Filling the Tank: Fueling the Congregation’s Budget

Posted on March 18, 2012 by Giving Speaks

Congregations must be as creative and diligent as ever in their stewardship efforts as we navigate the long and winding road to economic recovery.

Our annual funding is the fuel that fills the tank of the vehicle we call the annual operating budget. And despite our efforts at fuel efficiency, it seems like the costs keep on increasing!

Annual operating budgets are one way congregations estimate and track their income and expenditures from one year to the next. At best, budgets are road maps that guide the congregation on its financial journey, aligning its priorities, core values, and mission. Budgets provide a framework for organizing and viewing the congregation’s financial picture. Budgets tell our story and teach us about our shared mission, values, and identity as a faith community. Good budget planning and financial management procedures are essential aspects of effective stewardship and healthy congregations.

However, as many experienced stewardship and congregation consultants tell us, budgets do not create generous people. Often “budget language” includes terms that undermine good stewardship and health: budget crunch, shortages, cuts, shortfalls, decreases, scarce resources, or we can’t afford. People give to those organizations and programs they perceive to be successful and telling a story using generative language: mission, ministry, vision, aspiration, possibilities, we can reach our goal and change lives for the better!\

Who wants to put fuel in a vehicle that is broken down on the side of the road?

We need to be strategic about our budgeting and this means that the congregation must have a crystal-clear vision about what it stands for, where its going, and how it’s going to get there. Leaders should carefully analyze their congregation’s giving history (three-year span) and per capita giving to accurately and realistically project income and expenditures. Consultants recommend that congregations conduct their annual pledge drive before the budget is formulated. This helps to differentiate the practice of giving as a faithful response and spiritual discipline from the numbers in the minds of the congregants. People are more generous in their support of their congregation if they are:

Inspired by the mission and ministry,
Grateful for their relationships with others in a caring community, and
Trust in their leaders to be good stewards of the congregation’s resources.

If our congregations are to flourish, deepen in faith, and grow in maturity and membership, we must fuel our budgets adequately. High octane ministries and programs are not inexpensive. They are well worth the investment of careful planning and resources.

The following are some recommended percentages of income and expenditures for healthy budgeting:

Program Areas

50% Personnel–the people and the professionals (see links for staffing and compensation guidelines below)
20% Programs–Worship, Religious Education, program expenses
20% Facilities–mortgage, dept service, insurance, utilities
10% Mission–outreach, social justice, wider faith community

Income Sources

75% (+/-) Income from pledges
20% or less Rental Income
20% or less Endowment funding

Expenditures

40% – 60% Staff Compensation, including clergy (higher percentage in smaller congregations; compensation guidelines below)
25% or less– Building Mortgage Payments (debt service)
25% or less–Facilities/Building Maintenance
10% or less for Denominational Support and Outreach/Mission/Service

Reserves

Six to Twelve weeks of operating costs

A while back Giving Speaks conducted a poll about Congregation Budgets. You are invited to view the results and participate in the poll at the following link. A summary and interpretation of these results will be shared in a future blog post.

For more information about congregation budgeting by Alban Institute consultant Dan Hotchkiss, go to: http://www.alban.org/conversation.aspx?id=8884 and http://www.alban.org/conversation.aspx?id=9893

Congregation budget self-test: http://www.alban.org/uploadedFiles/Alban/Conversation/pdf/CongBudgetSelfTest.pdf

UUA Website and Congregational Stewardship Services: http://www.uua.org/finance/fundraising/budget/index.shtml

Congregation Staff & Compensation Information: http://www.uua.org/office/staffing/index.shtml http://www.uua.org/careers/compensation/fair/index.shtml

“The Budget Really Isn’t That Important” an article by Michael Durall for Alban Institute: http://www.alban.org/conversation.aspx?id=9893

Recommended Books:

Christopher, J. Clif. Not Your Parents’ Offering Plate. 2008. Abingdon Press.

Clark, Wayne. Beyond Fundraising. 2006. Unitarian Universalist Association.

Durall, Michael. The Almost Church Revitalized. 2009. CommonWealth Consulting Group. (Durall’s other books include: The Almost Church, Creating Congregations of Generous People, and Beyond the Collection Plate.)

Malphurs, Aubrey and Stroope, Steve. Money Matters in the Church. 2007. Baker Books.

New Economy and New Vision for Religious Life

Posted on February 25, 2012 by Giving Speaks

Over the past year three-quarters of adults in America report being personally affected by the economic recession. Nearly thirty percent of them in significant ways, such as living beyond their financial means, dealing with higher levels of debt, and spending down their savings. Those ages 27 to 45, households with income of $40,000 or less, families with young children, and the “unchurched” are among those reporting the greatest impact.

