Summer is almost over and fall is just around the corner.  The NFL teams are opening training camps this weekend and colleges teams are starting next week.  Before you know it we will be consumed with Christmas shopping.  How will your church budget end?  If you are not working towards ending well you might not end like you want.  Now is the time to start planning to end the year well.  Here are some thoughts.

Why it is important to end well. Besides the obvious that ministry needs in the fourth quarter have to be funded there are other reasons to end well.  For one thing how you end will be the platform upon which you begin the next year.  End on a down note and you carry over a sense of negativity into the new year.  For another thing if you are even thinking about building or renegotiating your loan it is imperative that you show solid financial growth from year to year.  Ending well simply sets  you up for a positive future.

Hope is not a strategy to ending well. Too many churches simply hope they will end well.  Apart from what they always do, which mostly is very little, they have no plans to help hit their budget needs.  What you need is a plan of action that will insure that you have the best opportunity to end the year on a high note.  Good churches begin early to plan for how to end the year well.  Don’t let circumstances dictate how you end.  Work up a plan of action to help you meet and exceed your budget needs.

Accurately assess where you are and what your needs are for the rest of the year. Now is the time to assess where you stand and what needs are outstanding.  Do not let things sneak up on you.  Good assessment and planning are essential to stewardship success.  One of the things we do well for our clients is a mid year giving review that allows them to know where they stand.  At this point in the year they have time to develop a plan of action to close out ahead of budget.  If they are behind they can make corrections to the budget or make plans to increase giving.  Not knowing where you stand gives you less room for adjustment and makes it less likely to succeed at years end.

Simple yet needful steps to assure that you end well.  Frankly if you do the above you will be one of the few churches that even thinks about this.  I am continually amazed at how little churches think ahead on issues regarding stewardship.  I have seen Mega churches fail in this as well as smaller churches.  It is not rocket science but it does take some attention to detail.

While the end of the year might seem like a long ways out it will be here before you know it.  The plans you make now will assure that success is much more attainable than if you do nothing.  So, give some thought and time to planning now how you will end the year.  It could mean all the difference in the world.

As always, we are here to help!

Mark Brooks

Founder and President

The Charis Group

Last week I was at the National Association of Church Business Administration’s annual conference in Orlando.  I met lots of staff members from around the country.  While talking to them we would always ask, “Do you need to raise funds at your church?”  Often the answer we heard was no.  Sometimes the answer was no because that church had just completed a campaign or was nearing the end of a campaign.  At other times the answer was no not right now.  The meaning there was that in the future they would have a need but they did not see the need now.  A few said no, we have all the buildings we need.  Our response to that was that we hoped they would outgrow their facilities and need to build.

No is the wrong answer to the question do you need to raise funds at your church.  Every church in America needs to raise funds so the answer is always yes not no!  I honestly think that the reason they said no was to move along and get away from having to face what they viewed as an unnecessary sales pitch.  For those that did pause long enough for us to reply back I think we did give them food for thought.  I believe that the vast majority of churches in America need to raise funds but are totally unaware of that need or think that they can put off raising funds for special projects until much later.  Some erroneously think that due to the economy now is not a good time to raise funds.  Let me share with you why I believe now is the time to raise funds.

The rules have changed and churches need to change their thinking. It use to be that you could go down to your local bank just before you broke ground on your new building and get the amount of money you needed.  It was almost done with a hand shake.  Those days are over and they will never come back.  Now you had better have your ducks lined up to even get an appointment to talk about a loan.  Banks are loaning money but they are doing so selectively.  After so many banks took on risky loans they now are making doubly sure the loans they extend have a low risk.  You have to show you are a good risk.  Here is what they are looking for before they will ever seriously consider your church.

1. You have to show fiscal responsibility and good financial health. Banks are looking for solid consistent giving from year to year.  You need to work on making your budget attainable.  Failing to hit your budget or showing declines in giving can seriously impact your ability to acquire financing.
2. You need to have cash on hand. I have been told by several banks that they are now requiring anywhere from three to six months of a churches annual operating expense to be held in reserve before they will even talk to a church about a loan.  Raising that amount of money can and will take time so start sooner rather than later.  Cash is king when it comes to acquiring a loan.
3. You need to pay down your current debt. You will not get an audience with the bank if your debt ratio is too high.  If you are thinking about a project in a year or two it will pay to lower the amount of debt you are carrying.
4. If you are in a current capital campaign it needs to end well. Banks are looking for successful giving not just successful pledging.  If you are one year out from the end of your current campaign you need to work now to assure that you realize maximum results.  A bank will push back on loaning you money if your current campaign does not finish well.

