christian standard January 2018
the finance issue Sound biblical teaching on a variety of personal, family, and church financial matters
C H RIS TIA N STA N DAR D
- 1 -
J A N UA RY 2 0 1 8
C H RIS TIA N STA N DAR D
- 1 -
J A N UA RY 2 0 1 8
forward, it is all worth it. That may be true, but we have a church budget to do, missionaries to support, a staff to pay, and a church mortgage to retire. It’s hard not to see the numbers as a true reflection of my effectiveness for the kingdom. It would be great to occasionally avoid the numbers by just not reporting attendance in a bulletin or magazine, or sharing it with only a select few, but the numbers are there even if we attempt to ignore them.
letter FROM THE publisher Jerry Harris
Publisher | Christian Standard Media
I live every day with the tyranny of numbers. It’s everywhere I look, around every corner, in every closet, reminding me of the truth, the oftentimes painful truth. When I get up in the morning, the tyranny of numbers is waiting on the bathroom scale display. It’s in my Weight Watchers app on my phone, in my budget, my bills, and my bank balance. As a pastor, I face the tyranny of numbers when I see last week’s attendance, the offering number, and the number of baptisms. I live with the tyranny of numbers when I look at how our church numbers compare with others, whether the trend is up or down, and what I might do to improve them. When the numbers are good, my whole day seems better. The reverse is also true. Over the years, the numbers have been a cruel master. There are people who remind me that God gives the increase, that we can only do our part, and that if even one person chooses to move C H RIS TIA N STA N DAR D
Does any of this sound familiar? Those who serve in leadership are probably connecting with these thoughts. I have had the privilege of meeting people who are true artists with numbers . . . especially church numbers. They offer wise counsel on how to view them, which ones are truly important, and how to maximize my efforts with them. That’s what this issue is about. January represents a new year, and oftentimes that new year is accompanied with resolutions to do better and be better. But it can be hard to make improvements without some specific coaching and encouraging. The writers in this issue address these challenges from different angles, and maybe . . . just maybe . . . one of these articles will help you get your foot on the neck of one of those tyrannical numbers. I get a better perspective on numbers when I see them in the light of God’s Word. I’m reminded that numbers might be tyrants, but Jesus is Lord. My staff and I are all committing to use The Lookout as our daily Bible study guide in this new year. It will help us read through the Bible together, providing both a personal quiet time and a unifying experience as we learn together in our work community. I’m looking forward to it. I’m also looking to this issue of Christian Standard to help us take some ground in the daily grind of the numbers.
Jerry Harris is publisher of Christian Standard Media and senior pastor of The Crossing, a multisite church located in three states across the Midwest. @_jerryharris - 2 -
J A N UA RY 2 0 1 8
/jerrydharris
CHRISTIAN STANDARD —
FOUNDED 1866 BY ISAAC ERRETT Devoted to the restoration of New Testament Christianity, its doctrine, its ordinances, and its fruits.
The Staff Jerry Harris, Publisher Michael C. Mack, Editor Jim Nieman, Managing Editor Shawn McMullen, Contributing Editor Megan Kempf, Designer Abby Harris, Photography Renee Little, Operations Anne Steinbroner, Customer Service
24 the FUTURE o f FINANCES in the RESTORATION MOVEMENT
by doug crozier
30
Subscription Information To order Christian Standard for yourself, your church, or your group, visit christianstandard.com or contact Customer Service. Bulk pricing is available.
ON-RAMPS AND EXITS: How to Help Your Children Reach Financial Freedom
CUSTOMER SERVICE
800.543.1353 info@christianstandardmedia.com Volume CLIII. Number 1. Christian Standard (ISSN 0009-5656) is published monthly by Christian Standard Media at 16965 Pine Lane, Suite 202, Parker, CO 80134. Periodicals postage paid at Parker, CO, and additional offices. All Scripture quotations, unless otherwise indicated, are taken from the HOLY BIBLE, NEW INTERNATIONAL VERSION®. NIV®. Copyright ©1973, 1978, 1984, 2011 by Biblica, Inc.™ Used by permission of Zondervan. All rights reserved. POSTMASTER: Send address changes to Christian Standard Media, 16965 Pine Lane, Suite 202, Parker, CO 80134. Phone: 1-800543-1353.
by barry cameron
36 open your eyes to manage the FINANCES of the CHURCH
by Brad Dupray
SUBSCRIBERS: Send address changes to Christian Standard, 16965 Pine Lane, Suite 202, Parker, CO 80134. Send old and new addresses, complete with zip codes, at least six weeks before delivery date.
42
Christian Standard is published by Christian Standard Media, www.christianstandardmedia.com
Copyright ©2017 by Christian Standard Media Email: cs@christianstandardmedia.com Website: www.christianstandard.com
HOW TO prep are for a financial storm
Printed in USA
by Darren Key AND Mike Kocolowski C H RIS TIA N STA N DAR D
- 4 -
J A N UA RY 2 0 1 8
TABLE OF CONTENTS
46
—
GET creative WITH YOUR FUND-RAISING
I N E V E RY I S S UE 2 | LETTER FROM THE P UB L ISH E R
by David Girdwood
Jerry Harris
6 | LETTER FROM THE E DITO R Michael C. Mack
50 when PERSONAL FINANCES strangle MINISTRY
by tom burbrink, kim robinette, AND karen isaacs
55
7-9 | MOVE ME N T Money Matters: Practical Tips for Fund-Ra ising David Dummitt
10-13 | ME TRICS 2017 Ministers’ Sa la r y Sur vey Kent Fillinger
14-16 | RE L E VA N CE What We Ca n Learn from Traditionalists About Mo ney Haydn Shaw
17-19 | E 2 : E F F E C T I V E E L DE RS The Solution to Our Mone y Pr o blem Gary Johnson
the church budget shouldn’t be THIS HARD
20-21 | IMAG IN E Blurring Lines Between Ministry a nd Ma r ke tplace Mel McGowan
by chris boue
60 1 2 WAYS
to protect your congregation in a
LITIGIOUS CU LT U R E
by tr robertson C H RIS TIA N STA N DAR D
- 5 -
J A N UA RY 2 0 1 8
22-23 | H O RIZON S How Budget Trends are Affe c ting Missions Emily Drayne
66-69 | H E ADL I N ES 70-71 | IN TE RA CT 72 | C O M M U N I O N ME DITATIO N Beautiful in G o d ’s Ey e s Jim Nieman
letter editor FROM THE Michael c. Mack Editor | Christian Standard @michaelcmack @michaelcmack @michaelcmack /AuthorMichaelCMack
A 2015 research study revealed that small group participants gave an average of $1,886 more per year to their churches than those not in groups. As a small groups guy, that statistic makes me smile. You’re probably not shocked by this finding. It makes sense that the more connected and involved people are in the life of the church, the more buy in they will have to the church’s vision and the more they will tend to give. But I think there’s more to it. LD Campbell, who was senior minister of First Church, Burlington, Kentucky, for more than 38 years, was discussing a lack of generosity and giving with a group of leaders at the church when he said something that has stuck with those leaders for years. He said, “We have dropped the ball when it comes to discipleship.” Stewardship is inextricably tied to discipleship. Growing Christ followers learn to surrender more and more of their lives, including their money. They learn to love Jesus more in every aspect of their lives, including their finances. If giving isn’t what it should be at your church, consider how you can better disciple the people under your care. Now, don’t run out and start a campaign to get everyone involved in small groups as a fundC H RIS TIA N STA N DAR D
raising solution. Small groups are not the answer. They are simply an environment where disciples are made; the soil in which people grow, bear fruit, and reproduce themselves. But the study does make me wonder: What if the best stewardship campaign, especially over the longterm, involved intentionally discipling people in a fertile environment where they connect, learn, develop their gifts, serve, share leadership, and are naturally held accountable for spiritual disciplines such as personal Bible study, prayer, rest, and giving? For this issue, we’ve selected wise leaders from our movement to provide sound biblical teaching on a variety of personal, family, and church financial issues. They provide relevant ideas and tools you can use for fund-raising, planning, managing cash flow, and assessing healthy church finances. This issue isn’t just about raising more funds for ministry, however. It isn’t really about buildings, budgets, or benefits. It’s a practical stewardship guide for carrying out your mission as a disciplemaking church. Don’t drop the ball!
- 6 -
J A N UA RY 2 0 1 8
JA N U A RY 2018 C H RI S T I A N S TA N DA RD - 7 -
- MOVEMENT -
MONEY MATTERS practical tips for fund-raising BY DAVID DUMMITT
1
Prioritize Relationships Over Resources
Whether you’re raising funds for a personal mission trip, planting a new church, or any number of other ministry endeavors, money is necessary to drive Godgiven dreams forward. In my experience, God has “come through” most dynamically through finances. I have found myself in a position many times where a vision was sure to fail, and yet God has always come through in huge ways. When it comes to fundraising, we must pray like it depends on God and work like it depends on us. Pray hard. Work hard. Here are a few practical fund-raising tips I’ve learned:
When we have God-sized dreams and we’re ready to do the leg work to raise the funds necessary to move forward, we must start by aligning our priorities with God’s. No Godsized dream is from God if it doesn’t involve loving people, including the people we invite to partner with us on mission. Money is important, but people are critical. When we focus on building relationships, the finances will come. When we cultivate relationships with the people behind the giving, we tie their heartstrings even tighter to the mission. We allow people to be changed and impacted by the work being done simply by letting them know that they matter, not just their wallets; they are a part of the journey, and not just pawns for our own personal achievement.
C H RIS TIA N STA N DAR D
- 7 -
J A N UA RY 2 0 1 8
2
Tackle the Fear of Fund-raising
Raising money for kingdom initiatives is as biblical as Peter or Paul, but asking for money still makes most of us feel uneasy. In an attempt to save parents from constant fund-raisers, many elementary schools through high schools have started offering parents a “buyout” option at the beginning of the year: parents can donate a set amount, perhaps $30, and be excluded from having to peddle cookies, pizza kits, and overpriced wrapping paper to neighbors and coworkers. We don’t like to feel as if we have unmet needs. But the truth is, we aren’t meant to go alone. When we ask people to be generous toward God-given dreams and goals, we aren’t asking for favors; we’re inviting them to get in the game. It feels good to be asked to get off the bench, doesn’t it? We’re giving them an opportunity to get into the Jesus mission with us. We can be confident in asking people for financial contributions because they aren’t helping us, they’re joining us.
3
Have a Compelling Vision
Vision is a foundational element of fund-raising; we need clarity about that vision so we can explain it to others. Here are a few questions to answer to help develop a strong vision: • What problem are you trying to solve? In church planting, we usually share about the number of unreached people or lack of churches in a certain region. • Why are you personally passionate about solving the problem and what is your plan? • What is your budget? Know exactly how much money you need and the deadline for gathering it. You may consider having several levels of budgets: a bare minimum goal (“If we don’t raise X amount, this will not happen”), a healthy goal, and a God-sized goal (the amount that would allow you to take the vision to the next level). • What level of support will receive a yes from everyone? Ask people to say yes to at least one of the following: praying for your mission, funding your mission, or volunteering with your mission.
RISTIA TIANN STA STAN DA RDD - - 88 - - J JAAN UARY CCHHRIS N DAR N UA RY 22001188
4
Buy In and Gain Some Early Wins When we are on a mission, we also need to personally buy in. We need to be the first people to give to the goal. When we were fund-raising to plant 2|42 Community Church, which I serve as lead pastor, we asked our entire staff to give 30 percent of their salaries to the plant. Believe in your vision enough to be personally invested. You cannot lead others to give unless you first pave the way. Once we have skin in the game, we can start asking for gifts from people who are the most likely to give; that will lead to some early wins. Rising above the “zero” commitment level early on builds your confidence to invite others to give, and it also demonstrates that others are backing the goal. People are generally more inclined to contribute when they know others have already given.
5
- MOVEMENT -
Segment Your Contacts
Nonprofit fund-raising experts use a fancy phrase: “donor segmentation.” This simply means making a list of every person we want to ask to donate, and dividing them into groups, or “segments,” based on common factors. Some people in our respective spheres of influence are high-capacity givers, churches, or business leaders looking to give to worthy missions. Others are able to give a few dollars here and there. Still more would serve on a fund-raising team to ask even more people to contribute, which multiplies influence and opportunity. People are not “one size fits all.” We need to tailor our “asks” to fit whom we are asking. Segmentation enables us to communicate with people in ways that are meaningful to them as individuals, while also building rapport, credibility, and trust.
6
Say Thank-You Quickly, Say Thank-You Often Appreciation goes a long way in developing healthy relationships. When my wife, Rachel, and I married, we wrote thank-you cards for every gift we received, whether brand-new pots and pans or a cross-stitched coaster set. (OK, it was mostly Rachel; she has much better handwriting.) When people who partner with us know that we notice and appreciate their partnership to drive the mission forward, relationships are strengthened. We can say thank-you many different ways, be it a personal telephone call, a public shout-out on social media or from the stage, or a good, old-fashioned card in the mail. Whatever way you choose to do it, say thank-you. Fund-raising doesn’t have to be awkward or a burden. In fact, fund-raising can strengthen relationships and the church as we work together to achieve a Godsized vision.
H RISTIA TIAN NSTA STAN DAR N DARD D - - 9 9 - - J AN J A UARY N UA RY2 02 10 81 8 C HC RIS
David Dummitt is the lead pastor and planter of 2|42 Community Church, one of the largest and fastest-growing churches in the country. He is also on the lead team of NewThing, a catalyst for reproducing churches worldwide. /DavidDummitt
- METRICS -
2017
MINISTERS’ SALARY SURVEY BY K E N T FIL L INGER
I
n a typical workplace, and in churches, workers don’t publicly discuss salaries and certain benefits they receive. But this trend is changing among millennials. Benefits consultant Mary Ann Sardone recently told the Wall Street Journal, “Pay and promotions are not secretive topics anymore. Companies are spending more time ensuring their pay decisions are fair and highlighting career paths under the assumption that the information is going to be widely shared.” Recent research showed “roughly one-third of U.S. workers ages 18-36 say they feel comfortable discussing pay with their co-workers, more than any other age group and about four times the rate among baby boomers, ages 53-71,” according to that same WSJ article (“Pay Is Less Secretive in Millennial Workforce,” by Kelsey Gee, October 26, 2017). In consideration of this trend toward transparency, churches should be prepared to explain why some staff members make more than others and begin to formalize compensation and benefits practices. As we start 2018, I’m excited to share brand-new research about salaries and benefits of Restoration Movement ministers. Our anonymous salary survey was completed by 401 ministers in October 2017. Ninety percent of the respondents serve in a full-time ministry capacity (30 hours or more per week), 7 percent work part-time (29 hours or less), and 3 percent are volunteers. I’ll examine the data from various viewpoints to provide context and insights for ministers and churches to use as they plan and prepare for future compensation, benefits, and budgeting discussions and decisions. You also might want to check out this online resource (www.time.com/salary) from Money and Time magazines; it lets you compare your pay to the median salary earned by people your age in your state. C H RIS TIA N STAN DA R D
- 10 -
J AN UARY 2 0 1 8
Kent E. Fillinger serves as president of 3:STRANDS Consulting and director of partnerships with CMF International, Indianapolis, Indiana. /3strandsconsulting www.3strandsconsulting.com
Full-time Lead Ministers’ Salaries by Church Size Two-thirds of the ministers who completed the survey are lead ministers. And 92 percent of these lead ministers serve in a full-time capacity. Not surprisingly, the results show that the larger the church, the larger the minister’s salary. On average, the largest percentage increase occurs in the jump from an emerging megachurch (average weekly attendance of 1,000 to 1,999) to a megachurch (more than 2,000 attending). Megachurch ministers make 60 percent more on average than their emerging megachurch counterparts. Collectively, the average salary for all full-time lead ministers in this study is $67,773, based on 240 responses. Eighteen lead ministers report working part-time hours with an average annual salary of $17,356. Seventeen Under 100 100-249 250-499 500-999 1,000-1,999 2,000+ of these part-time ministers serve in a Low $15,000 $32,393 $50,000 $48,000 $74,400 $105,000 church with an average High $78,000 $108,000 $103,000 $140,000 $149,000 $275,000 attendance of fewer Average $46,347 $57,703 71,564 $91,214 $99,215 $158,833 than 100 people.
