Do More Ministry: E-Giving Archives

November 25, 2008

Individualism, Self-deteremination obstacles to church giving

"Many American Christians simply seem to have a hard time putting together two discordant ideas. On the one side, many seem to genuinely believe in the biblical notions of stewardship and discipleship, who are profoundly challenging to the autonomous individualistic self. But at the same time, most of them are also deeply committed to American autonomous individualism and accompanying notions of self-determination, absolute private property rights, and consumer sovereignty."

Passing the Plate, pg. 119.

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November 24, 2008

American Christians choose NOT to give

"At least one out of five American Christians - 20 percent of all U.S. Christians - gives literally nothing to church, para-church, or nonreligious charities."

Passing the Plate, pg. 29.

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November 17, 2008

Salvation Army now accepting "plastic" donations

The Associated Press reports that the Salvation Army will test peoples' willingness to swipe their "plastic" at the local red kettle instead of dropping their change or a few dollar bills.

The shift is indicative of what most NPOs (this includes churches) are doing. That is, they are expanding their giving options to allow more options/methods for people to give.

When was the last time you discussed e-giving at your church?

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November 12, 2008

Free E-giving and Event Manager service generates interest

Lots of conversation today about our E-giving and Online Event Manager service.

Below is a collection of the top posts related to E-giving in no particular order.

1. Is online giving a growing trend?
2. The results of online giving are in...
3. Electronic Giving Part 1: The Forbidden Conversation
4. Electronic Giving Part 2: Future or Fad?
5. Revisitng E-giving
6. Book Review: Digital Giving
7. Church increases use of onling giving
8. Concerns about E-giving
9. Study reveals that 50% will donate online this holiday season

Review the entire E-giving catagory.

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November 4, 2008

Local church promotes giving in tough economy

"If this economic crash has taught us anything, it is that it is an illusion for us to think that we can find any security in anything material," said Stephen McSwain, author of 'The Giving Myths.'

This church brought in a noted author to encourage believers to "keep the faith" in the midst of uncertain times.

What is your church doing?

(Hint: Panic isn't an option. Hope is not a strategy.)

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November 3, 2008

October 30, 2008

What's really happening to churches and church giving

There is a lot of speculation that church giving will plummet and as a result we'll see mass closings of churches all across this nation due to the decrease in individual/family discretionary income which directly impacts church giving.

As of yet, this is not the case. In fact, some churches are reporting little direct impact on church giving due to our current economic crisis.

The LA Times recently picked up an the AP story Churches could be facing hard times financially, just when congregants need help, too.

Here are some interesting quotes from the article:

Among the congregations faring best are those with a strong tradition of tithing -- the biblical mandate to give at least 10 percent of one's income to the church.

Churches who teach Biblical principles related to personal finances and church giving have prepared their congregations for situations just like the one we find ourselves in now.

What is your church doing to provide practical financial solutions for families? You might consider making these classes part of your core christian education goals - maybe even a requirement for your new member classes.

Plan and prepare is the best strategy to hedge against uncertain financial times.

A recent report by the Christian research group Empty Tomb Inc. studied six recessions since 1968 and found that donations by church members declined in three and increased in three. Another study, by Giving USA Foundation, found that religion-related charitable giving fell slightly in six of 11 recession years since 1968.

Despite our "intuition" telling us that we are in the worst position in history, church giving is just about as cyclical as the economy. There are ups and downs. Yes, we are in a down. If we know that church giving is cyclical, we can address it in a comprehensive, systematic way.

What's your long-term strategy to provide for fully funded ministry budgets and sustainable ministries?

However, many churches rely on income from investments for their financial health and are already slashing their 2009 budgets.

Our current economic situation is largely driven by the stock market. Those churches who have placed a significant percentage of their operating expenses in one catagory (i.e. the stock market) ought to consider expanding their portfolio.

Maybe it's time to get some organizational financial planning advice?

A wise person once told me, "It's never as bad as it seems, and it's never as good as it seems."

I think that sums up our current economic situation - especially as to its impact upon church giving.

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October 27, 2008

Study reveals that 50% will donate online this holiday season

A new study on charitable giving revealed that nearly 50% of online consumers plan to donate during the holiday season in 2008. Further, the donations are estimated to be similar to the 2007 holiday season.

This is good news given the fact that most non-profits (this includes churches) aren't exactly sure what to expect over the next several months.

What was most interesting was the emphasis on online donation tools being identified as an essential medium to collect a majority of those donations.

