HELPING LEADERS BECOME BETTER STEWARDS
JUNE/JULY 2014 JULY/AUG 2014
MULTISITE STRATEGIES — ENSURING CONSISTENCY | 12 YOUTH SPACES: THOUGHTFUL, RELEVANT DESIGN | 20 HOW TO PROTECT THE BOARD OF DIRECTORS | 32
ROSS PARSLEY
PURVEYOR OF WORSHIP AND DISCIPLESHIP | 8
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COV ER S TO RY THE CE INTERVIEW
By Rez Gopez-Sindac When Ross Parsley planted ONEchapel in Austin, TX, he had one major goal: “to build a real church.” He did not want a religious corporation or a social organization. He says his desire was to build a group of people who lived their worship outside the church building serving their neighbors and being engaged in the city.
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FE AT U RES MULTISITE STRATEGIES
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GEOGRAPHY MATTERS!
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BUILDING A BUSINESS THAT ENCOURAGES GENEROSITY
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HOW TO MAKE TEENS FEEL AT HOME AT YOUR CHURCH — ONLINE
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DESTINATION: ISRAEL
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By Jim Tomberlin
How to plan for multisite expansion using analytics and data By Sam Batterman
By Noam Matas
A PASTOR’S PERSPECTIVE
How technology can help you respond in times of risk and crisis By Phil Elmore
SCREENING STAFF AND VOLUNTEERS By Scott Harkins
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PASTOR-FRIENDLY A/V I REPEAT MYSELF
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NEVER AGAIN RISK CONTROL
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Why acoustics can’t be “fixed” with electronics By Nick Colleran
By Michael J. Bemi
DEPA RT M EN T S
SERIES FROM THE EDITOR CONSTRUCTION MISSION: YOUTH COMMUNITY
By RaeAnn Slaybaugh The new facility at Rhema Bible Church will foster authentic connections through thoughtful, relevant design.
By RaeAnn Slaybaugh
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CAN’T BUILD A YOUTH FACILITY JUST YET?
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By Rich Maas
RISK MANAGEMENT WHY YOUR CHURCH SHOULD CARE ABOUT D&O INSURANCE
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HOW TO PROTECT THE CHURCH BOARD FROM LITIGATION
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By Robert Erven Brown
By John Ergastolo
GENEROSITY THE MINISTRY OF GIVING
5 steps to fund your ministry vision through high-capacity givers By Joel Mikell & Bill McMillan 4 | CHURCH EXECUTIVE | 07-08/2014
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FROM THE CONTRIBUTING EDITOR
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By Rez Gopez-Sindac
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By Paulla Shetterly
TECHNOLOGY SOLUTIONS By Doug Braun
INVESTING IN THE NEXT GENERATION — BY DESIGN
MARKETPLACE 47 ONLY IN OUR DIGITAL ISSUE!
[CHURCHEXECUTIVE.COM/DIGITAL-EDITION]
BIBLES AND BIBLE SOFTWARE
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4 KEYS TO MULTISITE TECHNICAL CONSISTENCY
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THE ADVANTAGES OF NON-CASH GIFTS
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How to choose the best option for you now — and for the future? By Gary W. Derickson, Ph.D.
By Eric Rojas
By Bill Walter, CFP
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GOOD STEWARD AWARD WINNER PROFILES COST SAVINGS: Hope Church (Cordova, TN) GIVING SOLUTIONS: Shore Fellowship (Egg Harbor Twp, NJ)
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Publisher / Editor in Chief Steve Kane, ext. 205 steve@churchexecutive.com Group Publisher Sali Williams, ext. 209 swilliams@churchexecutive.com Editor RaeAnn Slaybaugh, ext. 204 rslaybaugh@churchexecutive.com
Contributing Editor Rez Gopez-Sindac
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rgopez-sindac@churchexecutive.com Contributing Editor Robert Erven Brown Production Director Kevin Dixon, ext. 203 kdixon@churchexecutive.com Senior Art Director Renée Hawkins, ext. 207 rhawkins@churchexecutive.com Marketing Intern Mark Proulx, ext. 110 mproulx@theproducersinc.com
EDITORIAL ADVISORY PANEL Stephen Briggs Associate Pastor of Administration First Baptist Church | Hendersonville, NC Denise Craig Chief Financial Officer Abba’s House | Hixson, TN David Kennedy CEO HDSound.us | San Marcos, CA Mike Klockenbrink Chief of Staff Lakeside Church | Folsom, CA Dan Mikes Executive Vice President Bank of the West | San Ramon, CA John C. Mrazek III Executive Pastor Pathways Church | Denver, CO Sam S. Rainer III Senior Pastor First Baptist Church | Murray, KY Mark Simmons Business Manager Christ Community Church | Milpitas, CA Eric Spacek Senior Manager GuideOne Insurance | West Des Moines, IA
Volume 13, No. 4
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Accountant Fred Valdez Church Executive (Copyright 2013), Volume 13, Issue 4H. Church Executive is published monthly by Power Trade Media LLC, a subsidiary of Friendship Publications Inc., 4742 N. 24th Street, Ste. 340, Phoenix, AZ 85016. Subscription Rates: United States and Mexico $39 (USD) one year, Canada $42 (USD) one year (GST) included, all other countries $75 one year, single issue United States $5 (USD), all other countries $6 (USD). Reprints: All articles in Church Executive are copyrighted and may not be reproduced in whole or in part without the express written permission of the publisher. For reprints of 100 or more, contact Valerie Valtierra at (602) 265-7600 ext. 203. ™
Copyright 2013 by Power Trade Media, LLC. No advertisement or description or reference to a product or service will be deemed as an endorsement, and no warranty is made or implied by Power Trade Media, LLC. Information is obtained from sources the editors believe reliable, accurate and timely, but no warranty is made or implied, and Power Trade Media, LLC is not responsible for errors or omissions.
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EDITOR’S LETTER
As I write this, the Church Executive team and I are in the final days leading up to the 2014 National Association of Church Business Administration Conference in Orlando, FL. Having attended this Conference a double-digit number of times, I know fairly well what to expect: an invigorating, busy event that lets me touch base, face-to-face, with so many people I’ve come to know well over the years. But this year, things are a little different: Our team has really ramped up its offerings at NACBA. “From Texting to Twitter: Know Your Risks” — a live panel discussion. With the (incredibly gracious) help of our legal / risk management blogger and head contributor Robert Erven Brown, Esq., we’re leading our first-ever educational session at this year’s NACBA Conference. We all know social media is changing how churches operate — mostly, for the better. Yet, few church leaders recognize the potential risks social media use poses to their churches’ legal and financial health, let alone how to mitigate those hazards. Fortunately, our panel of legal, insurance, risk management and megachurch social media experts is happy to share what they know. The key takeaways from the discussion will be published in our Sept / Oct 2014 issue, as well as by video on our website. So, keep an eye on your mailbox, inbox and churchexecutive.com for that.
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Social Media Risk Management: A Starter Kit. Compiled as a supplement to our panel discussion, you’ll definitely want to download our new E-Book — even if you can’t join us in person in Orlando. This 34-page resource is a must for church executives looking to protect their organizations from social media risks. Inside, you’ll find: Is your church really covered online? Guidelines for protecting youth on the Web Using social media to screen job applicants “Bring-your-own-device” (BYOD) policies Case study: Megachurch social media policy review PLUS, useful Sample Codes of Conduct and Social Media Policies
You’ll find this timely e-resource on our website Roundtables: Lending / Finance & Church Management Systems & Software. We’ll be conducting two closed-door, invite-only roundtable discussions with high-level executives in the lending / finance and church management systems and software realm. Both are wonderful opportunities to connect with the thought leaders in these industries, and to share their perspectives and strategies with you. You might recall that we hosted a few of these roundtables last year, as well; those focused on financing, compensation / benefits & fundraising, and risk management. The resulting two-part Q&A series are still relevant and valuable — well worth a keyword search for “roundtable” at churchexecutive.com. We’ll be doing the same with this year’s roundtables, so keep an eye out for our Sept / Oct 2014 and Nov / Dec 2014 issues for those two-part articles. CETV. As they did at last year’s NACBA Conference, our CETV crew will be on hand videotaping Q&As with suppliers in the exhibit hall. We want to know how they’ve come alongside churches, and the hurdles they’ve helped church clients overcome. The crew will also tape our panel discussion so we can easily share it with you when we return. Now, it’s time for finishing touches! Here’s to hoping these resources prove beneficial to you, our readers, long after Orlando. All the best to you and your ministry,
TALK TO ME: Email: rslaybaugh@churchexecutive.com Facebook: ChurchExecutiveMagazine Twitter: @churchexecutive.com
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THE CE INTERVIEW
ROSS PARSLEY Lead Pastor | ONEchapel | Austin, TX
BY REZ GOPEZ-SINDAC
First-time church planter Ross Parsley is building a community of believers on the true foundation of worship — meaning, he says, reaching out to the weak, the unchurched and the disenfranchised and nursing them back to health. “We want to help them to belong,” he adds.
For 18 years, Ross Parsley led worship at New Life Church in Colorado Springs, CO. During that time, people would often ask him if he’d want to be a pastor someday — to which he’d reply, “I know what you mean, but I’m a pastor already. I lead worship by loving and pastoring musicians.” But, that “someday” did come to pass in 2010, when Parsley planted ONEchapel in Austin, TX. “I became convinced that I could pastor in Austin because I pastored all these weird musicians all these years,” he says with a laugh. When Parsley started ONEchapel, he had one major goal: “to build a real church.” He did not want a religious corporation or a social organization. He says his desire was to build a group of people who lived their worship outside the church building serving their neighbors and being engaged in the city. A worshipper at heart, Parsley maintains he’s still leading people to worship; he’s just doing it from a lead pastor chair. What have you learned about church planting since coming to Austin in 2010? I think what I’ve learned most of all is how so many people are in need of a place to belong, and how they’re burdened and are struggling with life. And they need a solution; they need an answer. What I’ve seen since I’ve been here is how a church can help people to belong and find peace and joy. The second lesson I’ve learned is it takes a long time to make disciples. It takes a long time and a lot of consistency to help people in their journey of discovering who Jesus is and how He wants to work in their lives. We want them to get saved and then everything to change, but it’s quite a journey. As a church planter, I’m dealing more than ever with people who are in a long journey. And, frankly, I like it. I think it’s wonderful to watch people grow and realize who Jesus is in their lives and begin to change. How does your passion and training as a worship leader influence the way you lead as a pastor? When I led worship, I understood why the pastor wanted me to be done at a certain time so he could get up and share the message he’d been working on all week. I understood that. But now it’s a whole different level of experience. I now understand this sense of needing to get the message out of you because it’s percolating in you all week as you prepare it. So now I understand pastors better. I understand the other side of it. We have a great worship leader, and he’s brilliant,
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QUICK FACTS ONECHAPEL Year established: 2010 Denomination: Nondenominational Number of full-time staff: 5 Yearly budget: $1.2 million Number of locations: 1 Combined weekly attendance: 1,000
but sometimes when I’m anxious and I’m ready, I look up there and I’m like, “Really, one more song? Really, you had to sing that chorus one more time? It’s done, let’s move on!” I understand that part a lot better now, but I also understand the flip side better. Because I’ve been a worship leader for so long, I’ve so much respect for what the worship pastor does. We don’t have a struggle relating. I understand that he has so many moving parts to what he does; a lot more moving parts than I have in what I do. I’m preparing, and so it’s me and the Scripture and maybe the guy running the projection. But the worship leader deals with so many pieces, so I understand that and I can easily accept a lot of things that happen. I also think that the Lord wants me to lead worship, just from a different chair. I have a profound appreciation for God’s presence and even though I really almost never lead worship now [the way I used to], our church benefits from the blessing of the lead pastor being committed >>
ON CREATING A MULTIGENERATIONAL CHURCH Photo credit for cover photos: Photo by Abraha m Ruiz.
