When I first started in the stewardship ministry our sales force would tell churches that the average a church could expect in a capital stewardship campaign would be from one and a half times their annual budget to three times their annual budget.  I still today hear that figure quoted.  Frankly you need to recognize it for what it is, a sales pitch.  The reality has always been less than that.  With the present economic climate this is even more true.

In my opinion the average you can expect is more like one to two times your budget.  Ministries may not like to hear things like that and it might set us apart from others in our industry that still talk of raising potentially three times your budget.  However, it is a reality that we had all better plan for rather than ignore.  As I tell potential clients, I would rather tell you the truth up front and lose your business than to lose you as a reference later when things did not go as you hoped.

Across the board in fund raising and stewardship we are seeing decreased commitments.  The Philanthropy Chronicle reported in their last edition that non profit institutions are lowering their goals as a result of this economic uncertainty.  We have seen this show up in our campaigns as well.

So what does this mean for you as you consider your stewardship options?  Here are some random thoughts.

1.  Set realistic expectations so you will create a feel of winning.  Whatever happens you have to win in your campaign.  If you set your sites on a number that is too high and miss it your whole organization will feel failure.  That loss of momentum could set you back years.  It takes great skill to know what the true level of expectation should be.  That of course is why you need to engage The Charis Group!

2.  Don’t let the current mood of the public discourage you from moving forward.  Now is not the time to put off for an indefinite time your next project.  While you might pledge less than you did three years ago or even a year ago donors still will respond to a compelling vision.  Even if you “only” pledge one times your operating  budget that is still one times more than you would have had.  The campaign gives you an alternate flow of cash to fuel your dreams and visions.

3.  Giving will become as important as pledging.  Donors are telling their leaders that they are putting down one amount but hoping to do more in the three years of the campaign.  With the uncertainty of the economy donors are hesitant to commit to any amount for fear of not fulfilling the pledge.  As a result you will see more simply giving rather than pledging.  This makes having a good follow up plan essential.  Which is a great place for another commercial!  We at The Charis Group are the leaders in quality follow up on campaigns.

4.  This too shall pass!  While no one knows with certainty when the economy will pick back up we do know that it will.  You can not wait for that day.  You must move forward with a good plan to weather the challenging times we live in while still moving your ministry forward.  While this climate is tough for some we need a perspective that gives us confidence in the future.  You can continue to grow in the midst of times like these.  We have been in worse situations in years past and ministries still grew.  God is still on His throne!

That is a good way to end.  Reminding ourselves that at the end of the day God is the one who holds our futures not the New York Stock Exchange or OPEC.

Now on a personal note I will be posting less for the next ten days as I am off for a vacation in Italy with my bride of 32 years.  So, the word for now is chiao!

Mark Brooks

P.S.  To read more Stewardship Coach articles or to find out more about The Charis Group check out our link at www.TheCharisGroup.org

After reading the business section today that was seemingly all bad news I decided to post a Stewardship Coach article that I wrote a few months back. Hopefully these thoughts will encourage you.

Should you move forward with your project or wait for the economy to get better?

The popular game show Deal or No Deal allows contestants the opportunity to win one million dollars. The concept seems simple enough. First a contestant chooses a briefcase that they hope contains the million dollars. Then they must choose between the remaining briefcases that hopefully have a dollar amount less than one million dollars. At each segment of the game they have to choose so many brief cases to see what dollar amounts are left in play. At the end of that round the banker on the show makes them a deal for cash if they will stop at that point. His deal is supposedly based upon the odds that their briefcase contains the million dollars or at least a high dollar amount. They can walk away with what is offered or hold out hope that the brief case they have chosen contains the million dollars. The host after each bankers offer asks the contestant, “Deal or no deal?” I have not watched it much but every time I have I have yet to see anyone walk away with really bad money. Most seem to pass up the good deals and ultimately settle for less than they hoped for.

That game show reminds me of what Christian leaders are faced with when they consider whether or not to move forward with that multi-million dollar project now or to wait for the economy to get better. The difference for us is that this is not a show. For us the question is not, “Deal or no Deal?” The question is, “Go now or wait until later?” We are risking far more than simply losing out on some dollars. We risk the loss of momentum, time, growth and even our own standing in our ministry. You might feel like some of the contestants that have to make a decision quickly and are as uncertain as they are about what to do. While we can not give you the answer since each ministries setting and situation is different we can give you some factors to ponder.

While considering whether to go now or wait until later consider these factors…

1. The Economy Factor. This requires multiples strategies. Too many leaders put all their eggs in one basket. There are at least three areas you can focus on immediately to create a healthy stewardship climate.

A. Pledges will be less. While this might not be the news you want to hear it is the truth none the less. Any firm telling you otherwise is blowing smoke at you. There is unease in our nation today about the economy that will show up on the pledge card you put into their hand. The factors for this unease range from the war, the housing crisis, the roller coaster stock market and fuel costs to name just a few consumer concerns. Pledges are coming in much more conservative now than in years past. A wise leader will set his expectations much lower.

