Key Generosity Question Foundational Questions for Churches Who are - PDF document

10/1/2019 BUT WE’VE ALWAYS DONE IT THAT WAY! Rethinking Stewardship in a Changing World Tom Norwood, D. Min, CFRE Stewardship Kaleidoscope September 2019 1 2 PILOT DEFINITION A pilot is capable of deep devotion, abiding affection and boundless love…it’s just that these feelings don’t involve anyone else 3 4 Key Generosity Question Foundational Questions for Churches • Who are we, now? What is your church’s current • Who is our neighbor, now? narrative around money? • What is God asking of us, now? 5 6 1

10/1/2019 The Basic Problem for Churches: Christian Com Chri Commitment PRES ESENTATIO ION OU OUTLIN INE • Rethinking Stewardship The Realities of our Changing World • Rethinking Stewardship New strategies to Create a Culture of Generosity and Increase Mission Funding 7 8 Reasons People Choose to Give A business has discharged its task when the customer buys the product, pays for it, and is satisfied with it. Government has discharged its function when its policies are effective. The ‘non - profit’ institution neither supplies goods or services nor controls. Its • Belief in the Mission ‘product’ is neither a pair of shoes nor an effective regulation. Its • Regard for Leadership product is a changed human being . The non-profit institutions are human-change agents. Their ‘product’ is a cured patient, a child • Fiscal Responsibility that learns, a young man or woman grown into a self-respecting adult; a changed ed human life e altogether .” Peter F. Drucker “Managing the Non - Profit Organization” IMPACT!! 9 10 Reality #1 Rethinking St Stewardship AMERICANS ARE GENEROUS Over $427+ billion was given to The Realities of our Changing World charities in 2018 (Up $410 billion in 2017) 11 12 2

10/1/2019 $350,000 raised to help 40 40 Years of of Cha Charitable Gi Giving man who walked 21 miles to work each day 13 14 Alida Taylor: $23,891 Fred Barley: $184,266 15 16 Homeless Hero: Dorothy’s Slippers: $400,000+ $239,000 (4390 Donors) 17 18 3

10/1/2019 JJ WATT’s Amazing Story: Up Upda date: : Sca Scam/Arrested! $37,132,057/2 /209,426 do donors s in n 3 weeks This Photo by Unknown Author is licensed under CC BY-SA 19 20 What Made this Possible? American Philanthropy: The Good News • A Clear and Compelling Mission • More money is given to religious causes than to any • Personal Involvement and “Skin in the Game” Generosity other philanthropic sector • Showing Donors the Impact of their Gifts • Charitable giving per household • Thanking Those whose Generosity is up Made this Effort Succeed 21 22 Cha Charit itable le Giv Giving Per Ho Household American Philanthropy: The Bad News • In the last 59 years, religion’s share of the philanthropic pie has declined from 60% to 29% • Religious Giving declined by 3.9% in 2018 • % of Americans making a charitable donation has declined 23 24 4

