Dealing with Debt

Recently I was in another state and went to a new church one Sunday. It turned out that they were in the middle of their annual end-of financial-year vision series. The pastor spoke enthusiastically and gratefully about how the church family, by their generosity, had reduced debt on their building from over $6 Million to a bit over $1 Million in ten years. Good on them! This is a significant achievement. It is not the easiest issue in church life to reduce debt. So what principles come to mind when addressing this subject?

I had to grapple with this subject a couple of times in my work as senior minister of Figtree Anglican Church in Wollongong. When I arrived in 1987 the parish had a debt of over $200,000 That had been incurred to fund a new building that had been constructed a couple of years earlier. That does not seem much in today’s dollars but was a formidable amount then and was a millstone around our necks for the next seven years. Fortunately the process of raising the money and making repayments had been set in train prior to my coming and all I had to do was keep the machinery working till we finally paid it off and had a celebration party.

Over a decade later I was the one initiating and presiding over the debt process when Figtree parish embarked on a $5.5 Million building programme. The congregation gave magnificently but the building cost far exceeded our ability to complete the project debt free and a debt of around $2.6 M was incurred. When I left some years later I bequeathed this burden to my successor, Ian Barnett, who led the completion of the process of paying off the loan.

There are some pastors who feel that all debt is bad and will not embark on a project unless it can be accomplished without borrowing. Of course this is a laudable aim. However, sometimes a church may be so strangled by property concerns that to address this issue may require a building campaign and a loan as was our case at Figtree. I do not believe this sort of debt is wrong. What I would advise against very strongly, is debt for paying operating expenses, staff salaries for example. That is a slippery slope to financial shipwreck.

Another important issue is the attitude of the congregation to debt. In any family or electorate or group of people there are some who have no problem embracing debt and are quite happy to kick the can along the road into the future as far as repaying the amount is concerned. There are others who view debt as an oppressive yoke and are highly motivated to get the money monster off their backs.

With these ideas in mind, the key principle to remember is that ‘money follows vision’. Yet debt doesn’t seem very visionary. So it is extremely important to demonstrate clearly how debt fits in with the broader vision of the church. It is a great mistake to pay off the debt and hope that the loan repayments will automatically still keep coming in and can be used for future purposes. Generally parishioners will be happy church debt is paid off and may throw a party but won’t keep giving at the old rate unless there is a compelling reason to do so. Thus it is important to have the next exciting gospel oriented, life changing, vision fulfilling project, clearly before the congregation. Then you can point out how the debt is not an end in itself but the impediment to the realization of the church’s dreams. You need to be able to say, “look what we hope to do next after the debt is paid off. Look at how lives will be transformed.’

Recognizing the contrasting views about debt, I advocate having half a dozen projects to present to the congregation each year. If the church has a building debt, I would also have repayment of the debt one of the projects each year. In that way the debt can be chipped away culminating, in a final major assault when it is has assumed a digestible bite-sized chunk.

To conclude, the critical point to re-emphasize is that money follows vision. It is vitally important to show how the repayment of the debt will take a millstone off your neck so you can pursue the next exiting stage of ministry. For more on raising resources for ministry see my book Giving Generously. https://givinggenerously.com/

The Good, the Bad and the Ugly

On holidays some years ago I attended a church service at a church I had never previously visited. Afterwards in the foyer I was chatting to the minister and it emerged in conversation that I was a fellow clergyman. He asked for my frank assessment of the service. ‘Tell me the good, the bad and the ugly.’ They were striking words to solicit a comment and I have never forgotten them. I believe that minister really did want some genuine feedback and it was brave of him to ask because many do not. It was also very smart because it is an excellent way to improve ministry.

In the early 1990s I did a Business degree and studied a number of marketing subjects. During that time I came across an article, Complaints as Opportunities published in the Journal of Consumer Marketing, February 1991, written by Jerry Plymire.  It contained the following arresting quotation:

            ‘….only 4 percent of dissatisfied customers ever give us feedback about their issue. The other 96 percent vote with their feet and 91 percent will never come back.’ What is worse is that 80 percent of those dissatisfied people will pass on their negative assessment to others.. ‘Ouch!’, as an influential academic once said.

Because most people have a natural aversion to hearing complaints, a normal course of action is to try to shut down complaining behavior. Plymire advocates an opposite approach: that is to actually stimulate complaints. In other words get people to tell you the issues rather than broadcast their displeasure to the four winds.