Donors still give during times of recession if the vision is compelling. Putting off raising funds for fear of the economy is a lack of faith.  Giving has declined to churches only slightly.  We have seen churches in some of the hardest hit areas of the country hold capital campaigns and have huge success.  They succeeded because the had a huge vision.  Your donors will not save money waiting for your next capital campaign.  The money you think you will save by waiting until the economic times look better is actually money you will lose.  Putting off a capital campaign will only result in you losing thousands of dollars.

I firmly believe the answer to whether your church needs to raise funds is yes!  I also believe that the time to do so is now.  Don’t lose out on thousands of dollars that could fuel your ministry for fear of the unknown.  It is time to get off the sidelines and back into the church growth game.  As always we are here to help.  Give us a call today to see how our strategic thinking can help you raise the funds you need today.  After all the future is now!

Mark Brooks

Founder and President

The Charis Group

This past week we were at the National Church Business Administration (NACBA) annual conference in Orlando, FL.  This is a time for church staff to fellowship, learn and meet firms like ours.  At the Exposition Hall there were a host of different firms including stewardship firms.  We stand at our booths and hope to engage staff members telling them why our services are the best and right for them.

The reaction we receive as a stewardship firm is interesting to say the least.  Most were nice to us but a few were almost rude in their reaction to us.  Some seeing what our booth was about would work hard to avoid eye contact or walk as far from us as possible.  I am used to the reaction we get as it is a result of years of bad abuse by a few companies that ruined our reputation as an industry.

Why is it that many churches view stewardship firms so negatively?  Here are some thoughts.

The typical fee charged to a church is thousands of dollars and churches resent paying. I think this is the bottom line in all the ill will out there.  The real question is the value given for the price charged.  Honestly many churches have paid way too much for the value that was given to the church.  As a result there is resentment.

To be fair to my industry we too have to eat and pay for expenses.  However the work delivered should match the fee.  We try to give churches multiple options of how to engage us so that they get what they want for a price they feel is fair.  In the end it needs to be a win/win for everyone.

Stewardship firms too often over promise and under deliver. There are nine firms  here this week.  We are all trying to sell you on our services.  It is too easy to tell you what you want to hear in an effort to gain your business.  Many of the larger firms employ sales forces that pitch their company in the best light possible.  Frankly we have given the impression that we can raise far more money than possible.  Salesmen will often promise you anything to get you to sign on the dotted line.  Then it is impossible to fulfill the unrealistic promises they have made.  In the end churches grow bitter and resentful.

While it is true that using a firm will allow you to raise more than if you did the campaign on your own you need a realistic assessment of what is capable.  Too many promise three times your annual budget raised and those campaigns are rare rather than the norm.  Going multiple times beyond your yearly budget is always driven by large gifts.  If you do not have that capacity you cannot expect to see those results.

At The Charis Group we pride ourselves on telling you the truth rather than giving you a sales answer.  I would rather lose your business but retain your respect for me than simply telling you any old thing.

Churches have unrealistic expectations. At times the fault is not the firm as much as it is the church.  If you have an unrealistic view of how much you can raise you will be disappointed.  Then the day after as you look around for who to blame too often the easy fall guy is the stewardship consultant.  No matter how smart I am or how hard I work I cannot overcome problems that were already in your church.  Don’t blame a stewardship firm if in the process of the campaign problems that were already present rise up to bite you.  We are there to aide you but we cannot work miracles.  If you have unrealistic expectations you might be disappointed with the pledge result.  I once knew a church that pledged four times their budget and was unsatisfied with the stewardship firm and asked for their money back.

There are perhaps other reasons for the resentment that many feel towards my industry but these are the major ones.  Some of the criticism is much deserved while others factors are out of our control.  For whatever reason I have recognized this resentment and am working hard to restore the image of our industry one church at a time.