Along with the impact on personal finance, giving to religion took a dip, particularly among women, Baby-Boomers (ages 45-65), low-income households, families with young children, and some minority groups.

In a new book entitled Futurecast, researcher George Barna reports how “The American Dream” is being re-imagined as more and more people adjust to their new circumstances. Current trends offer myriad opportunities for pastoral care and ministry–the needs are staggering and urgent.

For example, trend research indicates that core values and religious affiliation are changing, with the largest faith group in America identified as “Skeptics,” largely a blend of atheists and agnostics. Interest in spiritual life is high, but there is less enthusiasm for conventional congregational settings.

Healthy interpersonal relationships–family ministry, life issues & skills programs
Opportunities for personal growth and spiritual deepening
Personal financial planning classes & Stewardship Education programs
Ways of tapping the power and connectivity of music and social media
Community-building

These are clear indicators that now is the time when congregations must find creative ways to boost funding instead of succumbing to the impulse to slash budgets.

Congregation Leaders…now is the time to breathe life into your mission and vision for your congregation’s brightest future! Instead of engaging in agonizing discussions about your financial woes, use your precious board and staff meeting time to make your case for your congregants’ generous financial support, brainstorm creative solutions, educate yourselves about effective stewardship practices, and enthusiastically report the ways your congregation is making a difference and changing lives.

The Barna Group conducts and reports research on current and future trends in congregational life. For research on the effects of the economic recession on giving and budgeting in congregations: http://www.barna.org/donorscause-articles/486-donors-proceed-with-caution-tithing-declines

Unitarian Universalist Association President, The Reverend Peter Morales shares his thought-provoking sermon Beyond Belief with the UU Church of Arlington, Virginia;http://www.uucava.org/page/beyond-belief-by-uua-president-rev-peter-morales-feb-12-2012

For an amazing array of faith development and community-building programs for all ages: http://www.uua.org/re/tapestry/index.shtml

Ministering to families and all ages: http://www.uua.org/re/multigenerational/index.shtml http://www.uua.org/re/adults/46930.shtml

Our Whole Lives-comprehensive sexuality education program for all ages: http://www.uua.org/re/owl/index.shtml

Resources for Nurturing Generosity and Stewardship Education for individuals and congregations:

http://www.uua.org/finance/fundraising/generosity/index.shtml http://www.uua.org/documents/stew-dev/study_guide_giving.pdf

How Much is Enough?

Posted on February 16, 2012 by Giving Speaks

This is My Symphony

To live content with small means; to seek elegance rather than luxury, and refinement rather than fashion; to be worthy, not respectable, and wealthy, not rich; to listen to stars and birds, babes and sages, with open heart; to study hard; to think quietly, act frankly, talk gently, await occasions, hurry never; in a word, to let the spiritual, unbidden and unconscious, grow up through the common –this is my symphony.

–William Henry Channing (1810-1884)

As we wade our way through the many and varied demands of daily living, it is often not something we think of to let the spiritual part of our being “grow up through the common,” as Channing describes. Life feels too busy and complex to pause long enough to experience the contentment that comes from tuning into all the simple blessings that present themselves, moment to moment. The mindset of scarcity can easily take over: there is not enough time, money, energy, respect, assistance, freedom, fill in the blank.

Not enough.

For those of us who seek a religious community, we may participate in worship and other deepening activities as opportunities for appreciating what sustains and satisfies us:

Reflect on the relationships that fill our hearts with love and friendship.
Experience reverence for life, with its rainbow of emotions and challenges.
Encounter enough when we reorder our priorities and simplify our daily existence.
Connect deeply with our passions and sense of purpose.

Author Adam Hamilton suggests five steps for simplifying our lives as a means of cultivating contentment, reducing stress and clutter that may begin to dominate our existence, and open up new opportunities for generosity:

1. Reduce our consumption and choose to live below our means.

2. Check our intentions before purchasing–Do I really need this? Why do I want this?

3. Use up what we have before acquiring something else.

4. Plan enriching activities that are low-cost or no-cost.

5. Identify the major changes that could be made to simplify your life and still bring satisfaction–houses, vehicles, possessions, jobs, time commitments.

As the late Rev. Forrest Church, expressed so succinctly and powerfully…

Do what you can. Want what you have. Be who you are. Love fearlessly.

Inspiration for this blog post:

Church, Forrest. A variety of books and audio resources are found at the UUA Bookstore, www.uua.org/bookstore and an archive of sermons online at the All Souls New York City: http://www.allsoulsnyc.org/site/c.atJQL8NRJqL8H/b.6216993/apps/s/content.asp?ct=8937505

Hamilton, Adam. Enough: Discovering Joy Through Simplicity and Generosity. Abingdon press. 2009.