While I am fully aware that a church is not a business and the same dynamics do not  necessarily apply, a church has many of the characteristics of a not-for–profit, professional, service organization and so lessons learned in one sphere have some application to another. Armed with these thoughts I tried to encourage not whinging and whining but robust feedback, and to give it a considered hearing. Mostly the complaints were not a matter of profound theology but on irritating organization matters that could and should be remedied

One method I used was to conduct in June, an all-church survey where I would ask people to write one thing the church does well and one area we could improve. I phrased the questions in that way because I wanted to encourage a response that did not result in gratuitous carping. Further, I gave space for respondents to add their names.

I explained that I would publish the actual feedback so people could see what had been written. The exception was that I would not publish any negative personal attacks on anyone, which were negligible anyway. All went well with the first survey and the office posted the results on bulletin boards but I had forgotten to tell the office to post the comments without names which were for my eyes only. I certainly did get some real complaints and had to offer an obsequious mea culpa. The error was definitely remedied the next year.

The effect of this ongoing process was twofold. First, it helped produce a feeling of openness in the parish. People felt their concerns would get a hearing rather than be buried. Second, every year we raised money for ministry including special projects. This process gave us a clear idea of where the people felt there were areas that needed fixing.

If for example a survey showed 50 people thinking the music was too loud and 50 thought it was too soft and the rest did not mention it, I was reasonably certain that this was a non-issue. However if I received 150 responses urging me to fix the car park and fix it yesterday, then I knew this merited urgent action. My response would be to make such an item a commitment day project and when I did, it would generally be well supported.

Honestly, looking for feedback that includes the good the bad and the ugly can be a bit daunting. I remember one staff member saying that reading the regular feedback cards was like ‘pulling teeth’. Yet I do believe it is worth it. As it transpired, while there were good features to the service to which I was visitor, there was one issue that my entire family had thought of as ugly and the minister’s question provided a platform to give that feedback.

For more on raising resources for ministry see my book Giving Generously.  www.givinggenerously.com

The Essence of Running a Commitment Day

In my book Giving Generously: Resourcing Local Church Ministry, I advocate running an annual commitment day, where the minister asks the people to do two things: First to sign a card indicating how much the person intends to give to the church over the next year. The second, was to give a cash gift to one or more individual projects. We used to have six projects each year as people like to support areas that engage their hearts.

The following areas are extremely important in making the outcome fruitful.

1. A compelling vision for the ministry for the future. The key idea is that money follows vison rather than need. People do not get inspired by simply paying the bills. They wish to know that their dollars will make a difference in people’s lives.
2. There will be a suitable date in your calendar. For our Anglican Church our commitment day settled on the first Sunday in November for historic parish reasons. It also had the advantage of securing our revenue as increased staff generally was coming on board from early January. However, another time may be in June at the end of the financial year. It could also coincide with any date that may have particular celebratory significance for your church.
3. High confidence in the leadership is vital. People won’t give if they feel their money will be squandered, wasted or misused. It was for good reason that the apostle Paul wrote to the Corinthians about the collection for the Jerusalem poor.

We want to avoid any criticism of the way we administer this liberal gift. 2 Cor 8:21

4. The commitment day comes at the conclusion of a five or six week preaching series. This series will probably contain a message on generosity but it will not be a series with the majority of the message on money. Rather the aim of the series will be to build personal faith or advance the mission of the church or both. People often find that this commitment series is the time where their faith grows more than any other time. That is because in making a financial commitment they are showing in very tangible terms that they trust God, not money.

5 A fruitful commitment series will have very clear communication. We used multiple sources including brochures, response cards, letters, and in particular audio visuals. It is incredibly important to produce engaging audio-visual material that clearly conveys what you are asking people to give to.

6. The entire concept needs the engagement and endorsement of the church staff and leadership. At Figtree, the staff and parish council were involved in choosing the projects for the coming year. They also signed a commitment card. It is vital that they not only verbally endorse the process but show by their giving they have ‘skin in the game’.
7. It is absolute crucial that the senior minister clearly asks people to give. People should not be left wondering what they are being asked to do. This task shouldn’t be left to the treasurer. It is the senior minister’s role and should not be shirked.

I would always say something like the following.

