Do More Ministry: E-Giving Archives

October 27, 2009

4 observations from Blackbaud's Q3 2009 online giving trends

I have my eye on online giving trends for two reasons:
1. It's the fastest growing giving platform of choice for many who donate to charitable causes.
2. The means by which we exchange cash in general commerce singificantly impacts the way we exchange cash (or donate to) charitable organizations (i.e. churches).

Here are a few interesting observations from BlackBaud's release 2009 online giving trends (current through Q3):

1. Significant growth in money given via online channels means every church should implement an online giving option for its membership.

Blackbaud: "Online revenue in the third quarter of 2009 was up 41% compared to the same time period in 2008."

Analysis: Stop ignoring online giving as a viable means for people to support your church. AND stop thinking that just because you introduce online giving then you're giving will automatically increase. The same "cultivation" principles still apply. Nevertheless, this medium or platform for giving is here to stay.

2. Just because online giving is not as established as traditional methods of giving doesn't mean it should be discounted as a viable platform for contribution to your cause or organization.

Blackbaud: "Our research suggests that the majority of nonprofit organizations are still in a growth phase for online giving, compared to well established offline channels, and the impact of the recession is largely masked."

Analysis: Don't expect online giving to be the "magic bullet" that solves all your church funding issues. Many people in your church will continue to give via offering envelopes and other more established giving platforms for at least the near future. Expect more of the same while anticipating what's coming. I'm sure people used this objection to cars when the "majority" still used a horse and buggy.

3. Sustainability means we must uncover multiple avenues that provide a foundation for growth in transactional giving to hedge against an unanticipated change in any one type of giving transaction or platform.

Blackbaud: "Online transactions are still growing at 56% year-over-year and this volume growth overcomes any declines in gift amounts. The emerging trend in the data is that a nonprofit's online fundraising mix might influence their year-over-year results."

Analysis: Two things are important in any giving transaction analysis: total amount given and frequency of gift. If online donors give less per transaction but at a higher frequency than offline donors, the organization is still better off to spend the time (and money) it will take to cultivate this group of donors.

4. Year-over-year growth matters. (A LOT!) The performance of online giving on a whole should provide enough evidence that online giving must be a part of your church's funding strategy.

Blackbaud: "The analysis looked at a sub-group of 1,274 nonprofits to compare their online fundraising results for the first six months of 2008 to the same period of 2009. These nonprofits had a 22.13% year-over-year growth in online revenue."

Analysis: In a time when most churches are satisfied to break-even between operational expenses and funding, any giving mechanism that yields growth in consecutive years should indicate opportunity to cultivate a currently non-supporting segment of your church's membership and perhaps increase the overall giving capacity of other, established donors who aren't contributing at maximum capacity. (Hint: Growth is good.)

I hope you take the time to read the entire analysis from Blackbaud (that means clicking through the ancillary links too). Online giving is here to stay. The conversation in your next staff meeting should NOT be "are we going to implement online giving?" but "when will we?"

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October 7, 2009

What should churches know about online giving?

Online giving continues to grow reminds churches that the conversation about online giving needs to begin NOW. I'm encouraged by the number of churches of all shapes and sizes that are coming to grips that technology and the acceptance of technology is changing the way we exchange funds in banking, commerce, and charitable giving.

Here are a few notable items from the article:

1. Online giving increased by 39 percent from 2007 to 2008. While it's still a small amount of donors and overall amount given when compared to total charitable giving in 2008, this channel is growing so fast that it can't be ignored or discarded by church leaders when considering mediums through which people can financially contribute to their organization.

2. Online gifts are typically higher than offline gifts. There are many reasons for this, especially when you consider the frequency of gift is typically less online when compared to traditional "offline" gifts. Many online gifts come as a result of or in response to a national tragedy. Often times, people are more generous when faced with devastating circumstances, even when they, themselves, are not affected.

3. Online givers are younger. (No surprise there.) What is interesting is that online givers typically represent a new giver. What that tells us that our ability to expand our giving capacity is linked to the variety of platforms that make it easy for everyone to give via their platform preference. Remember, it's not about YOU; it's about THEM.

