronic Giving is also known as: </li></ul><ul><ul><li>E-giving </li></ul></ul><ul><ul><li>Online Giving </li></ul></ul><ul><ul><li>M-giving </li></ul></ul>
  68. 68. 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
  69. 69. 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
  70. 70. What are the characteristics of people who give online? <ul><li>When comparing average donor profiles through established giving channels to online donors, we learn: </li></ul><ul><ul><li>Younger </li></ul></ul><ul><ul><li>Higher income earners </li></ul></ul><ul><ul><li>Better educated </li></ul></ul>
  71. 71. What are the characteristics of people who give online? <ul><li>When comparing giving habits of traditional donors with online donors, we learn: </li></ul><ul><ul><li>Higher average gift </li></ul></ul><ul><ul><li>Higher long-term “value” to organization </li></ul></ul><ul><ul><li>Lower retention rates </li></ul></ul><ul><ul><li>Often connected with national disaster or tragedy (instant response) </li></ul></ul><ul><ul><li>Repeat giving through traditional channels </li></ul></ul>
  72. 72. What options are available to churches? <ul><li>The most common types of electronic giving available today: </li></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Electronic Bill Pay </li></ul></ul><ul><ul><li>Stock Transfers </li></ul></ul><ul><ul><li>Giving Kiosks </li></ul></ul><ul><ul><li>Computer Terminals </li></ul></ul><ul><ul><li>Cell Phones </li></ul></ul>
  73. 73. What options are available to churches? Rethink Giving: An emerging trend is empowering the membership base to encourage giving. Example: Salvation Army and the “Red Kettle Widget”
  74. 74. What options are available to churches? <ul><li>Churches should consider services that allow the church to: </li></ul><ul><ul><li>Specify the payment type </li></ul></ul><ul><ul><li>Customize to avoid confusion </li></ul></ul><ul><ul><li>Provide detailed standard reporting </li></ul></ul><ul><ul><li>Create an easy interface file for accounting </li></ul></ul><ul><ul><li>Handles administration on behalf church </li></ul></ul>
  75. 75. How can my church benefit from electronic giving? <ul><li>Electronic giving allows the church to overcome: </li></ul><ul><ul><li>Irregular church attendance habits </li></ul></ul><ul><ul><li>Bad weather Sundays </li></ul></ul><ul><ul><li>Givers who don’t attend (snowbirds, family, etc.) </li></ul></ul><ul><ul><li>People who don’t carry cash or write checks </li></ul></ul><ul><ul><li>Time delay when responding to tragedy or disaster </li></ul></ul><ul><ul><li>People who wish to donate but attend another church (special offerings, funerals, parents, etc.) </li></ul></ul>
  76. 76. 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”.
  77. 77. Warning! <ul><li>Objections you should anticipate </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering envelopes are part of the worship experience. </li></ul></ul>
  78. 78. Warning! <ul><li>Objections you should anticipate </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering envelopes are part of the worship experience. </li></ul></ul><ul><ul><li>I don’t have a computer, and the only Web I have is a cobweb. </li></ul></ul>
  79. 79. Warning! <ul><li>Objections you should anticipate </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering envelopes are part of the worship experience. </li></ul></ul><ul><ul><li>I don’t have a computer, and the only Web I have is a cobweb. </li></ul></ul><ul><ul><li>We don’t have any young people in the church. </li></ul></ul>
  80. 80. Warning! <ul><li>Objections you should anticipate </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering envelopes are part of the worship experience. </li></ul></ul><ul><ul><li>I don’t have a computer, and the only Web I have is a cobweb. </li></ul></ul><ul><ul><li>We don’t have any young people in the church. </li></ul></ul><ul><ul><li>Our church shouldn’t encourage the use of credit cards. </li></ul></ul>
  81. 81. Warning! <ul><li>Objections you should anticipate </li></ul><ul><li>from your membership: </li></ul><ul><ul><li>Offering envelopes are part of the worship experience. </li></ul></ul><ul><ul><li>I don’t have a computer, and the only Web I have is a cobweb. </li></ul></ul><ul><ul><li>We don’t have any young people in the church. </li></ul></ul><ul><ul><li>Our church shouldn’t encourage the use of credit cards. </li></ul></ul><ul><ul><li>Electronic giving reduces giving to the act of paying a bill. </li></ul></ul>
  82. 82. Session Goals (in review) <ul><ul><li>What is electronic giving? </li></ul></ul><ul><ul><li>Why should I care? </li></ul></ul><ul><ul><li>What are the characteristics of people who give online? </li></ul></ul><ul><ul><li>What options are available to churches? </li></ul></ul><ul><ul><li>How can my church benefit from electronic giving? </li></ul></ul>
  83. 83. Questions Questions?
  84. 84. Contact Information Ben Stroup Twitter: @ben_stroup Facebook: Ben Stroup Web: benstroup.com
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