So the next time you go to a show where stewardship firms are present do me a favor.  At least look at us and smile and nicely decline our advance.  Better yet stop and talk to us.  Tell us what you perhaps don’t like.  Help us help you and other churches like you.  We are not all bad people.  We too believe in this ministry that God has called us to.  In talking to us you might just learn that we can help you achieve the dreams God has given you.

Mark Brooks

Founder and President

The Charis Group

I am at the National Association of Church Business Administrations (NACBA) national conference in Orlando.  NACBA is a great organization for staff members and their convention is a time of fellowship, learning and looking at companies like mine.  The exposition area has scores of business represented.  From banks, to builders, CPA’s, to software to stewardship firms you can find everything you need to do church today.

In my industry alone there are nine companies represented.  All nine claim to be the best.  I hope each person at those booths believes that with all their heart.  I know we know we are the best.  However I realize you won’t take my word on that or my mom’s.  We have to earn the right to be your partner.

This morning I took the time to look over all my competitors booths and literature.  I assume they look at mine so it is only fair I look at theirs, right?  Here is my assessment of what I found.

Nearly every company is selling a pre-packaged program. No one will admit to that but its the truth.  While your name might appear on the top of the page it’s pre-written and a program that could be made to fit any church.  Few of the companies truly customize a campaign.  They might have several modules to pull out but in the end it’s a program that you can buy on the internet or get free from us.

I hate this about my industry.  On the one hand it’s laziness on our part to not treat each campaign differently.  For some it’s simply a financial decision.  If they sell you a program it is less work, less time on site and they make more money.  For others offering a program is the only way they know how to do campaigns.  Building teams to make telephone calls is not ministry but too often we don’t understand the difference.  For years in the church we would start programs call them ministry when all they were were programs.  The same thing happens in the stewardship industry.  What you need is a partner not a program!

Everyone is trying to distinguish themselves from their competition. This includes me.  However how most try to distinguish themselves is by adding some trinket or bobble that they think will impress you.  Online delivery is a favorite of a couple.  I once was in charge of an online delivery tool for a major firm.  All it was was a marketing tool to impress churches to go with that firm.  For the firm it also was a cheaper way to deliver the program.  Less paper, less visits by the consultant etc.  It was a snake oil approach to getting contracts from churches.  Now another large firm is marketing their online offerings.  Don’t be fooled.  It too is a marketing ploy that in the end is snake oil.

A few companies want to impress you by how big their booth is and how cool their materials are. Do you really think the size of a firms booth matters when it comes to helping you raise more funds?  I use to be impressed that the presidents of these firms were speaking at conferences like this until I learned that for $15K I too could be a featured speaker.  I have a lot to say but I am not paying $15K to say it!  In the end guess who pays that $15K anyway?  You!

So how do you find which partner is right for you?  I want to say that each of those that are here, even those I don’t agree with about their marketing approach, have value for a church.  I am not a fit for every church.  Maybe you want someone to deliver a program.  While we can certainly do that others are more focused on a programmatic approach.  You have to decide which firm is a fit for you.  Here are some keys to look for…

• Remember you are hiring the consultant not the company so make sure you like and value the consultant you will be working with.
• Spend time talking to that consultant.  I can tell in a few minutes time with someone if I want to work with them or not.  The same is true for a stewardship consultant.
• Ask for and talk to references.  Ask the references who else you should talk to.  Ask other churches who they used and what their experience was like.
• Read what the consultant has written.  You can read my blog and books and get a good sense of where we are coming from and know whether we are a fit for you or not.

The bottom line is to do your home work and research.  Don’t be fooled by the snake oil of slick materials, free candy or big booths.  When it comes to raising funds you want the best for your church.  It is worth the time and effort to find that right fit.

That is my Jerry Maquire moment!

Mark Brooks

Founder and President

The Charis Group

The tag line on The Drudge Report today proclaimed that the economy might not recover for another five to six years.  The link went to an article about the Fed’s recent meeting where they expressed concern that the recovery had lost steam.  This came on a day when the Stock Market shed 260 points, consumer confidence plunged and Congress passed another regulatory bill that depressed business investors.  The mood looks dim from Wall Street to Main Street.  The question is what are you going to do if the economy does indeed continue to be sluggish?