"More than 50 percent of online consumers say that they plan to donate via the Internet during the 2008 holiday season," said Vinay Bhagat, Chief Strategy Officer and Founder of Convio. "This level of online support shows that nonprofits of all sizes need to make sure that their web sites and other electronic communications meet consumer expectations. It is also important to make sure that traditional appeals such as direct mail, television and events provide people with the option to give online. If it is difficult to give to your organization online consumers will find an alternative."

Does your church currently offer online giving? If not, maybe it's time to have that conversation.

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October 23, 2008

Best comprehensive church giving research available

If you're looking for the best comprehensive research on church giving in one book, look no further than The State of Church Giving through 2006.

(Note: I recently purchased my copy direct from Amazon.com.)

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October 15, 2008

3 brutal facts about giving grounded in the Pareto Principle

The Pareto Principle is more commonly known as the 80-20 rule. In other words, 80 percent of the result is generated by 20 percent of the effort.

This can be applied to church giving habits too. 20% of your congregation is driving 80% of your funds. This will either paralyze you or motivate you to become more strategic.

The reality is the it's the 20% who end up on stewardship and finance committees. These leaders can't imagine or understand why 80% of the congregation doesn't give.

What I've found true is the often the 20% thinks they are actually 40% or 50%. Most church leaders think their church is different (i.e. better) than the average. (Ever run into that before?)

Here are the brutal facts:

1. When your long-term funding strategy is hung on the giving habits of a small percentage of your entire congregation, you are tempting fate. Someone in that small group will leave the church, change jobs, loose their job, die, etc. If you're not building giving habits with the 80% group, you are leaving yourself wide open for disaster to happen.

2. Providing things like e-giving and offering envelopes are primarily to encourage giving and make it easy for the 80% to do so. The 20% don't need offering envelopes or e-giving. They are going to give anyway. If the pastor requested all donations be made into pennies, the 20% would take off from work early to stop by the bank and exchange paper for pennies. (Over dramatic, yes. But you get my point.)

3. Stewardship is more important than your sermon preparation. (I'm anticipating getting some negative feedback for this one. So I'm ready.) Stewardship is about discipleship. It speaks to giving of ourselves - our time, talent and treasure - because we recognize that everything we have is from God and is designed to be used to multiply kingdom efforts. While years are spent preparing pastors to preach, without a consistent stewardship education program pastors won't have a pulpit to preach from. (Pulpit can be symbolic if you are natually opposed to the piece of furniture that usually is found center stage at tranditional churches.)

Now more than ever pastors and church leaders must concern themselves with the fundamentals of organizational funding, stability and sustainability.

Let me sum it up by saying this: More Money. More Ministry. No Money. No Ministry.

That's the brutal facts.

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October 14, 2008

Anne Jackson talks about tithing

Anne Jackson, blog celebrity and author, talks about a very negative experience she had while on church staff regarding the subject of tithing.

Below is my response. I'd welcome your comments too.

You have uncovered a powerful paradox. Churches are the only God-ordained institution designed to continue and sustain the earthly ministry of Christ until his ultimate return. Churches are also non-profit organizations who are exponentially becoming more complex in structure and needs as the demands from members and communities are becoming more complex.

I've summed up my work with churches in this area into a simple phrase: "More Money. More Ministry." It's essential the we begin bringing a level of sophistication to Church as an organization to ensure that it's fully-funded and sustainable over time. Like it or not, this takes money. So the burden falls upon the church leaders (aka "non-profit managers") to ensure long-term sustainability. Our secular and religious non-profit brothers and sisters have been doing this for a long time. It's time the church steps up to do the same.

It sounds like the conversation you had while on a particular church staff was very inappropriate and most likely is the result of the wrong person being in the wrong position (or at least given the wrong task and strategy). However, that doesn't discount the reality that church leaders should be modeling the behavior that they expect from the membership. It's sounds like you were the victim of poor communication habits.

As church members are becoming less convinced the their tithe should be entirely allocated to the Church, it becomes the Church's responsibility to justify why the tithe should be given completely to the church. They "you-should-give-to-the-church-just-because argument" no longer works--if it ever did.

Thanks for the dialog on the essential subjects of stewardship and church giving!

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October 9, 2008

Something really cool happens when people talk

One of the great things about social media is you get to listen in on and have conversations with more people in more places at the same time than you could via traditional communication mediums.

I was reading through the string of conversation within the yahoo users group for church business administrators yesterday when I saw our name.

