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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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Creating a culture of generosity salem presbytery stewardship workshops tom norwood cfre

CREATING A CULTURE OF GENEROSITYSalem Presbytery Stewardship WorkshopsTom Norwood, CFRE

May 2009


Presentation outline
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


Responding to these realities creating a culture of generosity in your church
Responding to these Realities: Creating a Culture of Generosity in your Church


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.


Remember
Remember

  • 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