Full-time Lead Ministers’ Salaries by Church Location Lead ministers serving in a church located in a newer suburb around a city have the highest average salary, $90,487 annually. Small-town and rural community lead ministers have the lowest average salary, $57,269, which is 58 percent less than the average lead minister in the newer suburban church. Small Town/Rural Community
Downtown or Central Area of the City
Older Residential Area in City
Older Suburb around City
Newer Suburb around City
Low
$15,000
$43,000
$32,000
$31,200
$50,000
High
$125,000
$149,000
$110,000
$275,000
$202,000
Average
$57,269
$71,800
$67,620
$80,335
$90,487
Salaries based on Ministry Position (Full-time and Part-time Combined)
Twenty-nine of the lead ministers report making more than $100,000 annually, while five report making less than $10,000 a year. Thirteen of the 15 executive ministers who participated in the survey serve in a church with an average attendance of more than 500. lead/senior
Student/ Youth
Associate
Worship
Executive
Discipleship/ Small Groups
Children’s
Low
$5,000
$22,000
$6,500
$22,950
$47,000
$32,782
$7,200
High
$275,000
$65,000
$115,000
$92,000
$146,000
$125,000
$90,000
Average
$64,255
$47,372
$46,777
$44,187
$77,651
$59,478
$38,095
C H RIS TIA N STAN DA R D
- 11 -
J AN UARY 2 0 1 8
- METRICS -
Salaries Based on Church Budget Size (all positions and hours)
Here’s a look at average salaries based on the size of the church budget. These numbers reflect both full-time and part-time ministers serving in any staff position. While some ministers from churches with budgets of more than $10 million responded, there weren’t enough participants to draw clear conclusions. The primary trend shows that staff salaries increase as church budgets increase. There was an aberration in the category for churches with average annual budgets of $750,000 to $1 million. The average salary of $76,436 for churches of this budget size is higher than the next three larger budget categories. My guess is that churches with a budget of more than $1 million have more ministers on staff than the churches in the $750,000 to $1 million range. Therefore, the average salary dips comparatively. <$150,000
$150,000- $250,000- $500,000- $750,000$250,000 $500,000 $750,000 $1M
$1M$1.5M
$1.5M$2.5M
$2.5M$5M
$5M-$10M
$30,000
$27,000
$32,782
Low
$5,000
$7,000
$7,200
$15,600
$22,000
$30,000
High
$72,000
$104,000
$100,242
$130,000
$125,000
$140,000 $115,000 $149,000 $202,000
Average
$38,739
$52,485
$57,179
$61,466
$76,436
$72,498
$74,182
$75,111 $104,435
Salaries Based on education level The old adage is true—it pays to go to school! The survey shows that a higher level of education results in a larger salary. Ministers with a master’s degree on average make 19 percent more than those with only a bachelor’s degree. bachelor’s degree master’s degree doctoral degree And those with a doctoral degree make an average of 28 percent more than Low $5,000 $7,000 $19,000 ministers with a master’s degree. High
$185,000
$275,000
$202,000
Average
$54,198
$64,740
$83,083
Salaries Based on Gender Low There were 379 salary survey responses from men and only 20 from women. One-fourth of the women surveyed serve as a High children’s minister and 19 percent serve as discipleship or small Average group ministers. C H RIS TIA N STAN DA R D
- 12 -
J AN UARY 2 0 1 8
male
female
$5,000
$7,200
$275,000
$90,000
$60,232
$40,428
Benefits by Church Size Emerging megachurch ministers appear to have the best benefits packages overall, based on this survey, although megachurch ministers are the most likely to report receiving health insurance, a retirement/403(b) match or contribution, and disability insurance. In addition to the benefits listed on the right, ministers wrote in some additional benefits they receive, which include: paid utilities, a YMCA membership, a weekend getaway with a spouse for up to $500, dependent care reimbursement, and half off the churchâ&#x20AC;&#x2122;s preschool for their children.
average weekly attendance Under 100
100249
250499
500999
1,000- 2,000+ 1,999
Paid vacation days/paid time off
88%
96%
96%
100%
100%
97%
Sick days
48%
64%
68%
75%
90%
66%
Personal days
37%
51%
53%
56%
69%
53%
Health/medical insurance
22%
28%
Disability insurance
2%
3%
Retirement/403(b) match and/or contribution
13%
25%
36% 13% 31%
65% 7% 65%
82% 38% 74%
95% 47% 92%
Professional expense account
27%
30%
Continuing education/professional development
24%
27%
Cell phone allowance
21%
32%
Mileage reimbursement
29%
36%
Car/vehicle allowance
4%
4%
Sabbatical
1%
13%
Parsonage/housing
30%
12%
Housing allowance
50%
66%
39% 31% 26% 38% 3% 10% 0% 72%
54% 35% 44% 53% 5% 30% 9% 84%
56% 36% 46% 49% 0% 41% 0% 82%
50% 32% 45% 55% 3% 39% 3% 76%
Benefits Based on Full-time Vs. Part-time Employment It makes sense that full-time employees receive more benefits than part-time employees, and the survey results confirm this. Full-time ministers are far more likely to receive these five benefits than part-time ministers: health/medical insurance, retirement/403(b) match, cell phone allowance, paid vacation days, and a professional expense account.
I want to thank everyone who participated in our salary and benefits survey. I hope this information will help as you negotiate a raise, determine salary ranges for staff positions, and create compensation packages for new hires.
full-time
part-time
difference
Paid vacation days/paid time off
97%
74%
23%
Sick days
67%
48%
19%
Personal days
52%
35%
17%
Health/medical insurance
48%
4%
Disability insurance
13%
0%
Retirement/403(b) match and/or contribution
42%
17%
Professional expense account
40%
17%
Continuing education/professional development
30%
17%
Cell phone allowance
34%
9%
Mileage reimbursement
41%
22%
Car/vehicle allowance
3%
9%
Sabbatical
18%
9%
Parsonage/housing
12%
0%
Housing allowance
70%
52%
44% 13% 25% 23% 13% 25% 19% (6%) 9% 12% 18%
C H RIS TIA N STAN DA R D
- 13 -
J AN UARY 2 0 1 8
- RELEVANCE -
WHAT WE CAN LEARN FROM
Traditionalists About Money BY H AYDN SH A W
People now live 30 years longer than they once did. In 1900 the average life span was 48; today it’s 78. But as people live longer—for which we’re all grateful— it presents new challenges that previous eras didn’t face. In previous eras, there were only three generations. The oldest generation had the money and made the decisions, and the younger generation of adults raised the children and did what the older generation asked them to until their parents died, and then their turn came to be in control. Changes in families and churches came slowly and naturally, with little disruption. Younger generations didn’t push for what they wanted; they waited their turn because their parents would likely be gone soon enough. But today, for the first time in history, we have five generations in our families, churches, and communities. Five. (From oldest to youngest they are: traditionalists, boomers, gen Xers, millennials, and gen Z.) That’s a huge change, and it causes quite a shake-up because every generation is pushing to be heard and understood, to find their own way, to recover what they feel the previous generation fumbled away, and to work out their parents’ unfinished business. C H RIS TIA N STAN DA R D
- 14 -
J AN UARY 2 0 1 8
$
To handle this new world, we need generational intelligence. The reason we struggle with other generations is not that they are “the problem,” but that we don’t understand them. We don’t know why they think differently, so we stereotype, criticize, or make jokes. But when we start to understand another generation—rather than attempting to maneuver others into seeing things our way—we open ourselves to new possibilities of relating, helping, reaching, encouraging, and loving them. But best of all, they show us ways to grow spiritually. Oseola McCarty illustrates what is great about the traditionalists (those born before 1945). Oseola was a washerwoman from Hattiesburg, Mississippi. At the age of 8, to aid with the family finances, she began helping her mother wash and iron clothes. Then when her aunt became ill, Oseola dropped out of school in the sixth grade to wash and iron full-time. She never returned to school, but instead spent the rest of her life washing. Every week she took some of her money to tithe, pay bills, and buy food, and then put the rest into a savings account. Faithfully she saved.
Oseola McCarty illustrates some of the wonderful spiritual strengths I’ve observed both personally and in the literature about the traditionalists: they cooperate, they serve with lower expectations than other generations, and they give generously. They Cooperate Life in extended families, on the farm, and in World War II developed in traditionalists a strong sense of cooperation. World War II created the greatest national unity in our nation’s history. Organizing millions for battle (and even more at home to conserve critical supplies), eating tripe and pig’s feet instead of hamburger, and buying wartime savings bonds required people to set aside their own interests and cooperate. That same “We Can Do It” attitude that adorned the famous Rosie the Riveter poster during the war stayed with a generation after the war as they saw cooperation create medical breakthroughs, interstate highways, and technological miracles. They flocked to clubs and started associations. Most of them had a church, even if they didn’t attend regularly. Going it alone made no sense to them. In true traditionalist form, Oseola McCarty gave her money away because she wanted others to receive the support she didn’t get. My 4-foot-11-inch grandmother Emily assumed even the mob embraced this notion of cooperation when she went door-to-door collecting for the March of Dimes. The other women in her group wanted to skip the houses owned by mobsters, but my grandmother said, “They’re not going to shoot me in broad daylight for asking for a donation. Who in this neighborhood has more money than they do? Plus, they’re Catholic, so they feel
When arthritis forced her to retire at the age of 86, she decided it was time to pull out her $280,000 and spend it, according to a December 1995 article in Ebony. But instead of using the money on a new car or a luxury trip—things she surely deserved since she had worked so hard all those years— she donated a portion to her church, some to her family, and more than $150,000 to the University of Southern Mississippi because she wanted “to give some child the opportunity I didn’t have. . . . I hope this money can help children, for years to come, make their dreams come true.” C H RIS TIA N STAN DA R D
- 15 -
J AN UARY 2 0 1 8
guilty about their life of crime and always give generously.” Sure enough, she always raised the most money because she knew that mobster families were actually quite eager to cooperate with respectable pursuits. They Serve with Lower Expectations Traditionalists have lower expectations for organizations than the younger generations do. For instance, they are comfortable in smaller and less elaborate buildings. Big wars, the Great Depression, and medical breakthroughs taught them that even though organizations are imperfect, they can still accomplish great things. So if the organization mattered to the community or their family, the traditionalists did their duty and didn’t complain. Oseola McCarty didn’t do research on the academic standing or job placement record of the University of Southern Mississippi when she donated her savings; she gave to her local university precisely because it was her local university. It wasn’t about the university anyway; it was about the greater good. Even, as we saw with my grandma, if you were in the mob. They Give Financially Traditionalists approach money differently than the other generations do. As Oseola McCarty illustrates, they are famous savers, and they are also givers. When this generation hears about a need, they’re the first to pull out their checkbooks and write a check. Traditionalists give more money to the church and to missions than other generations do, according to the article “Tithing Falls by the Wayside” by Julia Duin in Insight on the News (February 18, 2002). Because traditionalists still embrace self-
sacrifice, they’re more willing to do without in order to support others. The church I attend had a big push to take care of orphans and sponsor impoverished children in Kenya. While I sponsor three children, neither I nor the other Xers I know gave up cable (or Hulu or Netflix) to do it. But a wonderful traditionalist woman at my church who is on a fixed income decided that those children needed the money far more than she needed multiple channels. She sacrificed in order to sponsor. Traditionalists are also more trusting in organizations. In fact, in some cases their willingness to give and their reluctance to ask questions has led them to financially support unworthy ministries, such as in the 1980s, when televangelists embezzled money, spent it on themselves, and served jail time for it. This strength hasn’t carried over to the next generations, however, and many ministries have had to do without, and in some cases make major cuts or even close their doors. I was on a conference call with leaders from 50 large churches and ministries who were concerned because they’ve already seen a 10 percent drop in giving as the traditionalists die. Even with the greatest transfer of wealth in human history from the traditionalists to their kids and grandkids, these ministries don’t expect the younger generations to give it, but instead, to spend it on luxuries and to pay off debt. Let me close with two questions, one for you and one for your church: How does God want you to be less like your generation and more like a traditionalist? What do you think ministries must do differently to help younger generations give?
