Rocky Mountain Theological Conference September 19 and 20, 2017 The Impact of Economic Challenges and Financial Anxiety on Ministry and Leaders Rocky Mountain Theological Conference September 19 and 20, 2017

The Impact of Economic Challenges and Financial Anxiety on Ministry and Leaders What do we know? Extent, Causes and Consequences of Educational Debt Impact of Financial Anxiety What can we do? What are we doing through Resourceful Servants? How can you be a part?

Extent of Total Educational Debt – Trends among ELCA M.Div. Graduates

Causes of Educational Debt Changing student demographics Changes in culture and attitudes Uninformed financial decision-making

Consequences of Educational Debt: Types of Call “There are fewer job candidates for the most challenging and low paying forms of ministry.” “Educational debt has forced some graduates with extensive loans to pursue higher-paying forms of ministry rather than serving small churches, social action or missionary ministries, or non-profit organizations.” “Some pastors abandon their calling altogether because of financial constraints.”

X Consequences of Educational Debt: Time to First Call 2006 2007 May June July August September October November X December 2007 January February March April

Consequences of Educational Debt: Time to Second Call Educational debt above $60K No educational debt = First call = Second call = Other

$ Educational debt negatively impacts satisfaction with finances. SAVINGS DEBT COMPENSATION

PERSONAL RELATIONSHIPS Financial anxiety negatively impacts satisfaction with finances… $ SAVINGS DEBT COMPENSATION … as well as personal relationships, health and spiritual well-being. PERSONAL RELATIONSHIPS PHYSICAL HEALTH SPIRITUAL WELL-BEING

Pastors with high levels of debt may be less likely to take actions which would put their call at risk.

Financial anxiety impacts the congregation’s perspective of a pastor’s leadership characteristics as well as congregational vitality.

The Impact of Economic Challenges and Financial Anxiety on Ministry and Leaders What do we know? Extent, Causes and Consequences of Educational Debt Impact of Financial Anxiety What can we do? What are we doing through Resourceful Servants? How can you be a part?

Four Programs Fund for Leaders Financial Counseling Financial Wellness Financial Wellness Resources Savings Matching Pilot Programs Congregational Certificate

Financial Wellness Resources Lutheran Social Service Financial Counseling ELCA Federal Credit Union Portico Benefit Services

Readiness for Retirement Savings Matching Pilot Programs Phase Key Date Launch Aug. 14, 2017 Visit resourcefulservants.org Qualification Sept. 15, 2017 < 6 months emergency savings < 15% in retirement contributions Complete the Financial Wellness Assessment Application Oct. 15, 2017 Complete Savings Matching Pilot Program applications Notification Nov. 1, 2017 Receive notification of selection into either, both or neither program(s) Implementation Dec. 1, 2017 Open a dedicated savings account Set up automatic withdrawals Increase individual retirement contribution Participate in financial counseling with Lutheran Social Service (LSS) Financial Counseling Distribution Feb. 2018/Feb. 2019 Up to $50 monthly (2 year program) $600 in one installment (1 year program) Emergency Savings Readiness for Retirement

Congregational Certificate Risk Management Accounting Stewardship Finance Human Resources

Congregational Certificate Value of the Congregational Certificate Easy transfer of information Notation on congregational profile Recognition at synod assembly Favorability from lending institutions

Congregational Certificate Phase Key Date Phase Description Pilot Launch Sept. 27, 2017 Kick off the Pilot Phase at a gathering of the ELCA Affinity Group Feedback Gathering Feb. 2018 Gather feedback through interviews, focus groups and surveys Pilot Wrap Up Mar. 31, 2018 Finish the Pilot Phase, compiling feedback and implementing suggested changes Widespread Launch Beginning 2nd quarter 2018 Promote the Congregational Certificate area of Resourceful Servants to all congregations in the ELCA

Visit resourcefulservants.org Encouraging habits that strengthen and sustain individual and congregational financial wellness and growth. Visit resourcefulservants.org