Giving & Finances in an Effective Church Source: Kennon Callahan

A metaphor … There are different types of givers – Find “sprinters” to help with immediate, short-term objectives – Find “marathoners” to work on routine, regular, year-round objectives

Multiple Income Streams Wise churches not only plan for annual (“marathon”) giving, but also for “sprinter”-type giving – 1. Spontaneous giving – 2. Enduring – 3. Special planned Denominational – 4. Major project – 5. Major community Sundays Easter, Christmas, plus 5-8 more

What it looks like in a church budget Total giving potential: $150,000 – Spontaneous: 15,000 – Major Sundays: 10,000 – Planned: 5,000 – Community-wide events: 5000 – Major projects: 55,000 – Annual givers: 60,000 – Only “annual” are marathon ways of giving – If a church will add “sprinter” ways, they can add resources

1. Spontaneous Giving Can take 3-5 items in current year’s budget and do them as spontaneous giving items in the following year – If a church doesn’t have a “plan” for impulse giving, other entities will get the 3 impulse gifts per year that people will give Causes have immediately perceived integrity and value in helping people The one who requests has the trust and respect of the congregation

Appropriate Subjects for Spontaneous Giving: Children’s causes Youth to camp For the poor Sudden disaster Special cause or opportunity “Impulse” buy (not on list)

2. Enduring Gifts “People give to people” – We give to specific projects that help people directly – The “people pictures” we create determine the level of effectiveness People want some of their giving to endure – And if we don’t ask for them for these gifts in the church, people give their enduring gifts they’re going to give to libraries, causes, Red Cross

Characteristics of Enduring Gifts: People give enduring gifts with their fluid and fixed assets People give to an annual budget/ mission out of their income They come out of different pockets. – Enduring gifts don’t compete with regular annual giving!

“Enduring” Characteristics (cont.) 60% of enduring gifts are given on “this side of the river” – We have to focus on more than the person’s will – “principle stays intact, interest advances our mission” Show 5-8 projects that have broad appeal for congregation and community, with $/date goals – Put most appealing one first, second most appealing one last in list

3. Special Planned Offerings Information given ahead of time Have an “institutional” feel – denominational Specific Sunday Repeated on annual basis Don’t have same appeal as spontaneous giving Can do 2-4 a year

4. Major Project Giving People grow in their capacity to give in quantum leaps, not incrementally or stair-step Potential Candidates for these gifts: – Person served by church’s mission – Constituents – Members – Friends elsewhere – Community persons

Characteristics of “Major Project Giving” Specific, concrete, and time-bound Can be capital improvements, new building, debt retirement, mission or staffing project beyond annual budget Formula – Annual giving (ie. $100,000) – Find 60% ($60,000) – Multiply by 3 years ($180,000)

5. Annual Giving A mission budget is built on “investments,” not “costs” – Not, “How much does it cost to pay the light bill?” – But, “How much do we invest to transform human lives” Typically covers maintenance, denominational giving, cost-basis salaries

An annual budget … 1. Helps people discover the generosity of God’s grace in their lives 2. Shows the people we’re helping this year 3. Shows the leaders who are helping these people

Therefore … Wise leaders understand that different people give differently And, enable different types of givers to give … – So that they don’t give it elsewhere by default By creating multiple income streams for giving to the church

Giving & Finances in an Effective Church Dr. John P. Chandler The Ray and Ann Spence Network for Congregational Leadership Copy Right John P. Chandler, 2001