10/1/2019 Gi Giving to o Reli ligion, Percentage of of Tot otal Fewer Are Making Charitable Donations 70 • Percentage of donor households 60 fell 20% from 2002-2014. 50 • Decrease largely in low income 40 and middle income wage earners. 30 20 • New Tax law is likely to accelerate 10 the decline - $13.1 billion per year. 0 1960 1995 2005 2010 2015 2017 PERC… 25 26 Total giving as a share of income by religious affiliation sorted by total gift as a percentage of income What do these se tre rends s mean for your r church? Total Religion Religion Mean Mean gift as gift as gift as Percentag total religion percentage percentag percentage e giving gift gift of income e of total of income gift Mormon 90.6 $4,078 $3,665 5.2 89.9 4.7 Other Protestant* 69.0 $2,134 $1,137 3.5 53.3 1.9 Pentecostal/AOG 61.9 $1,282 $1,106 3.4 86.3 2.9 Muslim/Buddhist 49.2 $2,091 $587 2.8 28.1 0.8 The number of donor households is likely to decline rapidly Baptist 64.2 $1,302 $1,014 2.6 77.9 2.0 Jewish 91.8 $2,837 $1,129 2.3 39.8 0.9 You will receive a smaller portion of your members’ giving Episcopal 82.6 $1,573 $868 2.0 55.2 1.1 Presbyterian 84.1 $1,349 $727 1.8 53.9 1.0 Lutheran 77.9 $1,230 $760 1.7 61.8 1.1 Ministry funding will increasingly depend on a small number of Methodist 69.6 $1,107 $680 1.6 61.5 1.0 Catholic 68.7 $1,083 $549 1.5 50.7 0.8 Financial Leaders & High Capacity Donors None 52.6 $642 $203 1.1 31.6 0.4 Jehovah’s Witness 66.4 $358 $257 0.9 71.7 0.7 Greek/Russian/ 95.9 $479 $255 0.8 53.3 0.4 Eastern Orthodox *Other Protestant includes nondenominational Protestants and adherents in Protestant denominations not listed. Source: P. Rooney, Religious Giving, Indiana University Press, 2009 27 28 Reality #2 Key Question The environment in which today’s stewardship NOT: Why Give? programs exist is competitive, challenging, Why Give to YOU ? and changing 29 30 5

10/1/2019 Challenging… Competitive … • Since 9/11 donors are giving to half as many Year # of Nonprofits Amount Given charities as they did before then 1988 400,000 + $150 billion • The top 400 charities receive more than 25% of all contributions; the $1.5 million + 2018 1.56 million + $421 billion organizations split the remaining 75% • Last year continued a trend in which fewer and fewer donors are providing most of the Bottom Line: Charitable giving has more than contributions to many big organizations, doubled in the past 40 years, but the number including churches of nonprofits has quadrupled!!! 31 32 Changing… Challenging… Perception vs. Reality • 75% of donors believe that they give the same or more than others • 72% of donors give less than the average 33 34 Reality #3 Changing… • Online giving now such a strong habit that donors One Size Does NOT Fit All at every age level prefer it (including more than half of 65 and older) • 8.5% increase in online giving • 24% of online gifts made with a smart phone • 84% of donation landing pages are not optimized for mobile 35 36 6

10/1/2019 Harold Seymour’s Donor Types Differences Matter • Those who see a need and respond without being asked • Donors in their 70s think about • Those who respond when told to do so philanthropy differently from those in their • Those who respond when persuaded 30s and they give by different means as well • Those who may or not respond, even when heavily encouraged • Different donors give for different reasons • The inert fifth-nothing could ever get • Most churches’ support comes from a small them to give group of givers 37 38 Church Donor Types Reality (and Understatement) #4 • Converted-giving to God, church leaders -10-15% of members, 65% of money Churches and pastors are uncomfortable talking • Committed-giving to the church, active in service about money -30-45% of members, 35% of money • Uncommitted- not giving -30-45% of members, NO giving 39 40 Reality #5 Generational Giving Millennials The GI generation (which contains the • 51% give to charity most faithful and generous donors in many congregations) is passing from the • Number of charities they support: 3.5 scene • Amount they give annually: $591 41 42 7

10/1/2019 Generational Giving Generational Giving Generation X Boomers • 55% give to charity • 75% give to charity • Number of charities they support: 3.8 • Number of charities they support: 4.2 • Amount they give annually: $921 • Amount they give annually: $1061 43 44 Generational Giving Rethinking St Stewardship Matures Strategies for Creating a Culture of • 78% give to charity Generosity in Your Church and Increasing • Number of charities they support: 6.3 Mission Funding • Amount they give annually: $1235 45 46 Creating a culture of Your Church’s Preferred Future generosity begins with … • Does not do an annual stewardship campaign because it doesn’t need to • The typical member can name the difference the Church leaders covenanting church is making in the community and her/his together to conquer their own part in it • People know and appreciate the real costs of doing financial demons ministry • The differing ways in which people give are valued • There are stories of generosity in every communication channel of the church 47 48 8