The question of e-giving service companies was raised by a church considering implementing this functionality. This administrator was evaluating vendors and naturally went to a peer group for recommendations.

In response, one of our customers recommended the fellow business administrator consider LifeWay's e-giving service. (Honestly, I felt like a proud parent.)

There is something really cool when other people talk about your products and services without your prompting.

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October 6, 2008

4 tactics to consider for your next contribution catch up letter

We are quickly approaching the end of the year. Many churches will be looking at their ministry budgets and contributions to date closely as well as reviewing past trends in giving during Q4. About this time of year many churches make a final "catch-up" contribution appeal as a final push to ensure contributions fully-fund all ministry expenses.

As more and more people experiment with online giving, I found this research on the success rates of online giving appeals quite interesting.

The internet seems to carry with a sense of urgency. This can translate into an opportunity for your church members to respond immediately to your next "catch-up" contribution appeal.

It's worth trying.

And if you do try it, let me know how it works.

(Shameless plug: we offer churches who purchase their offering envelopes through us e-giving with event manager for FREE!)

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September 4, 2008

Concerns about e-giving

Russell Woodbridge, a faculty member at SEBTS, expresses some concerns and hesitations on the practice of e-giving in churches in "Online Giving - Is it Profitable?".

His stated concerns echo much of traditional theology as it understands and interprets the public collection of money during a Worship service to be essential to the total corporate worship experience. I don't disagree.

The tension comes from practioners - those filling the pulpits across this land - who are faced with increased budgets and ministry expectations and are being pushed by the people funding those budgets and ministries to have the option of giving online.

I think the fallacy of Woodbridge's concerns come from not seeing a "both-and" solution. We have customers who offer online giving and include that as a "fund" line on the church's offering envelopes. This allows the member to give online and to participate in the worship experience.

The theology of giving and the practice of giving must find a way to co-exist. This is the challenge. And the reality is that it's already happening. Our envelope service subscribers are already merging the theology and practice of giving with great success.

What excites me most about Woodbrige's article is that the subject of online giving is forcing the Christian community to re-engage with the concepts of church stewardship and giving. This dialog can only bring about positive results as church leaders become more strategic and intentional about establishing sustainable ministry habits to ensure the work of the church continues until Christ's return.

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August 26, 2008

Churches increase use of online giving

LifeWay.com features a story about online giving, how churches are responding and what options LifeWay Envelope Service has to offer.

(I know this is a shameless plug. Sorry. I couldn't resist.)

Read other posts on e-giving.

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May 28, 2008

Online giving poll

Please take a moment to cast your vote with respect to your position on online giving. The results will be used in an upcoming feature on the discussion and use of online giving within Southern Baptists Churches today.

Voting will just take a few minutes. (And I know you already have an opinion.)

Look for the poll question in the lower right hand side of your screen. You may have to scroll down to find it.

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April 9, 2008

Book Review: Digital Giving

In his book Digital Giving: How Technology is Changing Charity, author Richard C. McPherson seems to be responding to the challenge of Leonard Sweet in Soul Tsunami: Sink or Swim in New Millennium Culture. Leonard Sweet writes about the massive wave of change rolling toward the church. His advice is to grab a board and ride the wave or, refuse and be buried beneath it. Both McPherson and Sweet are strong proponents of embracing change, not as a negative force, but as a positive step toward being more effective and in sync with where society is.

Digital Giving was written after the author conducted a large number of interviews in which he asked two questions: "what are the big technology needs facing charity?" And "how can organizations embrace them to find public support?" McPherson wrote the book Because as he wrote, "I believe enormous technological changes, daunting as they may seem to busy organizations, will be for the better." Several interesting statistics are noted in this work, from the Pew internet and American Life Project, that support the author's view of rapidly changing technology. About 30 percent of the day is spent specifically using media. In addition, the project reported that 66 per cent of an individual's working day finds that individual immersed in some form of electronic media. The report also finds that the average American home has 26 electronic devises and that the average American spends more time using media than any other activity.

It is on the basis of statistics or information amassed from numerous interviews that McPherson wrote Digital Giving. From the results of his interviews the author sites three "Whopping Big Trends." The three trends deal with democratization. In the first trend, the "Democritizing of Media" he points out the trend toward more and more information sought from blogs, podcasts, personal web pages, and social networks. In the second trend the "Democratizing of philanthropy" McPherson writes that donors are assuming roles, once held by fund raisers, in deciding what gets funded. In this trend the donors demand more ownership, understanding, accountability and responsible relationships with the charities. The third trend noted in the book is the "Relentless demand for convenience". Here the idea is presented that, for charities to be effective and successful they are going to have to find ways to make donating easier. The answer to the need for "easier" giving is to be found in technologies' offerings.

