Blog

Proverbs 11:24 states, “One gives freely, yet grows all the richer; another withholds what he should give and only suffers want.” NIV Scripture encourages us to practice generosity with family, friends, and community. The Bible explains when we are generous, we gain favor with God and we also produce goodwill with our fellow members and society. Throughout the years of working with churches, I have come to learn there are 9 factors involved in establishing a culture of generosity within a church. 1. It all begins with leadership. I have never known a pastor who was generous in his personal life that did not have a generous congregation. In other words, Live by example. We believe it all comes from God and when we practice generosity, it just seems there is always more than enough to meet our own needs as well as those of others. 2. Share inspirational stories. We teach that God knows our needs and is able to meet our needs. Sometimes in miraculous ways. By sharing stories of God’s provision, we can help others to have confidence in God’s willingness to meet our needs. Ion my own life. I can share many stories in my own life of money showing up right on time to meet particular needs, and it happened because God caused it. He will never let us down. 3. Don’t be afraid to ask. James 4:2 says “ye have not, because ye ask not.” NIV. This is a very popular scripture to quote. Fact is, God wants us to bring our requests to Him in a spirit of humility and trust. God provides for His church through the tithes, gifts, and offerings of the church members. I have heard from too many pastors who say that they don’t like to talk about money. Adrian Rogers once told me if you want your people to be blessed financially, you need to teach them Biblical stewardship; for sure, God is faithful and when we are faithful, He is faithful to bless. Don’t be afraid to ask people to pray about meeting the needs of God’s church. 4. Use offering time as a teachable moment. Every church has a time for collecting the offering. This is an excellent time to share the truth of God’s word concerning our giving. Folks sharing personal testimonies concerning God’s generosity can be encouraging to others. 5. Talk about generosity. If you are generous, it means you willingly give something or things to others without wanting anything in return. I have never known a generous person who was not also a happy person. Happy people want to share the blessing they receive from God with others and happily meet the needs of others. 6. Share results – I encourage church leaders to share the results of capital campaigns with the church membership. When folks can see the tangible results of their giving, we are more apt to give to others and future endeavors. However, if folks cannot see results, they are more than likely not giving to the next project. 7. Say thank you. When we way Thank you to someone, it makes them feel valued and appreciated, which in return increases their own feeling of happiness and positivity. Research tells us grateful people are happier and more likely to maintain good relationships. Roughly half of Jesus’ public prayers in the four Gospels are prayers of thanksgiving. 8. Make it is easy to give. Research shows churches who came through COVID in the best shape were churches who had successfully switched their members over to electronic giving. Conversely, churches who did not survive or struggled were oftentimes still dependent on passing the offering plate every Sunday and when churches didn’t meet, they ran into difficulties. Successful churches make it as easy as possible for their folks to give. 9. Equal sacrifice not equal giving. In our capital fundraising campaigns, we stress equal sacrifice not equal gifts. In order for giving to be sacrificial it must affect our life, our livelihood, and our life style. Jesus marveled at the widow who gave 2 mites because it was all she had. She was trusting God with her life. Her gift affected her livelihood because she had nothing left. It affected her lifestyle, she was broke. In essence she trusted God for everything.  If you want your church culture to reflect the characteristics of generosity, focus on these 9 items and see the difference

1. PRAYER Prayer must be the epicenter of a solid Capital Campaign. Nothing we do as Christians should be undertaken without the fervent prayer of all involved and through the duration of the process.  2. It is not about the money A successful Capital Campaign will emphasize submission and obedience to God by celebrating his goodness and blessings that have been received. By giving sacrificially, church members will be encouraged in their faith walks, in living righteously, and giving generously back to God. We cannot out give God…but how many have tried? 3. Cast a clear vision and plan Church Leadership MUST be able to convey clearly the vision and plan God has laid upon them. By articulately laying out this plan to membership and getting them to SEE and AGREE with the vision will build unity and consensus. 4. The purpose of the church is changing lives Never lose sight of the purpose of the church. What a Capital Campaign will accomplish for the church and the community it serves in terms of evangelism, can be immense and bring more glory to God. 5. Faith Faith in God and His provision is paramount for a successful Capital Campaign. Throughout our lives, there are times when we must be reminded that all we possess is from God, and we are called to be good stewards of it all. 6. EVERYONE is involved Not everyone can give equally. But everyone can sacrifice equally…ever heard that before? A dollar is 100 pennies but it is not whole until the 100th penny is added. A Capital Campaign is not whole until every pledge is counted and every sacrifice is viewed the same, not the amount. 