The church is God’s family — and it can be messy. This is the message of Ross Parsley, ONEchapel lead pastor, in his book, Messy Church: A Multigenerational Mission for God’s Family (published in 2012 by David C Cook). And just like any family composed of children, parents and grandparents, Parsley says a church family is “a multigenerational group of real people who love each other and care for one another’s needs, no matter how messy.” When asked how churches can create an environment that welcomes and celebrates people from all generations, Parsley shares the following: • Embrace a family ecclesiology. The family always moves at the pace of its slowest members, creating a culture of care for the weak, protection for the defenseless and love for the lonely. (Psalm 68:4-6) • Embrace a blended liturgy. Hillsong and hymns, Holy Communion with Jesus Culture, Creeds to Chris Tomlin. Blended worship doesn’t mean no one will be happy. We need to be rooted in the history of what God has done among His people with room for the mystery of what He’s doing today. (Psalm 71:17-18; Psalm 145:4) • Embrace a youthful church ethic. Every member must be valued, but it takes no skill or expertise for a church to grow old; it happens automatically. All the work is in growing young. (1Timothy 4:12) • Embrace an integrated age ethos. What if we took the wisdom, experience and resources of age and combined them with the strength, energy and innovation of youth? What could that church accomplish? (1 Peter 5:1-6) 07-08/2014 | CHURCH EXECUTIVE | 9
THE CE INTERVIEW and loving and embracing and leading, from his chair, people into the presence of God.
We’ve been consistent with our digital marketing creating a strong Google search and Facebook presence.
ONEchapel has grown so fast over the past four years. What are the strategies and values that are working for you? We place a high value on the presence of the Holy Spirit in our lives and in our life-giving worship. We’re relationally driven — we have a strong emphasis on connect groups, teams and doing life together. We’re mission-focused — we hold a firm commitment to loving people where they are, reaching out to our neighborhoods, and intentionally blessing our community with acts of kindness and compassion. We work really hard to connect people with a very warm atmosphere, with people who are attentive to their needs, nametags for everyone — obscuring who is new and eliminating the first barrier of meeting someone. We’re very conversational in our culture, style and ministry methods. We’re committed to a multigenerational family liturgy — giving form and focus to our worship, which includes both Holy Communion and the Nicene Creed in the context of modern worship music and conversational prayer.
You had a core team that left Colorado Springs to help you plant ONEchapel in Austin. How did this impact the growth of your church? Starting with such a large team of people who’d already “bought in” to relationship with me and to a relationally based ministry model made it so easy to share vision. We weren’t just sharing a ministry vision that didn’t exist; we were sharing a ministry vision that we were currently living out on mission in a new city.
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Are all your core families still serving at ONEchapel? Yes. Almost all of them are still here serving and continuing to create culture. They’ve been an incredible encouragement. What’s your boldest dream for ONEchapel? My boldest dream for ONEchapel is that we would become a place of healing and wholeness, changing the spiritual landscape of Austin by seeing thousands come to Christ, and discipling them to be influencers, church planters and missionaries.
TECHNOLOGY SOLUTIONS kiosk’s capabilities, you might be able to present vivid visual presentations on its screen — of your church family, recent events, or even the church’s history. This makes the kiosk a spot members visit to view a video of the church picnic, pictures of your newest members, or a multimedia presentation about the upcoming capital campaign (and the new building it will fund). For example, our iGIVE™ kiosk lets churches remotely create, upload and schedule all kinds of visual content as the default on-screen presentation using a simple, web-based interface.
Website access and media menus
Blessings beyond giving BY DOUG BRAUN
Your church website is a valuable point of entry to the life of your church. Most likely, your congregation has made a significant investment in creating a highly informative, engaging and interactive online home. For many members and visitors, a church’s website is the go-to resource for information on a church’s schedules, events, groups and services. However, this invaluable asset isn’t always readily available at church — where members and visitors might browse the information it contains or reference items mentioned during services, activities or meetings. As such, many of our clients have made their websites the first thing users see when they approach the digital giving kiosk. Not only does it build awareness of the church website, but it also provides anytime access to the information it contains. Alternately, some digital giving kiosks enable the display of on-screen menus of selectable content. Ideally, a wide spectrum of content types should be made available — videos, PowerPoint presentations, PDFs and other printable items. By attaching a printer or enabling one wirelessly, churches can make applications, fliers, meeting minutes, pledge cards and other materials available on-demand.
Registration and purchasing Just as our churches’ mission is more than simply soliciting donations and spending the funds collected, digital giving kiosks can play an important role beyond the monetary. We’re called to be good stewards of our congregations’ resources. As such, we should explore the fullest use of the technologies in which we’ve invested. In the case of digital giving kiosks, that means investigating how they can be used to expand the connectedness of our congregations and proclaim our mission and message to everybody who comes in contact with them. To this end, let’s look at what can be done with a smart giving kiosk, beyond donations.
Visual impact and storytelling There’s a great deal of truth in the adage, “A picture is worth a thousand words.” Depending on your digital giving
Because of their ability to accept payment and record user information, digital giving kiosks might also be able to perform additional tasks, including event registration and ticket and study materials purchases. Incorporating such functions makes registration and purchasing easier for members, and also improves record-keeping by digitally capturing participation and purchase information. Some digital giving kiosks even let users receive printed or e-mailed receipts. And here’s where we come full circle. While all these functionalities are wonderful, perhaps the greatest benefit to increasing visibility of and interaction with your church’s digital giving kiosk is the obvious: increased opportunity for giving. Doug Braun is senior vice president at Clarence, NY-based inLighten, a provider of digital media solutions — including giving kiosks — for the church market. [inlighten.net]
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How to reproduce ministry best practices — consistently — across multiple locations BY JIM TOMBERLIN
When I came to my church in Colorado in 1991, the cutting-edge technology was an overhead projector. Today, we’re delivering messages — and messengers — on video screens. The technological developments of the last two decades laid the foundation for the multisite church movement. The ability to capture gifted teachers and preachers on high-quality video, and deliver it to other locations, makes church accessible in a way never imagined before. Today, every week, more than 5 million people attend one of the 8,000-plus multisite churches across North America. Truly multisite has become the “new normal” for healthy, growing, outreach-oriented churches. The key to success in a multisite church is the ability to reproduce ministry best practices consistently across multiple locations. One of the first questions to address in going multisite is, How will we deliver our sermon content?
Pastor Don Wilson at the Scottsdale, AZ campus of Christ Church of the Valley 12 | CHURCH EXECUTIVE | 07-08/2014
The question usually revolves around the issue of live, inperson teaching versus video-delivered sermons. According to the latest survey from Leadership Network, only half of multisite churches use video to deliver their sermons to multiple locations. The same survey also revealed that the larger the church attendance, and the more campuses it has, the more inclined that church was to use video delivery.
Delivery methods, explained The easiest and least expensive way to deliver video sermons is to capture the sermon on a DVD or hard drive and deliver it to the multisite campuses the next day or the following Sunday. This is how the majority of video-based multisite churches deliver their sermon content. A small (but growing) number of churches use satellite technology to deliver their messages across multiple
Pastor Gene Appel at Eastside Christian Church in Anaheim, CA — live preaching with IMAG
locations. The initial cost of using satellite technology is expensive, but it’s the most cost-effective for churches with more than three campuses, or with campuses spread over long distances. The third way to deliver sermon content is to video-stream it over the internet. This allows real-time or delayed delivery. Even though this is often the most expensive option and has internet reliability issues, it’s growing in popularity and will most likely become the primary way churches will deliver video content in the years ahead as the cost goes down and internet reliability improves. Churches that use video sermons typically use high-definition cameras for a “full body” camera angle and project on a large, center screen at the receiving campus. Many churches also add smaller side screens for a close-up head shot of the speaker and use the lower third of the screen to scroll biblical references or sermon notes. The primary concern churches have about video sermons is whether or not their people will accept them. Most church people express reluctance to embrace video sermons, but quickly do when sermons of gifted communicators are captured and presented well. Here’s what I’ve observed about video sermons: Bad preaching on video doesn’t work. Good preaching — captured and presented poorly — doesn’t work. But, when captured and presented decently, good preaching works everywhere, whether in suburban, urban or rural communities. Video sermons leverage the teaching gifts of dynamic communicators and ensure that local churches can deliver their messages consistently to all their locations. Not everyone is going to like video sermons. Not everyone has to — just enough need to. And, unchurched people are far less uptight about the medium than church people. They’re more concerned if the person on the screen has something meaningful to
say in an engaging way. The Apostle Paul declared in the first century that he was willing to do new things to reach more people. Evangelist Billy Graham demonstrated in the last century how technology can be used to reach more people. Today, multisite churches are following the example of the Apostle Paul and evangelist Billy Graham in taking church to the people. Video sermons work
because it’s not about the medium; it’s about the message. CE Jim Tomberlin is founder and senior strategist of MultiSite Solutions, a company dedicated to assisting churches in extending their impact through multiple locations. [multisitesolutions. com] Over three decades of diverse ministry, Tomberlin has pastored a church in Germany, grown a megachurch in Colorado, and pioneered the multisite strategy for Willow Creek Community Church in Chicago.
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4 KEYS TO MULTI-SITE TECHNICAL
Christ Community Church’s Bartlett, IL campus
Christ Community Church’s Blackberry Creek, IL campus
BY ERIC ROJAS Admittedly, I was quite opposed to the multi-site video model of doing church — initially. As a long-time pastor from traditional churches, I just couldn’t get my arms around a video preacher. In fact, it took a visit to a video venue campus to change my mind. I heard the “preacher” ask a question and ask for a show of hands. Immediately I thought, No way is anyone going to raise their hands. I was completely wrong, as more than two-thirds of the audience quickly put their arms in the air as an affirmative response to the video preacher’s question. That experience began a quest to figure out why this model was working so well. What I soon realized was that God was working in a new way — in large part because of the use of audio and video in a new, fresh and excellent way.