McPherson sums up the three trends by writing "as the competition for donations intensifies, successful charities will be the ones that offer the most engaging variety of donation choices, endorsed and promoted by friends and peers, with the most convenient paths to involvement."

In presenting the opportunities for dealing with the trends he has noted the author turns to practical applications. His explanation of "Web 2.0" is easy to understand. In explaining that "Web 2.0" is writeable he opens the possibilities for greater donor involvement and access. He quotes Sheeraz Haji:president of Convio.com, "Nonprofits should actually dominate Web 2.0 because it's all about passion and interest." Sheeraz suggests that, before technology, a charity should develop its story. He states "To get people involved, your organization has to tell a great story." To McPherson it is important to focus on the message before worrying about delivery channels.

Only when the story is perfected should the best channel for delivery be chosen. The author writes that the "blogosphere" is a phenomena that can target groups of people inexpensively and credibly. McPherson quotes Jon Abbott of WGBH "It is getting much easier for people to share what they care about." The strategy of WGBH is to "follow the rhythms of our consumers."

McPherson quotes Pew Internet reports that "91 percent of all Internet users send e-mail and 91 percent use search engines. He writes that a successful charity will not necessarily go looking for people but will attract attention in such a way that people will "look" for them. How a charity might tap into the multiple listings and directories to attract interested and potential donors is one of the many topics covered in this work.

An interesting phenomena also discussed is the evolution of the cell phone and the not too distant reality of having a total information and computing center in one hand-held devise. This reality may be much closer or arriving faster than even McPherson visualized in 2007.

Digital Giving is a clear call to rethink old ideas of charitable giving and fund-raising. It seems, from the practical advice, based on trends observed from multiple interviews, that any charitable non-profit organization will want to read and reread McPherson's call to grab a board, with Len Sweet, and learn to ride the surf. With McPherson's well documented work in hand it will be a great ride.

Don Campbell is the State Stewardship Director for the Virginia Baptist Mission Board. Thanks Don for a great book review!

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March 19, 2008

Revisiting E-giving

I've had several conversations recently about churches and e-giving. I thought it might be helpful to review some of what we've already discussed.

Is online giving a growing trend?
The results of online giving are in...
Electronic Giving Part 1: The Forbidden Conversation
Electronic Giving Part 2: Future or Fad?

I think people like talking about e-giving because it's new and "cool." I also think its a response by churches to address two cultural trends: 1) how we exchange funds and 2) the fact that the average regular attender in church today comes two times a month.

But the reality of service fees, transaction fees and implementation challenges will keep many churches at bay until it becomes more mainstream. Plus, most churches will need to become more sophisticated in their reporting and financial management tools before they will be able to provide enough data to identify e-giving as the source of increased contributions over time.

I still find myself coming to the same conclusion as I did in my previous posts. It will eventually become a hybrid model where e-giving is just one more option churches make available to its members. Just as printed newspapers and books didn't disappear with the advent of the internet and eletronic file transfers, neither will traditional means of cash and check contributions disappear from churches with the introduction of e-giving.

I'd be interested to hear from you. What has your experience been with e-giving in churches?

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January 8, 2008

Is online giving a growing trend?

A friend e-mailed me a post he read on Think Christian - a blog that attempts to address the collision between faith and everyday life. This particular post is about online giving. David's thoughts have also incited a good bit of discussion representing a variety of positions.

It's worth taking a few minutes to read through.

If you're not already thinking about online giving and how this cultural trend IS ALREADY impacting church stewardship and giving, you're behind. So catch up!

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January 7, 2008

The results of online giving are in...

I found this post very interesting. It analyzed 70 non-profits to evaluate the overall effectiveness of their online giving strategies. The prevailing theory is this: online giving will increase donations and overall effectiveness at raising the funds necessary to support the operational needs of the organization.

Here is a piece of what the survey revealed in the area of retention:

The groups we surveyed retained 70% of their online monthly donors in their first year, but retention rate dropped to 52% the second year.

On average, 12% of online monthly donors missed at least one monthly payment in two years.