7. Substance over flash A successful Capital Campaign requires substantive materials, not the best looking. Quality information presented in the proper manner can be more effective than mediocre information presented in the most expensive of materials. 8. Church Consensus Everyone must understand this is our church, our goal, and they are an integral part in making this successful. 9. Theme The successful Capital Campaign must have a theme that is relevant and exudes the culture of the church. This will catch the attention of the members and draw them into becoming part of the plan. 10. Consider Hiring a Professional Many churches will scoff at the idea of hiring a professional consultant. Commonly asking why pay an outsider to help raise our own money? The short answer is that the church will raise more money. Not many churches will have a professional fund raiser on staff or in attendance. Also, fundraising is not generally a part of the education received by pastors and they usually lack the expertise to raise sufficient funds themselves. Hiring a proven, God-centered professional consultant will greatly aid in the total amount raised and will more than cover the cost of hiring them.

You’ve heard of Murphy’s Law: whatever can go wrong will go wrong at the worst possible time. If you want to prove it valid, just start a building project. Many pastors who’ve guided their churches through building projects say it was the most difficult time in their ministries. There are, however, ways to make the process a bit easier. Some mistakes you don’t have to make, such as…  Not having financing in place first. Here’s a common scenario: A church decides to build, so they hire an architect and draw up plans. They then seek out a contractor and complete the contract phase of the process. Then, they go to a financial institution and, sadly, learn they don’t qualify for a loan to build what they want. As a general rule, you’ll be able to borrow up to three times your church’s annual unrestricted income but not more than 70 percent of the market value of your facility. You’ll probably be limited to total debt service at no more than 35 percent of the monthly income. Make sure you know how much you can borrow before you get too far along in the process. Not having a capital fund-raising campaign in place. A capital fund-raising program is designed to obtain financing pledges from church members over and above their tithe for a stated period of time (usually three years). A good campaign will generally accomplish two objectives: 1) It provides cash so the church will not have to borrow as much for construction, and 2) That money will be available to help make the mortgage payment once the building is completed. Too many churches have built new facilities only to find that to make their monthly mortgage payment, they must scale back ministry to save money. Most churches understand that it’s still ministry that grows a church, and to cut back on that part is seldom a desirable option. Not checking out the contractor. Far too many church leaders have gotten far along into a building program only to discover the contractor they chose can’t complete the job or isn’t doing quality work. A common-sense approach is to ask for references beforehand and to check them out. Some churches have gone so far as to contract with a church management consulting firm to oversee the building process. Oftentimes a consultant can save a church more than the consulting fee by pointing out potential problems before they occur, or even calling out areas of potential cost savings. Building too small . Church growth experts claim an average church that completes a successful building program will experience 50-percent growth within 18 months of completing a new facility. It’s just an estimate, but if 200 is the average attendance in a sanctuary that only seats 220 people, and a new sanctuary will double the capacity to 450, that church will be two-thirds full in less than two years. Then, said church will have the same problem all over again, this time with a mortgage that must be paid down before it can build again. Too many change orders . The two major reasons churches are foreclosed upon are problems associated with a pastor leaving and cost overruns. Many cost overruns are the result of changes made after the building project has begun. A church might not have control over its pastor leaving, but it should be able to manage cost overruns. Remember that a contractor will base the contract price on the plans he or she is given. Once construction begins, any changes in those plans will likely result in a cost increase. In the building process, it’s important to make sure all questions are answered and all needs addressed before construction starts. Once actual construction begins, the costs of making changes will escalate tremendously, creating undue stress and major problems. Not researching local zoning restrictions. It’s well worth the money to pay someone to research regulations before purchasing land. Make sure the property you’re buying will allow your church to meet your present and future needs without having to break through a lot of red tape and endure time-consuming zoning changes. Lack