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CREATING A CULTURE OF GENEROSITY Salem Presbytery Stewardship Workshops Tom Norwood, CFRE. May 2009. PRESENTATION OUTLINE. Understanding stewardship and the world of philanthropy in 2009: Tom’s Top Five List Creating a culture of generosity in your church: addressing those realities

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Presentation Transcript
presentation outline
  • Understanding stewardship and the world of philanthropy in 2009:

Tom’s Top Five List

  • Creating a culture of generosity in your church: addressing those realities
  • Resources for pastors and stewardship committees
  • Discussion
questions for discussion
Questions for Discussion
  • What is the biggest stewardship challenge in your congregation?
  • What was the best part of your 2008 stewardship program?
  • What part of your 2008 stewardship program would you do differently?
reality 1
Reality #1

Over $300 billion was given to charities in 2007

2007 giving in the us
2007 Giving in the US
  • Individuals: $ 229 billion 75% +2.7%
  • Foundations: $ 38.5 billion 12% +9.1%
  • Corporations $ 15.7 billion 5% +1.9%
  • Bequests $ 23.1 billion 8% +6.9%
  • TOTAL $ 306.4 billion +3.9
  • Source: Giving USA, 2008
giving by sector
Giving By Sector

Religion 33.4%

Education 14.1%

Human Service 9.7%

Foundations 9.1%

Health 7.6%

Public Society 7.4%

Arts/Culture 4.5%

International 4.3%

Environment/Animal 2.3%

good news bad news
Good News/Bad News
  • Good News:

More money is given to religious causes than to any other sector

  • Bad News:

In the last 40 years, religion’s share of the philanthropic pie has declined from 51% to 33%

bad news good news
Bad News/Good News

Bad News: Consumer confidence and the markets are in the tank

Good News: Charitable giving has continued to grow

reality 2
Reality #2
  • The environment in which today’s stewardship programs exist is both competitive and challenging
the competition
The Competition

Year# of Nonprofits Amount Given

1986 375,000 $121 billion

2006 1,478,000 $295 billion

Charitable giving has doubled in the past 20 years, but the number of nonprofits has tripled!!!

the challenges
The Challenges
  • Since 9/11 donors are giving to half as many charities as they did before then
  • The top 400 charities receive more than 25% of all contributions; the other million plus organizations split the remaining 75%
  • Last year continued a trend in which fewer and fewer donors are providing most of the contributions to many big organizations, including churches
reality 3
Reality #3

One Size Does NOT

Fit All

differences matter
Differences Matter
  • Donors in their 70s think about philanthropy differently from those in their 30s and they give by different means as well
  • Different donors give for different reasons
  • Most churches’ support comes from a small group of givers
today s generations
Today’s Generations
  • Generation Birth Generation Years Type
  • GI Generation 1901-1924 Civic
  • Silent Generation 1925-1942 Adaptive
  • Boomer Generation 1943-1960 Idealist
  • Thirteener (Xer) Generation 1961-1981 Reactive
                  • Millennial Generation 1982-2002 Civic
gi and silent generations
GI and Silent Generations
  • Trained in stewardship from childhood
  • Giving is a public responsibility, a necessity
  • Trusting attitude toward institutional church
  • Money = security
  • Money followed mission
boomer and 13 er generations
Boomer and 13-er Generations
  • Grew up in time of economic expansion and rising stocks markets; affluence a given
  • Boomers: distrust of institutional church… little denominational loyalty
  • 13-ers: will trust church if it “works”… looking for a community, not a church
  • Both groups: money is a “tool” …mission must follow money
donor motivation
Donor Motivation
  • The Communitarian: Doing Good Makes Sense
  • The Devout: Doing Good is God’s Will
  • The Investor: Doing Good is Good Business
  • The Socialite: Doing Good is Fun
  • The Altruist: Doing Good Feels Right
  • The Re-payer: Doing Good in Return
  • The Dynast: Doing Good is a Family Tradition
donor gifts
Donor Gifts
  • One study of church giving patterns:
    • 10% of members give 50% of support
    • 10% give 30% (thus, top 20% give 80% of support)
    • 30% give 10%
    • 50% give 10% (including 33% who give nothing)
reality 4
Reality #4
  • Churches and pastors are uncomfortable talking about money. As a result:
    • Assume (and hope) that people will give
    • Pastoral ministry opportunities limited
    • Pay limited attention to donors
    • Minimal number of “money” sermons
    • “One size fits all” stewardship programs
    • Struggle to fund mission
reality 5
Reality #5