For the past twenty four months what we have seen many churches do is nothing.  Plans for buildings have been put on hold.  Expansion of ministry has been halted.  Some have made major cuts and others have laid off staff.  You have seen the headlines declaring that giving has fallen off the cliff and churches are reeling.

Against this onslaught of negativity we have advised our clients on how to move forward despite the economy.  While it has not been easy we have seen our client churches overwhelmingly not only survive but thrive.  The same can be true for you.  Here are some things that you can do if this economy continues to be rocky.

First, realize that God is bigger than the economy. I know you know this but try acting upon what you know.  Our God owns the cattle on a thousand hills and He is not about to let Kingdom work dry up and blow away simply because our economy is challenged.  If He could make the walls of Jericho fall don’t you think He can find a way for you?

Sure times are challenging but what are we teaching our people if we pull our heads into a shell and never attempt great things?  Now is one of the greatest opportunities we have to teach our people how to trust God.  Don’t miss this opportunity to teach and model faith in action.

Have a compelling vision that you communicate regularly to your people. Several years ago I wrote in an article that, “Good vision trumps bad economy.”  That has never been truer.  The churches that we work with that have seen their giving increase do so because they are accomplishing something big for God.  Attempt great things for God and people will pull money out from under their mattress to support it.  If your vision is compelling enough your people will support it.

Have a plan of action and work your plan. Sometimes I feel like a broken record but it is amazing how few churches have stewardship plans.  I can tell you that the reason our client churches have seen giving remain steady is in part because they have a plan of action.  They don’t sit back and hope people give.  They don’t use guilt to demand people give.  They work to communicate their vision in a multi-faceted way that fills their offering plates week after week.

Last month I attended the dedication of First Church of the Nazarene in Jackson, MI.  This church is about one hour from Detroit.  Michigan has been in a recession a lot longer than the rest of the nation and will probably be in recession long after the rest of us are out.  Yet despite this First Jax built a new sanctuary AND saw their giving not only remain steady but increase.  If you can do that in Michigan what is your excuse?

We cannot afford as a Church to stay on the sidelines fearful of what MIGHT happen.  This is not our first time to be in a recession and it will not be our last.  Stop worrying over the headlines and the cable news naysayers.  Find the will of God for your church and forge forward by  faith.  The God who has in days gone by seen us through the fire will indeed during this time of challenge see you triumphantly through.  If the economy continues to falter your faith can and should still remain strong.

Mark Brooks

Founder and President

The Charis Group

Harry Truman was famous for the saying that the buck stops here.  Good leaders know that they are the key to good decisions and policies.  While we as a country love to pass the buck and blame others Truman correctly put the weight of the decision on his desk.  We grow tired of politicians that continually blame everything on their predecessors.  The truth is that we all too often try to deflect blame away from ourselves and towards someone else or something else.  I find the same thing happens in the realm of stewardship.  Too many pastors want to let the buck slip from them to blame other factors or people when it comes to stewardship.  The truth of the matter is for pastors the buck stops with them.

I will soon start my thirteenth year in the stewardship ministry after twenty years as a senior pastor.  During the last twelve years one of the saddest realities that I have had to face is how disconnected the average pastor is about stewardship.  Many don’t see the importance of this area.  Some think it is not their business.  Others feel that they don’t have the time.  For whatever reason the excuses continue to mount.  In the end it is all an attempt to pass the buck.  The lack of pastoral involvement in stewardship is one reason why I often scoff at polls that ask pastors about how the recession will impact their giving.  I have stopped asking pastors about their giving as I have found most don’t have a clue what it truly is.  If they do tell you it more often than not turns out incorrect.  The result of this lack of attention and focus is that churches across this land are losing out on millions of dollars and countless ministry opportunities.