People's behavior appears to be the same--whether donations are electronic or via paper. So for the average non-profit (or in our case the church), is online giving the "magic bullet" that will yeild a more consistent stream of income and increase giving, or is it simply another medium for people to choose from?

You decide.

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August 27, 2007

Electronic Giving Part 2: Future or Fad?

Visa's "Lunch" commercial visualizes the cultural shift that's the driving force behind the conversation on electronic giving.

"Part of Visa's ongoing "Life Takes Visa" campaign, the "Lunch" national television spot opens with an illustration of efficiency: a busy deli with staff and customers in a series of swift, synchronized movements to the rhythm of "Powerhouse," composed by Raymond Scott. Customers move throughout the deli line, placing orders that are delivered in perfect timing. They check out quickly and easily, swiping their Visa check cards and moving on without having to sign. When one customer reaches into his wallet to pay for his lunch with cash, the entire line grinds to a halt, food is dropped and customers collide. It is only after he receives his change and moves on that the deli returns to its perfectly orchestrated rhythm."
Visa's "Lunch" Ad - The Benefits of Speed

In spite of what you think, feel or believe about electronic giving, the more important question is: Is it here to stay? Is e-giving the future or just a fad?

"Some estimates indicate the 60% of people on the U.S. (and the percentage has been growing every year) handle at least part of their financial lives through electronic transactions (i.e. paychecks deposited electronically into their bank account or paying utility, mortgage, car, insurance or monthly bills on-line through electronic fund transfer (EFT) or through website on-line payments."
Brian Kluth on Electronic Giving

The answer is "Yes!". E-giving is here to stay. The implementation process is what still needs to be worked out.

Does that mean that one day we'll no longer use paper offering envelopes or exchange paper money? Maybe. But it's highly unlikely. The bottom-line (no pun intended) is that e-giving will eventually become one more standardized option rather than the only option.

When newspapers began publishing an online version of their printed piece, the charge was made that people would no longer buy newspapers. The same with books. When e-books were introduced, some claimed that e-books would replace the purchase of printed books. Neither of which has happened. Nor does the market bare any evidence to support either theory.

People want options. And it's no different when considering how we give to the church. We want options because we all live different lives. It's an aspect of the "iPod" revolution that is changing the rules of the game. It puts the choice of how people give into the hands of the giver--not the church. (Just the clairify, the decision has always been with the giver.)

Electronic giving is not the future; it's the present. And without a doubt, it's definitely more than a fad.

Even though I personally pay for almost everything via electronic debit of my checking account or my debit card, I'm not sure I'm ready to see anything that remotely looks like an ATM machine in my church foyer. Or a debit card reader attaced to a brass offering plate. Or even an usher holding a cordless scanner.

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August 23, 2007

Electronic Giving Part 1: The Forbidden Conversation

The Christian Science Monitor highlights a growing interest among churches to experiment with forms of electronic giving. E-giving has been a topic of much controversy in recent years. For some it's a forbidden conversation. Churches are, however, attempting to respond to a cultural shift in how people are exchanging funds. One that consistently supports that the use of paper money and checks is diminishing.

We live in a plastic world where it's easier and more convenient to carry a debit or credit card than to carry a checkbook or cash. This, of course, impacts how people are giving to the church. And churches are becoming more aware that when people are able to give electronically they sometimes tend to give more consistently.

The most popular types of e-giving are credit/debit cards, re-occuring electronic funds transfer from an established checking or savings account, and private booths set up in the church foyer for members to give before or after the worship service.

But this isn't a solution that comes without its own baggage. Some of the difficulties churches are facing are practical and theological.

Perhaps the theological ones are the most obvious. Do you believe that paper offeirng envelopes support the role of giving as part of the worship experience? Do you believe that people should give to the church using credit cards? Some churches know exactly where they stand on the issues surrounding e-giving. And it's not something their open to. But that doesn't keep many churches from entertaining or even experimenting with the concept.

Some of the practical obstacles are integration of financial giving records with the churches existing membership management software. Often times these files are not easily interfaced with existing databases. So giving records may post incorrectly. And that can spell disaster.

Another practical obstacle for those wishing to allow giving via credit cards are the transaction fees that credit card companies charge. These fees typically fall between 1%-3%. That means your giving has to increase by the same amount of the percentage charged by the credit card company just to break-even. If you can't feel good you'll see the immediate increase, then you could risk a negative return or losing contribution dollars trying to "look cool" or relevant.

So, is e-giving the future or just a fad? We'll discuss that in the next post.

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