4 critical success factors There are four keys which we’ve found are critical for multi-site technical consistency. 1) Have great people working for you. As an executive pastor, I’m not an audio, video or online expert.
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While top leaders will always have ideas, it’s vital to have a team of experts in the field running your sound, tech and online ministries. Every penny you spend on staffing in these areas will be well worth it. When we look at our regional campuses, we always make sure there’s a staffing plan. We’d always love to do more, but we make sure the base is covered with top quality. In previous churches — where I couldn’t afford yearround staffing — I made sure to hire the best consultants possible for key decisions and in key seasons. 2) Invest in top-level resources. Years ago, we moved into a new auditorium. It was a beautiful, 2,000-seat room. There was one problem: The sound wasn’t good enough. We’d cut back on the funding as a cost-cutting measure. It ended up costing us $500,000 shortly after the doors opened to remedy the problem. Now, when the doors open at a new campus, we make sure there are highquality systems in place. We also make sure the systems from campus to campus are the same or very similar. This allows for uniform training and quality control.
CONSISTENCY
Christ Community Church’s DeKalb, IL campus
3) Have an extremely well-thought-out and wellcommunicated technical service plan. We run our services at our regional campuses via fiber optics. When we went to fiber options, we debated and researched long and hard before developing our plan of attack. We ended up with our regionals having a 10-minute delay so there was enough buffer from the broadcast campus. In this DVR-type system, we can now have a five-minute traffic delay at the broadcast campus and we’re OK. We can have a song or song intro go a little long and we’re OK. We can have some technical glitches and we have up to 10 minutes to get them fixed. All these issues have occurred, and they’ve all turned out fine because of the plan we have in place. Additionally, we have our technical and production team on headsets in constant communication so that the regional tech team is aware of any service nuances and how the service is developing. 4) Have a website and social media presence that provides ministry consistency. On our web page, the first thing you’ll see is a choice of campuses. This initial choice helps the end user to find the customized informa-
Christ Community Church’s St. Charles, IL campus
tion he or she will want. If you compare campus page to campus page, the only differences are some of the event times and locations. This process is driven by our central communications team — the “sheriffs” of keeping the same feel and functionality. Each of the campus teams and campus pastors can speak freely into the process and the content, but it’s managed centrally. We also have a central social media team that covers information that’s relevant to all campuses. However, each campus has the freedom to run their own Facebook page or other social media tools if they so desire. When you have all these keys and systems working together, it’s a thing of beauty that truly helps advance the message of Christ and His kingdom! CE Eric Rojas is executive pastor at Christ Community Church in the western suburbs of Chicago. He has been in ministry for 25 years. Follow Eric on Twitter and Facebook
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How to plan for multisite expansion using analytics and data BY SAM BATTERMAN
Deciding where to plant a new campus is paramount to multisite success. This is where your church management system (ChMS) comes in. The main issue is how easy is it to describe what you’re looking to get out of the database, and how easy it is use this information in a way that helps you figure out where to put a new church plant. Our program enables the creation of a nearly infinite variety of groups. These groups inherently “know” about geography — where things are located. In the example of determining where to plant a new campus, you need groups that paint a picture in response to these questions: • How many people are coming to your church, and how far are they traveling? • How many members are coming, and where are their concentrations? • How many visitors are coming? (Optimally, it would be great to see “old” visitors and visitors who have recently started coming. Can you ease their burden of travel?) • Can you start the new site in a place that has good, faithful members for service and giving? • How disruptive will this be to existing ministries, such as small groups and affinity groups?
FIGURE A
FIGURE B
Let’s get started In our own program, a feature called Smart Maps lets users composite the information for various groups onto a map. The first step is to understand the geographic distribution of everyone visiting your church: members, regular attenders and visitors. In Figure A, we’ve created a group that pulls everyone who visited a specific church since January 1, 2014. We then plotted them as blue rectangles based on their residential location. We also plotted the current church’s location with a single flag. You can already see the three major epicenters where people live. Next, we’ve added markers for people who visited in 2013, but haven’t returned in 2014; they’re denoted as small, red circles in Figure B. We superimpose this information on everything we’ve already laid down on the map. We’ve also added visitors who have visited the church in 2014. They’re represented as green circles. With this single view, we can now see everyone who travels to our church, including visitors last year and this year. Now, we might want to look at travel times. Using the church as the center point, we add two circles — orange for 20-mile travelers and purple for 10 miles. (See Figure C)
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FIGURE C Now, a more informed decision can start to be formed about where to put a new campus.
Even more telling data These same ChMS functions can be used in other ways, too. View your church’s bus ministry in comparison to where visitors live. Or, view visitors in comparison to small groups and members. These are just a few examples. Above all else, prayer and the Will of God are paramount to this decision. CE Sam Batterman is president and CTO of Seraphim Software, a cloud-based church management software company based in Collegeville, PA. [seraphimsoftware.com]
BUILDING A BUSINESS THAT ENCOURAGES GENEROSITY The origins of Pushpay involve a most unlikely element: a bike.
After college graduation, while listening to a challenging sermon via podcast on a training ride, Pushpay co-founder and director Eliot Crowther asked himself a pivotal question — one which so many young people don’t: Will generosity be a part of my life? It was a big moment, personally — and, though, he didn’t know it at the time, for Crowther’s career. Having spent a decade as a competitive cyclist, Crowther realized he needed to get out of the circuit several years ago while competing overseas. He went back to New Zealand. “I needed an idea,” he recalls. Crowther prayed for about a year. Then, at a café, he came up with an idea for a smartphone-based giving platform. He took his idea to Chris Heaslip — now Pushpay’s CEO and co-founder — and the two immediately began strategizing the vision of the company and identifying the values the team behind it should have. Then, they prayed.
In mid-2012, Crowther and Heaslip developed the technology that’s so unique to Pushpay. After downloading the app and making the first gift, any future donations can be made in 10 seconds or less — any time — by smartphone. Soon after, they rolled out the platform to churches in New Zealand. It was a great test case for Pushpay’s expansion potential. Within months, Crowther and his family sold their possessions and moved to Irvine, CA, to see what Pushpay could do there — a relocation made even more momentous when, the day before departing, they learned they were expecting their second child. “It was pretty scary going to the other side of the world, but God blessed us,” Crowther says. “The market was very receptive right away. Incredible stuff happened.” Among the amazing happenings: the employees —
The Cause Community Church (Brea, CA)
How simplifying giving is freeing up valuable staff time for ministry Once upon a time at The Cause Community Church in Brea, CA — as with so many churches — giving online required creating a unique login and filling out a litany of details first. “This time-intensiveness was always on the back of my mind,” recalls Business Administrator Joshua Reeve. So, Reeve decided to mobilize the Pushpay app-based mobile-giving platform. But, first things first: he needed to familiarize his staff with the new tool. 18 | CHURCH EXECUTIVE | 07-08/2014
“We explained why it was chosen — in particular, the administrative benefits,” Reeve recalls. What he told the team ultimately conspired: Less processing time was required, freeing up their time for ministry projects. A database integration feature with the church’s management system, Fellowship One, made it possible. This integration — performed by the Pushpay team, with the church’s permission — meant staff didn’t have to re-enter members’ information.
Now, when someone makes a gift, the platform attempts to match that gift to an existing record using the donor’s email address. About 80 percent to 90 percent of transactions merge immediately. If a donor isn’t in the church’s database, a new record is created. “People are really processing their own donations at this point,” Reeve says. CE
most with church backgrounds — who came onboard right away. Among them was Troy Pollock, executive pastor at one of the company’s first church partners. Although Pollock’s church was already generous, implementing Pushpay’s platform ramped up the giving culture in dramatic ways. “Troy came onto the team as a calling from God,” says Marketing Director Fraser Clark. “We’re blown away by his heart, and by our church partners’ reaction to him.” Today, he’s Director of Church Operations at eChurchGiving, the entity which brings the Pushpay platform to U.S. churches. Like Pollock, all of eChurch’s representatives come from church backgrounds. “Lots of them are still in lay ministry, and many have been church staff,” Clark says. “So, they understand the nuances of how the platform should (and does) work.” Within a year of setting up shop in California, the company moved its headquarters to Seattle, WA. There, it found an abundance of technology and a “wonderful cultural fit,” according to Crowther. “We were — and are — in a very privileged position where we could go out and build world-class technology,” he adds. “The church shouldn’t be playing catch-up when it comes to technology, so we’re playing leapfrog instead.”
Technology built on a vision The company’s guiding vision is to see the Kingdom of God resourced, equipped and growing through generosity. “That means removing barriers to giving, especially on the first gift,” Crowther says. “We want to make it easy for people to be generous. God isn’t changing, but the world — and technology — are.” When designing the Pushpay platform, Crowther and his team were intent on overcoming a few challenges inherent to existing tools — beginning with the amount of information required prior to giving. “If people have to fill in a bunch of information first, statistics show that 50 percent to 60 percent of them will abandon the effort,” he points out. And this isn’t just a hurdle for small and growing churches, he adds: The average online giving experience
in the 50 fastest-growing churches in the U.S. is more than three minutes. In contrast, giving via Pushpay requires just a handful of seconds. “As a result, we’re consistently seeing a significant impact in online giving — often doubling,” Clark says. “We’re also seeing the engagement of new givers. In the future, we want to see $1 billion in new giving raised for the Kingdom.” One church who can testify to the power of simple giving is The Cause Community Church in Brea, CA, where the platform has been in place for nine months. Originally, Business Administrator Joshua Reeve took a look at Pushpay as a courtesy to a church member. “But, I could see that it met a need our church had, but didn’t know how to address,” he recalls. To introduce the tool to the congregation, Reeve and his team showed a video (provided by Pushpay). Then, using the app, the lead pastor made a gift in real-time. The following Sunday, they showed the video again. Less than a year later, the church has doubled its online transactions. “Previously, 140 transactions per month was great,” Reeve says. “Now, 300 per month is a pretty consistent figure.” Of these, about 80 percent are given using the Pushpay app, and about 10 percent are new givers. Reeve anticipates transactions will grow by an additional 15 percent to 20 percent as pipeline integrations are rolled out in the Pushpay platform, further fortifying the ministry he and his team can offer — the most welcome benefit of all. To this end, every Sunday, Reeve watches a 50-yearold, longtime church member with cerebral palsy give, independently, with no assistance. “He loves the Lord, but he could never participate in the offering on his own before,” he explains. “Now, in a matter of seconds, he can take out his phone and give. It lets him really be a part of the worship service.” CE — Reporting by RaeAnn Slaybaugh 07-08/2014 | CHURCH EXECUTIVE | 19
The new facility at Rhema Bible Church will foster authentic connections through thoughtful, relevant design.