What accounts for this avoidance of responsibility?  In my most recent book, “Stewardship Myths,” I wrote the following about the trap that preachers often get into with regards to not talking about money or being involved in stewardship.  I wrote…

“The trap that many preachers fall prey to is listening to the complaints of the crowd.  As a result many never or seldom preach about money or stewardship.  Why is that?  Here are some reasons…

It’s unpopular and we like to be liked. No preacher wants to hear, “All you ever talk about at church is money.” I think the bottom line is that we like being liked and don’t want to do anything that will cause the above statement to be reinforced. So we go out of our way to not mention money. Could it be that the reason people do not like us to talk about money is that they have such a problem handling it correctly? Could it be that by not talking about money we are giving them a pass on an area of disobedience in their lives?

It often makes the leader uncomfortable. Closely akin to the above point I find that many don’t like to talk about stewardship because it makes them feel uncomfortable. They struggle dealing with difficult topics knowing it will rub some the wrong way. They find that they can not with boldness take a stand so they ignore the issue altogether. It is just easier to teach on the love of God rather than some subject that many find hard to listen to.

Some or not convinced it is biblically their role. I find that we have been so conditioned by lay people that we ministers are not suppose to know anything about the churches finances that we incorrectly assume that is biblical. You can search the Scriptures but you will not find a verse that prohibits the leaders from taking an active role in stewardship. Christian ministries that have leaders that are active in stewardship raise more funds and in the end do more for the Kingdom.

Many do not feel adequately trained. Our Christian institutions of learning have done a disservice to our leaders in not training them in this crucial field. Nearly everything a minister learns about stewardship he learned outside of the classroom. If I do not feel properly trained in an area I will not operate in that area.

Some do not see the necessity. Despite numerous studies that show the importance of the leader being involved in stewardship many do not think it is necessary. As a result their ministry struggles to achieve the dreams they have been given or more likely don’t have any vision for the future at all.

Whatever the reasons are we need to get over them! Without a firm stewardship plan your ministry will suffer.  If you do not teach and preach on stewardship your ministry will suffer. At the end of the day the only person you can blame for that is yourself. It might well be that our education was lacking in stewardship training. However there were many things that we did not learn in college or seminary that we have had to pick up. Fortunately there are tools and resources out there to help bridge this gap in knowledge. If you feel you are lacking take advantage of the various conferences, books and partnerships that can help you in this area. The growth of your ministry could well depend upon it.”

As we work with churches during this past recession and the slow recovery from it, the churches that have been the most successful are those that the pastor has seen stewardship as his role.  Those pastors who have seen their giving hold or even increase have developed a plan of action and worked their plan.  They have correctly seen that the buck stops with them.  If they did not act then no one else would.  Crucial ministries would be impacted and ministry would have been cut back or ceased all together.  As a result of seeing stewardship being firmly upon their desk they crafted plans that helped them navigate the stormy seas of recession.

So, what about you pastor?  Do you realize that when it comes to stewardship there is no substitute for your personal involvement?  Being involved in stewardship is more than preaching an annual sermon on giving.  That helps but it is only the tip of the iceberg.  You need a plan that address stewardship in a comprehensive way.  It cannot be shuffled off to some committee or staff member.  It needs your personal attention.  There is no substitute for you and your influence and presence.  When it comes to the stewardship success of a church the buck stops with the pastor!

Mark Brooks

Founder and President

The Charis Group

If you have read my posts for any length of time you will note that I am one of the few that believes we are out of a recession and on our way to recovery albeit a bumpy one.  My position has been from the beginning that though this past recession was bad it was NOT a depression.  We acted like it was a depression and in fact our panic produced a much deeper recession than we would have normally experienced.  Few seem to remember the recession of the early ’80′s and the Savings and Loan crisis.  We made it through that crisis and we will make it through this one.

Sometimes I read things that I simply cannot write better.  Throughout this time of media and political madness there have been a couple of economists that have sounded a far different tune than what is typically being heard.  Those two are Brian Wesbury and Robert Stein.  You can read their blog post at http://www.ftportfolios.com/retail/blogs/Economics/index.aspx I get their weekly email updates.  Today’s update is titled, “Get Real – This is Not 1932.”  Since I can’t say it better here is what they wrote today.

“Want to be invited to “A” list parties? Want people to think you are smart? Then, don’t smile and don’t say anything positive – especially about the economy. Pessimism has become so pervasive that people will believe just about anything, as long as it is negative.

