A more appropriate title might read: 2010 A Season of Opportunity – Even if it Doesn’t Feel Like It!
The Great Recession has been exceedingly painful for much of the non-profit world; and the pain is not over. I suspect non-profit giving patterns in 2009 will continue through 2010 and, maybe, well into 2011. Most non-profits need to develop a “wilderness survival” strategy for the next couple of years.
A Quick Look Back
Yet, before we talk about strategies for the present and future, let’s remind ourselves of the foundations of the non-profit sector, and especially the arean of church and denominational life.
How much people give to religious institutions is related to total personal disposable income (resources left over after paying for housing, food, clothing, school, private memberships, etc). In an ideal Christian world everyone would set aside a tithe to their church, before they decide how much house, or car, or country club membership they could afford; so the tithe would be protected. I keep hoping to wake up in this idealized world (surely a parallel universe), but every morning I slip-out of bed into this imperfect world where 20-30% of a congregation carries 80% of the financial burden, and where 10% given to support the church’s operating budget is contributed by people with little genuine financial commitment to the church.
This puts non-profits in a very vulnerable position during national economic downturns. Or in the example at hand, the Great Recession visits us -- disposable income shrinks (unemployment rises), or (often more likely) potential donors become very cautious, even fearful, and simply are unwilling to part with financial assets; thus, giving to churches declines substantially, even dramatically.
So, where is the opportunity?
Periods of economic contraction afford churches and religious institutions a unique opportunity to streamline and re-focus ministry objectives. By the very nature of non-profit life, and especially congregational life, in financially good times expansion is rarely strategic. Most non-profits grow based on the theological construct – the squeaky wheel gets the grease. And so, over a financially growing decade most churches will add ministries here-and-there, take on debt, and create policies for funding youth trips and choir retreats costs that are not sustainable long-term.
The Great Recession is an opportunity in the following ways.
It is an opportunity to review church policies, procedures, and ministries with an eye toward sustainability. It is a time to re-focus a congregation on the tasks that are truly essential to its mission.
It is an opportunity to make substantial headway in creating a healthy business model for ministry – one that will sustain a congregation in good times and bad. Churches are incapable of creating healthy business models in financially good times. It has to be done in hard times. Don’t miss the opportunity!
It is an opportunity to purge programs and events that are on their “last leg” anyway. Stop doing things, yes this is possible in local church ministry, which are no longer of strategic value in the congregation’s life.
Looking Ahead
Ministers need to adopt helpful metaphors for these days: Wilderness wanderings, the Via Delarosa, faithfully running the race, etc. Find a biblical text and metaphor for these times and keep talking about it; in sermons, Bible studies, over coffee and lunch. In doing so you acknowledge the struggles of the present, but draw the congregation’s eye toward a brighter future.
In time, as a better economic future begins to unfold, make sure the congregation makes healthy decisions about use of financial resources. Let me offer a number of suggestions for congregational life after the Great Recession and the Slow Recovery.
Pay fewer people more money. Keep A employees and pay them what they are worth; and, don’t tolerate C- employees.
Do not, do not, give across the board salary increases to staff on a yearly basis. Giving everyone a 2% salary increase rewards poor performance and penalizes excellent performance. People should be paid based on their personal performance.
Instead of adding staff, create systems that utilize and reward volunteers.
Reduce congregational debt any way you can. In a tight financial world, debt will drag a church down faster than anything else.
As a church’s budget grows, grow the percent of the operating budget designated for “program ministries,” (youth, children, music, older adult ministries). “Pushing money” toward programs is like a business improving its menu, increasing advertising, or running promotions that draw in business. As the economy recovers church receipts will grow; don’t let the increase go to same-old-same-old. Rather, “push” the money toward programs that have the potential of growing the revenue stream (new members and new donors).
Make the case the local church is a mission cause as much as any ministry the congregation funds. Consequently, mission giving (funding ministries beyond the church) is no more important (maybe less important) than funding for the church’s ministry and work. The Sacred Mission Dollar was a creation of twentieth-century denominationalism. I remember when denominational leaders pushed churches to give 15%, even 20%, to the “Cooperative Program,” the denominational giving plan. This was wonderful for denominational agencies and terrible for local churches. In particular, the theology behind “give more to the Cooperative Program” caused local congregations to under-value their own work. I especially remember denominational employees (of course) pushing the idea “missions” is money given to causes beyond the congregation and “ministry” is a congregation using money on itself. What a vulgar thing to say! What a self-serving thing to say to a church! This culture must be changed.
The pastor should lead the congregation’s financial management and stewardship efforts. Churches need pastors to lead in both these areas. Give enthusiastic support to stewardship education (classes on family finances, family budgeting, strategies to pay for college education of children, estate planning, and the biblical mandate to be generous givers).
Ministers must develop a multitude of skills for the twenty-first century: financial management, growing stewardship traditions (including stewardship education), public relations, and marketing.
Ministers must develop well-rounded theological and psychological perspectives of themselves and their work. Ministerial care and love for a congregation includes discipline, truth telling, and confrontation. Ministers are certainly co-laborers with laity. Yet, at times the minister has to be the parent in the organization.
Take Away (alias conclusion)
Hard times call for leadership. When church life is smooth and expanding, and the national economy is healthy, ministers can play the role of encourager, cheerleader, guide, and facilitator. When times are difficult in church life ministers must fill the gap and become parent, visionary, and insistent coach.
Let me use a pastoral example. In a Bible study discussion a question may arise and it will be helpful for the minister to say, “Well there are three scholarly views on that….” This would be a wonderful beginning point to expand the congregation’s theological views and provide a helpful forum for dialogue and discussion.
On the other hand, when an infant dies and a parent asks, “Is my daughter going to heaven?” It is no time for “Well there are three scholarly views on…” It is time for straight talk, conclusions, and convictions.
In 2010, we are living in “on the other hand.” It is time for thoughtful ministerial leadership.