B. Banks will be more cautious. While interest rates are lower than ever as the Feds try to stimulate the economy banks are showing a more cautious approach to lending. My banker friend John Webb recently wrote, “We are already seeing it in the fact it is taking the banks longer to make credit decisions as they review each credit much more thorough. There is less emphasis on booking new quantity business and more emphasis on booking quality business. Tighter credit reviews.” What this means for you is that you must have a solid package presented to your bank and that even then it might take longer to get that financing you need to begin your project. While not impossible to get funding we are counseling our clients to start the process as soon as possible and to seek the help of a professional to help you through this challenging stage

Are you prepared to meet and beat the economy factor? No one knows how long this present down turn will last but the wise Christian leader develops a plan to navigate through this time.

2. The Bird in the Hand Factor. Remember the old saying, “A bird in the hand is worth two in the bush? That saying apply to the possibility that if you move forward with your project and campaign you might see less pledged rather than more. However, let’s say you only pledge one times your budget over three years time. That amount is still more than you would have if you had not asked for commitments. You need to realize that 90% of your donors will not save their money for when you do hold your campaign. They will either spend it on something or give it to someone else. While you wait for the perfect time for your campaign other ministries will be fishing in your pond pulling out your fish. You have to decide if you want to fish our cut bait!

3. The Momentum Factor. You have to ask delaying your campaign while you wait for the economy to improve will cost you momentum in growth. It may be that you can get by without that new addition for another year. You might think of more creative ways to provide more space. If you can do that to sustain your growth you might have an argument for delaying the next project for a short time. However, realize that in our experience new buildings typically result in a 10% to 30% increase in attendance and a 10% to 30% increase in offerings. So, the delay might end up costing you more than if you moved ahead now. Again no one knows how long this will last. Waiting for the perfect climate might cause you to wait two, three or five years. Can you afford to delay this long?

4. The History Factor. The only real way to predict our future is to understand our past. In the history of our nation economically challenging times last only for a season and then prosperity comes back around. Every time the stock market has crashed it has always rebounded stronger and higher than before the crash. During the Carter Administration unemployment was at double digits and interest rates ran from 15% to 18%. What did churches do? They still built and hoped that rates would drop and that they could refinance. That is exactly what happened. Our position is that this present time will not last.

5. The God Factor. As Christian we base what we do not upon the circumstances around us but upon the revealed will of God. The bottom line must always be what is God saying to us? Each leader must prayerfully consider what I call the God factor. This does not mean you do not consider the above factors. What it does mean is that you get your marching orders about whether to move forward or not from He who owns the cattle on a thousand hills. The Scriptures teach us that, “If God be for us, who can be against us?” Despite challenging economic times, when you have a God vision you can and will be successful.

I am reminded of what the late great evangelist Manly Beasley said, “My problems are a platform upon which God can work a miracle!” Don’t let the challenge of our present situation derail you from pursuing the dreams and visions that God has given you. It might not be as easy as it once was but again it is an opportunity to see God at work. I believe that what God initiates He also enables! Take all the factors in hand, make wise decisions but never cease to continue to move forward for the Kingdom!

If you would like to read more Stewardship Coach’s go to our website at www.TheCharisGroup.org You will fine a button on the front page that will link you straight past articles. You can also find out more about The Charis Group there.

This past week here in Atlanta Carly Fiorina the former CEO of Hewlett-Packard was speaking to business leaders.  One of her comments was about the speed of which business was going to occur in the future.  Good business’s would be the ones that could adapt to that speed.  I had to laugh when I read that because in my world working with churches molasses sometimes move faster.  At least it seems that way to me.  If the businessmen and women of our church ran their business the way they make pastors run their churches they would be out of business!

I can hear the chorus of Amens out there.  While misery loves company what can be done?  Plus its easy for me to say all this I get in my rental car and go home.  You have to live and minister there.  We are often brave in the confines of our office or blowing off steam to our spouse only to wilt in the board or committee meeting.  So, lets talk about some practical things that can move your ball forward in a more timely manner.

1. Start early.  You would be amazed at how many Christian leaders wait until the last minute to plan for the future.  I have seen this in large churches and small.  You should be setting aside time each week for nothing but long range planning.  By the way long range is not next month or this fall!  If you are thinking about decisions that need to be made in 2008 you are behind already!  By starting early you will avoid making the decision look knee jerk.  It will give your leaders time to get their hands around it and ultimately be supportive to the entire organization.
2.  Seek outside counsel. Yes I know that sounds self serving in that my firm provides such counsel.  However my advice, even if you use another firm, is to bring someone in that can give you fresh perspective.  Here is a thought too, bring them in early not later to the process.  It will in the long run save you time and money.
3. Seek inside counsel.  The success of any meeting is the meeting before the meeting.  You should be regularly talking to a handful of trusted leaders in your organization.  Their perspective can help you refine your plans and help know how best to present them when it comes to the time of decision.  You also enlist their support before the vote!
4. Be consistent.  What you will find over time is that by applying wise decision making processes in a timely manner your leaders come to trust you more.  That speeds up the time they need to get their hands around what is being proposed.  Sadly most are reacting from the fact that our great idea is just another in a long line of hair brain ill conceived thoughts that never really worked.  So, the more wins you string together in planning and execution the greater will be there trust in your leadership.  The greater their trust in you, the faster the approval process.