Haydn Shaw is a minister who speaks to and consults with churches and religious organizations to help them grow. He is founder of People Driven Results and is a leading expert on helping different generations work together. This article is adapted from Generational IQ: Christianity Isn’t Dying, Millennials Aren’t the Problem, and the Future Is Bright, which he wrote for churches. Learn more about generations in the church and find free resources at http://christianityisnotdying.com. /TheHaydnShaw
@TheHaydnShaw C H RIS TIA N STAN DA R D
- 16 -
J AN UARY 2 0 1 8
@HaydnShaw
the solution to our money problem BY GARY J OH N SON With his transmission, “Houston, we’ve had a problem,” astronaut Jack Swigert rather understatedly signaled to Mission Control on April 14, 1970, that there was an emergency. An explosion onboard the Apollo 13 spacecraft threatened the lives of three astronauts and NASA’s mission to the moon. We must declare that we also have a real problem. A serious one. It involves something that affects all of us—money. Money impacts every person every day, from putting gas in the car to food on the table. Many people struggle with moneyrelated issues. Bills can’t be paid. Budgets go unfunded. People go without essentials. An explosion caused the Apollo 13 crisis, and an explosion of debt has caused our nation’s financial crisis. From student loans to consumer loans, this debt explosion has engulfed us. Massive debt triggered the Great Recession of 2007–09, and rather than learn valuable lessons from that painful season of life, Americans now carry even more debt. Record numbers of older Americans are retiring in the red. America is the No. 1 debtor nation in the world. The federal debt exceeds $20 trillion. Do you remember when our national CH R I ST I A N STAN DA R D
- 17 -
J A N UA RY 2 0 1 8
debt hit $1 trillion in 1981? It has continued to escalate rapidly throughout our lifetimes. Cities are filing bankruptcy because of their debt load. Churches and Christians alike struggle financially because of debt. Clearly, we can say, “America, we have a problem.” Problems call for solutions, and struggling Americans have tried a number of approaches. Some individuals consolidate their consumer debt into one large loan. Others try to increase their income via a better-paying job or additional job, so they can pay down debt. Some talk with credit counselors, while others seek legal relief from debt. Some people read money management books. There’s one solution, though, that’s a real life-changer. The apostle Paul offered this solution when he said, “I’ve learned to be content.” As elders, are we content? We must be able to teach (1 Timothy 3:2), and teaching by example is one of the most effective methods (1 Corinthians 11:1). What kind of financial lessons can people learn as they watch us? What example are we setting for those in our congregations when it comes to the way we manage our money, particularly debt? God wants us to control this aspect of our lives. The Bible mentions money and what it can buy more than 2,000 times, while several of Jesus’ parables address the same topic. When Scripture addresses a topic so thoroughly, it is important to pay attention. It’s imperative to teach people about God-honoring personal finances. We teach and preach about marriage and family, so why not money and finances? Money may seem to be a more combustible topic, but if we fail to teach about it, an explosion of debt can destroy a marriage, a family—and even a congregation.
more is never enough While in prison, Paul wrote that he had “learned to be content whatever the circumstances . . . whether living in plenty or in want” (Philippians 4:11, 12). Paul had little, but he had more than enough. He wasn’t born content. Paul learned to be content, just as he learned to walk and talk, read and write. Paul learned the attitude and behavior of contentment. He “learned the secret of being content,” which means he was “initiated.” Paul experienced a rare initiation into this way of living. Since it happened to him, it can happen to us. We can—and must— learn to be content with what we have, and then teach that same attitude and behavior to others. We live in the land of more: more fortune and fame, more power and pleasure. We worship at the shrine of more. Americans are consumed with consumption. For many people, more is never enough. Jesus came to set us free, and yet we shackle ourselves with the bondage of debt. When we learn to be content with what we have, we will begin to live within our means.
C H RIS TIA N STAN DA R D
- 18 -
J AN UARY 2 0 1 8
living with less in the land of more How do we learn to be content with what we have and teach others to be the same? Try . . . Thinking Thankfully. Paul urged believers to pray and give thanks (Philippians 4:6) and to think about everything that is good and right in life (Philippians 4:8). The Greek word for “think” is logidzamai, from which we derive the mathematical word logarithm, something that requires deep thinking. This word, logidzamai, is a present tense imperative, meaning Paul commanded Christians to think continually about that which is true, noble, right, excellent, etc. Too often, we accumulate more because we do not appreciate what we already have, and what we already have is more than enough. To become content with what we have, Paul commands us to think about that which is good and right in life, while being authentically grateful for that which we have. Try . . . Teaching Tactfully. Regretfully, church leaders shy away from teaching about personal finances because they don’t want to be criticized for talking about money all the time. If we truly care about people, we will teach about money and the things money can buy. We should be concerned about the fiscal health of people, while caring for their physical, emotional, and spiritual wellbeing. Consider offering Dave Ramsey’s Financial Peace University several times a year. Moreover, preach annually about personal finances. Identify the best time of the year to teach a four-week series on money. During those four weeks, have small groups and Sunday school classes study financial material that amplify the weekend messages. When you teach about personal finances every year, healing will occur. People will learn to live within their means. Debt will be repaid more quickly. Giving will begin to increase. We at e2 have helped congregations create a four-week financial series using my book, Too Much: Living with Less in the Land of More. The series includes messages, small group lessons, and more (available at www.e2elders.org). As elders, we are expected to teach the congregations we serve, and one of the most powerful lessons we can share is a consistent example of genuine contentment.
Gary Johnson serves as an elder/senior minister at Indian Creek Christian Church (The Creek) in Indianapolis, Indiana, and is a cofounder of e2: effective elders. Gary offers resources and coaching as he works with elders to lead with greater focus and confidence.
C H RIS TIA N STAN DA R D
- 19 -
J AN UARY 2 0 1 8
- IMAGINE -
blurring lines BETWEEN MINISTRY & MARKETPLACE BY MEL M CGOWAN Imagine a pastor’s kid who wants to be a pastor just like his dad. Now imagine that God has a different plan. Some people are called to minister on staff at a church or parachurch organization. Some are called to be real estate developers. Darren Sloniger apparently was called to do both. Darren, founder of West Ridge Community Church, also serves as president and chief investment officer of Marquette Companies, where he has led in the execution of more than a billion dollars of acquisition and development projects. Chris Seay, pastor of Ecclesia Houston and a mutual friend of ours, once told me real estate development shouldn’t be disdained as a profession. “Real estate is one of the most incarnational acts we can do—
transforming the garden that God gives us into a city that brings shalom and flourishing to mankind,” Chris said. I had the privilege of introducing Chris and Darren to each other, and their ministry partnership has reached beyond Houston to Latin America.
A HOUSE-OF-BLUES-STYLED FACILITY I met Darren more than a dozen years ago when he asked my brother and me to help design an unconventional “House of Blues”styled complex in Elgin, Illinois. Darren had been part of the team at Community Christian Church, Naperville, Illinois, alongside pastor David Ferguson; he felt called to figure out a new model beyond the megachurch campus or the multisite plant. God gave him a Nehemiah-like heart for his community, and he asked, “What could a new model look
Mel McGowan is cofounder and chief creative principal of PlainJoe Studios. He is a leading master planner and designer of churches in America. C H RIS TIA N STAN DA R D
- 20 -
J AN UARY 2 0 1 8
DARREN SLONIGER APPARENTLY WAS CALLED TO DO BOTH.
SOME PEOPLE ARE CALLED TO MINISTER ON STAFF AT A CHURCH OR PARACHURCH ORGANIZATION. SOME ARE CALLED TO BE REAL ESTATE DEVELOPERS.
like for a small church in a small town.” Although Darren still preaches regularly at West Ridge Community Church in Elgin, he no longer takes a salary. His “tent-maker” job as an urban real estate developer provides his income. Of the hundreds of ministry clients I’ve worked with over the years, Darren is the only pastor who shares the same master’s degree as me: urban planning. His “training camp” journey has been unique. He started as an anti-apartheid social activist in South Africa, switched to public sector urban planning, and then entered real estate development, initially working for a nonprofit. “The whole vision for the church is to create a sense of community,” Darren said. “People are really longing for that, and the church’s goal is to provide that.” The master plan and design on which we collaborated does not look like “church as usual.” A “New Urbanist” site plan was developed that created blocks and streets around a village green surrounded by housing, but anchored on one side by the mixed-use home of West Ridge. A seven-day-a-week café is run by a thirdparty tenant. Garage doors open to both outdoor seating and auditorium/event space. “We hope[d] people would come into the cafe and accidentally stumble into a church service,” Darren said. Rather than a traditional one-day-a-week facility, the 400-seat asymmetrical room looks more like a “House of Blues” club with different levels and multiple seating options, including couches and stools. It is available for concerts on weekend nights. Much of the cost of site development was paid for by condominium developers after their sites were planned and sold. CATALYST HOUSTON Most recently, we collaborated with Darren on Catalyst Houston, a 28-story high-rise in America’s fourth-largest city overlooking Minute Maid Park, home of the Houston Astros. We helped the city and Catalyst transform the heart of the emerging world city from a vertical office C H RIS TIA N STAN DA R D
- 21 -
park into a vibrant, 24/7, live/work/play district. The project was built on an entire downtown block partially using $5.4 million from Houston’s Downtown Living Initiative. “I have worked with PlainJoe Studios in both my church and my professional worlds in the creation of our church facility, as well as my latest high-rise development,” Darren said. “They were able to blur the lines between the sacred and the secular and produce extraordinary design using all the creative tools God has instilled within them.” We were able to partner with Darren and Catalyst Houston “from branding to building” as a strategic storytelling partner, enhancing the brand identity and marketing strategy to introduce the concepts of “live inspired” and “elevated living” in the heart of a world city. Throughout the arrival experience and public spaces, Spatial Storytelling graphics were designed and employed to create an aesthetic that creates a distinctive, new, and urbane experience for living in the Lone Star State. Irma’s, one of the most popular restaurants in the city, has leased space on the ground floor, and the owner of the Houston Astros has leased a penthouse apartment with access to a private rooftop club. Potential residents will be able to do virtual tours via interactive touchscreens.
ON TO NICARAGUA Chris Seay introduced Darren and his wife, Shelby, to Nicaragua. With profits from his previous high-rise project in the Chicago West Loop, Darren and his wife have since built a home there and established Nica Angels to provide clean water, education, and sustainable economic development in the neighboring communities of El Transito and Tecolostote. Blurring lines between ministry and marketplace, this Christ-centered community developer is not only living life elevated, but allowing others to do the same.
J AN UARY 2 0 1 8
- HORIZONS -
h ow budget t re n d s a re a f fe c t i n g issions BY E MILY DR AYN E
Missionary support, as most of us know, can be subject to change without notice. Consider the missionary on the field who hears her financial support is being cut by her top supporting church or individual. Time and again, a financially assured ministry has been deflated, usually without notice, in a single conversation. What causes such changes and what impact does it have on the missionary? Is there anything a missionary can do? C H RIS TIA N STAN DA R D
- 22 -
J AN UARY 2 0 1 8
FINDING BALANCE
A recent trend is for churches to refocus their mission efforts on local community development. This is a viable choice, there’s no doubt about that, but what happens to the forgotten missionary in the foreign field who may be doing the same types of outreach with fewer resources? Missionaries around the world engage in efforts like filling Christmas boxes, hosting VBS, and feeding the hungry—these activities aren’t exclusive to the United States. Balance is the key. In my home church as a young girl, our VBS highlighted a mission. During the week, the kids learned from missionaries about what they were doing and where they were serving. The kids brought money during the week (in a classic girls vs. boys contest!) that was ultimately given to the missionary—a gift straight from the kids. This was a great integration of kids and missions: the kids learned why we give, and they showed love to the missionaries we supported. I still remember those missionaries, 20 years later. HELPING MISSIONARIES ADJUST TO CHANGES
A change in leadership can play a part in church budgeting and mission budgeting. Current missionaries and organizations can be affected when a new person who directs the missions budget is hired and wants to make changes. That’s understandable. But it’s important to make sure a transition plan is in place. If the new hire wants to cut back on mission support to this person or that group, a period of changeover is invaluable for those who must find new resources. Having a member of the missions team or the elder who oversees missions on the staff-transition committee could help ease the adjustment for those affected. A small financial buffer and some flexibility is important to a missionary in these situations. The impact budget cuts have on the missionary is astounding. We have seen missionaries forced to uproot their families and even come home off the field. Their time back in the States is composed of traveling to gain more support so they’re able to return to the field. And they have no guarantee how much time it will take to recoup those funds. When those missionaries return to the field, they must start at square one. C H RIS TIA N STAN DA R D
DEVELOPING PROACTIVE STRATEGIES TO SUPPORT MISSIONS TODAY
If your church needs to make budget revisions, you can consider a number of strategies to maintain your relationship with the missions you’ve supported. As examples, send a group on a short-term mission trip to help with physical projects, take up a love offering once a year, and keep them on your prayer list; these are ways to support a mission even if you’re not able to send a monthly donation. A great first step is to contact the missionary and ask what his needs are. Tens of thousands of people go on a short-term trip every year. If the missionary doesn’t suggest a physical project, ask if he is interested in hosting a group for a prayer journey. These trips are a powerful alternative to work trips. Another easy means of support is to have the missionary be a guest for your VBS program. This raises name recognition for your missionaries, promotes their work, and exposes your kids to the world of global missions. Technology is enabling missionaries these days to more easily maintain strong relationships with supporters. Thanks to Facebook, Skype, WhatsApp, and email, keeping supporters informed has never been easier. Supporters want to see updates from missionaries and organizations—pictures of recent projects and financial reports that explain how donations are being used. The more ways missionaries can share about their work, the better. They can suggest that supporting churches designate a liaison to communicate with them via social media or email newsletters. Creating a Facebook group or page is a great way to show pictures and post stories— and it’s free! Change is a certainty, but missionaries and church executives can be proactive in dealing with it. When supporters know their gifts are making a difference worldwide, it is powerful. So, as churches, remember the commitment you’ve made to missionaries, while also considering their commitment to taking the gospel to the unreached.
Emily Drayne lives in North Carolina and has served with the International Conference on Missions for six years.
- 23 -
J AN UARY 2 0 1 8
BY DOUG C ROZ IER C H RIS TIA N STAN DA R D
- 24 -
J AN UARY 2 0 1 8
was late August 1972 when I walked into one of my first college classes at the University of Nebraska in Lincoln. Accounting 101 was in a lecture hall large enough to hold more than 700 students. I learned a lot from Accounting 101 during that first semester, even though the large lecture hall was intimidating to this small-town kid. One of the key fundamentals of financial accounting I learned is a simple rule: Total Assets minus Total Liabilities equals New Worth (or New Assets in the notfor-profit world). In the mid-1990s, when I went to work in the parachurch world, I would ask myself, What is the meaning of finances in the local church? How does a church operate from a balance sheet perspective? Many churches today never produce a balance sheet. The more important document is the Statement of Activities (or Income and Expense Statement in the for-profit world). Most church leaders are interested in ensuring the church is covering its expenses with tithes and offerings. But the financial future of our churches rests on the balance sheet. So, let’s dissect the question, “What is the future of finances in the Restoration Movement?” Managing Our Financial Assets and Liabilities This is how Investopedia defines finance : “Finance describes the management, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems, as well as the study of those financial instruments. Some people prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance.” The church falls into the corporate finance category. Let’s begin by looking at the two key components of the balance sheet: assets and liabilities. Assets, from a church perspective, are mainly cash and real estate. On the liability side is mainly debt: a mortgage, line of credit, bonds payable, and others. Of course, cash from tithes and offerings is very important to running a church. Real estate owned includes land and buildings, things that are very beneficial to the church as it operates and serves its people. In the last 23 years, I have participated in approximately 1,000 Restoration Movement church building projects. I think that building is very important to church growth, and that it generates attendance, which in turn generates tithes and offerings—cash—to run the church and build ministry.