‘What I am asking you for on commitment day is to do two things.

First please sign and return the commitment card indicating how much you are intending to give to the ministry next year. Second, place a special offering in the envelope supplied and indicate which project you wish you support. I would sometimes add, with a big smile on my face, ‘please stuff the envelope full of money and make our treasurer very happy’.

7. Plan ahead. There is a lot to do here in terms of getting alignment from key leaders and preparing communications and producing a compelling sermon series. I used to start the entire process about six months in advance. It is simply folly to leave it to the last couple of weeks when some crisis makes everything urgent and rushed.

Last by no means least, pray. At Figtree we always had whole church times of prayer for the ministry and for this process.

For more on running a commitment day see my book,

 Giving Generously. https://givinggenerously.com/

How to overcome the end of year Financial Crisis

If you have been around churches long enough you will have seen or experienced a scenario something like the following. At the end of the year either the treasurer or the senior minister stands before the congregation and tells them that the church is behind budget and asks people to dig deep to make up the shortfall. There are lots of negatives here.

 First, while it may be necessary it doesn’t convey the feeling that the church is powering ahead and kicking goals for Christ’s kingdom.

Second, the appeal is framed in terms of need rather than vision. Remember that money doesn’t follow need, it follows vision.

Third, and this is closely allied to the above, the appeal  addresses budget shortfall. Budget is a perfectly acceptable word and very necessary in terms of responsibly running a church. However, the term should be banned in any discussion of raising money. Budgets don’t fire up the juices of the average parishioner who don’t want their money plugging up holes in a leaky ship.

Fourth, this request generally means the church is not having an alternative appeal such as a Christmas request for a mission project. The visionary project often gives way to the ‘stop the leak’ project.

It is not at all unusual for a church to be around five percent behind budget and while this should not be ignored neither is the sky falling in. So what should be done? In my book Giving Generously I detail how to raise money for local church ministry. If such a process is conducted prayerfully, boldly and sensitively people get excited about the ministry and will give to it. One of the items I describe, is a request to support up to six special projects. One of these projects was called ‘Our Church Our Ministry’. My successor at Figtree Anglican  Church helpfully broadened the name to ‘Our Church Our Community’.

What it is in effect saying, is, please contribute some funds that can be used by the church leadership in any way that is beneficial. Where people trust the leadership and are generally supportive of the ministry and direction of the church, this project is often amazing well supported. Naturally the funds can be used in a range of ways. One would be to assist the seed funding of a new staff member. Another may be topping up the shortfall in one of the other projects. Another might be paying for any expenses that may have been generated in running the financial campaign in the first place.

However, some of the funds can also be used to fill in any end of year shortfalls. Naturally this won’t the primary way in which the money should be used. It should go into visionary projects. However sometimes this is necessary and it is far better than going cap in hand to the congregation close to Christmas. An appeal at Christmas is an opportunity to stimulate generosity to an outside worthy cause. For more on this topic and raising money for ministry, see my book Giving Generously. https://givinggenerously.com/buy-the-book-2/

Midyear Appeal.

A church that my wife and I attend is having its annual midyear appeal. Yes we are asked for money. If fact the congregation was asked for an eye watering amount of $1.7 million. But as far as I know people do not seem to be aggravated, offended or annoyed. In fact there is a sense of excitement and  joy and positive emotion. What is going on?  I have been teaching on giving and generosity for nearly twenty years. I know it is a topic that exercises the minds of most ministers on a very regular basis. However, it is also a topic that can make some church leaders very edgy. The reason is that they do not want to manipulate their congregation or they do not see how to raise resources without embarrassment or antagonism.

So why were we happy to be asked to give to this appeal?

The first reason is that we basically trust the church leadership. We have known the senior minister and many of the senior staff for many years and firmly believe they are honest people who will act honourably and responsibly. This is huge. People will not give if they do not trust those asking.

Second, the church has an excellent track record. When they have asked for money before,  we are confident that it has used for the purposes stated.

Third, I am actually asked to give and give generously. There is no’ um’ ing and ‘ah’ ing around or hanging the head with a nervous embarrassment. It is clearly stated that, we are asking this year for $1-7 million dollars. Will you give generous towards the appeal? The simple fact is that if you want to raise money for ministry you have to ask and ask confidently.