Twenty years ago, very few facilities were dedicated specifically to youth church members. “Back then, if you had a basketball goal outside and some good music inside, you were a cut above the rest!” recalls Rachael Rowland, marketing director at Churches by Daniels in Broken Arrow, OK [churchesbydaniels.com]. Today, it’s different; now her company designs stateof-the-art youth facilities for its clients. “Every teenager has a smartphone and can access anything with a push of a button,” Rowland explains. “It has pushed churches to
The open-concept gaming / café / lounge area at Rhema Bible Church (RBC) in Broken Arrow, OK (Photo courtesy of Churches by Daniels)
become more cutting-edge! Now, they want to incorporate the same type of technology and level of excellence to reach the young people as Disney uses to attract young people.” Rowland and her team are currently meeting that challenge by creating a youth facility for her family’s home church: Rhema Bible Church (RBC). And the time is definitely right: According to RBC Student Ministries Pastor Denise Burns, the youth group is the largest it has been in 15 years. “So, we felt — with the
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BY RAEANN SLAYBAUGH
momentum we’d gained — it was the right time to make the investment.”
Tried-and-true trends Inside the new RBC youth facility, the Churches by Daniels team will accommodate several proven, youthfriendly design trends. First up: multipurpose, or “third place,” space. “There are two main purposes: to get the most for the money, and to make the church a place where people want to come all through the week instead of just on Sundays,” Rowland explains. “Churches want to be a hub for the community to find fellowship and help if they need it.” The trend will take form in several facility elements: The outdoor patio will be used for small group breakout sessions during weekly services; for fellowship before and after worship; and as a dining area for events where food is served. The open-concept gaming / café / lounge area will accommodate all the same uses as the outdoor patio. “We wanted a wide open space — something that wouldn’t ‘box us in,’” RBC’s Burns says. The basketball courts will be used for organized games, small groups, fellowship and pickup games. The worship space will feature removable chairs and a flat floor so it can function as a multipurpose space. All speak to a trend toward the communal in youth spaces — areas that foster authentic interactions. “The social component was the most relevant element for us,” Burns says. “Youth are social, relational; that was the driving force. You can’t grow the spiritual aspect without growing the emotional, social and mental realms of the students.” To this end, Burns points out that less than half of the new youth building is dedicated to the auditorium; the rest accommodates social needs. “God needs to be in every component of your life, not just sitting in a church service,” she explains. “So, why should a youth building be just an auditorium?” >>
WHAT COULD $250 PROVIDE FOR A CHURCH OF 1,000 PEOPLE?
P/MONTH
Pushpay provides a digital giving solution that is designed to draw people into a 10-second mobile giving experience. Once people have our mobile app, they can give whenever they feel moved in a fast, simple and secure way. Increased generosity from both new and existing givers is leading to dramatic increases in the budgets of our church partners and allowing them to better fund their ministry.
*The benefits outlined in option B are based on feedback from an actual church partner. While results differ from church to church, some church partners are reporting even greater benefits. We work with churches of different sizes from all over America, so whatever your church size we have pricing plans to suit your needs. To learn more about what Pushpay can do for your church, speak to the team at eChurch.
Bringing Pushpay to Churches www.echurchgiving.com
Technology at work For church facility designers, one major challenge is to achieve a youth space with technology in mind, allowing for easy adaptation as new technologies become available — all on a budget the church can afford. “Even when we work
the building that houses the church sanctuary, they don’t have to worry about it disturbing the main service.” Beyond these bells and whistles, RBC’s Burns and her team wanted an energy efficient building. “We’re meeting some Oklahoma requirements for an energy-efficiency building and getting a refund from the State for doing this,” she points out. “Lots of LED and energy-saving lighting.”
You know it when you see it
Rendering of Rhema Bible Church’s new youth facility (Photo courtesy of Churches by Daniels)
on nursery space, we’re always conscious of how quickly technology changes,” Rowland explains. At RBC, for example, Wi-Fi was a big component — along with high-definition projectors and top-of-the-line audio equipment. “The worship space is equipped with a state-of-the art AVL system, so they can crank the music,” Rowland adds. “And, since the building is separated from
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Given the new RBC’s youth facility’s modern, industrial design, visitors will know — at first glance — that this is a space youth members call home. The exterior will feature a metal panel system. Garage doors will connect outdoor and indoor spaces. Large, dynamic graphics will grab the youths’ attention and make them want to see what’s on the inside. There, they’ll find a modern design with a layout that’s perfect for fostering connections — from a café, to gaming, lounging and sports courts. “Nothing was left out of this space,” Rowland says. Burns agrees: “You don’t feel like you’ve stepped into church; it’s like you’ve stepped into a community,” she says. “Technology, fellowship, games, food and great friends lend to the communal feel that makes it youth-centric.” CE
“The Garage” at First Baptist Church in Powder Springs, GA (Photo courtesy of CDH Partners)
BY PAULLA SHETTERLY
Some among the next generation of believers have become disillusioned with the traditional worship environment. Because of this, we, as designers, have had to rethink how we address the needs of today’s culture without repositioning the timeless truths of the church. It’s a tactical process often involving theming worship and student environments. I’ve learned that the designs must be progressive, because congregations — students and their parents — are progressive. This can be a huge challenge for churches. Students want to hear truth, but they want it presented in a way that speaks to their needs and their personal experiences. Theming has become very popular because it represents a commitment, an investment and a buy-in to the lives of others — particularly students and children. Students are looking for churches that offer an intentional worship experie nce. How a church deals with this often boils down to the design of a facility.
How it takes shape In designing a worship space for children, we adjust the scale of the themed environment to fit their perspectives. Colors are more intense, elements are added to fit their age group, and areas are designed to be fun and full of natural light. We want them to be eager to go to church and eager to return. We also design secure check-in areas and systems. A major challenge for many churches is creating areas that look and feel like the age group that will be using them. If a church is going to grow and retain its students, the spaces must be sophisticated places of engagement and also take advantage of the latest in technology. Designs should incorporate lighting, color schemes and surfaces that are colorful and durable.
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For younger ages, spaces can contain designs that bring Bible characters to life, plus stage areas for speakers and drama. Older students enjoy areas where social involvement takes place, including rock-climbing walls, basketball courts, recreation areas, cafes, and areas where students can just hang out. In the past, churches would paint rooms bright colors, add seating, and think this was a way to reach their youth and students. This is no longer true. Today, student areas contain cafes, games areas, sound and visual displays, and places to meet and get involved. More and more churches are seeking to create a “life experience” atmosphere rather remaining a once-a-week destination. One student area we created for a church is called The Garage. (See photos, above) We met with the youth pastor and immediately caught his vision for this new student space. We decided on this theme but made sure it wasn’t just an area where guys felt comfortable by adding gender-neutral, broadly engaging elements. This facility has been a catalyst for growth and student retention. It’s a safe place where preteens and high school students can meet, worship and be honest with one another. Parents can see what’s going on and are very supportive. One student minister told me: “Theming is used to teach our students that living their faith is a way of life. It’s a part of who they are. It also lets them know that the church cares enough to spend money to create environments for them.” CE Paulla Shetterly, RID, IIDA, LEED AP, EDAC — an award-winning leader in religious design — is an associate principal and director of Interior Design with CDH Partners located in Marietta, GA. [cdhpartners.com]
Can’t build a youth facility just yet? BY RICH MAAS When your church doesn’t have the resources to build additional facilities for youth ministries, what are you to do? Obviously, you can’t simply say, “Sorry, folks! We won’t have enough money to build for another 12 or 15 years. So, please wait awhile.” That would be ignoring a needed ministry for a long, long time. Something must be done. This was the precise situation facing the congregation at Alpine Chapel in suburban Chicago. (See photo, above right) Members weren’t about to wait; instead, this resourceful group put on its thinking caps and determined, first, what was needed the congregation’s youth to have an area they could call their own: Some basic furniture. A few couches, chairs, and a TV or two. (For the most part, teenagers aren’t too fussy about such things.) A reasonably sized open space. A flexible way to easily divide the space, and change it around as desired. In a perfect world, the dividers for a teenagers’ space should be tackable and sound-absorbing. Once word got out, it didn’t take long before the congre-
gation donated some furniture. And, the pastor had an idea about what space could be available to use very soon. Finally, to make the space flexible, the congregation contacted our company for portable room dividers. The church was already were using our sound-absorbing dividers to create Sunday school classrooms in its gymnasium. Their acoustical accordion-folding dividers are easy to store in an area no larger than an office chair. After they’re rolled into place, they can unfold into basically any shape desired. An additional two dividers were purchased to complete the new youth space. So, if your congregation doesn’t quite have the resources for a brick-and-mortar construction project, know this: There’s always a way! CE Rich Maas is vice president at Screenflex Portable Room Dividers in Lake Zurich, IL. [screenflex.com]
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BIBLES AND BIBLE SOFTWARE BY GARY W. DERICKSON, PH.D.
In this world with a plethora of biblical resources, which Bibles and Bible software programs are the best now, and which will prove the most helpful in the future? We’ll begin by looking at Bibles, and then discuss what many consider to be the best choice in Bible study software.
Good Bible translations are still important Though the King James Version has been the most popular Bible in many parts of the English-speaking world, much more recent translations have competed for second place. In my college days, it seemed that the New American Standard (NASB) would dominate, only to be eclipsed by the New International Version (NIV). More recently, the
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NIV’s market share has been cut into the New King James (NKJV), New Living Translation (NLT), English Standard Version (ESV), and Holman Christian Standard Bibles (HCSB), just to name a few. Every pastor has a favorite Bible translation from which he or she preaches. A majority, if not most, members of the congregation tend to adopt the pastor’s preaching text. Of course, now they can read along on their favorite electronic device. They also can text message, tweet or post their comments and questions about your message “live” as you go along. I’m no longer surprised when my students post comments about what I’m saying in class on Facebook or Twitter right in the middle of class while pretending to
The best Bible software is the most powerful digital library
take notes. We can embrace it. It’s the new way to listen! If you haven’t come across it, I recommend that you explore the NET Bible (New English Translation) at Bible.org. It’s possibly the best online resource for pastors, teachers and lay people who are serious students of the Scriptures. The NET Bible has been an ongoing project of biblical scholars and contains thousands of translation notes. It makes a great resource and study tool. It may be purchased as a hard copy, or accessed online to see the most recent discussions by its contributors. Then again, this is just one of many electronic tools now available to the pastor and other serious students of the Scriptures.