of a master plan. Too many churches haphazardly locate buildings and parking on their property without regard to efficient land use. There are architects and building consultants who will, for a reasonable fee, study your church’s needs and your property’s potential, then draw up a master plan to most efficiently meet those needs. From providing adequate ministry space to the best place to park cars, they can spare many headaches and lots of money. Not building congregational support beforehand. I’ve heard it said that if you want to find out who the “problem people” are in your church, enter into a building program. Simply keeping the congregation informed throughout the process can solve a lot of problems in this regard. From the start of planning to the completion of construction, let everyone know what’s happening. Adding another responsibility to the pastor’s duties. The pastor of a growing church is busy with prayer, sermon preparation, visiting the sick, administration and other responsibilities. What he or she probably doesn’t have is the time or the expertise to manage a building project. Make sure someone in the congregation is assigned detail and administrative responsibilities, and let that person keep the pastor informed. Not understanding that you’ll face problems. Sometimes workers won’t show up on time. Some days, you’ll contend with rain or snow or something else that causes delays. As Vince Lombardi said, “unless there’s opposition, you can’t achieve victory.” There will be problems and challenges to overcome, but remember this: It’s God who gives us the vision, and it’s His job to give us the victory. So sit back, relax and get started. Russ Priddy is the Lead Consultant for Ascend Stewardship and Consulting. He has a B.B.A degree in marketing from Marshall University, an MBA in finance from the West Virginia University College of Graduate Studies, and a Master of Divinity from Midwestern Baptist Theological Seminary.

Everything around us seems to be going crazy. This coronavirus pandemic has the world in a heightened state of anxiety and fear. Grocery store shelves are empty, people are no longer shaking hands, people are getting laid off from work, churches are forced not to meet, and people in general are operating in panic mode. So, how should we as Christians and as church people respond during this time of crisis? The following points will help us to get thru this crisis. Remember that God has allowed this to happen. Jesus said in John 12:33 “in this world you will have trouble.” (NIV) So with all the gnashing of teeth, hand wringing, finger pointing, gloom and doom scenarios, remember God has allowed this to happen. He sees the turmoil and also sees the result. Trust Him.  Worshiping in New Ways with Social Distancing Understand that during this time, Church worship will change. Even if you are still meeting for public worship, things will change. Most folks won’t be shaking hands and hugging. Social distancing will become the norm for now. There will be much less social interaction. In a lot of cases churches will not be meeting, so online services will be the way we worship. Use this time as an opportunity to make improvements to both your online production (services) and online promotion (the service itself). The Power of Prayer Focus on prayer. Luke 18 tells us the parable of the persistent widow. Verse 1 tells us that Jesus used the parable to teach His disciples they should always pray and never give up. Even though there are many church leaders out there who are discouraged, these times call for renewed prayer and greater faith that God controls the outcome. Remember to pray fervently for our National leaders. Pray that they will make wise decisions. The Financial Impact Your church income will probably go down. It’s time to look at how you are spending money and make budget adjustments. The churches who come thru this crisis best, will be churches who are receiving a large part of their contribution online. This is a great time to help people switch over to online giving. Also, prioritize that budget. Save money wherever you can. Strength in Leadership Be a strong leader. These are not times for work and indecisive leadership. Church members want stability of strong decision making. 1 Chronicles 12:32 tells us of the men of Iassachar who understood the time and knew what Israel needed to do. Our church leaders need that same understanding and decision-making ability today. Witness for the Lord Remember to love your neighbor. What a great time for Christian witness. People are literally frozen in fear. It is a great time to witness for the Lord. People have a great deal of needs. It is a great time to do good deeds, especially toward those who don’t know the Lord. Importance of Self-Care Rejuvenate your quiet time. As leaders, we need to make sure our spiritual tanks are full. The only way to keep from operating on spiritual empty is to have quiet time of prayer and communion with the Lord. Make sure you set aside time every day, away from people and distractions, and focus on God. Get some exercise. Remember to keep the body moving. Find a way to get in physical shape or maintain physical conditioning and help reduce stress. Remember it is not the load that breaks you down, but how you carry it. Expect negativity. Negative people are going to be negative; don’t let them get you down. Remember God already knows the outcome and you can rest in that. Remember this time will pass. Hang in there, it will get better.