C H RIS TIA N STAN DA R D
- 25 -
J AN UARY 2 0 1 8
I have seen churches double, triple, and even quadruple in size when they leave a rented facility and move into a building they own. And that has occurred over a very short time frame. So, the building is a very valuable asset! And among the most valuable assets within our churches are key volunteers who have exceptional experience in finances. People with financial, accounting, banking, and business experience can help leadership make critical decisions as the church grows. A key development over the last 25 years has been the addition of the executive pastor. This position has allowed the senior pastor to delegate key processes within the day-to-day management of the church. Developing Our Goodwill As I progressed in my Accounting 101 class, I also learned about the intangible asset category of goodwill. Investopedia defines goodwill as “an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment.” Why is goodwill so important to the success of the church? Even though a church does not carry it on its financial statement, and none of these categories assign it “financial value,” I think goodwill is by far the most important asset of a church. Let’s break down the key components of Investopedia’s definition: 1. Brand name. Our churches have developed excellent brand name and recognition while keeping the churches’ mission in the forefront. 2. Solid customer base. “Be diligent to know the state of your flocks, and attend to your herds” (Proverbs 27:23, New King James Version). Our churches must keep a solid membership and attendance base. Through contemporary worship services, dynamic preaching, small groups during the week, and great children’s and youth programs, we are on the cutting edge of ministry today! 3. Good customer relations. “In their hearts humans plan their course, but the Lord establishes their steps” (Proverbs 16:9). Helping members and attendees feel connected with one another and the church’s mission is paramount to your success. Being honest and open is a key to solid relations between leadership and the congregation.
C H RIS TIA N STAN DA R D
- 26 -
J AN UARY 2 0 1 8
4. Good employee relations. Many pastors know the importance of a great staff and their relationship with the congregation. I know because they have told me. A priority for church leadership should be to take care of the church staff. 5. Patents or proprietary technology. Some of the most creative technology is produced through the church. I am constantly amazed by technological developments in the church world. Even more amazing, however, is the creativity on display in sermon series, worship service coordination, and many other ministry activities. These five intangible assets are of major value to the church and are essential in its success. They may be meaningless in the finance world, yet I believe goodwill is the cornerstone to a church’s mission. Discipling Ourselves to Get Financially Healthy Many people consider the Restoration Movement Christian church to be the fastest-growing evangelical movement in America. I have been a witness to this over the last 23 years. In 1995, approximately 50 of our churches had an average weekly worship attendance of more than 1,000. Today the number probably exceeds 200 churches. Along with this incredible numerical growth, many churches in our movement have followed simple financial principles to ensure their financial health and future. I call this the “getting healthy” phase of a church’s life when they are experiencing major growth in facilities, people, and programming. Over the years, I have seen seven simple principles through which disciplined churches have created a solid financial condition. 1. Build a reserve fund even when you do not think you can do it. “The wise store up choice food and olive oil, but fools gulp theirs down” (Proverbs 21:20). This is a basic principle for personal finances and, I believe, for the church. A church needs to maintain three to six months of cash reserves. I have seen many instances of churches facing an unexpected emergency, yet they do not have this simple principle in place. They are unprepared when an air conditioner dies, the church building floods, or a major snowstorm hits. Online giving has enabled churches to be better prepared for emergencies, which is good, because the next major expense seems always to be just around the corner. 2. Pay down and (ultimately) pay off your mortgage. “For which of you, desiring to build
C H RIS TIA N STAN DA R D
- 27 -
J AN UARY 2 0 1 8
a tower, does not first sit down and count the cost, whether he has enough to complete it?” (Luke 14:28, English Standard Version). Do whatever you can to reduce your debt. Pay down your mortgage. That’s unlikely advice from a banker by trade (which I am). But you must reduce your mortgage before you can enter the next phase of expansion. The faster the church becomes debt-free, the more ministry it can accomplish . . . and more quickly. The future of our movement depends on healthy churches investing in new churches. 3. Prioritize missions. “Therefore go and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you. And surely I am with you always, to the very end of the age” (Matthew 28:19, 20). Missions must be a priority, whether the church is growing or declining. Giving to missions is a simple financial calculation based on solid biblical principles. Make sure it is a priority in the church. 4. Invest in your staff. Developing a good staff will translate into building a solid church. Unhappy and disgruntled staff leads to major problems. 5. Build an online giving program. This key financial tool has revolutionized people’s ability to tithe and give. It makes the process of giving easier and more efficient. For example, I set my tithe amount, and my church pulls it from my checking account on the fifth of every month. Even if a major snowstorm hits Denver, where I live, and church services are canceled, my tithe is delivered to the church. 6. Discipline, Discipline, Discipline. “Whoever loves discipline loves knowledge, but he who hates reproof is stupid” (Proverbs 12:1, New American Standard Bible); “Apply your heart to discipline and your ears to words of knowledge” (Proverbs 23:12, NASB). Financial discipline is necessary to ensure future growth and expansion of ministry. Ministry slips whenever leaders cut corners, forget to track key indicators, and allow complacency. Due discipline is paramount in all areas of financial management and ministry. 7. Continue to dream. “A wise man thinks ahead; a fool doesn’t and even brags about it!” (Proverbs 13:16, The Living Bible). The church needs to set goals and dream of what to do next. Being creative, dreaming big, and being open to change will allow ministry to grow and prosper. Making the Most of Every Opportunity With the downturn in the economy in the latter part of the last decade (2007–09), I saw
C H RIS TIA N STAN DA R D
- 28 -
J AN UARY 2 0 1 8
a tremendous opportunity for churches to buy vacant big-box retail and light industrial buildings at very steep discounts. This trend has continued, even with the economic recovery, mainly because people are buying online instead of going to the mall or retail locations. This trend will continue and our movement needs to be prepared to continue to take advantage of it. One of the ways to accomplish this is for our church extension funds to use their balance sheets to help churches acquire these big boxes at steeply discounted prices. In addition, churches need to use the negotiating skills of key people within our funds who have experience in acquiring real assets. Cash talks in these situations! The ability to purchase the big box and build it out costs half as much and can be accomplished in a much shorter period than a ground-up construction project. Many of these former grocery stores, Walmarts, Home Depots, and others are now locations where people are being won to Christ! I love the big-box concept. So, what is the future in expanding our financial assets to move the church forward? It rests on our ability to develop young leaders to plant new churches and partner with our church extension funds to expand ministry. New tools and concepts will emerge, but without leadership development and capital expansion, we will not be able to reach the millions of people we need to for Christ. Over the years, I have watched other denominational church extension funds struggle, mainly due to the crumbling of denominations. Yet, our three church extension fundsâ&#x20AC;&#x201D;Christian Development Fund, Christian Financial Resources, and The Solomon Foundationâ&#x20AC;&#x201D; continue to prosper as we serve Restoration Movement Christian churches and churches of Christ. This is a real testament to our movement and the leadership of all three funds. The main driver to growing our churches is the ability to produce exceptional preachers and leaders. I am a strong believer that our best days as a movement are still to come. Our movement has an exceptional future as long as we manage our financial assets and liabilities, develop our goodwill, discipline ourselves to getting healthy, and follow the Great Commission. And by the way, I did pass Accounting 101! Doug Crozier serves as chief executive officer of The Solomon Foundation.
C H RIS TIA N STAN DA R D
- 29 -
J AN UARY 2 0 1 8
on-ramps The most visited museum in all of Scandinavia is in Stockholm, Sweden. It contains the world’s only preserved 17th-century ship—a Swedish warship built between 1626 and 1628 during the reign of King Gustav II Adolf, who is considered one of the great military minds in European history. The Vasa, built on the king’s orders as part of a military expansion during a war with Poland and Lithuania, was constructed from the timber of 1,000 oak trees; it had two gun decks with 64 bronze cannons and a mast more than 150 feet tall. The ship was covered with sculptures carved from oak and pine or linden. Nearly 500 of these sculptures were strategically positioned to glorify the genius and power of the king, but also to terrify, taunt, and intimidate the enemy.
When the ship was finished, it was one of the most powerfully armed vessels in the world. However, on August 10, 1628, barely 1,400 yards into its maiden voyage, the ship sank while a crowd of hundreds, if not thousands, of Stockholmers watched in horror from the shore. Why did this magnificent, massive warship sink? The designers had put everything imaginable into and onto that great ship. But they forgot the single most important thing: a ship must float. Today, millions of people from all over the world come to see the remains of a ship that didn’t do what it was supposed to do. Its designers, craftsmen, and builders worked hard and were precise in their construction and attention to every detail except one. A boat must float.
C H RIS TIA N STAN DA R D
- 30 -
J AN UARY 2 0 1 8
Our culture seems to have capsized and is in danger of sinking, as well. That’s because family units, when they exist, have forgotten what they were designed to do. The home is supposed to be the greatest on-ramp for life. Unfortunately, for many it has become a fatal exit from which most people never recover. If we don’t learn the right principles at home, where can we learn them? Surely there isn’t a parent alive who wants to make life harder and more difficult for their kids.
Teach Your Children to Feed the Pig What should parents teach their kids? For starters, I think we should be teaching them how to feed the pig! That’s simply a way of saying children should be taught to put something into savings every week.
How to Help Your Children Reach Financial Freedom BY B AR RY CAMERON
& exits An extremely important part of our financial plan, of God’s plan for us, is to learn to save. Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (English Standard Version). We need to teach our kids to be savers, not spenders—savers, not slaves to someone else, some financial institution, or borrowers from anybody. That’s
our responsibility as parents. So, I recommend you open a savings account for each child. (By the way, this might be a great place for grandparents to be involved with this.) Every parent should teach their children how to manage money and how things work in the marketplace. You may be thinking, I’m way over my head. I can’t do that. No you’re not. I don’t care how old
C H RIS TIA N STAN DA R D
- 31 -
J AN UARY 2 0 1 8
you are or how many kids you have, you can do this.
Give Your Children Jobs, Not Chores Parents may ask, “Well, with what are my kids going to feed the pig?” Give your children jobs to do around the home. Don’t call them chores. Work is not a chore. It’s a joy. It’s a reward. Work is an opportunity to get on the road to financial freedom.
Work is the highway that helps us get to where our dreams can come true. A lot of people hate Mondays. They must go to work, and they don’t like work. If somebody would write them a check for a million dollars and they could quit work, they would do it today. Millions of people learned at an early age that chores are not fun. Chores are what our parents make us do. So, a lot of adults, because they started out wrong with chores, have no idea that’s why they hate getting in the car and going to work on Mondays. So, don’t call them chores. Call them jobs. We want to teach our kids the right thing. We want to teach them that work is a blessing. Work can be fun. Work can help you accomplish your dreams.
Pay Your Children Every Friday Then, tell your kids you’re going to give them a paycheck every Friday. (For those of you who have just fallen on the floor, get back up and keep reading. It’s going to be OK.) Don’t call this an allowance. When you leave home and go out into the world, no one makes allowances for you. There are no allowances. It’s also important to give them a paycheck on Friday—not Tuesday, not Thursday. In the marketplace, most people get paid on Friday. Remember, you’re teaching your kids how to manage money and how the
marketplace works. So, we need to do it that way. Start simple and small. Let the paycheck match your child’s age. If you have a 5-year-old, they have jobs and they work all week, and on Friday they get $5. If you have a 10-year-old, they have jobs, and if they work all week and do their job well, they get $10. That’s a great place to
We want to teach our kids that work is a blessing. Work can be fun. Work can help you accomplish your dreams.
jobs for you, and if you do these three jobs every day of the week, you’ll get a paycheck every Friday. When you get up in the morning, we want you to make your bed. Every morning. Seven days a week. Not just three, not four. Number two, whenever you’re done brushing your teeth, brushing your hair, and getting ready in the bathroom, we want you to wipe off the counter so it looks nice. And your third job is, whenever we have breakfast or lunch or dinner as a family, we want you to help clean the dishes off the table. That’s it. Those are your three jobs. You do those three jobs, do them well every day of the week, and every Friday we’re going to give you a paycheck.” As your kids get older, you can give them age-appropriate jobs around the house. But I think every kid ought to have those three basic jobs: make their bed, wipe off the bathroom counter, and help clean the dishes off the table after a meal. Those are simple jobs every kid can do regardless of their age.
Teach Your Children the 10/10/80 Plan start for any family and for any child or teenager. We teach our children they must do their jobs and do them well to get their paycheck each week. If they don’t do their jobs or don’t do them right, they don’t get paid. It’s that simple. Here’s an example of what to tell your child, “We have three
C H RIS TIA N STAN DA R D
- 32 -
J AN UARY 2 0 1 8
What happens when they get paid on Friday? Remember, we’re teaching them God’s plan. We teach them the 10/10/80 plan. So, the first thing we do is tell them they need to honor the Lord—10 percent to God. Then, put 10 percent in savings. They’re free to do whatever they want with the other 80 percent.
Teach them to save money for special purchases, because we’re not going to give them everything anymore. Parents actually save money in the long run by doing this. Yes, there will be an occasional gift, but no allowances. When your child turns 16, the paychecks stop. Now it’s time for them to go out into the marketplace and get a real job. Where does the $15 a week you’ve been paying go? Put it in your savings account. This is one of the best parts: you’ve already disciplined yourself every week, so now you’ve got $780 a year you can put in your own savings account. It’s a phenomenal deal, because you’ve disciplined yourself to gather little by little while you were teaching your kids to do the same. Once your kids get their own jobs, you don’t have to worry about them because you’ve already taught them how to manage their money and how the marketplace works. You’ve taught them the 10/10/80 plan. And they’re going to be excited about going to work early because you’ve taught them work is a joy, a blessing, and a way to accomplish their dreams. It’s the way to get on the road to financial freedom. They’re going to come home from their new job and say, “Mom, Dad, look at this paycheck I got. I can’t believe what they paid me!” And you’ll ask them, “What are you going
abc’s
the of financial freedom BY J E R RY HARRIS
One of the top-selling books of the recent past by an independent Christian church writer is undoubtedly Barry Cameron’s The ABC’s of Financial Freedom, which has sold approximately 250,000 copies since its release in 2001. The book has helped hundreds of churches and thousands of people across America turn their financial situations around, and it has helped churches raise millions of dollars for kingdom causes. Through the ABC’s, readers have discovered biblical principles to help escape the burden and bondage of debt, enabling them to declare their financial independence. Churches have reduced their debt and improved their financial futures. Churches, like businesses, succeed or fail based in part on their ability to properly manage their resources, and the template for success in this area is found in God’s Word. The Bible teaches principles of priority, delayed gratification, debt, and generosity. I think the effectiveness of The ABC’s of Financial Freedom, and the reason it has been so widely used, is because of the practical way it relates these timeless truths to the context of the present-day church. More than 500 churches of all denominations have used the ABC’s and more than 200 churches have participated in the full ABC’s program. Barry Cameron also wrote Contagious Generosity, and he has recently written The Road to Financial Freedom (not yet published), from which we excerpted this article. More information can be found at crossroadschristian.org. Follow Barry on social media at @BarryLCameron.
