Tag Archives: Ecumenical stewardship

Filling the Tank: Fueling the Congregation’s Budget

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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.

Annual Pledge Campaigns–You’ve Heard of “Speed Dating”, but “Speed Pledging”??

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It was time to organize the annual stewardship campaign and the pressure was on.  The Rev. Christina Neilson, minister of the Southwest Unitarian Universalist Church in North Royalton, OH, originated the idea for a new concept she calls Speed Pledging, modeled after the popular speed dating trend in social networking among adult singles.  It turned out this was a fun way to engage one-on-one stewardship conversations without the pressure of a long, complex campaign process.

The smaller congregation Rev. Paul Langston-Daly serves tried the Speed Pledging approach and reports a positive outcome.  Paul describes the questions his congregation used and how the responses offered valuable feedback for leaders to use in future planning.

The questions Paul’s congregation used were designed to help people engage with the dramatic changes of the past year:  hiring a minister 3/4 time, moving to a beautiful location (from the Elks Club) and making a commitment to growth.  Everyone seemed to have a good time, getting to know each other  better and raising nearly $28,000, up from $22,000 the previous year and $18,000 the year before.

The congregation used 3X5 cards to record the responses of those they engaged with for each set of questions.  The process was informal, with an invitation for people to pair up and then switch conversation partners after a five-minute bell rang.  The process was conducted three times, one round for each question.

After the rounds of one-to-one conversations, the leaders handed out pledge forms and invited people to make their pledge.  Many did pledge that evening, but some took the forms home to think about it. And people appreciated the opportunity to talk about the congregation and its future.

The responses were gathered and used by the board to gauge how the congregation was doing and to get a sense of where people wanted to go in the future.  It was very helpful for us in planning that year.

Elements of organizing the Speed Pledging process :

•  Choose the campaign theme and schedule events as early as possible  (such as Conversation, Community, Commitment)

•  Newsletter articles and other publicity several weeks in advance and throughout the campaign

•  Sermon series  that introduce a range of stewardship themes

•  One mailing—reduces the amount of paper used!

•  Potluck dinner –begin the meal with a blessing by the minister or key stewardship leader

•  Stewardship Leader makes the pitch for congregational giving

•  Establish teams of 2-4 people for the ask

•  Prepare envelopes for each family

•  Written pledges go in envelopes and are collected in a bowl—Dessert comes AFTER the pledging!

•  Mugs with congregation’s logo or the campaign theme are given to each participant

Questions for Speed Pledging conversations (using an appreciative inquiry approach):

•  Conversations are set up with two rings of seats facing each other—five minutes each, then partners switch seats around the circle.

•  Conversations are framed by three types of questions that encourage expansive thinking:  values questions, potential questions, and wishes questions.

•  Introductory question:  Why do you come to church on Sunday?

Record the themes that emerge in the responses shared and seek feedback about the process.   This can be done by giving each person index cards for recording responses.

Post Speeding Pledging Clean Up:

•  Mailed pledge cards to all who didn’t attend or not yet pledged.

•  Letters and calls to follow-up the mailing.

•  Thank you notes to everyone pledging.

•  Pledging event for all those pledging 2.5+% of income or other high mark of giving as set by your congregation.

 Remember:  This is the beginning of a conversation, not the end.

Exploring various models and approaches to annual stewardship campaigns?  Check out the results of the recent Giving Speaks poll on the topic: http://poll.fm/3hkep

 

 

Are Our Offering Plates Passing Us By?

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The landscape of giving to religion has been changing for decades.  It’s like we are on a train that has pulled out of the station.  The scenery looks different, because it is different, and chances are will not get back that way again.

Just thirty years ago, sixty percent of all charitable giving was to religion.  Today giving to religion is still the largest segment of charitable giving, but in significantly smaller proportion (33%) than in decades past.  The fact is, there is greater competition for the U.S. charitable dollar.

There are more than 370,000 churches and 1.8 million nonprofit organizations, nearly twice as many nonprofits than in 1995.

Has our “you should give to our congregation because we really need the money” message so dulled the impulse to be generous, that our congregants are simply letting the offering plate pass them by without a second thought?

The simple answer is YES.

Contemporary American culture and industry are driven by mass consumption.   Add to that our prevailing cultural value of individualism and tendency to distrust institutions, we find ourselves impacted and influenced by an almost inescapable way of life.

There is greater diversity found on the religious landscape, with a mix of beliefs and teachings about stewardship, ranging from secular financial management to biblical tithing.  Clergy consistently report discomfort or resistance in taking an active in congregational stewardship.  There seems to be a general lack of connection between generosity, giving behavior, and religious identity.  Many of our congregations are caught in the “pay the bills” scarcity mentality rather than the more expansive “fund the vision” mindset that would inspire greater generosity.

As open as western culture can be about a wide range of subjects, money persists as one of our most taboo topics.  Technology has opened may doors to systematic charitable giving, however there is general avoidance of using electronic means of giving by congregants.

According to the anecdotal research conducted in Passing the Plate , authors highlight a number of factors that impact congregants’ motivations and purposes for giving, despite the clear religious teachings.   There is a heightened level of complexity and inconsistency between what people profess to believe, and their behavior.  Ambivalence about faithful giving persists among those who self-identify as “religious.”  Clearly there is a need to foster generosity as an appropriate practice for acting on one’s religious beliefs and values.

Some ideas for sparking generosity and motivating people to give to their faith communities:

  • Leaders boldly articulate ways to “Live the Vision”
  • Leaders model generosity through their own giving to the congregation
  • Congregants are invited to give generously and regularly
  • Communication about giving money is clear, positive, and enthusiastic
  • Provide several ways to contribute, including online donations, systematic electronic contributions, spontaneous giving opportunities, special offerings, etc
  • Stimulate generosity by giving a proportion of the offering or congregation’s budget for mission and outreach
  • Facilitate small group conversations and learning experiences about money and giving.
  • CELEBRATE the successes in the congregation’s fundraising—even if the goal isn’t met (yet!)

To revisit the summary of responses to the Giving Speaks “Sharing the Offering Plate” poll: http://wp.me/p1xUUk-42

Sources for this post:

Barna, George.  How to Increase Giving in Your Church.  1997.  Regal.

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

Schaller, Lyle E.  The New Context for Ministry.  2002.  Abingdon Press.

Smith, Emerson with Snell.  Passing the Plate.  2008.  Oxford University Press.

Relevant resource:

https://faithinspires.wordpress.com/tag/stewardship/