I believe that the church is changing in several ways. How long of an impact this will have, only time will tell.  Technology has had a great effect on churches. Prior to the COVID-19 pandemic, many churches streamed their services for those unable to attend in person or posted videos to be viewed by members at their convenience. Giving had also been provided another option through online giving options like tabs on websites or mobile apps. These options were given and created for the members and communities being served out of want to reach more people and make the churches more accessible, not just available when the church doors were open. Unfortunately, since the onset of this pandemic, sole reliance upon these technologic options has had a detrimental effect on the church spiritually and financially, both of which they were originally meant to enhance. Even churches that have already opened, have to continue to offer their services via social media because many people are still not comfortable returning. Spiritually People who are healthy and can go to church, have gotten used to the idea of going to church every so often, and they are using the COVID-19 crisis as an excuse, when many of these people are out and about, participating in all sorts of activities, but still find a way to NOT go to church. Even though technology helps, and has helped us, the reality is that we were not created to worship the Lord via technology only (apart from those who are sick and can’t go to church, of course). We should not be too quick to judge these individuals. On the contrary, as pastors and as brothers and sisters in Christ, we should be there for them to offer encouragement. We should be ready to minister to them whenever they need us. This is what the Bible teaches us: to encourage each other, and to pray for one another. We were created to worship in community. We need each other. We need to see each other, speak to each other, etc., even if we have to practice social distancing. Technology, I’m afraid, is taking that away from the church community. Financially For many people who are not going to church they often do not feel, or lose the sense of, the obligation to give. When you are not in church, or you are not in church on a regular basis, you do not see the need. In addition to this, many have not been able to get their jobs back, so they cannot give to the church. The church has suffered economically for this reason. The church is reinventing itself in many ways. One of the ways that I see is that we are developing and strengthening the small group or cell groups, and home church again. This is a positive thing in so far as people are willing to go to a home Bible Study of a person that they know, more often than going to church. As pastors, we have to make sure that those who are staying home do NOT feel as if they are no longer part of the community. Therefore, while we want to encourage those who are healthy to start attending church in a safe way, we have found ourselves ministering to many people at home. Another example of this is that we are taking the Holy Communion, or Lord’s Supper to the elderly, the sick, or those who still feel uncomfortable going to church, to their homes. In conclusion, I would just say that, yes, these are challenging times for the church. This virus has challenged believers in many ways, it has challenged the faith of many believers. Despite the fact that we understand more about this virus now than we did 6-8 months ago, and that there are (as of the writing of this article), at least two very promising vaccines, and in addition to that there are new therapeutics, all of which makes it a lot more unlikely that an individual will die from it, this virus (COVID-19) still instills a great sense of fear in the hearts of a large segment of the both the church community and the population at large. But we must also be reminded of truth that, the church does not belong to us; it belongs to Christ. He died for the church on the cross. Nothing has taken Him by surprise-including CORONAVIRUS!