You may be thinking, I’m way over my head. I can’t do that. No you’re not. I don’t care how old you are or how many kids you have, you can do this. to do with that?” What do you think your teenager is going to say after all your years of teaching, training, modeling, and encouraging? It will be something like this: “I’m going to do what you taught me. The first 10 percent goes to God and, because I don’t really have any bills, I’m going to put the rest of it in savings and save for a car.” You’ve taught your children how to manage their money and how things work in the marketplace. You’ve helped them get on the road to financial freedom. What parent wouldn’t want that for their kids? Let’s look ahead a few years. Your child is 40 years old and CEO of a corporation. She’s very successful, wealthy, and
owns her own business. She’s holding a meeting with all her employees sitting in front of her. And she says, “We’ve got a great team of employees and a great company. I appreciate all of you and everything you do. All of you work hard at your jobs, and I’m sure you want to instill that same trait in your children. That’s why I want to tell you this story. “When I was a kid, my parents gave me three jobs to do every day, and they taught me to do my jobs well. My parents taught me when I was a little girl that work is a joy, it’s fun, it’s a way to accomplish my dreams, and that’s why I love coming to work here every day. My parents also taught me the 10/10/80 plan. I don’t know if
you’ve ever heard of that, but I’d like for all of you, as my employees, to at least try it. “The first 10 percent goes to God. The next 10 percent goes to savings, and you live on the other 80 percent. If you have kids at home, I want to encourage you to teach them as my parents taught me. Teach them to honor the Lord, follow God’s plan, and feed the pig.” That’s all you need to do, Mom and Dad, to change the lives and futures of your children. You’re likely to start a chain reaction that will change the lives of all kinds of people, all because you decided to bring your children up in the discipline and instruction of the Lord.
Barry L. Cameron serves as pastor with Crossroads Christian Church, Grand Prairie, Texas.
This article is adapted from Barry Cameron’s upcoming book, The Road to Financial Freedom . Used by permission of the author.
C H RIS TIA N STAN DA R D
- 34 -
J AN UARY 2 0 1 8
C H RIS TIA N STAN DA R D
- 35 -
J AN UARY 2 0 1 8
open your eyes to manage the finances of the church BY BRAD DUPRAY
We lived in fear. It could happen at any time. We stood with our freshly shined shoes on the edge of the carpet scanning the mall. Waiting. Watching. Our shoe store’s district manager would show up only about once a month, but when he did, we knew we were in for it. He had a knack for finding those things we didn’t see. We were “store blind.” Store blindness happens when the proprietor or employees of a retail store walk into the environment so many times that they simply don’t perceive the little things—the crooked table, the dirty mirror, or items missing from displays—that are immediately evident to the person who walks in only occasionally. This malady isn’t limited to retail stores. It’s not confined to products and displays. A church can become so accepting of the financial status quo that it becomes store blind to the day-to-day operational activities that can squander resources, waste money, and consume funds that could be directed to ministry. As a high school kid selling shoes, I lived in fear of the district manager. Yet I learned a few simple tricks that enabled me to be ready when he sauntered into the store. Those who manage church finances may not live in fear, but they have a great responsibility to church members who devote their tithes and offerings to the work of ministry and, of course, to the Lord himself. It’s just not right to blindly manage the finances of the church. So how do you make sure your church isn’t store blind when it comes to managing its finances?
C H RIS TIA N STAN DA R D
- 36 -
J AN UARY 2 0 1 8
JA N U A RY 2018
Turn Around Rather than scanning the mall walkers in search of the district manager, all I had to do was turn around and look. As simple as it may sound, the leadership of the church has a responsibility to take a look: make an annual budget, track its progress, and abide by it. Here are some church-budget management ratios that will serve as a benchmark from which to start:
• building payment (20 percent of budget) • operations (7 percent) • staff salaries and benefits (48 percent) • ministries (15 percent) • missions/compassion (10 percent) The flexibility in these ratios is converse. The goal of the first three is not to exceed them. The goal of the final two is to increase them.
C H RI S T I A N S TA N DA RD - 37 -
“
Those who manage church finances have a great responsibility to church members who devote their tithes and offerings to the work of ministry and, of course, to the Lord himself.
The building payment ratio can be tricky, especially relative to a church’s life cycle. A younger church may need to take a bigger bite on its building payment because it is in the first phase of building toward growth. A more established church may not have a building payment at all, thus allowing it to direct a greater share to ministries, missions, and compassion causes.
Ministries should suggest a budget to the budget committee; that group will then need to decide how to divide available resources. Many ministry needs are covered in other areas that spill across ministry lines, things like salaries and mission support. As the budget is prepared, the church must decide how much is reasonable on a “pay as you go” basis (for example, will the church subsidize kids going to camp?) versus a fully supported ministry like, for example, a “Night to Shine” event.
A building payment is a form of debt (unless you are renting), but it’s actually a wise use of someone else’s money for a period of time for something that will provide value to the church for a longer period of time. That concept is often referred to as “leverage.” Leveraging a large amount of money today can provide a place of ministry for the church that can far outlast the time it takes to repay that borrowed sum.
Some churches choose to allow designated gifts for specific ministries while others feel that all gifts should go to the general fund and have ministries supported from there. That’s a matter of opinion which varies from church to church. Missions and compassion causes are a reflection of a church’s values. Many churches use the tithe, 10 percent, both as a guide and an example to the congregation. Others will designate monies beyond the tithe because they have either the capacity to do so or a certain passion for the ministries they support.
Younger churches may need to designate as much as 35 percent toward a building payment, sacrificing in other areas to provide space that will serve the church for decades to come. It is also wise for a church to designate extra principal in its monthly payment in order to pay off debt more quickly.
Some churches set goals of 20 percent, 30 percent, even 50 percent or more toward missions. While this is commendable, the church should think through this decision carefully. What impact can an extremely high percentage of missions have on local ministry? What happens if the church experiences a sudden financial decline? How does the church, at that time, adjust the amount of support it had been giving to certain missions or causes they love without damaging those ministries?
Operations takes into account the practical things it takes to run a day-to-day ministry: a copier, paper, electricity, insurance, and other necessities. Staff salaries and benefits can vary widely depending on (1) the demographic location of the church and (2) the ministry style of the church. Churches located in an area with a high cost of living will need to make a choice of either having a lower ratio of staff to church members or sacrificing in other areas in order to provide the staff support the elders deem as necessary. On the other hand, the church’s ministry style may be such that there is greater dependence on volunteer or “tentmaker” ministry support so fewer dollars are designated for staff so that more support can be directed to other areas.
“
Your church is likely spending money on certain ministries that are providing little or no return. Get your leadership team together and conduct an analysis of effective and ineffective ministries.
For the average small to midsize church, a common ratio is one full-time equivalent staff member per 100 people in attendance at weekend services. Larger churches (1,500-plus) may be able to provide a higher ratio of staff members because they experience higher income levels and have a larger constituency to support. C H RIS TIA N STAN DA R D
- 38 -
J AN UARY 2 0 1 8
Have a Watchful Eye We were waiting and watching, but for the wrong thing. Standing in fear of the district manager brought only dread. If we had opened our store-blind eyes for those crooked tables, dirty mirrors, and unfilled shelves and done something about them, we would have met expectations and probably sold more shoes! Jesus talked about the ten virgins waiting for the bridegroom. The five who waited until the last minute to get oil for their lamps missed out on the bridal party and returned unknown to the Lord (see Matthew 25:1-13). There are things you can be looking for now, beyond the budget, that will provide additional resources to your church, and they may be right under your nose. Heed the advice of your finance committee. Every church should have a finance committee that provides monthly financial reports and can make recommendations about where the church can make adjustments. But beware of a danger: a finance committee that always says no to ideas can hold you back in ministry. Their expertise should be in reporting, not in decision-making. Decisions about whether to spend funds should rest on the shoulders of elders and/or senior staff. The monthly report should include, at the very least, a balance sheet (statement of financial position) and a profit and loss statement (statement of financial position ). If your church is doing “back of the napkin” reporting, you need to begin by purchasing some simple accounting software. (For a list of budgeting tools and how to select the best option for your situation, see “The Church Budget Shouldn’t Be This Hard,” starting on page 55. Also, the website www.captera.com, among others, can point you to a myriad of choices.) Larger churches should be working with an audit firm for at least an annual compilation, and possibly also an annual or semiannual audit. Auditors will not only examine your financials, they’ll also point out areas where you can improve performance.
C H RIS TIA N STAN DA R D
Make a “stop doing” list. Your church is likely spending money on certain ministries that are providing little or no return. Get your leadership team together and conduct an analysis of effective and ineffective ministries. Some people will become upset, so be ready to take some flack. The upside is that you will be able to focus on the ministries you do well, maximizing the dollars spent. Increase the use of volunteers. Many churches, over time, have begun to rely on paid staff for ministry instead of volunteers. It’s time to call the church to action, acknowledging that the “professional Christians” we pay as pastors are in place to guide an army of volunteers who can provide great ministry because it’s what they do from their heart. Don’t borrow from Peter to pay Paul. If your church has designated accounts, do not borrow from one account to cover the other account with the intention of paying it back someday. Someday rarely comes. When you get to the point that you have to borrow from one fund to pay bills for another, you are in financial trouble and need to reassess your church’s financial plan. Stay fresh. It’s easy for a church to make a yearin, year-out budget with little thought to the implications for real ministry. Other churches, conversely, will start from scratch each year to be sure they are directing funds properly. You may not need to step that far back, but you do need to look at the effectiveness of every dollar spent when doing annual budget planning. This may be the time to put together your “stop doing list” or to reexamine how you are using volunteers. - 39 -
J AN UARY 2 0 1 8
Be Prepared
The district manager was going to show up . . . sometime. All we had to do was prepare for his arrival. Cash flow planning is the very foundation of the practical side of ministry readiness. While surprises may pop up along the way, being prepared allows for an improved flow of funds throughout the ebbs and flows of church giving during the year.
Formulate a month-by-month budget. Churches have a “summer slump.” Plan for it. Churches can experience stronger year-end giving. Organize for it. Special times like Easter and events like VBS hit the calendar annually. Expect them. Rather than putting together an annual budget, try planning a month-by-month budget that predicts income and expenses for each month so you know when to set aside funds in the fat times so you’ll have money available during the lean times. Use an electronic tool for cash management. The computer tool you use for financial statements should include a cash flow management component. Various computer programs will provide the level of sophistication necessary based on the relative size of your church. Know the gift levels of your top 10 givers. It’s not necessary to know the names of the top 10 givers at your church, but you should know how much each one is giving so you can determine whether your church is too dependent on them. A church can make a financial plan, but then a major giver moves away and church income drops precipitously. If you know your church is dependent on a few key givers, or even one key giver, that is good knowledge to have so you can plan your budget to withstand a significant decline in giving, for whatever reason. Plan for future debt. If your church is planning on taking on debt for a large capital project (a building, for example) put a place-marker in your budget for an upcoming building payment long before it is actually necessary. Build that line item up month-by-month; use the funds from that line item to create a designated fund for that project so that you have more cash to put into the project on the front end, thus allowing you to carry a smaller debt load. Twenty-nine days out of 30 the district manager was in some other store chastising the poor salespeople for their store-blindness. But on any given day each month he could show up at our store. We needn’t have worried. All we had to do was to be ready by doing a little advance work. And when we did, we could rest in the fact that we had turned around, had a watchful eye, and were prepared for his arrival.
Brad Dupray serves as senior vice president of ministry development with CDF Capital, Irvine, California.
C H RIS TIA N STAN DA R D
- 40 -
J AN UARY 2 0 1 8
C H RIS TIA N STAN DA R D
- 41 -
J AN UARY 2 0 1 8
how to prepare for a financial storm BY DARREN KEY
AND
MIKE KOCOLOWSKI
C H RIS TIA N STAN DA R D
- 42 -
J AN UARY 2 0 1 8
Managing church finances can be like preparing for a hurricane—it’s best to have a plan in place before the wind starts to spin. That way, if the worst-case scenario develops, you’ll be prepared to weather the storm.
Faith and Finances We have consulted with hundreds of churches on financial issues over the last three decades, and we know that managing a church’s cash flow is tricky. Seasonal cycles, unexpected events, and the inherent irregularity of income and expenses add to the complexity. For these reasons, keeping ample reserve funds is critical to your church’s financial health. It’s a sign of prudent stewardship. While it’s true that “the Lord will provide,” and God specializes in meeting our needs in all kinds of circumstances, Scripture gives numerous examples of godly people who prepared for future financial needs. Joseph stockpiled grain for a coming famine (Genesis 41:49), Solomon described the “ant” storing and harvesting provisions (Proverbs 6:8), and David provided resources for constructing the temple with tons of treasures he had tucked away (1 Chronicles 29:3). Saving for the future (within reason) is not a lack of faith; it’s a sign of wisdom.
Simple Steps Trying to manage your congregation’s income and expenses without a practical budget in place is like building walls before laying a foundation. Creating a realistic budget is a critical first step. Yes, the human element complicates matters—even couples happily married for decades might disagree on how money should be spent. It is naïve to think that 12 staff members, 7 elders, 10 deacons, and your church’s largest donor will all come to complete consensus on how to spend every dollar. In the budgetcreation process, compromises are inevitable. After a budget is approved, roles must be assigned. Who will monitor balances and review statements for the church’s various accounts? Who signs the checks? If the church has a credit card, who has permission to use it, and what controls are in place to ensure it is being used according to policy? What happens if the new church van costs $5,000 more than the budget line item? What type of financial scenarios would trigger elder notification? Chaos and tension will arise in the absence of clear fiscal policies, so do not overlook this step. Once you have approved a budget and assigned the necessary roles, consult your church’s recent history and how seasons and events impact cash flow. If attendance and offerings tend to drop in the summer and increase in the fall, or if your church typically sees a large bump in yearend giving, you won’t be surprised when it happens again. If significant annual events—such as a fall festival, Easter program, evangelism campaign, or new programming launch—create large one-time expenses, you’ll know those things are coming. This type of information is crucial to the master financial plan. C H RIS TIA N STAN DA R D
- 43 -
J AN UARY 2 0 1 8
emergency
warning
watch
Recommended
account balances
•
Determine how long church can operate before savings falls below 2 months
•
Increase revenues with campaign, generosity initiative, or stewardship emphasis
•
Increase revenues with campaign, generosity initiative, stewardship emphasis, or special appeal
•
Verify budget is appropriate based on debt and other financial concerns
•
Evaluate why income isn’t as expected
•
Explore alternative revenue sources
2 to 4 weeks of operating expenses in checking
•
Fast and pray
•
Cut expenses immediately
No savings
•
Consider a short-term loan
•
Consider selling assets
•
Monitor the church’s cash reserves
•
Monitor deficit to income
•
Postpone nonessential projects and capital expenses
•
Cut nonessential expenses in programming and administration
•
Evaluate all areas of budget, including staffing and missions
•
1 month of operating expenses in the checking account
•
2 months (or more) of operating expenses in savings
•
Less than 1 month of operating expenses in checking account
•
Less than 2 months of operating expenses in savings
• •
• •
actions to take
Less than 2 weeks of operating expenses in checking No savings
C H RIS TIA N STAN DA R D
- 44 -
J AN UARY 2 0 1 8
Weathering the Storm When things are humming along, unfolding according to the plan, it’s easy to feel comfortable. But what happens when a series of events disrupts the smooth flow of income and creates a cash-flow challenge? When is concern warranted, and what action steps are advisable? First, based on our experience with churches, we recommend keeping one month’s operating expenses in a checking account, and a minimum of two months’ expenses in a liquid (cash) savings account, earning interest at a fixed rate (preferably at a financial organization aligned with the church’s mission). If your church’s account balances fall below levels we recommend (see accompanying chart), you have cause for concern—a financial storm may be approaching. We call this “Watch” status. When savings evaporate and you have only two to four weeks of operating expenses left in the checking account, we call this “Warning” status. Finally, if the checking account balance drops to a level that covers two weeks of expenses or less, a state of “Emergency” has arrived. Tough times require tough decisions, so it’s best to take corrective measures. However, first determine why the cash-flow situation is approaching the danger zone. Are you experiencing an unexpected drop in attendance or has giving declined because of some change at the church? Is a macroeconomic issue or problem with the local economy to blame? Did a natural disaster inflict costly damage to the property? An awareness of the root cause of the situation can help determine your next steps.