Many churches’ most faithful and generous donors are dying; they are being replaced by members who are younger and more financially overextended

recommendation 1
Recommendation #1

Build your stewardship program on the generosity of God

recommendation 2
Recommendation #2

Create a strategic plan in order to clearly define your church’s mission and the specific steps necessary to carry out that mission,

then (AND ONLY THEN) create a stewardship program to fund the strategic plan

recommendation 3
Recommendation #3

Don’t assume that church members will give financial support to the church—

Do create a compelling case for support

quotes of the day
Quotes of the Day
  • “People don’t give to the church because it HAS needs, they give to the church because it MEETS needs.” (Bob Shelton)
  • “The reality of human life is that people don’t like to give away money. They will, however, give generously if they know that they are changing lives or making a difference.”

(Bob Hartsook)

recommendation 4
Recommendation #4
  • Create a “narrative budget”
    • Put “faces” on the budget numbers
    • Use the current budget to thank members for their support
    • Focus on ministry areas (worship, education, outreach, etc.) rather than on budget categories (personnel, facilities)
    • Prioritize ministry areas from congregation’s perspective (e.g., worship is where most members make contact with the church and thus priority #1)
recommendation 5
Recommendation #5
  • Take seriously the different giving motivations and generations within your congregation
    • Segment the members of your congregation by generation
    • Design materials that address the concerns of that generation
    • Include different generations on the stewardship planning committee
typical stewardship programs done faithfully but done wrong
Typical Stewardship Programs: Done Faithfully but Done Wrong!
  • Session projects coming year’s budget (may be rough draft)
  • Interprets budget to congregation
    • Newsletter articles, Minutes for Mission, letters, brochures
    • Pastor preaches motivational stewardship sermon on single stewardship Sunday
    • Pledge Cards toward coming year’s budget circulated by
      • US mail
      • Handed out in church
      • Pony Express or other house to house system
  • Pledge Cards returned by due date
  • Session totals pledge cards totaled, adjusts budgets, dedicates pledges in worship
  • Following year, process repeated
speaking to the generations
Speaking to the Generations
  • GI and Silent:
    • Emphasize Planned Giving
    • Fear management
    • Encourage them to share stories and values
  • Boomer/13er:
    • Earn trust
    • Provide choice and control in giving
    • Educate about stewardship
    • Model sacrifice: set an example with church giving
recommendation 6
Recommendation #6
  • Remember that funds development is a process and that the “ask” is but one small part of that process
recommendation 7
Recommendation #7
  • Make planned giving a part of your stewardship program
planned giving realities
Planned Giving Realities
  • Bad News: Less than half of adults have a valid will or other estate plans
  • More Bad News: Only about 8% of Americans leave a bequest to charity
  • Good News: Bequest receipts double from 1985-1995 and doubled again between 1995-2005
  • Surprising News: Income from bequests has been the fastest growing source of gift income over the past 40 years

Source: Robert F. Sharpe, Give and Take, July 2007

demographic trends
Demographic Trends
  • 1 in 8 people in the US is over 65
  • Those over 50 control 75% of US wealth
  • 70% of those over 85 are women
  • There were 70,000 100-year-olds in the US in 2005
  • and…………
by 2050 the census bureau estimates 1 million 100 year olds source alexander macnab and co
By 2050 the Census Bureau estimates 1 million 100 year-oldsSource: Alexander Macnab and Co.
  • Donor giving patterns change over the course of their lifetimes
  • A small minority of Americans leave a charitable bequest
  • Donors choose the bequest recipient in the last five years of their lives
recommendation 8
Recommendation #8
  • Don’t be afraid or ashamed to talk about money in the church
    • The roof will NOT cave in
    • Pastors will be more effective church leaders
    • The church will increase its support of its mission
one final thought
One Final Thought

“He who deliberates fully before taking a step will spend his entire life on one leg”

-Chinese Proverb