Fourth, while we are asked confidently, the appeal is also transparent. We never get the feeling we are being tricked, coerced or manipulated.

Fifth, there is a spread of projects areas.  All the money will go to some form of ministry to further the outreach of the church. Some will go to support the church’s very impressive overseas mission work on which we are regularly updated. Some will go help the poor and refugees in our own community. Some will go to further the church’s counselling centre ministering to the church and community. Some will go to plant more churches in a roughly half an hour radius of mother church. There is a project in there that will stir the heart of almost every one.

Sixth, the message is communicated clearly and vibrantly and passionately. There is a month of messages where the themes of the appeal are repeated. But there are also testimonies from people who have had their lives changed  as a result of former appeals. Further, each week we are shown a different video highlighting work overseas or on other church campuses. These are powerful, well produced and engaging.

Seventh, the senior minister gave a lead in giving. It is a clear indication he has skin in the game as he asks us to play our part.

Finally, while most of the projects have some sort of social care element , they are all undergirded by a genuine desire to have people come to know Jesus as Lord of their lives and be transformed by His work and His love. This spiritual gospel dimension is not some sort of veneer on a social cake but informs every aspect of what the church does and what this appeal seeks to achieve.

So as we reflected on this experience this is why my wife and I are happy to give and we believe the vast majority of others feel the same. I don’t know what the results are as yet but even in challenging financial times we expect them to be good. We also expect to be asked on future occasions and we are totally fine with that.

For more on raising money for ministry, see my book Giving Generously : Resourcing Local Church Ministry. Buy The Book

Surprised by Joy: Some years ago I read C.S. Lewis’s autobiographical work Surprised by Joy, detailing his journey from atheism to Christian faith. I discovered the title was inspired by a poem by that name written by William Wordsworth, the master of Romanticism, lamenting the fact that he experienced a moment of joy but had lost in death his daughter, so the added joy of sharing the experience could not occur.

The phrase stood out to me recently with two events that captured the attention of the nation. The first was the Melbourne Cup, the race that stops the nation. I must confess that despite coming from a family where my maternal grandfather and grandmother were avid race horse owners and racing fans and punters, any gene for being addicted to the Sport of Kings lies completely dormant in my genome. Yet I am not insensitive to the excitement and joie de vivre that the race engenders in many in our community. The newspapers always publish photographs showing the sheer joy on the faces of the owners and jockey of the successful steed.

Yet somehow all of this was transcended, and even made to seem hollow, by the sheer wave of joy that swept the entire continent of Australia when the news emerged that little four year old Cleo Smith had been found alive and well. It was the culmination of a massive search by police and volunteers that stretched over eighteen days, where the authorities threw everything at it, including a one million dollar reward and simply did not give up. Everyone from seasoned policemen, politicians, news reporters and the average man and woman in the street seemed captivated by a feeling of joy that seemed somehow purer and deeper than even the most significant sporting achievement could ever engender. I am not a particularly emotional person but I was surprised by the overwhelming sensation that this rescue engendered, the sheer joy that this dear little girl whom most had feared lost and perhaps never to be recovered, was found apparently unharmed. 

It made me reflect and empathize more deeply than I ever had before on the parable of the lost sheep. Jesus tells the short story of a man who has one hundred sheep but loses one. Rather than write this animal off as the cost of doing of doing business, the shepherd searches and searches till he triumphantly brings the stray home. Jesus concludes with the famous words,

‘I tell you that in the same way there will be more joy in heaven over one sinner who repents than over ninety-nine righteous persons who do not need to repent.’ Luke 15:7.

Jesus spells out very clearly his heart and his priorities. His followers over two millennia have adopted this mission and feel a real rejoicing when any person puts their faith in Christ. For me, it simply reinforced the thought that the real overwhelming joy that I felt when I heard about Cloe Smith is really just a pale reflection the emotion I surely feel about the saving ministry of rescuing lost people with the gospel.

I have written a book about raising resources for ministry in the local church. It is called Giving Generously. One of the points I stressed in the book is that when properly and appropriately done raising money for ministry produces great joy. The reason for this is obvious.  No one gets excited about giving to paint the parish hall or buy a better dishwasher for the church kitchen. But when the object of the ministry is real kingdom work that involves heaven rejoicing as lost sheep are found, then people will give freely and generously and will be surprised by the joy it gives them.

Buy the Book