Difficult Decisions and Course Corrections Sometimes a capital campaign guided by a competent professional is the correct prescription; other times a one-time appeal for funds makes sense. If your campus is underutilized, your church may need to consider selling a portion of the property (or the entire building). You might need to delay nonessential capital purchases or postpone a staff hire. Or maybe the church is at the point where drastic cuts must be made immediately. These decisions are never pleasant, so stay focused on the goal and remember what’s at stake. If you ever find yourself in the direct path of an approaching hurricane, you might have the option to flee to safety. If you find yourself in the eyewall of a financial storm, however, you can’t run. But you can pray. You can fast. You can seek wise counsel. You can trust the Lord will provide. And you can prepare by making sound stewardship decisions that honor God and help build his kingdom. Darren Key is a certified financial planner and the chief executive officer of Christian Financial Resources. Mike Kocolowski is a certified fund-raising executive and the chief operating officer of CFR. C H RIS TIA N STAN DA R D
- 45 -
J AN UARY 2 0 1 8
GET CREATIVE WITH YOUR FUND-RAISING BY DAV ID GIR DW OOD Each summer, as temperatures rise and the daylight expands, our children begin dreaming of a commercial enterprise: “Mom, Dad, can we pleeease do a lemonade stand?” Personally, spending hours in the blazing sun selling just enough lemonade to cover the cost of the Crystal Light isn’t very appealing. We allow our kids to do it anyway. Why? Is it a rite of passage, a way to kill a few hours, an opportunity to teach an economics lesson? Or is it ultimately a chance for them to be creative, resourceful, and even to experience the generosity of others? Whether we call it “commercial enterprise” or “creative fund-raising” or a “special offering,” generosity in any form is an expression of who we are and how we are designed. Each of us is a reflection of our creator God, hard-wired by him with a thirst for creativity and resourcefulness. It’s innate, built-in, part of our DNA. In the beginning God created the heavens and the earth. Now the earth was formless and empty, darkness was over the surface of the deep, and the Spirit of God was hovering over the waters. And God said, “Let there be light,” and there was light (Genesis 1:1-3). Not Crystal Light, but actual light. From emptiness, God created light! God created human beings; he created them godlike, reflecting God’s nature. He created them male and female. God blessed them: “Prosper! Reproduce! Fill Earth! Take charge! Be responsible for fish in the sea and birds in the air, for every living thing that moves on the face of Earth” (Genesis 1:27, 28, The Message).
C H RIS TIA N STAN DA R D
- 46 -
J AN UARY 2 0 1 8
It’s in our very nature to be generous, creative, and resourceful! At Community Christian Church, Naperville, Illinois, our mission is “helping people find their way back to God.” You probably have a similar mission in your church. We call this the “Jesus mission,” and we accomplish it through the three Rs: REACH—reaching those who are far from God RESTORE—restoring God’s dream for the world both locally and globally REPRODUCE—reproducing the Jesus mission in others Everything we do and every dollar we invest at Community is about helping people find their way back to God, so we count people who are taking their next steps in generosity. Our staff and leaders encourage attenders to continue taking steps in honoring God with their finances; our teaching team schedules regular series on generosity and stewardship. In fact, the “big idea” for one of our recent series focused on three types of givers: SURRENDERED GIVER: We say to those who give consistently and intentionally, “God may be calling you to increase your generosity above 10 percent or to give sacrificially for a season.” INTENTIONAL GIVER: To those who have been giving for a while, we say, “What does it look like for you to make giving a priority and to start tithing consistently?” INITIAL GIVER: To those who have never given before, “We encourage you to take your first step and begin by giving something.” How does this translate into creative fund-raising? Two specific examples of creative fund-raisers at Community come to mind: Celebration Generosity and Giftmart. These events appeal to initial givers because they are relatively lowtouch, cause-based activities where people can give for the first time. The beauty is that they also connect with intentional and surrendered givers who feel called to expand their generosity.
CELEBRATION GENEROSITY Ten years ago, our church was at a financial crossroads. Dave Ferguson, our lead pastor, asked our staff to spend time in prayer and fasting. When we broke our
C H RIS TIA N STAN DA R D
- 47 -
J AN UARY 2 0 1 8
fast together, it became clear God was not calling us to shrink our vision but to be resourceful and take a creative risk. The result was a special offering called Celebration Generosity. Community now gives away the entire offering it collects during the first week of each fiscal year. This week provides a unique opportunity for attenders to designate their giving to the team(s) of their choice. We build our budget based on the remaining 51 weeks so we can dedicate this first offering to four teams, partner organizations that align with the Jesus mission. We just celebrated our 10th year of Celebration Generosity and during that time 1,821 people have given for the very first time and more than $5.2 million has been given to the four teams! • TEAM COMPASSION releases children around the world from poverty by partnering with Compassion International to plant churches where sponsored children receive physical and spiritual care. Compassion’s child sponsorship program has been recognized as the best long-term strategy to alleviate poverty. Today, through Celebration Generosity, more than 800 children have received sponsors, and churches being planted in Haiti and throughout Central and South America are seeing 450 people every day making decisions for Christ. • TEAM NEWTHING is a catalyst for a movement of reproducing churches around the globe. NewThing provides a framework for churches to shoulder the work of church planting as a team. Churches network together to share best practices and resources, train future leaders, and accelerate the church-planting process. God continues to bless NewThing with incredible opportunities to help start new churches. With Celebration Generosity’s help, by 2020 NewThing will include 10,000 reproducing churches that are changing the spiritual landscape of cities, towns, villages, and countries around the world! • TEAM PHILIPPINES partners with Philippine Frontline Ministries, a nationwide network of reproducing churches, ministry centers, Christian schools, and social enterprise initiatives reaching and helping people find their way back to God. PFM rescues abandoned children from Philippine streets. The children exchange a life of extreme poverty for a life with a home, medical care, a faith-based education, and a bright future. Many of these kids grow up and give back by working at Frontline.
C H RIS TIA N STAN DA R D
- 48 -
J AN UARY 2 0 1 8
• TEAM COMMUNITY 4:12 unites people to restore communities by mobilizing Christ followers to be agents of compassion, justice, and love. This team makes a long-term commitment to a community and focuses on meeting immediate needs, building relationships, developing people, and addressing systemic issues within that community. By uniting with others across cultural, racial, and economic divides, we learn, grow, and better reflect the heart of Jesus. See how each team aligns with the Jesus mission? See how God has led us to be creative, resourceful, and generous?
GIFTMART Giftmart was born when Kirsten Strand, Community 4:12’s director, began to reimagine the holiday charity model. She envisioned a way to harness the generosity of local communities to not only place toys under the tree in lowincome neighborhoods, but to create a win for everyone involved. Giftmart works with businesses and churches to collect thousands of new toys each year. People can contribute financially at any level or shop for gifts to donate. As a parent, this offers me the chance to teach my children about how God calls us to be generous givers and not greedy consumers. Giftmart partners with schools in under-resourced neighborhoods. Parents can shop at these schools for significantly discounted gifts for their children. Toys are sold for $2 each. Parents can thus provide Christmas for their families, instead of receiving a handout, and this preserves their dignity. While parents shop, volunteers serve them cheerfully in a variety of roles: parking cars, serving hot cocoa, stocking shelves, wrapping gifts, and praying with them. The proceeds from toy sales are reinvested into the schools, so parents are effectively funding the purchase of books, computers, musical instruments, and other much-needed supplies. Can you count the number of wins in this creative fund-raiser? Local businesses, the local church, the community, parents, children, schools, teachers, and event volunteers . . . they all win! Remember, it’s in our nature to be generous, creative, and resourceful. It’s how God designed us, so let’s dream big.
David Girdwood oversees the day-to-day business operations of all 11 locations of Community Christian Church, Naperville, Illinois. He also provides financial administration and support for NewThing and Community 4:12.
C H RIS TIA N STAN DA R D
- 49 -
J AN UARY 2 0 1 8
When Personal Finances Strangle Ministry BY TOM BURBRINK, KIM ROBINETTE, A N D KAREN ISAACS
C H RIS TIA N STAN DA R D
- 50 -
J AN UARY 2 0 1 8
People of all stripes have difficulty with personal finances, but it can be even more challenging for ministers. A minister’s life is an open book; his salary might be public knowledge. When a minister struggles with personal finances, it impacts his effectiveness and can even cause him to leave the pulpit. Some of the best ministers are terrible at handling their personal finances. Contributing factors include: • A lack of financial training in seminary • Absence of teaching on how to keep simple records of ministry expenses • An unavailability of people with whom to discuss money problems and concerns As a result, ministers commonly face these money-related issues: • Many fail to plan for their long-term financial future. • A significant number have less than $10,000 saved for retirement. • Many have very little, or nothing, in college savings for their children. • Many have no personal savings. The following ideas can help churches ease their ministers’ financial stresses and struggles.
C H RIS TIA N STAN DA R D
- 51 -
J AN UARY 2 0 1 8
Ministers’ Taxes
Churches are not required to withhold taxes from a minister’s paycheck, and many don’t. When that’s the case, ministers are left to make quarterly tax payments. But ministers may not understand how much to withhold; many underpay quarterly deposits or fail to make deposits at all. Churches that do withhold tax monies for their ministers sometimes fail to withhold enough. Every tax season, many ministers receive shocking and unexpected news: they owe thousands of dollars to the Internal Revenue Service! The minister or the person handling the church payroll—or both—needs to work to make sure adequate estimated tax payments (federal, state, and local) are being made. If you need guidance, seek advice from a qualified ministerial tax preparer.
Pay-Package Structure The structure of a minister’s compensation package has a direct bearing on taxes owed. Housing allowance: Failing to designate an adequate amount for the minister’s housing allowance can result in a costly tax error. The housing allowance cannot exceed the fair rental value of the residence, whether the minister owns, rents, or lives in a parsonage. (Follow the guidelines outlined in IRS Publication 517.) The church should allow the minister to determine the amount of housing allowance designated. The U.S. Tax Court decision in a case involving Rick Warren from 2000 determined that 100 percent of a minister’s compensation can be designated as housing allowance. The housing allowance designations must be recorded in the church board minutes, and the housing allowance can be changed at any time, but it must be changed from the current date forward (and not retroactively). In other words, “before the payment is made.” [As with other important financial decisions, first consult a CPA, the IRS, or a tax attorney.] Parsonage vs. housing allowance: We recommend that churches provide a housing allowance rather than a parsonage. Churches may think it’s a good idea to provide their ministers with housing, including utilities, but a minister who lives in a parsonage will have no home of their own at retirement. At that point, the minister must purchase a home or pay rent for the remainder of their life. As a part of long-term financial planning, home ownership is essential. If your church provides a parsonage, we recommend you use the property for some other purpose or sell it so that the minister can start acquiring equity in a home. (It’s possible the minister would want to buy the parsonage.)
C H RIS TIA N STAN DA R D
- 52 -
J AN UARY 2 0 1 8
Nontaxable Employee Benefits
Health Insurance is a complex issue that, depending on how it is handled, can result in tax savings or cause hundreds of dollars in “unnecessary” taxes. Decisions can affect whether the minister’s health insurance premium is taxable or not. To ensure this aspect of the minister’s compensation is handled to the best advantage taxwise, seek advice from a qualified tax preparer.
Life insurance/disability insurance: As an employee of the church, a minister can have disability insurance and up to $50,000 of term life insurance as nontaxable benefits. Retirement Contributions: One-third of all ministers have less than $10,000 set aside for retirement. Many ministers have exempted out of Social Security, and those folks should be contributing increased amounts to their retirement funds. Whatever the case, many ministers will likely need to continue working longer than they intended. Various retirement plans—403(b), 401(k), IRA, Christian Church Pension Plan, and others—have different tax advantages. Using the wrong type of retirement account can be costly. How much is your church contributing toward the ministers’ retirement? Which type of retirement plan is being used? How much is being saved for retirement? Churches and ministers should seek counsel from a professional financial planner for the best advice for their long-term future.
Ministry Expenses The church should reimburse the minister for job-related expenses. The only way a church can receive the full tax benefit for expenses is for it to reimburse the minister for miles driven, books, cell phone, Internet, and other ministry-related expenses. Such reimbursements require documentation of miles driven and all other expenses (mileage log, receipts, etc.). An expense allowance that requires no documentation is of no help taxwise. Business records are very important. Whether records are kept in a logbook, smartphone, or computer, consistent and habitual—that is, daily—recording of mileage and expenses is the key. Church leadership needs to make sure the minister understands the importance of this and how to keep simple, but accurate, records.
C H RIS TIA N STAN DA R D
- 53 -
J AN UARY 2 0 1 8
Tax Return Preparation
Ministers are taxed differently than other professionals. An incorrectly prepared tax return can be very costly.
Other Considerations • Does the minister’s spouse also work? How does that affect the couple’s tax return? Should the minister’s compensation be reevaluated? • Does the minister have a second job? Is that necessary? Should the minister’s compensation be reevaluated? • Is the minister comfortable discussing personal finances with someone in the congregation? Can the church help facilitate discussions between the minister and an outside person with financial expertise?
Ministers who are not skilled money managers may ultimately leave preaching for a higher-paying career. The church should offer to pay a financial counselor to work with a minister who struggles in this area. The Center for Church Leadership (CCL) received a grant from the Eli Lilly Foundation to work with many leading churches and well-known ministers to reduce the number of ministers leaving full-time preaching. Learn more about CCL at www.centerforchurchleadership.org.