4. Here is the bad news: online givers are typically harder to retain. Some research indicates that online givers utilize traditional "offline" methods and mediums to give the subsequent gifts. I think this has to do more with direct mail follow up than anything else. As the number of online gift transactions increase, we'll see a more stable giving base transition to electronic based transactions. (Personally, I'd like to see online gifts via credit cards compared to online gifts via bank transactions. My guess is that donors who make donations via bank draft are more consistent than credit card donors. I could be wrong, but the research would be interesting, no doubt.)

Online giving is not a "magic bullet." BUT it is an important medium by which a growing population of people who sit in the pews of our churches are choosing. It's a conversation worth having. (Of course, you can voluntarily have the conversation now or wait and be forced to later. Your choice.)

Read more about online giving.

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September 24, 2009

Georgia Baptist Pastor's Conference: 5 steps to funding a sustainable ministry

I'm leading two breakout sessions today for Georgia Baptist Pastor's at the State Convention Office. I thought I'd share with you the PowerPoint presentation I'm using.

I hope you find this helpful!

GBC 09 Pastor's Conference - Sustainable Funding

View more presentations from Ben Stroup.

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September 21, 2009

The Future of Church Giving

I really appreciated Jason's post this morning, "Musings on the Future of Fundraising." I think he really drives home the point that it's the responsibility of organizational leader (NOT SOMEONE ELSE) to begin planning how the organization will connect and communicate with its core constituency as the means by which we interact with each other is rapidly changing.

There are only two things driving this change:
1. Technology
2. The acceptance of that technology

The rate of change in both catagories is happening so fast it is almost discouraging at time. BUT this is the work we have been given to do. We lead organizations and are responsible for ensuring the organization or cause's effectiveness and sustainabiliity for the present AND the future.

What are you doing TODAY to learn about new technology? What conversations are you and your core leadership staff having TODAY to plan for the shift that is already in motion?

No one knows exactly what this is going to look like when it's all said and done (if there is even a point in which we will be able to declare "said and done"). The difference - for the church at least - is that we can't rest in historical "slowness" of the church to adopt technology. The people in the pew are demanding it.

Are you choking your church's ministry impact because you refuse to learn and adopt new mediums of communication? If you are, then you are paving the way for an under-funded ministry that will be crippled today and perhaps paralyzed very soon.

The future is now. What are YOU doing about it TODAY?

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August 25, 2009

Is online giving sacrilegious?

I'm asked a similar question - at least once - in nearly every group of pastors I speak to regarding technology and giving: How can we maintain giving as an act of worship if we implement online giving?

Perhaps one of the greatest objections to online giving comes from a belief in the offertory as a core element of the worship experience. However you feel about the subject, its an excellent question. In fact, I noticed a string of conversation just yesterday in a Church Business Administers forum I'm a member of. The question, as expected, generated a lot of chatter.

If you're a pastor or church leader interested in online giving but feel unprepared to address this issue within your congregation, let me offer a few points to consider:

1. The success of online giving begins with how it's presented and the level of acceptance by established lay leadership. This is why I always suggest that the Sunday online giving is introduced, the pastor and the entire deacon body give online. Whether or not they continue doing so is irrelevant. The fact that they did - even once - offers a perception of acceptance that eases the hesitation of many doubters.

2. We never recommend that a church use online giving as their only channel for support. (There are a few exceptions to this.) In most cases, online giving should be one of many options available to members. It's really not the churches decision how the member gives. The church should continue to provide a traditional, paper-based, tangible tool such as an offering envelope. Having more than one option helps address the concern some church members have regarding the preservation of the Offertory as a sacred act of worship. In other words, you're not taking anything away that presently exists.

3. Many of the churches we work with do use offering envelopes. We suggest placing a line on the weekly offering envelope that says "I gave online." This offers the member a chance to use his or her giving channel of preference AND allows them to continue to have the opportunity to participate in the giving of tithes and offerings as incorporated into the corporate worship experience.