In my opinion, the coronavirus will change our church life forever. We have been compelled to distrust crowds, handshakes, public spaces, and hugs. Each contact may be a death wish, particularly for those 60 years older with pre-existing health conditions. The local assembly is exactly what we are being told to avoid. At some point a vaccine will be found, but I believe some fallout will be permanent and leave us with the following predictions: Some older people will not return for in-church worship services for months or even years. Most definitely they will not return until we get a proven and safe vaccine or until millions have contracted the virus and have created antibodies to fight further transmission. Smaller worship services will be normal. We are already seeing churches moving to smaller worship gatherings, even if the church is growing. We anticipate larger churches will attempt to have services capped around 250 to 300. Smaller capacity churches will have a much smaller gathering. For example, a 200-attendance church may move to two post coronavirus worship services. Social distancing will permanently change some of the traditions in many churches. Stand and greet is gone and will not return in many churches. Church huggers will no longer be tolerated. Even handshakes will be replaced with elbow bumps. It will be a time when Pastors will have to roll up their sleeves and work harder to provide, on-line live streaming content that is relevant, edifying, and superior to anything else the world is ready to give people. With on-line streaming there must be a concerted effort to develop something new that addresses the issues at hand, and ministers to people in their time of need. A big problem churches are having is “how to” convert just viewers into disciples? Many churches are still trying to figure this one out. Digital giving will become a standard way of collecting gifts. Your church now should be receiving 50% or more of your gifts digitally. This number must continue to grow in the future. Someone in your church must help the older “digitally challenged” (Baby Boomers) who are the highest givers in your church to set up online. This is a challenge because this generation is the least comfortable and has the highest amount of rejection of technology. Your message must meet people where they are. Most people today are on platforms like Facebook, YouTube, and Instagram. You want people on your website, but also you want them to take the live-stream, and distribute it to Facebook, YouTube, Instagram, and any other platform that is applicable to your audience. The coronavirus’ negative impact to some churches may have a long-lasting effect. Church leaders must begin to think differently if revenues are down significantly. When returning to church, fewer people will want to handle cash and the offering plates or buckets. This should not be a problem because today very few people are carrying cash. Churches will need to be 7 days a week churches, not just preach on Sunday and Bible study during the week. This will no longer work because everybody will be competing and streaming for new members. Hundreds of Christians are spontaneously embarked on church shopping voyages for the best online service they can find. In a quick and liberating fashion, some who attended smaller churches for years, will abandon their local congregations to find the church which could best quench their consumer need.  The death rate of churches will get worse. My goal in writing this article to serve Pastors and church leaders is to help them be aware and be prepared for what may be coming over the next months and years. God is in control, but as church leaders you must be prepared for change with a plan of action to confront external realities, threats, and temptations facing those in your congregation. My predictions may be right or wrong. In truth, the only thing that matters is that we continue to be faithful ministers of the Gospel of Jesus Christ.

It happens much too often. Church members are excited about their new building. The artist’s rendering hangs on the wall for all to see. The architect’s plans are complete. The construction contract is signed. Church leaders apply for a construction loan, confident the groundbreaking is only a few weeks away. Then it happens: They’re turned down, and the whole project is put on hold. Excitement wanes, some newer members become discouraged and don’t attend as often, and offerings begin to drop off. The growth trend takes a downturn. People want to know why their church was denied. The truth is, if all churches made their mortgage payments on time, every time, financing wouldn’t be so difficult to obtain. The all-too-common scenario of being denied financing can, however, be avoided if you know what steps need to be taken beforehand. Understand that financial institutions are concerned with risk. Sadly, about 3 percent of all church leaders who obtain loans will ultimately default on them (i.e., be unable to pay them back). In addition, it’s estimated that 10 percent of all church leaders who borrow money will have problems with late or even missed payments over the loan’s outstanding lifespan. Whenever a church leader applies for a loan, his or her church’s ability to repay it will be evaluated. The financial institution will study the risk, and if it’s too high will turn it down. One good habit is to calculate how much a potential monthly payment will be. Put that amount into a monthly savings account for a year or two beforehand. This way, your church has proven it can afford