Tom Burbrink, Kim Robinette, and Karen Isaacs work for Burbrink Financial Services, Grayson, Kentucky. The company, started in 1978, specializes in services to churches and ministers. The company’s website is burbrink.com. Contact Tom at jtburbrink@hotmail.com.
C H RIS TIA N STAN DA R D
- 54 -
J AN UARY 2 0 1 8
the church budget shouldn’t be this hard BY CH R IS B OUE
Building a church budget can be hectic and complicated. Even if everyone agrees on how much the church should spend 12 months in advance, technical and administrative issues always seem to crop up. We send files back and forth, miss important email attachments, and lose track of the “right” version of that Excel file or tab. These types of problems can give everyone a bad case of heartburn. You know the budget process is going poorly when you hear statements such as, “I’ll just put in what they tell me” and the ever-dreaded, “Just put everything in because they’re going to cut it down anyway.”
minister for a church with a staff of 30, I assumed the budget process would be closer to a 10-person company than a 1,000-person company.
Part of the budget difficulty stems from a simple fact: Churches are not easily comparable to for-profit companies with staffs of similar size. I’ve run companies with 10 employees and companies with 1,000 employees, so when I became executive
Before we jump into how to help solve these issues, consider that budgets exist to meet our goals without overspending, to get everyone on the same page, and to make sure we’re spending based on what’s effective, not just what’s traditional.
C H RIS TIA N STA N DAR D
I was wrong. Our church actually has a “staff” of about 800, of which only 30 are paid. In fact, many of the people who provide budget input aren’t actually paid staff. They’re elders, ministry leaders, and budget committee members. When we realize that, we understand why our budget process needs tools that are closer to a 100- or 1,000-person company than a 10-person one.
- 55 -
J A N UA RY 2 0 1 8
Trust the Process Budget time should be when our organizations prioritize objectives as well as decide what to spend time, effort, and money on. The order is important here: 1. PRIORITIZE YOUR KEY OBJECTIVES. We frequently skip this step because we assume “everyone knows what to do,” or worse, “we’ll just copy what we did last year.” Whether it’s a meeting to discuss strategies or clarify key objectives, the question must be asked: “What is the most important use of God’s resources?” In an environment of trust, it is always best to take the key objectives and let your team put their department’s top supporting goals on a shared tool (like Google Sheets or Office 365). 2. CLARIFY YOUR NONNEGOTIABLES. Zero-based budgeting is a good direction for almost every organization, but very few budget managers are skilled or experienced enough to discern what is mission critical without a bit of help. My advice: Take a look at your assumptions of what is a missional “need” and what is a “want” and become familiar with the principles of zero-based budgeting. 3. ENSURE THAT AUTHORITY AND EXPERTISE ARE LINKED TO BUDGET RESPONSIBILITY. Before thinking about the numbers, consider who has authority and who has expertise in making decisions in select areas. For instance, consider who should decide about buying a computer, setting up a new process, or deciding on a large ministry purchase. For some areas, like technology, you might want to consolidate the budget under an expert. Of course, standard ministry areas should remain under the one who leads them. Finally, ensure that people who make money-related decisions are budget responsible, even if you give them only a few budget lines. Keep in mind that budget responsibility typically means engagement, buy-in, and ownership. 4. LET KEY OBJECTIVES BE THE GUIDE RATHER THAN HOW MUCH YOU CAN SPEND. When I joined the church staff, it was customary to offer budget guidance such as “everyone must cut 10 percent.” This approach not only takes away ownership from the people who need it most, it turns budgets into window dressing instead of a boundary-clarifying tool. Allowing the strategic plan and key objectives to guide the way can clarify the budget priorities in ways few things can. 5. HAVE BRAINSTORMING SESSIONS AROUND EFFICIENCY AND EFFECTIVENESS. Consider the difference between telling your team, “we need to find 10 percent more savings as we meet our objectives” from “everyone must cut their budgets by 10 percent.” The first is empowering and drives collaboration. The other promotes silos and encourages employee thinking rather than owner thinking. I have seen the most progress on this when my team has used a shared Google sheet to help identify best practices for areas of improvement.
C H RIS TIA N STAN DA R D
- 56 -
J AN UARY 2 0 1 8
Tools for a Connected World
Budget Cycle Time Reduction
Hidden Error Risk
Collaboration / Staff Buy-In
Configurable for Church Operations
Ease of Setup
Cost
Each of these can be addressed through modern budgeting tools and processes. Tools range from stand-alone budgeting systems to online Excel/Google templates. For a summary of the options, refer to the chart below. I ranked the six tools and gave each a letter grade for each consideration. See pages 58 and 59 for more detailed descriptions of these options.
Overall Rank
For those who need to involve 5, 50, or 500 individuals in the budgeting process, you should consider four areas of high leverage when deciding which tools to employ: budgeting cycle time, error risk (i.e., orphaned spreadsheets, broken links, and copy-andpaste errors), collaboration among teammates, and staff buy-in.
Linked Google Sheets
1
b
b
a
a
c
a
Linked Office 365 Sheets
2
b
c
b
a
b
b
Budget / EPM Applications
3
b
a
b
b
c
f
Spreadsheet Plug-ins
4
d
d
f
b
d
b
Accounting Package Budget Tools
5
f
d
d
c
c
c
Standalone Spreadsheets
6
f
f
f
a
b
b
C H RIS TIA N STA N DAR D
- 57 -
J A N UA RY 2 0 1 8
Everyone Gets a Trophy . . . Almost As the graph demonstrates, each budgeting tool has advantages and disadvantages. However, staffs of more than just a few individuals who need to work together to form a cohesive budget should choose one of the top three options. Here’s a quick rundown of the options, from worst to best:
6
STAND-ALONE SPREADSHEETS This is the worst option, though it has been a staple of budget managers for decades. In a recent article, Enterprise Times reported about 60 percent of businesses in the United States are still relying on individual spreadsheets (e.g., Microsoft Excel). I think that figure is even higher among churches, based on my own unscientific polling. This process is simultaneously tedious and error-prone. It’s an improvement over pencils and ledger sheets, but far better options exist today. If you cannot give up the old-style spreadsheet, consider options 1 and 2. They will take your love of (and experience with) your old favorite tool and modernize it—quickly.
5
ACCOUNTING PACKAGE BUDGET TOOLS As the name suggests, budgeting tools of popular accounting packages (e.g. FlockBase, Aplos, ACS Technologies, PowerChurch Plus, and even QuickBooks) are just that—tools. They can be very powerful when used properly. For instance, uploading the annual budget will save your bookkeeper, accountant, or chief financial officer hours each month in automatically calculating variance to budget, identifying the top overspent areas, and creating a quick visual for the next finance team meeting. However, relying on these same tools to help with budgeting workflow is unwise. While the companies that make these packages are working to improve them, better options exist.
4
SPREADSHEET PLUG-INS This can be an option for smaller staffs. It’s easy to input the budget and create accounts, and the plug-ins produce nice-looking graphs. The issue is scale. While it’s easy to automatically break different budget areas into tabs, you still must send a single file to each user for input. This is fine when there are only a few staff members, but it becomes a logistical nightmare when there are multiple users and multiple revisions.
3
BUDGET/ENTERPRISE PERFORMANCE MANAGEMENT APPLICATIONS EPM applications take the budgeting/planning process to a new level: cloud-based computing. These are ideal for larger organizations. Tools such as Adaptive Insights, Host
C H RIS TIA N STAN DA R D
- 58 -
J AN UARY 2 0 1 8
Analytics, and Vena Solutions combine the computing power of spreadsheets with the insight of an analytics engine; the result is a configurable workflow system and a truly scalable budget tool. Most of these applications also have beefy import/export features, and some communicate directly to your accounting system. The large negatives are cost and training time and effort. While many other enterprise-grade tools have become practical for midsized organizations, budgeting applications have not yet made the leap. Typical systems can cost thousands of dollars per month and require extensive training. I expect low-cost, easy to operate, cloud-based solutions to hit the market in the next few years. When that happens, this will be my No. 1 choice.
2
OFFICE 365 EXCEL SHEETS Office 365 essentially offers Excel (and the other applications in the Microsoft Office suite) as an online option. In theory, this allows linked sheets to automatically update, keeping you up on the latest numbers. In practice, however, users tend to download the sheets back to their computer (sometimes without realizing it), essentially unhooking them from the master sheet. Also, sharing with unpaid users almost takes a master’s degree in computer workflow. Microsoft will undoubtedly continue to make improvements—ironing out the kinks to smooth sharing and the inclination toward taking files offline. When that happens, Office 365 might match Google’s free tool (below). GOOGLE SHEETS While Google Sheets is not the most feature-rich spreadsheet product, it is the best for collaboration—and that’s why I rank it as the top option for churches. With Google Sheets, you can collaborate with many individuals while all seeing the latest master. I’ll confess, for one-off, heavy analytics, I tend to use Excel and then import the results to a Google Sheets file. But modern budgeting is about keeping up to date, and Google Sheets uses a linked sheets feature that allows different sheets and files to be linked. And since virtually all users use this tool exclusively online, the risk of having offline discrepancies is significantly less than with Office 365 . . . and free (yes, Google Sheets is free) is a cost you cannot beat. This has allowed our church to involve a number of nonstaff users to advise, offer input, and analyze what we are planning without ever thinking about revisions. The only downside of this budget choice is that a reasonably knowledgeable techie needs to assist you in setting up the worksheets. Once done, however, your budget-leading world will be much better.
1
Chris Boue serves as executive pastor at Whitewater Crossing Christian Church in Cleves, Ohio.
C H RIS TIA N STA N DAR D
- 59 -
J AN UARY 2 0 1 8
12
Ways to Protect Your Congregation in a Litigious Culture BY T R R OB E R T SON
“We face a true crisis in our Constitution as it relates to religious liberty. . . . I cannot think of another time when there have been greater challenges.” Joshua Hawley delivered this warning at the 2016 Protecting Religious Freedom Conference sponsored by Central Christian College of the Bible, Moberly, Missouri, and Forum Christian Church, Columbia, Missouri. Hawley is now attorney general of Missouri, but at the time, he was a professor at the University of Missouri. He and his MU School of Law colleague Carl Esbeck are both experienced religious liberty litigators. Hawley and Esbeck weren’t there to deliver political opinions, but to challenge the assembled church leaders to prepare for potential legal challenges that could impact not only their freedom of religious practice but their financial security. They outlined several practical steps every church board should consider to protect themselves in the event of personal lawsuits and government regulations. The information provided below is for informational purposes only; it is not legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem.
C H RIS TIA N STAN DA R D
- 60 -
J AN UARY 2 0 1 8
1.
Stay informed. Avoid making decisions based on outdated
information, social media hearsay, or politically slanted interpretations of current events. It’s vital for church leaders to educate themselves; seek legal and financial advice from a lawyer and from other reliable sources (see sidebar).
2.
Stand for religious liberty. It’s important
to promote and vote for the protection of religious liberty, including the rights of nonChristian religions. “It helps us when our Christian organizations defend Jewish people, Jehovah’s Witnesses, and other non-Christian groups,” Esbeck said. “When we defend them, it legitimizes our efforts when we’re defending religious liberty for Christians. If religious liberty was only for Jews and Christians, the secular public and the government would have even less tolerance for protecting what we already have.”
3.
Focus on your mission. “If we’re looking for salvation in politics or in a particular candidate, we’re looking in the wrong place,” Esbeck said.
It’s important to establish a history of being a missional, not political, organization. Focus on your core mission, “to draw people to Christ, which is the biggest issue, as opposed to all the political and legal issues, which are all secondary to Christ,” Esbeck said. Failing to stay focused establishes a trail of evidence that could be harmful if a congregation were to face a legal challenge.
4.
Establish a statement of faith. This is essential for parachurch organizations and it’s
recommended for churches. It does not have to be a “creed,” but could be as simple as a statement identifying the Bible as the ultimate source for the church’s belief and practice. “It’s vitally important if you find yourself in court to be able to point to a religious or biblical doctrine behind what you’ve done that does not scream to the court, ‘discrimination,’” Hawley said. “You will be in the strongest position legally if you can say this has nothing to do with anything else, it has to do with our long-standing and long-held doctrinal commitment to the Word of God, to the church’s teaching, [and] to our confession of faith. Here it is, it’s written down. . . . We ask all of our ministers to sign it; we ask all of our administrators to sign it.”
C H RIS TIA N STAN DA R D
- 61 -
J AN UARY 2 0 1 8
No.
No.
1
STAY INFORMED
2
STAND FOR RELIGIOUS LIBERTY
3
FOCUS ON YOUR MISSION
4
ESTABLISH A STATEMENT OF FAITH
5
UPDATE YOUR BYLAWS
6
ESTABLISH POLICIES
No.
No.
No.
No.
C H RIS TIA N STAN DA R D
- 62 -
J AN UARY 2 0 1 8
No.
No.
7
PRESCREEN VOLUNTEERS
8
BE AWARE OF YOUR TAX STATUS
9
CONSIDER INCORPORATING
No.
No.
10
EXERCISE DUE DILIGENCE
11
MAKE USE OF RELIABLE RESOURCES
12
RETAIN A LAWYER
No.
No.
C H RIS TIA N STAN DA R D
- 63 -
J AN UARY 2 0 1 8
5.
Update your bylaws. A congregation’s bylaws
should be rooted in its statement of faith and its principles applied to specific topics. The bylaws should establish “strong membership provisions . . . including mandatory Christian dispute resolution outside of the court process” and a clear statement about “where the spiritual authority to make decisions on different issues resides,” according to the Christian Legal Society. “You do not want to . . . find yourself in the position where you have the threat of a legal challenge and it looks like what you’ve done is on the spur of the moment,” Hawley said. “Courts don’t like that.”
6.
Establish policies. “You can have policies in addition to your bylaws, because sometimes policies can change from year to year, but bylaws are a little bit more permanent,” Esbeck said. This would include such things as personnel policies and financial policies. Policies protect the church against fraud and lawsuits. The Christian Legal Society provides resources that list some policies a church should consider putting on paper.
7.
Prescreen volunteers. “There are no civil rights of nondiscrimination for
volunteers, but we’re in a litigious atmosphere, so unfortunately you do have to do prescreening for your volunteers, and it’s just the right way to deal with people,” Esbeck said. Many businesses provide prescreening, including Christian Background Checks in Blue Springs, Missouri. CBC’s Clay Johnson says the service is tailored to meet the needs of megachurches and small churches alike. “You pay a per-search fee when you actually run a search. No annual fee, no set-up fee, no contracts, no minimum orders.”
8.
Be aware of your tax status. A church or a
house of worship is automatically deemed to be a 501(c)(3) tax-exempt organization without applying and without notifying the Internal Revenue Service, Esbeck said. At some future time, however, that could change.