In recent years, we have seen a wave of electronic study tools arrive. Some have flourished, others have failed, and more are on the way. So, which is the tool of the future? In recent years, Corban University’s School of Ministry faculty has evaluated whether or not to continue to require textbooks. We found that, for about the same cost, we could give our students a tool they could take with them and use effectively for the rest of their lives. Now, every undergraduate student receives Logos Bible software. This also is true for students entering Mars Hill’s Bible Certificate program in Seattle this fall (2014). Not surprisingly, I regularly recommend that every pastor seriously investigate and invest in the Logos digital library. All Corban’s School of Ministry faculty members have the Logos 5 program on their campus computers. I don’t go a day without using it, whether for personal devotions, study, classroom, sermon or Sunday school preparation. With little effort, I can carry around more than 2,900 volumes of books and journals on my laptop. We also believe the Logos library will be the tool of the future for pastors. Yes, we’ve reviewed other Bible study programs, and they also have valuable resources. I know people who swear by them and love them as much as I do my Logos library. However, none can compare to the vast volume of material now available and being added daily. Ditto on the ease of access to all that valuable data. The search functions and interconnectedness of every resource makes this the pastor’s dream study tool. What used to take a pastor days of thumbing through volumes and reading page after page to find specific information, now takes only seconds. Most important, though, the greatest strength of the Logos library is its interconnectedness. Every resource comes to you fully searchable by word, phrase, topic, verse or a plethora of other ways. The Logos tagging system integrates each new resource within the search engine. The result is weeks of work compressed into mere minutes. True, it can become overwhelming at times. For the pastor who can focus and whose time is precious, however, this tool can help you maximize your study — and both you and your congregation will benefit. So, welcome to the electronic age of biblical exegesis! It’s not the future. It’s the past and present. It’s also worth embracing. CE Gary W. Derickson, Ph.D., serves as Professor of Biblical Studies and Greek, and as Chair of the Bible and Theology Department at Corban University’s School of Ministry.
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HOW TO MAKE TEENS FEEL AT HOME
AT YOUR CHURCH — ONLINE Emily Kantner, communications specialist at Elexio, explains how.
When potential youth group members visit the church’s website, what will capture their attention? If they see pictures and videos of other teens participating in activities that look like fun, they’ll probably want to join in and have a blast. Simple, relevant content and a modern look will capture their attention. And, make it easy to find — either its own website, accessible from the church’s homepage, or through the church’s mobile app.
them engaged throughout the week? It can certainly help. Teens already have packed schedules with school, sports and part-time jobs. While they might not have the extra time throughout the week for activities, most teens spend a large amount of their time online — but probably on social media rather than a youth group website. Although they might not see everything posted on a youth group’s Facebook page, they’re likely to
When building a seeker-friendly youth group website, are there any “no-no’s”? A youth group website shouldn’t include the same information you’d see in a parent’s brochure. If they read, ‘We make sure our teens put down their smartphones and disconnect from the world for two hours during youth group, you can bet they’ll run in the opposite direction. Don’t make rules — and what they can’t do — the focus. Instead, tell teens about all the cool stuff they’ll be missing out on if they don’t come. Also make sure you’re keeping information up-todate and simple. Avoid church terms like ‘cell groups’ or ‘life groups’; just be straightforward and call them small groups. Keep it light and fun, yet simple. The serious issues should be addressed somewhere else.
engage there first — for now. Other social media outlets (Snapchat, Vine, Instagram and Twitter) are making a move to become the place to establish community. It’s also important to encourage them to engage with each other and build those relationships throughout the week, even if it’s offline.
Is it fair to say that ensuring youth members’ continued involvement depends a lot on keeping 28 | CHURCH EXECUTIVE | 07-08/2014
As existing youth group members visit their website, what are they hoping to find there? They might be going to the website to check out photos and videos, sign up for activities, and stay updated on what’s happening within the group. Including links to social accounts so they can connect on those channels is important — this is where they’ll really form relationships. CE Based in Elizabethtown, PA, Elexio provides church management software, website content management, website design and more. [elexio.com]
The most frequently asked questions travelers have — and their answers. BY NOAM MATAS
A journey to the Holy Land is an experience of a lifetime. To walk where Jesus walked and to hear, see and smell this beautiful land of our Lord is something that changes lives forever. We deliver our famous Holy Land Israel tours in intimate groups that enable our travelers to explore the depths of the areas they travel to while enjoying superior accommodations at outstanding values. Each tour is specially tailored by our company and operates completely in-house — not purchased from another company — ensuring outstanding quality at every turn. Our tour guides are professional, government-certified, and ready to help travelers every step of the way. All-inclusive tour packages include: air transport, accommodations, ground transportation, meals, sightseeing, Government-licensed, bible oriented, professional tour guides, coordination of events and special activities. We take care of all the details so that you can fully focus your attention on shepherding your group. What type of Christian tours to Israel are offered? We offer tours for private church groups, as well as escorted Christian tours which are open to the public. 30 | CHURCH EXECUTIVE | 07-08/2014
Why should a pastor lead his or her church group to Israel? A trip to the Holy Land is one of the greatest supplements to the study of God’s Word. It will change the way you and your congregants read the Bible for the rest of your lives. As all our tour leaders will tell you, in Israel, the bible comes alive as you lead your group through their spiritual heritage. What’s your most popular Israel Christian Tour open to the public? Our most popular, award-winning Israel Christian Journey is the “Roots of Your Faith” Tour. For the last seven years, it has been one of the most popular holy land tours in Israel, with more than 1,200 travelers taking this tour with us every year. Bringing biblical stories to life, this tour guides travelers through the Holy Land using the bible as a road map to spiritual discovery. We incorporate modern Israel with some
(Opposite page) Visit the garden tomb; (Large photo, this page) Visit the mountain fortress of Masada; (Small photos, this page, left to right) Tour the Old City of Jerusalem; sail on the Sea of galilee; visit the Chrisman sites around the Sea of galilee (Mt. of beatitude, Tabja and Capernaum)
of the most moving and prominent historical and biblical sites, offering a truly unique and unforgettable experience. From Caesarea, to Nazareth, to the Sea of Galilee, the Dead Sea and Jerusalem, we’ll lead you on an enlightening, tantalizing and biblical journey through Israel, breathing life into some of the most meaningful locations and stories in the Christian faith. What’s your most popular biblical journey? Our unique and famous 15-day, fully escorted tour to Egypt, Jordan and Israel. This tour is a once-in-a-lifetime journey along the route of the biblical Exodus, exploring the most popular biblical and historical sites in the world. Travelers will experience the wonders of ancient Egypt — the Sphinx, Giza Pyramids, Old Cairo, the Nile, the Sinai desert, Mt. Sinai and the St. Katrina monastery. Then, in Jordan, we visit Aqaba, Petra, Mt. Nebo Amman and Madaba, continuing on to continue to Israel to visit all the spiritual landmarks of the Christian faith in Jerusalem, the Sea of Galilee, the Dead Sea, Nazareth, Bethlehem and much more.
Can travelers combine Egypt and / or Jordan tours as extensions to the Israel Christian tour? Of course; it’s safe, easy and ecumenical to do so. Egypt and Jordan are very popular destinations for travelers who are participating in our Israel Holy Land tours. Because of the geographical proximity of these three countries, combined our Israel tours with extension tours to Jordan and / or Egypt is highly advantageous. A flight to Israel is a long journey. Since the average travel time from the U.S. to Israel takes 10 to 15 hours, it’s desirable for travelers to request our combination tours to visit Egypt and / or Jordan after our Israel tours. Our “Into the Promised Land” tour offers just that — it’s a 15-day journey to Egypt, Jordan and Israel. One more tour that lets travelers add another destination after our Israel tour is our “Both sides of the River Jordan,” a 12-day journey to Israel and Jordan. CE Noam Matas is general manager at America Israel Travel in Calabasas, CA. [americaisrael.us]
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RISK MANAGEMENT
Why your church should care about D&O insurance
Serving on your church board of directors is surely a righteous thing to do. But, can a director’s personal wealth really be attacked by a creditor of the church? More directly, can an injured church member sue the directors of his or her church personally? Sadly, quite a few legal theories support an award of damages against the personal assets of your church’s board of directors (or elders, deacons, trustees, overseers, presbyters and a host of other terms).
What about the corporate shield? The corporate shield was designed to protect the officers, directors, members and volunteers of a Corporation against claims which arise from authorized corporate activities. In Arizona, for example, it’s difficult to pierce the corporate shield since the claimant must prove that the corporation was used for fraud, that funds were co-mingled, and virtually that the corporation had become the “alter ego” of the controlling persons. The problems. The purpose of this article is to draw attention to the fact that, from a risk management perspective, virtually every church should carry D&O insurance. Most sophisticated director candidates won’t serve on the board unless this coverage is provided.
General liability insurance vs. D&O liability policy Exclusions From, General Liability Coverage: A general liability policy ordinarily protects the “authorized agents” of the church while they’re performing their duties within the scope of their authority. This includes protecting directors and officers against the cost of defending, and against paying damages for claims arising from bodily injury, property damage, personal injury and advertising injury. However, it normally excludes coverage for the financial consequences of alleged wrongdoings which are covered by the typical D&O liability insurance policy. For example, a typical general liability policy does not protect officers and directors against claims arising from: • Mismanagement of the business and operations • Competitor suits involving unfair trade, antitrust or intel lectual property infringement
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BY ROBERT ERVEN BROWN
• Misrepresentation in connection with private placements of stock or debt or in the sale all part of the business • Regulatory actions brought by the government, such as the FTC, DOJ, or the FDA • Failure to deliver services • Self-dealings and conflicts of interest What D&O insurance does cover. D&O insurance is designed to protect church directors, officers, employees and (sometimes!) volunteers against defense costs and payment of damage claims arising from alleged or actual: breaches of fiduciary duty; neglect; errors; misstatements; misleading statements; omissions; Securities and Exchange Commission registration and anti-fraud violations; breach of the duty of loyalty to the corporation; insolvency; and claims which are not indemnified by the church due to limits caused by state law, derivative judgments or settlements, public policy, equitable considerations, and the provisions of the corporations articles and bylaws.
Obtain expert help before you buy Here are just a few of the issues to consider in evaluating D&O insurance coverage and whether to negotiate for endorsements to the policy: • Is this a standalone policy or part of a master policy? • Are volunteers included within the definition of “insured”? • Are claims arising from employment practices covered? • Do defense costs reduce the amount of total coverage available to pay a claim? • Does the policy cover the organization’s obligation to indemnify a director? • Is the carrier required to advance the defense costs, rather than simply reimbursing the organization after paying the defense costs? • Does your organization have input in deciding which law firm will defend your claim? • What are the notice requirements for filing a claim? • What’s the definition of a claim? • Do “claims” include investigations, administrative
proceedings and arbitrations? • Does the policy provide coverage for punitive or exemplary damage claims? • Can you obtain an exclusion elimi nating imputation of liability between innocent insureds? • Is coverage provided for the defense of criminal charges? • Is it a claims-made policy or an occurrence-based policy? • Are there gaps in coverage with prior policies? • Can you get “prior acts cover age”? • Should you consider an extended reporting period endorsement?
a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.” Simply reading this material this does not create an attorney / client relationship with Brown, as this article is general legal information, not legal advice. A formal attorney / client relationship will not be established
until a conflict check is completed and an engagement letter has been signed by both the attorney and the client. No “informal” legal advice will be provided by telephone. Simply sending an e-mail to Brown will not create an attorney / client relationship.