Over the July 4^th weekend, after a jobs report that showed 83,000 new private sector jobs were created in June, the Drudge Report had not one but two headlines that compared the US economy of 2010 to that of 1932. In other words, the US is back in Depression. This is a complete over-reaction and is indicative of the severe case of economic hypochondria that seems to have gripped the nation and the world.

One symptom of this disease is that common sense is suspended. The simple explanation is tossed aside and data releases are dredged and sifted to find the most dire possible explanation for any economic information.

For example, every ten years the United States Government conducts a census, and every ten years the government hires hundreds of thousands of very temporary workers to help in the effort. Sometime between April and June total employment goes up and down by an amount that often swamps the underlying trends of employment.

In May, total payrolls increased 433,000, but then fell by 125,000 in June. So rather than explain this to people, the Pouting Pundits of Pessimism said things like “all the jobs in May were government jobs.” And then last Friday, after the June jobs report, they said “jobs fell for first time in seven months.” Both of these reactions were misleading.

They could have said “once we adjust for the census, private sector payrolls increased by 33,000 in May, and then accelerated in June to 83,000.” While both months were disappointing when compared to previous recoveries, the data shows six consecutive months of private sector job creation.

Another interpretation that defies common sense involves labor force data. When 805,000 more people said they were looking for a job in April, the pessimists said, “see how many people had been discouraged…the unemployment rate will never fall as they start looking again.” And in June, when the labor force fell by 652,000, they said, “this is the only reason that the unemployment rate fell.”

This is crazy. It defies common sense. Economic data is volatile, so quarterly data might be better.   And in the second quarter the US added 357,000 private sector jobs – more than 50% greater than the 236,000 added during the first quarter.

New orders for durable goods, a leading indicator, are up 10% at an annual rate in the past three months. Excluding transportation, they are up 25%. If we look at just machinery orders, they are up 63% in the past three months and 23% in the past twelve months. This is not a depression.

Yes, housing has fallen. But what should we expect after a huge government program to support housing activity ends? Remember “cash for clunkers?” Activity was artificially boosted by the program, then it fell, then it recovered as the normal forces of economic activity kicked in again. The same thing will happen with housing in the months ahead.

So, could we be repeating 1932? We suppose anything is possible, but these fears are based on a faulty comparison with history. In 1932, the M2 measure of the money supply fell by 16.5% – the third out of four consecutive yearly declines between 1929 and 1933. Meanwhile, Herbert Hoover pushed through the largest tax hike in American history. The lowest tax rate rose from 1.5% to 4% (at $1 dollar of taxable income), the 6% rate (which kicked in at $10,000) rose to 10%, and the top rate more than doubled from 25% to 63%.

Today, the M2 measure of money is growing and tax rates, while scheduled to go higher in 2011, are nowhere near the levels of the 1930s. And there is no Smoot-Hawley Tariff Act.

None of this is to say that the government is not making it more difficult for business. Clearly, the uncertainty of new laws, spending, taxes and regulations is throwing a wet blanket over the entrepreneurial side of the American economy.

But two things are true. First, productivity is so strong that the economy is growing despite massive increases in the size of government. The US is creating jobs, even if the rate of growth is less than previous recoveries. Profits are still rising. In fact, analysts are still raising earnings estimates.

Second, the market has so much negativity priced in, that it is cheap on just about any basis. Based on forward earnings, the PE ratio for the S&P 500 is under 12. And our capitalized profits model shows that stocks are severely undervalued. Based on very conservative inputs, we continue to believe the fair value for the Dow Jones Industrial Average is 14,500. Pessimism creates value. Optimism has traditionally been rewarded. We remain optimistic.”

So, what about it?  Are you more interested in being one of the crowd or seeing things are they truly are?  Are you one that simply believes everything the media or your favorite politician tells you or do you research the facts and then think for yourself?

In the church our panic and fear has set us back years.  Years of potential progress have been wiped away because we listened more to the TV than the Spirit.  My prayer is that we will respond by faith and continue to move forward.  Remember, our faith is not in Wall Street or Washington but in the God who owns the cattle on a thousand hills.  The windows of heaven are open.  Do you have your blessing bucket ready?

Mark Brooks

Founder and President

The Charis Group