Just some thoughts as we all must adjust to the speed of which decisions are made.  My hope and prayer for you is that even though your church might like molasses on their biscuit they will see the need to move faster in decision making.

Would you ever consider a giving kiosk in your vestibule?  A number of years ago I remember laughing at a Leadership Magazine cartoon that showed an offering plate with a credit card machine attached to it.  I laughed then at what sounded absurd.  Then yesterday as I was reading the latest edition of Church Solutions I saw an ad by Bank of the West for a giving kiosk.  Bank of the West will install them and even have the front designed with your logo.  Imagine several giving kiosks spread throughout your church building.  As I sat down to type out this blog I Googled giving kiosks and was amazed at how many options there were.  As with most new approaches there are a host of people lining up praising it and another host lining up condemning it.

While I am not sure where I stand just yet on this I do advocate flexible options for giving.  We live in a day where people want and demand options.  Why should we not make giving as easy as possible.  I agree with those that fear people will use their credit cards to give and thus get further into financial bondage.  At the same time some type of direct withdrawal from checking or savings is a way to help people become more faithful stewards.  When your members already do so much online why should you not give them this option?  One church that I am working with has significant receipts every week through online giving.  I might not like to have giving kiosks throughout my church but I do think electronic giving is here to stay.

What do you think?  Leave a comment with your thoughts.

This morning the business section, which I now read before the sports, announced that the market dropped 199 points yesterday as oil neared $130 a barrel.  In another article a Fanny Mae representative said we were about half way through the housing crisis and that housing values would drop by 25%.  It seems that each day brings more bad news about the economy.  Yesterday I read in Philanthropy Today that most major universities and non profits are delaying any major renovations this year.  Should you delay your project?

Last year we worked with a church in Michigan.  While I contend the economy is a regional and sector by sector issue you have to admit that Michigan has felt the challenge of this economy perhaps more than any other state.  The church we were working with was planning a new worship facility.  We were doing interviews with all their top leaders for a Feasibility Study.

I always contend that you should talk about what is obvious so we were asking donors views of how the economy would impact the potential campaign.  On everyone’s mind was the economy.  I asked one businessman in the church his opinion on whether the church should move forward with the project.  His answer was classic.  He said, “These last two years have been the worst two years of my business in thirty years.  However, I think that as people are hurting over the economies impact they will be looking for answers that we the church can provide.  We had better build that new building to get ready to meet the needs of those hurting people in our community.”  Now that is seeing the glass half full!

While we have to be wise about the times we live in and we cannot turn a blind eye to the challenges of this economy we still must operate by faith.  Don’t let the headlines scare you away from God’s best for your ministry!

This morning in the newspaper it was reported that though the economy is slowing we are not technically in a recession.  What is interesting is that you would find few people that would agree with the facts.  The facts are that though we face some challenges we are no where near the economic slump of the early 80’s.  What is a fact is that the press focuses almost entirely upon the negatives and we are in a presidential election year.  The party out of the White House can not afford to have the economy look good going into the election.  This will be true four years from now no matter which party wins in November.  As a result the perception of how things are is gloomy.  Perceptions are usually more important than reality.

What is a reality is that even though times are challenging and donations are harder to come by donors still are giving towards causes they believe in.  Several months ago in a monthly Stewardship Coach I wrote about the various trump cards in fund raising.  One statement was this, “Compelling vision trumps bad economy.”  As things continue to look and feel uncertain it is now more than ever important for you as a leader to cast a clear, concise and compelling vision of what you feel led to achieve.

The reality is that though times are tough your local McDonald’s is still in business.  Starbucks is still getting $1.75 for a cup of coffee.  The movie houses are packing in people to watch the latest adventure while eating butter ladened pop corn.  Gas might be high but we Americans still drive more than anyone else in the world.  Political leaders might chide us for setting the thermostat to 72 degrees but given the approach of hot weather we will choose comfort over frugality.

My point?  Give them something to believe in and you will see them give their hard earned money to support it!

In addition to our monthly column, The Stewardship Coach, we will now be publishing a blog containing useful information pertaining to stewardship issues.  Please check back from time to time for pertinent information and updates.

Thanks,

Mark Brooks

President The Charis Group