C H RIS TIA N STAN DA R D
- 64 -
J AN UARY 2 0 1 8
Retain a lawyer. Above all, don’t try to piece
TR Robertson is a freelance writer living in Columbia, Missouri. C H RIS TIA N STAN DA R D
- 65 -
J AN UARY 2 0 1 8
Beckett Fund (news about religion and law) www.becketlaw.org
together your bylaws, policies, incorporation, and tax status through a single magazine article (like this one) or the combined “common sense” of a church board that is not trained in legal matters. Hire a lawyer. Then sit down and review the CLS webinar or other church-law resources with the lawyer present. Not all lawyers are experienced in the specifics of church law and religious liberty litigation.
•
•
12.
•
resources relate to church legal issues (see sidebar). Free webinars and online documents are available from places like the Christian Legal Society and Alliance Defending Freedom. Magazines, books, and newsletters can deliver up-to-date information on trends, best practices, and legal changes to church leaders.
Christianity Today ’s Church Law & Tax www.churchlawandtax.com
Make use of reliable resources. Many good
Alliance Defending Freedom www.adflegal.org
11.
•
is unique, so don’t just copy the bylaws of some other church or religious organization. The needs of a small church are different than a megachurch. The same may be true for rural vs. urban churches, and especially for a congregation vs. a noncongregational ministry or missions organization. Maintaining records as you work through the process of establishing an appropriate legal foundation for the congregation or organization can also be helpful when facing a lawsuit.
Christian Legal Society www.clsnet.org
Exercise due diligence. Every church or religious organization
•
10.
Christian Background Checks www.christianbackgroundchecks.com
to discuss this with a lawyer because there might be special circumstances, but “I really recommend that you incorporate,” Esbeck said. “It protects you. It limits your liability. You also have a life in perpetuity, so that when the founders die, the church goes on.”
Evangelical Council for Financial Accountability (free fraud prevention and record-retention resources) www.ecfa.org
Consider incorporating. It’s important
•
9.
Web Resources
JA N U A RY 2018 C H RI S T I A N S TA N DA RD - 66 -
headlines BY CHRIS MOON
CHURCH PLANTER HELPS WITH RECOVERY IN DOMINICAN REPUBLIC
for Hornbrook and his team, according to the Daily Journal in Franklin, Ind., which wrote about Hornbrook’s efforts.
Church planter Chris Hornbrook had to weather the storm last fall in his mission work in the Dominican Republic.
“We’re working through our local churches and pastors so that they can help the people in their communities,” Hornbrook told the newspaper. “We’re providing mattresses, clean water, food and we’re also going to be helping fix homes and stuff like that.”
Hornbrook is working to start a church-planting movement on the Caribbean island and watched as Hurricane Maria spun by, doing significant damage to the region. It generated a lot of work
Hornbrook is a former Stadia church planter who launched Momentum Christian Church in 2008 in San Diego. Today, he is helping Louisville-based Go Ministries, which also has partnered with Stadia
check out THE TICKER//TAPE! SCROLL ALONG THE PAGE FOR QUICK TIDBITS OF NEWS! FOLLOW THE TICKER//TAPE—ACROSs THE Hope International University raised more than $160,000 toward student scholarships in the fall at its 2017 Spirit of Hotel. Longtime HIU Trustee Richard Lukas was given the Spirit of Hope Award by the university. // Akeem Scott has been Scott is a KCU alumnus and most recently served as a coach at West Virginia State University. // Timberlake Christian reports proceeds from the race would go to International Disaster newspaper, the church was first known as the Basement Church. Christian churches, according to an annual report in Outreach 1,979 (or 38 percent). No. 3, Shepherd Church, Porter Ranch, CAlif, Traders Point Christian Church in Zionsville, Ind., which was named
ticker//tape
JA N U A RY 2018 C H RI S T I A N S TA N DA RD - 67 -
- HEADLINES -
and has a goal to plant 1,000 churches in the Caribbean during the next 10 years. Hornbrook moved to the Dominican Republic last year. Hurricane Maria tore up buildings and caused significant flooding on the island. “The Dominican people are just resilient people,” Hornbrook told the Daily Journal. “It’s a third-world country, so they’re used to responding to crisis and adversity and all that. Even yesterday, there was dancing and celebrating and laughter in the midst of—I’m sitting here going, ‘I have never seen flooding like this in my life.’ They’re just resilient, beautiful people.”
VEGAS CHURCH MINISTERS TO MOURNERS AFTER SHOOTING After a gunman opened fire in October on an unsuspecting concert crowd in Las Vegas, the nation began to mourn. And Canyon Ridge Christian Church sprang to action.
GAP—TO SEE WHAT’S HAPPENING IN THE RESTORATION MOVEMENT COMMUNITY! YOU MAY read ABOUT SOMEONE YOU KNOW! Hope Concert & Awards Gala. Six hundred alumni and friends attended the event at the Grand Ballroom of the Disneyland named head coach of men’s basketball at Kentucky Christian University, according to the Journal-Times in Grayson, Ky., Church in Moberly, Mo., raised money for Hurricane Harvey victims by hosting a 5K run/walk. The Moberly Monitor-Index Emergency Services. // First Christian Church in Deming, N.M., turned 100 this fall. According to the Deming Headlight Darrell Witmer serves as pastor. // Three of the five fastest-growing churches in the country are Restoration Movement magazine. No. 2, Eastside Christian Church, Anaheim, CAlif, has seen average weekly worship attendance increase by has grown in weekly attendance by 2,243 (27 percent). // The Indianapolis Star newspaper reported on the fast growth of the fifth fastest-growing church in the country by Outreach. Attendance in the 183-year-old church grew by 26 percent in
JA N U A RY 2018 C H RI S T I A N S TA N DA RD - 68 -
The Las Vegas church hosted a candlelight vigil the day after the Oct. 1 mass shooting to provide a place for people to gather and pray. More than 3,500 mourners showed up, according to local television station WWAY. The church posted a brief video from the vigil to its Facebook page that showed the mass of people at the church, their faces lit by candles, singing “Amazing Grace” in unison. The video was shared more than 17,000 times. A commenter named Nina Marie said, “As someone who isn’t even religious, this brought tears down
my face. People coming together in a time of tragedy is a beautiful thing. This world is so cruel . . . if only we could love each other like this all the time, it would be a better place.” Canyon Ridge’s senior pastor is Kevin Odor.
JOHNSON UNIVERSITY BUILDS NEW ACTIVITY COMPLEX
Johnson University has something big in the works.
2016. The church has two satellite campuses. // New Heights Christian Church in Connersville, Ind., has turned 70 years Creek, Ariz., broke ground this fall on a 40,000-square-foot building, according to the Queen Creek Independent newspaper. and Mesa; total combined attendance exceeds 9,000 weekly. // Lake Superior Christian Church in Marquette, Mich., hosted according to local news station TV6. Lead minister Brandon Morey said the event was designed simply “to engage with the fall, according to the State Gazette newspaper. Proceeds helped provide a Thanksgiving feast to a local family in need. // “In the Eye of the Storm.” Robyn Dykstra will be the keynote speaker. MCC has hosted the conference since 1978. // Eastside by “Canyon Fire 2” near Anaheim, according to public radio station KPCC 89.3. // Northeast Christian Church in Louisville, The project was part of the church’s “Love the Ville School Blitz,” which started five years ago. // Students from Ozark College Heights Christian Church to do cleanup work, mold remediation, and demolition. would you like to submit a news item? contact us via facebook and instagram @christianstandardmagazine, or
JA N U A RY 2018 C H RI S T I A N S TA N DA RD - 69 -
- HEADLINES -
The Christian college is building a $19 million athletic and recreation complex at its Knoxville, Tenn., campus. The complex will provide outdoor facilities for baseball, softball, volleyball, tennis, and soccer. An 86,000-square-foot building will host basketball, swimming, and intramural sports, among other activities. “Someone ought to ask the question, what does building a building like the ARC (Athletic and Recreation Complex) have to do with the mission of Johnson University,” said President Gary Weedman in the Royal Scribe, Johnson University’s student newspaper. “It is a lot of
money, the likes of which we have not seen before now.” But Weedman stressed that research shows college students desire things like social connections and physical activity, which the new facility will provide. “So, it is not at all unrelated to our mission,” he said. Construction is expected to be completed in a year. The Royal Scribe reports that the fund-raising effort for the facility still is under way. The project will not impact tuition.
old, according to the Connersville News Examiner. Ryan Phelps serves as pastor. // Central Christian Church in Queen Attendance at the church runs between 600 and 800 on Sundays. CCC also holds services in Ahwatukee, Gilbert, Glendale, its first-ever Fall Fest in September. The event featured live music, free pizza, bounce houses, carnival games, and a maze, community and be a blessing.” // First Christian Church in Dyersburg, Tenn., hosted its 14th annual pumpkin patch last Manhattan (Kan.) Christian College will host its annual Woman’s World conference Feb. 23 and 24. The conference theme is Christian Church in Anaheim, Calif., served last fall as a collection site for household items and clothing for those affected Ky., spent one Sunday morning last fall providing landscaping for 31 school campuses in the area, according to WDRB.com. Christian College in Joplin, Mo., went to Houston in the fall to help Hurricane Harvey victims. The students partnered with twitter @CHRstandard, on our website at christianstandard.com, or email us at cs@christianstandardmedia.com.
interact CONTINUED SUCCESS I was in a prayer meeting at my church and one of the ladies said she really liked the “new” look of Christian Standard. She just went on and on about it, detailing what she saw as the improvements. Peggy Park Lexington, Kentucky via email
Matt Larimer @mattlarimer, Terre Haute, Indiana
I’ve never kept a monthly publication until @_JerryHarris helped revamp the @ChrStandard! What do you keep?
KORE Foundation @KOREFoundation, Nashville, Tennessee
I received the October and November issues of the new Christian Standard and am very pleased with the basic format and contents. I am so happy this journal is now owned by members of our brotherhood. I pray it will continue to uphold the goals of the Restoration Movement to bring about the unity of all Christians by restoring the church as it was in the days of the apostles. I was very pleased that the November issue featured the work of various missionary endeavors. I also appreciate that you plan to have a column each month spotlighting the work of a particular missionary field. . . . I would like to see more doctrinal articles and articles that occasionally deal with contemporary problems and issues that are of concern to all Christians. . . . I pray for the continued success of the Christian Standard and pray God will use you to help keep us united as a brotherhood of believers. Bob Tinsky via email C H RIS TIA N STAN DA R D
Thank you @ChrStandard for publishing this wonderful article on #KORE founders and history [November issue]! Check it out! #impact
Redemption @Redemption_IN
Redemption’s story is featured in the latest [October] issue of the newlyredesigned @ChrStandard . . . Read . . .
Aaron McClary @BigAMc, Markle, Indiana
As lead minister at a church in a rural town of 1,100 residents, this [October] issue speaks my language. Thank you!
- 70 -
J AN UARY 2 0 1 8
- INTERACT -
GOD’S HOLISTIC MISSION
FORGOTTEN PLACES
Fantastic article [“More Than Bible Translation,” by Greg Pruett, p. 46, November 2017]. The importance of a holistic approach to missions cannot be overstated. It is all about missio Dei. As God met our needs holistically, so we should meet people’s needs holistically. Your points about economic development as well as spiritual development highlight what Christ did for people when he was here. He met their physical as well as their spiritual needs. Thanks so much for posting this. Adam Jones via website
People like to plant churches in nice cities where they really want to live, raise a family, have very straight paths [“A Church for Forgotten Places,” by Jerry Harris, p. 30, October 2017]. When what we need is more churches planted in places like this. Nick Vipperman Jefferson, Georgia via Facebook
THE CHURCH THAT DOES THE RECOVERY PROGRAM Thank God for your “work in the field” [“The Church that Does the Recovery Program,” p. 52, October 2017]! I graduated from high school in Owensville, Missouri, just a few miles up the road. I knew many of the young people active in the youth group in the church in Belle. I admit to having a bias for the kind of ministry you are doing, since I’m a substance abuse therapist. My husband and I have been active in a number of churches around the country who are active in recovery ministries. It’s my opinion that we’re all “in recovery” of one sort or another! Sin rips us away from relationship with the Father, and our lives are spent “recovering” from its affects! Even though Jesus has fully paid our debt, we don’t automatically know how to live the abundant life he died to deliver to us! Taking simple daily steps, as revealed in Scripture, can help disentangle us “from every weight and sin that would so easily beset us. . . .”! Stay the path, church at Belle, Missouri! Margi (Knopp) Herberger Trujillo via website C H RIS TIA N STAN DA R D
FREE INDEED Yes! So encouraging and refreshing to read this [“Free Indeed: Crossroads Christian Church of Joliet, Illinois,” by Justin Horey, p. 50, September 2017]. Often the focus is numbers, numbers, numbers. How big is our service? How large is our space? Instead of how mightily are we impacting hearts and building our community? @untoldtheplay via Instagram
Give us your
feedback! /ChristianStandardMagazine @ChrStandard @christianstandardmagazine Cs@ChristianStandardMedia.com For space, length, readability, relevance, and civility, comments sent to Interact may remain unpublished or be edited. We do read them all and prayerfully take them to heart. If we publish your comment, we will try to honestly reproduce your thoughts with those considerations in mind. Where we disagree, let’s continue to keep P.H. Welshimer’s words in mind to “disagree without being disagreeable.”
- 71 -
J AN UARY 2 0 1 8
- COMMUNIONMEDITATION -
Zion National Park in southern Utah is a true wonder to tour and explore. As with so much of Utah, Mormon settlers named the area, and the name they chose aptly befits the beauty of the park. Zion can mean a place or refuge or sanctuary, or utopia, or Heaven. They felt that being in Zion brought them close to God. Christians can appreciate the names given to the various sandstone rocks, peaks, and formations in the park. Names like Cathedral Mountain, Angels Landing, Castle Dome, the East Temple and West Temple, the Great White Throne, and the Court of the Patriarchs above which rise the three side-by-side peaks called Abraham, Isaac, and Jacob. A person living there would be hard-pressed to wake up each morning and not think of God and his creation. And if the sights ceased to awe a person after a few months or years, the names would serve to remind them of God. The items that make up the Lord’s Supper, when seen merely as food, are not nearly so stunning. A piece of bread, some juice from grapes. Not much to them. But the beauty of what these items symbolize and what Christ did for us outshine mere geography. The bread represents Christ’s body, broken for us. The juice symbolizes Christ’s blood, shed for us. The sight and taste of these symbols, the entire act of partaking, serve to remind us of Christ’s sacrifice—his perfect gift. Jesus lived a perfect life and died for the imperfect so that we might be made perfect in God’s sight. God has taken the rocks of southern Utah and made them beautiful to our eyes. But his son, Jesus, through his sacrifice, has made us beautiful in God’s eyes. And as a bonus, he has called us to remember his beautiful gift by dining with him whenever we gather.
BY J IM N IE MAN
Jim Nieman serves as managing editor of Christian Standard . C H RIS TIA N STAN DA R D
- 72 -
J AN UARY 2 0 1 8