Lest you finish reading this article in a state of despair, remember that most cases of liability won’t expose the personal assets of a director. Even so, D&O insurance needs to be addressed and appropriately endorsed coverage obtained. Take proactive steps now to ensure the good deeds of your directors and officers will go unpunished. CE Robert Erven Brown is an attorney licensed to practice in Arizona. He and his nonprofit practice group work with nonprofits and churches, helping them manage key operations connected with their missions, visions and causes. As permitted by local Rules of Ethics, they collaborate with attorneys who are licensed in states other than Arizona. He is the author of Legal Realities: Silent Threats to Ministries, which describes his Campus Preservation Planning© initiative — a comprehensive program designed to manage the wide array of risks facing non-profit organizations. [silentthreats. com] Footnotes were omitted. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. “From
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RISK MANAGEMENT
HOW TO PROTECT THE CHURCH BOARD FROM LITIGATION BY JOHN ERGASTOLO When something goes wrong with the management of an organization, it’s typically the directors and officers who are held accountable for the (actual or alleged) mismanagement. While these individuals are typically afforded indemnification by the organizations they serve, there are instances when that indemnification is either unavailable — financial insolvency of the organization, for instance — or not allowed by law. In such cases, a Directors and Officers (D&O) insurance policy can protect their personal assets.
A look at the market According to Advisen Insurance Intelligence, there are currently 77 U.S. admitted and non-admitted insurance carriers writing private company and nonprofit D&O liability
insurance in the United States. Meanwhile, the number of carriers currently underwriting faith-based organization D&O liability insurance is much lower than the 77 noted by Advisen — by my estimate, about two dozen. The carriers writing D&O liability insurance for large nonprofit organizations prefer to underwrite the D&O liability risk separately so they can tailor their policy (manuscript) to the specific needs of the insured. Smaller
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organizations — with smaller budgets — tend to buy their D&O liability within a package policy, which can be far less expensive than buying standalone coverage. However, there are a few key disadvantages to buying D&O coverage in a package: 1) The limits protecting the directors and officers can sometimes be eroded by claims on other lines of coverage that are also being covered within the package policy. 2) Package policies often don’t have the broadest available coverage available in the current D&O market. 3) Standalone policies are much more easily enhanced than package policies. It’s important to note that D&O liability insurance provides coverage to the organization and its directors, officers, executive, employees and committee members for allegations of mismanagement of the organization. The policy is not intended to cover allegations or actual bodily injury or property damage claims. Other policies (General Liability, Workers Compensation, Property Insurance and so on) can provide the coverage the D&O liability insurance might not cover. In general, the D&O policy is intended to provide coverage for allegations of mismanagement of the organizations brought by the stakeholders of the organization — donors, employees, regulatory bodies, etc. The trigger for a claim that could be covered under a D&O liability policy would be: (1) An individual within the organization or the organization itself would be named in a complaint, proceeding or suit, and (2) The definition of wrongful act within the D&O liability would have to be triggered. Here’s a sample definition: “Wrongful Act” means any error, misstatement, misleading statement, act, omission, neglect or breach of duty committed or attempted, or allegedly committed or attempted, by the Insured Organization or by one or more Insured Persons, individually or collectively, in their respective capacities as such, including but not limited to any Wrongful Employment Practices. All organizations should consider purchasing D&O liability insurance to help insure the financial viability of the organizations, and to protect the personal assets of the individuals managing the organization. CE John Ergastolo — a member of the Religious & Nonprofit Practice at Arthur J. Gallagher & Co. — is Area Executive Vice President, Management Liability Practice. [ajg.com/religious]
How technology can help you respond in times of risk and crisis Most churches have taken some time to create policies to guide their business and ministry functions. But, the ongoing adherence to (and review and possible modification of) those policies often proves challenging. For instance, a church policy might require all teachers working with minor children to undergo a background check prior to being approved to teach. But, what happens when it’s late Saturday night and two of your children’s teachers have called to inform you that they won’t be able to teach on Sunday? At that late hour, can you live up to what was agreed upon in committee and codified in a document? Or, is it easier to just call someone else on a list who’s “probably OK” to substitute for your children’s ministry? What risks and exposures have you introduced into this situation?
Policies are paramount This is just one risk that could crop up in your church. However, it applies to all sorts of volunteer and staff responsibilities and situations. (Think: teaching kids, handling money, having licensed van / bus drivers, facility
BY PHIL ELMORE
contingencies for when policies are challenged by realworld variables and risk? Every church leader knows that a certain amount of trial-and-error, open deliberation, and checking with peer churches and professionals can help refine what’s best and most reasonable for their own church policies. Creating policies that help your volunteers and staff be successful in the implementation of those policies means having regular opportunities and channels for feedback, and also proactively testing policies to see how your people will react. This doesn’t mean you aim to “catch” someone in violation of a policy; it does, however, mean regularly asking difficult “what-if” questions of the people you trust. Remember: Most people aren’t natural-born leaders. When you entrust policy to staff or volunteers, you’re extending your leadership and influence through them. Make sure your policies align with their abilities to lead and influence. Now, whether it’s the ongoing review of policies for minimizing risk or the response to risks themselves — anticipated or not — timely, dependable communication is essential. There are many tools that can serve you towards these ends. And, if you communicate regularly with these tools, your staff and volunteers will come to depend on them.
Mobilize technology
security, property maintenance, emergency response and so on.) How can you make sure that a policy is (a) what it should be, (b) designed to make your staff and volunteers successful in their ministries, and (c) includes 36 | CHURCH EXECUTIVE | 07-08/2014
One such tool — in use at my church — is One Call Now [onecallnow.com], which provides voice, texting and email messaging for churches. A designated church leader has the options of using multiple modes of messaging for outbound communication (routine or emergency), and then using the service’s polling and message reporting features for gathering feedback. When a church integrates its data with such a service, it has enormous leverage for mitigating risk. That kind of leverage can help a church leader solve a problem and reduce risk — in the midst of a weather emergency, or when you plan to have a contractor repairing the main sidewalk into the church, or when you’re facing the tough Saturday night question of who will teach the kids tomorrow. CE Phil Elmore is pastor at Fields of Grace Worship Center in Covington, OH.
RISK MANAGEMENT
Screening staff and volunteers BY SCOTT HARKINS Religious organizations are a community within themselves, built on faith and trust. It’s within that trust that some have faced nightmare scenarios because of the people that represent them. People they think they know and they trust. Let’s briefly discuss a couple of areas. Sexual abuse. Consider the following example: A religious organization uses volunteers to lead or monitor activities with youth. It doesn’t complete the same screening process for volunteers as for employees. Five years ago, a volunteer was convicted of sexual assault in another state. Failing to conduct a multi-jurisdictional criminal background check, the church is now vulnerable to a convicted sex offender roaming its halls. Theft / embezzlement. According to a study cited by the Washington Post, nonprofits and religious organizations suffer one-sixth of all major embezzlements — second only to the financial services industry. Take reasonable measures to mitigate risk, including … Job descriptions. To effectively screen, it’s important to have a job description that sets the expectations for the position — duties, physical and mental functions, minimum qualifications and time / training requirements. Use job descriptions when advertising for a position. When planning for candidate interviews, formulate questions directly from the job description. It’s important that interview
questions don’t broach legally dangerous topics such as pregnancy, religion or marital status, and that similar questions are posed for every applicant to demonstrate selection is based on comparative skills, qualifications and abilities. Include a written application, face-to-face interview, background checks and reference. Background checks. Run criminal background checks for full- and part-time employees and volunteers. Pay particular attention to those who work directly with youth, or handle financial matters or cash. Confirm criminal background checks are completed in an applicant’s current jurisdiction and in all jurisdictions where he or she has lived. Persons convicted of crimes often move to avoid barriers to future employment or volunteer opportunities. When faced with the prospect of discipline or even dismissal, an existing employee or volunteer might choose not to divulge a recent arrest or criminal conviction. So, periodically check for current employees and volunteers. Legal risks and criminal backgrounds. A church might be held liable for negligent hiring, selection or retention where it’s established that: • It knew (or should have known) the employee or volunteer had a particular unfitness for the position so as to create a danger of harm to other workers, patients or third parties. • Such unfitness was known (or should have been known) at the time of hiring, selection or retention. • The unfitness proximately caused the claimed injury. Other background checks to consider: professional licenses and degrees; professional references; Social Security Number (SSN) verification; and Department of Motor Vehicles (DMV) check. Analyzing criminal records. Assess background check results in their entirety, including mitigating factors such as nature of the offense; whether that nature of the offense is job-related; when the offense occurred; and what steps the individual has taken since to improve his or her life. Base criminal background screening criteria on convictions, not arrests. A religious organization might consider arrests for which applicants could be disqualified from employment or a volunteer position if a guilty verdict were rendered. Be wary of instituting human resources policy or procedure language that suggests a criminal felony conviction automatically results in a denial of an employment or volunteer opportunity.