the payment and has documentation to back it up. There’s a limit to how much your church can borrow based upon the value of your property. When evaluating its risk, a financial institution wants to know that if the church defaults on its mortgage and foreclosure is unavoidable, it can sell the property and get its money back. A good rule of thumb to remember: You probably won’t be able to borrow more than 70 percent of the market value of your property. Have a real estate appraisal done beforehand to establish the value of your church’s collateral. Make sure the monthly mortgage payment won’t strap your overall budget. Most church leaders know that although building can help a church grow, they – in and of themselves – do not grow a church. Effective ministries that really reach people are much more important. So, if a banker believes a church will have to cut its ministry budget to pay for its new building, the loan request likely will be denied. A growing church should have a building fund emphasis. This lets leaders accumulate money for a larger down payment, thus requiring less borrowed funds and helping them make mortgage payments when the time comes. Plus, it has the effect of increasing income. Just as individuals must meet certain qualifications to finance a home purchase, churches must meet certain qualifications to build God’s house. Although now comprehensive, here are some rules of thumb most financial institutions use: Most won’t loan a church more than three times its annual unrestricted income. Such income is money given to the general fund, not for a specific purpose (foreign missions, for example). They won’t loan more than 70 percent loan-to-value. That’s why an appraisal is so important. The monthly mortgage payment shouldn’t exceed 35 percent of a church’s monthly income. One thing every church leader should do before he or she gets too far into a building program is have the board and/or staff sit down with a lender and ask, “What do we have to do to get this loan?” A lot of headaches and heartaches can be avoided this way. Finally, remember that there’s always more than one lending option. You might have several banks in your community, so ask for their best terms. See if they’ll give you a fixed-rate mortgage and at what percentage. There are also regional and national lenders available who specialize in lending to churches. Check them out, and then compare. Do your homework and when loan application time comes, you’ll probably hear those two coveted words: You’re approved.

Solid Arguments for Considering a Capital Campaign By Russ Priddy

Sooner or later a growing church will face a need for increased space to do ministry, a need for refurbishing, or purchasing additional property for ministry expansion. Most of the time those churches will have a need to borrow money. Their chances of being approved for that loan are greatly enhanced if they have properly prepared to apply for the loan. Here are some factors that are important to know before you apply. The Church Will Need to Have at Least 3 Years of Financial Records A bank or financial lending institution is going to want to know how the church has been doing financially over the past few years. Usually they will request audited, or at least reviewed, financials from a certified public accountant. They are looking at financial growth over that period of time. Know How Much You Can Borrow As a general rule, a church can usually borrow between 2 ½ to 3 ½ times its annual income. An all too common mistake churches make is drawing up a plan that cost way more than the church can afford and then they fail in the process. Also, collateral value will be an important part of the process. A bank will want to make sure that if the loan goes into default they can sell the property to get their money back. Usually a bank will limit the amount to be borrowed at about 70% of the value of the property. Make Sure You Can Complete a Capital Fundraising Campaign Every bank application that I have seen will ask for capital campaign results. What the bank is looking to find out is not only how much money was raised, but what percentage of the church membership submitted pledge commitments to the campaign. They want to know that the membership is behind the church endeavor. The bank will also want to know whether the church employed a professional campaign consultant or did a “Do It Yourself.” DIY campaigns will commonly raise 60-100% of the churches annual income. Contrast that amount with a professionally run campaign raising 1.5 to 2.5 times annual income. Be Prepared to Have a Loan Repayment Plan in Place The obvious question a loan institute will ask is “how will you repay the loan?” By having excess cash every month or your financial statement approximate to the amount of the loan is one way to prove that you can repay the loan. A bank is going to evaluate the management of the church; especially how the church manages its cash. A good rule of thumb is that a church needs to have at least 3 months of expenses in a “cash” account. Sometimes unexpected things can happen, but church expenses go on. Having a substantial cash reserve will make a bank feel better about its ability to make payments in difficult times. Have a Detailed Construction Plan in Place Does the church have constructions plans? Is there a particular contractor? How much will the construction cost? All of these and other questions should be answered before a church loan is applied for. A church can greatly enhance its ability to obtain a loan by taking some steps before they apply.