Well worth the investment. It might possible to measure the direct and indirect costs performing due diligence which results in injury, neglect, theft, embezzlement or other wrongdoing consider the damage that can occur.
not be of not abuse, — but
Scott Harkins is senior vice president, Risk Control Services at Glatfelter Insurance in York, PA. [glatfelterreligiouspractice.com]
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THE MINISTRY OF GIVING 5 steps to fund your ministry vision through high-capacity givers BY JOEL MIKELL & BILL MCMILLAN Church giving from the middle tier of donors is no longer as stable as it once was. This new reality has opened the door for an increased dependence on financial leaders to fund ministry. To develop a ministry of giving to fund ministry through financial leaders, heed these five steps. Step 1: Understand the mind of a financial leader. Almost all have a similar set of questions they ask themselves, their business partners, and the people and organizations they choose to invest in: What’s your vision? They want to know more than what’s possible. They need to have confidence you know how to get there. Why this vision? Why comes before what and how, every time. What difference will achieving this vision make? Financial leaders completely buy into Stephen Covey’s principle that we should always “begin with the end in mind.” Why now? Just because your vision sounds good, doesn’t mean the timing is right. Be prepared to discuss its immediacy and urgency. Step 2: Assemble a ministry of giving team. Don’t go it alone; it will feel impossible, and your failure rate will be high. Your ministry of giving team will need at least three types of people: the senior pastor, a volunteer or dedicated staff member, and a few financial leaders willing to be early adopters. If you don’t have all three, wait until you do to move forward. Step 3: Identify financial leaders in your church. Your church contribution list is a great place to start. As you look through the list, pay attention to a few key indicators: Total annual giving. Generally, start looking for annual amounts equal to or greater than $10,000 to $12,000. Frequency of giving. If gifts are coming
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in similar amounts and follow a consistent pattern, the giver is likely giving out of earned income, not liquid assets. Length of giving. If someone donates $20,000 to international missions during a one-time special offering, he or she would fit the giving habits of a financial leader. First-time gifts. When a large gift is made from someone the church has no record for, you might have discovered a financial leader. Special gifts. These are event-driven or time-sensitive giving opportunities. If a large gift is made during these times, it’s consistent with the giving habits of a financial leader. Step 4: Schedule the first meeting. Meeting with financial leaders is a great opportunity for both sides. This is a time to share about your vision for the church, ministry plans, and what you’re most excited about. And, you’ll get to know financial leaders on a personal level. These should be in-person meetings. Technology doesn’t replace human interaction. Get an appointment. Don’t just show up at their house or place of business. Make initial contact by phone or email and ask for an appointment. Decide on a meeting place. Suggest a public place near their office or home. It could be for breakfast, coffee, lunch or dinner. Set the tone. If you’re at ease, they’ll likely be at ease. The goal is not to ask for money, but to create a common ground and give them reason to connect again in the future. Follow up. Sending thank-you notes might seem outdated, but nothing trumps a handwritten note. You’ll be surprised how much you stand out. In general, churches almost never receive a large gift where relationships didn’t begin as a social conversation and develop over time.
much as you do, and they recognize they have unique resources to do that. CE Joel Mikell is president of RSI Stewardship in Dallas and author of Church Giving Matters, a book with practical tools for church leaders to give strategy and hope regarding stewardship. He also wrote the recent eBook, Crafting a Theology of Stewardship. Bill McMillan brings 30 years of ministry experience to the RSI team as its executive vice president. As an RSI consultant, he has served many of America’s great churches, including Granger Community Church, Eagle Brook Church, Mariners Church, Bayside Church and Gateway Church in Austin, TX. Mikell and McMillan co-wrote The Ministry of Giving, the only book of its kind that focuses on ministering to financial leaders in the church outside of a campaign.
Step 5: Develop a plan to sustain your ministry of giving. Here are the parts of a sustainable plan to minister to financial leaders: • Never stop looking for new financial leaders. • Stay in touch with the top 25 givers in your church. Maintain the relationships that you worked so hard to cultivate. • Ask for referrals. There’s power that comes when another financial leader is introduced to you by a peer. • Continue to anticipate different moments when you’ll need to make an ask as a result of an event driven or project-driven opportunity. There will be special giving opportunities throughout your ministry. Financial leaders want to participate in the big moments and the small ones.
Are you ready? God is on your side, as are the financial leaders in your church. They believe in God’s ability to change lives as
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WHY NON-CASH GIFTS MAKE SO MUCH SENSE It’s wise to encourage gifts of financial assets, real estate and tangible personal property. BY BILL WALTER
Quick question: What percentage of your constituent’s total assets are found in cash or checking accounts? Answer: About 10 percent. Another quick question: What percentage of your annual church giving comes from cash or checking accounts? Answer: Likely 95 percent — or more! What’s wrong with this picture? Clearly, most church leaders don’t actively or intentionally seek non-cash gifts. This is unfortunate for many reasons. First, non-cash gifts can provide major tax advantages to the donor when compared to giving cash. Second, noncash gifts might represent a new “income stream” to the church. Third, educating your people about creative, tax-wise giving techniques empowers them to be better stewards of how they give — not just how much they give. It’s a classic win / win!
A worthwhile endeavor If you’re wondering if pursuing non-cash gifts is worth the effort, look no further than to our friends in parachurch ministries. Their donor communications regularly tout the ease and benefits of making non-cash gifts. Many of these organizations have part-time or even full-time staff tasked solely with developing such gifts. They discovered long ago one of the best secrets of stewardship development: Often, the largest gift a Christian makes isn’t in the form of cash. Non-cash assets fall into one of three broad categories: financial assets, real estate and tangible personal property. Financial assets include stocks, bonds and mutual funds. Real estate can be residential, commercial or vacant land. Tangible personal property encompasses a very broad spectrum ranging from collectibles, to precious metals to vehicles.
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American households own about $20 trillion in stocks and mutual fund shares. With financial markets recently near all-time highs, many of these assets have appreciated beyond their original cost. Appreciated financial assets such as these represent one of the “golden giving opportunities” for donors and churches alike. What’s so “golden” about gifting appreciated financial assets, such as stock? For starters, assuming the donor has held the asset for more than one year, they’re usually entitled to deduct the full fair market value on the date of the gift. Any appreciation that would have been subject to capital gains tax (had they sold the stock) is avoided. Assuming the church immediately sells the security upon receipt, it realizes full value. Had the donor sold the stock, paid the capital gains tax and then gifted the remaining cash, the church would have received less. So, the bottom line is this: more dollars to the church, a larger charitable deduction to the donor, and no capital gains tax to the IRS. What’s not to like?
How to accommodate non-cash gifts First, let your people know you’re “in the game” and actively seeking such gifts. This can be accomplished simply by publishing a quarterly announcement: “If you’re interested in making a non-cash gift to our ministry — stock, mutual funds or real estate — please contact John Doe, our Creative Gifts team leader, to discuss the procedures and benefits.” Beyond this simple announcement, you must create visibility and promote such gifts.
• Distribute fliers / brochures explaining the benefits by using case studies. (Commercial literature such as this is readily available and can be branded to include the church name and logo.) • Host a “creative giving seminar” taught by a financial professional, such as a CPA, CFP or CFRE — someone highly skilled and knowledgeable in tax-wise charitable gifting techniques. • Feature a testimonial (written or verbal) of a recent noncash gift made by another church member.
A few planning pointers As your church prepares to receive gifts of securities: Open a brokerage account in the name of the church. These days, most transfers of shares are done electronically. You’ll need to provide the donor (or their broker) with the church’s brokerage account number for them to make the transfer. Brush up on proper IRS procedures for receipting non-cash gifts (see IRS publications #526 and #561). For all non-cash gifts, it’s always the donor’s responsibility to value their gift, not the church. Following
IRS guidelines, your gift receipt should clearly describe the asset but not show any dollar value. Handle all non-cash gifts (and especially firsttime ones) with great care. By showing your donors that you have the systems and knowledge to competently handle their gift, you enhance their confidence for future, and perhaps larger, gifts. Who knows — today’s $5,000 gift of a few mutual fund shares could become tomorrow’s $500,000 gift of company stock! Clearly communicate the advantages of non-cash gifts to your congregation. Provide the vehicles for people to respond. Your ministry — and your members — will benefit. CE Bill Walter is a Certified Financial Planner (CFP) and president of Church Growth Services, a capital campaign consultancy located in South Bend, IN. The information contained in this article is not intended to be legal or accounting advice; it is for educational purposes only. Individuals are encouraged to contact their own tax and legal professionals regarding the subjects presented.
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GIVING SOLU Shore Fellowship (Egg Harbor Twp, NJ)
A Christmas worship service at Shore Fellowship
A “Good Steward” Award winner in the area of cost savings, the recognition is well-earned for Shore Fellowship. In the past five years, the church has been forced to close six times due to weather — potentially devastating, financially. “We learned that the only way to develop consistent giving, and remain financially stable during snow- or storm-related closings, was to ask the church to embrace online giving,” explains Executive Administrator T.K. Dennis. After Hurricane Sandy struck, for example, the church raised $100,000 for community recovery efforts, mostly electronically. In what practical ways has the church demonstrated “amazing aptitude for embracing 100% of the solution”? Dennis: At the risk of tooting our own horn, this is a list of everything we do to get our congregation to embrace electronic giving, as well as giving in general. • We send out quarterly “celebratory reports” that offer the church a specific look at what God is doing in the lives of his people. A big part of this is always describing the ways people can give. • The option we push people towards most is giving online through Elexio Pulse. • Each weekend, one of our staff — often myself — caps off the end of the service with a brief teaching on the importance of giving. At times, we even walk the church through our giving process from the stage.
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• We live, breathe and speak the vision of Shore Fellowship in everything we do — and that isn’t possible without a solid giving solution. Our staff has learned that a huge part of embracing the vision of the church is funding that vision. This would be much more difficult without an excellent online wgiving solution. • Every one of our staff members gives online, and about half our church gives online through Elexio Pulse. In what practical ways has the congregation demonstrated that it’s “quick to adopt” the solution — in particular, as it relates to online giving? Dennis: In the past five years, we’ve needed to close the church during weekend services about six times. This is devastating to a church’s finances, especially in an oftentransient area such as the Jersey Shore. We learned several years ago that the only way to develop consistent giving, and to remain
TIONS
financially stable during snow- or stormrelated closings, was to ask the church to embrace online giving. Hurricane Sandy turned our community upside down; but, even a storm just three months prior to that caused a state of emergency where people couldn’t leave their homes. During these times, when we’re unable to have worship services, our church can still participate in a hugely important part of worship: the offering. Our online givers are able to give even in the midst of a church cancellation — and they’re faithful in doing so because they know it’s a tool that helps us continue to do kingdom work even when they can’t make it. After Hurricane Sandy struck, we knew the community needed leadership in organizing recovery efforts. I held a meeting after the storm hit. One of the first things I knew needed to happen was a means by which those around the world could give to the cause. We raised about
$100,000 for our local community recovery efforts, mostly electronically. Our church also contributed to this, largely. Yet again, during a time when physical giving was impossible, the church remained faithful and gave electronically. We even saw many people give online for the first time during this season, because there was just no other way to give. We know our church loves to give online because, while I’m taking the offering, I always see a ton of faces planted in their smartphones. I know for a fact they’re not just avoiding the buckets; if they’re anything like me, they don’t carry any cash, anyway. So, without a credit card-based giving option, they’re not only unable to give, but they’re unable to participate in an important part of worship. What benefits has the church enjoyed as a result? Dennis: Our church enjoys a large base of givers that are very consistent in their giving. In today’s age, this only happens through an electronic giving solution. Online giving ensures there’s a fairly accurate projection of future giving trends from week to week, and ensures that trend is always headed up. Online giving allows people to give, and to easily see their records. This makes their contributions very real to them over the course of several weeks or months, and allows them to see the impact they made. So, I see people looking at it like it’s a score they want to beat — almost like a game. I personally make sure I beat my own “score” every year. CE — Reporting by RaeAnn Slaybaugh
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COST SAVINGS Hope Church (Cordova, TN)
A “Good Steward” Award recipient in the area of cost savings, the compelling story of Hope Church begins in 2009, when Scott Milholland was hired to oversee all staff, ministries, operations, business and financial stewardship. The result is an annual giving increase of 27 percent over three years, from $11 million to more than $14 million; debt reduction (from $21 million to current $9 million); and an annual surplus of $2 million to $3 million. Milholland also recruited, built and led a “faithful, wise, prudent” finance committee, for an additional $3 million. What was your relevant experience — ministry-based and/or business-focused — before joining Hope Church as COO? Milholland: I spent 25 years in the marketplace. I held various leadership positions across the country — as vice president/general manager of a large regional company, as a national vice president of operations, and also as a chief financial officer.
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How did you drive an annual giving increase of 27 percent? Any practical strategies to share? Milholland: The strategy was a formalized stewardship program, with a stewardship director. We launched a thank-you-letter program for first-time and large gifts. We held weekly stewardship communications / meetings with members and visitors, as well as leadership / donor dinners. We sent quarterly stewardship letters and emails. We taught and shepherded giving / stewardship as part of discipleship. What strategies did you use to cut the church’s debt by $12 million? Milholland: We reduced the debt with a budget plan / process that started with leading and collaborating with the finance committee on the plan. We set the timelines, processes and targets for the budget, cash management, and debt reduction. Early budget planning / training was implemented with ministry leaders. Clear expectations on financial stewardship were communicated, and I was involved in building the annual budgets for each ministry. Ministry leaders were trained to manage the budgets, which were then implemented, along with monthly budget management by ministry leaders and the finance committee.
Milholland
When you say the church has an “annual surplus” of $2 million to $3 million, what does that mean? Milholland: The annual surplus is basically the net income — that is, revenue minus expenses. Because we’ve made such progress with our stewardship, budget and debt-reduction efforts, we now have an additional $2 million to $3 million, annually, for additional ministry. The finance committee is led by me (the COO); Dana Shankle, our accounting director; Art Fogartie, our stewardship director; and six members from our church with financial/stewardship skills — three elders and three members. How did you go about finding and recruiting the right people to assemble a “faithful, wise, prudent” finance committee? Milholland: As far as candidate selection, it’s an ongoing process of prayer, shepherding and screening during the year for Godly men and women who have the spiritual maturity, wisdom and heart to serve. I also meet with people whom the stewardship director thinks would be good on the committee. Now that I’ve been here four years, I know a lot of people and have seen them grow in their faith and leadership in the church. I can see God working in them for a role on our committee, either now or later down the road. CE — Reporting by RaeAnn Slaybaugh
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REZ GOPEZ-SINDAC
HOW TO DEAL WITH THE MEDIA IF YOUR CHURCH IS IN
One church leader who knows a thing or two about leading through some messy stuff is Ross Parsley. He’s the lead pastor of ONEchapel in Austin, TX, which he planted in 2010; but, for 18 years, he served as worship leader at New Life Church in Colorado Springs, CO. In late 2006, New Life’s senior pastor stepped down due to a moral failure. The media feasted on his story. In this issue of Church Executive, I had the opportunity to interview Parsley, who stepped in as interim pastor during the crisis, and ask him how a church can create a positive relationship with the media in the midst of a stressful event. Following are his wise advice: • Be relational to the media, not hostile; • Be as accurate as possible, not sloppy with facts or generous with numbers; • Realize that during a crisis, every communication is a press release of some kind; • Make every effort to communicate to the congregation first before they hear it elsewhere. Since starting on the launch team of this magazine in 2001, I’ve met and interviewed many church leaders who granted me generous grace and support. I swear my spirit got born again many times over because of their kind and professional attitude toward a journalist who was just trying to do her job. But then there were a few who didn’t quite know how to deal with an inquiring writer — especially if their church was in crisis. Because church controversies can turn into media frenzies very quickly, I think many church leaders ask the question, “If a scandal erupts at our church, how are we going to respond to the media?” They know it’s important to have some guidelines written down even if they think messy things aren’t likely to happen at their church.
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I also asked Dave Patchin, executive pastor at Lifepointe Church in Raleigh, NC, and a trusted voice at xpastor.org forum. Patchin says although Lifepointe hasn’t had any negative media, the leadership is prepared. When dealing with the press, it’s still all about building God’s kingdom, according to Patchin. “In general, it’s wise to build relationships with media. Often they need stories, so send press releases. If you offer them positive stories that highlight the church, your ministry partners or other ministries, they tend to value you ... that’s helping them do their job. We try to be truthful, helpful, encouraging and engaged. When asked for comments, we pray about if we can serve the reporter’s needs and build the kingdom.” The church, in general, has gotten a lot of bad press in recent years. But, I believe many people, reporters included, still root for the church as the light and hope it’s meant to be. And when church leaders respond to the media in truth, grace and humility — especially during a crisis when perhaps because of anger, shame or fear it’s more convenient or “understandable” to ignore requests for comments or be hostile to reporters — then members of the media may just see the church as a trusted community partner. And, who knows, we may just win a soul or two for the kingdom.
PASTOR-FRIENDLY
I Repeat Myself The cancellation or reinforcement in various sound frequency ranges is a function of the distance from the sound source to the room walls. If sound hits a wall halfway through its cycle, the positive peak of the wave reflects back and combines with the negative “trough” of the wave and cancels to zero. This is an acoustical “zero sum” game. Similarly, if the wall first encountered is a full wavelength from the source, the reflected wave will combine with the next and boost the sound in that range. Variations in these extremes will partially combine or cancel to influence what the listener hears — some good, but generally bad. A cut-only equalizer can help reduce the excess reinforcement, but early on manufacturers realized that the room would effectively devour any attempts to boost absent frequencies. All this said, once the room is treated and tamed not to fight back, the investment in quality sound equipment can reach its full potential. Considering the acoustics first allows everything to work at its best.
BY NICK COLLERAN
is computed without the need for a computer, using century-old arithmetic: the Sabine equation. First, the room’s existing sound absorption is calculated; then, its desired absorption. The difference is what must be added. Preserving the room’s life for singing or music while clearly understanding the minister’s message can be achieved with diffusion. Much like peanut butter — easier to swallow when spread over bread — diffusion removes the acoustical “lumps,” preserving sound but making it easier to digest. [For a demo, visit acousticsfirst.com/acoustic-demonstrationvideo-how-acoustical-panels-improve-sound.htm.] CE Nick Colleran is a principal at Acoustics First Corporation in Richmond, VA. [acousticsfirst.com] He is past president of Society of Professional Audio Recording Services (SPARS) and of the Virginia Productions Services Association (VPSA), and a former recording artist and recording engineer.
MarketPlace • MarketPlace B O O K M A R KS
ACO U S T I C S
Second reflection First, the question of what makes up the performance should be addressed. While everyone might sound great singing in a tiled shower, most folks won’t sing out in an acoustically dead, or “dry,” room without reverberation. There’s no echo to disguise individual voices and average pitch by blending. The ideal room will achieve clarity by reducing the excess reverberation with acoustical absorption. The common choice is fabric-covered wall panels. The calculation of necessary material
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RISK CONTROL
An often-ignored — but critically important — ministry In this very first “Never Again” Series article, I hope to clearly and simply answer a number of questions surrounding a critically important task in the church, but one that’s all too frequently underused — or worse yet, totally ignored. Namely, I’m talking about risk control.
What is risk control, exactly? Risk control is a risk management tool that comprised by two subset elements: 1) Loss prevention — in which we employ policies, procedures, protocols, maintenance programs, training programs and certain devices to actually prevent losses and their attendant damage from ever occurring. 2) Loss control — in which we use these same mechanisms to mitigate the severity of damage from losses we simply could not prevent.
Can risk control really be ministry? 1 Corinthians, Chapter 12 (New International Version) identifies “gifts of administration” as a gift that God has designated people in the Church to have. While it’s obvious that administration undertaken as risk control isn’t liturgical and doesn’t include a pastoral aspect, it’s equally clear that not nearly as much pastoral ministry will take place in any congregation where the church has burned down, or a major embezzlement has occurred, or a shocking sexual misconduct offense has taken place, or a person has fallen on READ “NEVER AGAIN” IN EACH ISSUE! icy steps leaving church We will spotlight an insurable risk that after services, leading occurred in a church — and we will review to permanent paralysis the valuable lessons it taught all involved. or death. Attending to the prevention and resolution of these matters can involve the same level of care, commitment, dedication and hard work as that expended by a youth minister, music director, teacher or principal in a church school, etc. So, at the risk of inadvertently offending someone, I’ll say yes: Risk control can be pursued as a ministry.
BY MICHAEL J. BEMI
or skilled nursing facilities, for example), the church doesn’t undertake operations and activities that produce the type of exposure to loss demanding significant outlays for effective and efficient risk control. In fact, when compared to the costs of resolving large claims, risk control clearly demonstrates itself to be a genuine bargain. Further, it’s inarguable that preventing any loss from occurring is vastly preferable to doing an excellent job of handling the claim(s) from a loss that you did not prevent. Consider what’s better: 1) caring in an eminently fair, just and compassionate fashion via excellent claims management for a victim your vehicle hit in a crosswalk, or 2) never hitting the person in the first place, because you employed excellent loss prevention to teach your drivers about the inordinate danger of distracted driving? The answer is obvious: it is far better — from both a Christian perspective and a financial perspective — to expend your money, time and effort on loss prevention, rather than on great claims management after the fact of an avoidable incident.
Is risk control good stewardship?
Isn’t risk control complex and expensive?
When you consider that risk control protects and preserves the physical, financial and human resources that the Lord has blessed us with and in regard to which he expects us to exercise responsible administration, then risk control clearly meets the test of good stewardship. It meets another critical test, as well: what any good Christian should expect of herself or himself. We are, after all, called to love, nurture, respect and protect other people, and the various mechanisms employed by risk control have prevented countless deaths, disabilities, disfigurements and the related pain, suffering, anxiety and emotional disruption experienced by both the people directly affected and by all those who love and respect them. Risk control also prevents harm to property (ours and others’) and to pursuits of those with whom we interact. The inescapable conclusion is that you cannot perform good stewardship without including risk control as part of your efforts. CE
Risk control can be both complex and expensive; but seldom so when considered in a church operations and activities context. Generally speaking, with very few exceptions (hospitals
Michael J. Bemi is president & CEO of The National Catholic Risk Retention Group, Inc. (Lisle, IL) — a recognized leader in risk management. To learn more about available coverage — and to get valuable tools, facts and statistics — visit tncrrg.org.
48 | CHURCH EXECUTIVE | 07-08/2014