One person put it to me this way: online giving will be propelled by the acceptance of technology. As people move away from paper forms of monetary exchange and move to online or electronic exchange exlusively, how a church collects tithes and offerings will change too. We know we are presently in the midst of this change. It's important for church leaders to begin to deal with electronic giving while it's still a voluntary choice and not a mandate.

August 19, 2009

What you don't want your members to know ... Tithing Tricks

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August 18, 2009

The Money Song (that never talks about money)

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August 17, 2009

Survey Responses Needed ... Technology and Tithing

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May 19, 2009

4 new Delicious articles about church giving

I want to take the opportunity to remind you about the Do More Ministry Del.icio.us page that is a collection of articles and videos related to stewardship and giving. Almost every link I use in a blog post can be found on this page along with a few extra. Let me encourage you to bookmark this page and visit it regularly as you look for information about church giving.

Here are four articles I added today that you don't want to miss:

Church gives fresh meaning to 'offering' plate

Women Take the Lead in Couples' Charitable-Giving Decisions

Raising Money from Outside the Church

Church Raises $1.5 Million in $20 Increments

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May 15, 2009

What do online giving and weather the economic storm have in common?

The answer is nothing.

But there are two blog posts that I want to point you to that do:

Online fundraising growing, but slower; Donors giving but less

Weathering the (Economic) Storm Podcast

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April 9, 2009

My answer - Should churches offer "premiums"

Now that you've had a chance to respond to Should churches offer "premiums" to encourage online giving, I want to lay out a few of my thoughts on the issue.

First, I don't think the church needs to be in the business of gimmicks. We already do enough of that. We toss "books" of printed paper at visitors and guests. We have welcome committees and welcome packages that weigh as much as a gift basket from Harry and David. So, in a sense, churches are already offering premiums to prospects.

What we are learning is that no one choose to invest their time, talent, and resources because of a premium they are offered. People choose a community to join and contribute to because of the people they meet and the relationships they build. It's an emotional process; it's an emotional investment.

Second, premiums come in many forms. The traditional non-profit world uses products as premiums. The reason premiums are so effective is that they give the existing or potential new donor a reason to take action. When it comes to church giving, there are few "call to actions" outside of the offertory or the occassional special offering.

Fundraising for special events is one thing. Raising funds to support an ongoing operational budget for a complex ministry is a completely different thing. It's the difference between a sprint and a marathon.

What if instead of a coffee mug or the classic church t-shirt, the church offered experiences? What if the premium was every new giver this Sunday will be given a partial (or full) scholarship to participate in some mission project? It's so easy to restrict ourselves to thinking of premiums in the traditional way. Premiums are simply a tool to generate a response and only work when coupled with a compelling call to action.

Third, churches need to reconsider the methods they use to generate the funds they need to accomplish the ministry God has placed on their hearts. Premiums are one way to begin thinking about things differently. It forces the church leader to consider those things that only the church could offer a potential donor, especially the opportunity to become personally invested in the ministry of the church.

Capture the heart of the giver, and you'll create a long-term donor. Growing your base of long-term donors creates a more sustainable funding model.

Many church leaders still assume that Christians automatically reserve the tithe for the church alone. This simply isn't true. If churches don't respond, the dollars of the people who occupy our pews will be funneled to those outside the church who make a more compelling ministry case.

Finally, I want to suggest to you that one benefit of online giving (which was the context of the research cited in yesterday's post) is that people who don't visit your church campus are able to easily contribute to the ministry of your church. This is an entirely new dimension of funding that I don't think many in church leadership have considered.

If we believe that the internet is a ministry tool, why exclude those who find spiritual nourishment from your Web ministry (online sermons, tools, Bible searches, etc.) from contributing to the organizational needs of your church? Or, what if you have a parent of a child who has been changed by your ministry who wants to contribute but doesn't go to your church or doesn't go to church at all? What if this tool, if encouraged, becomes the bridge between you and this individual?

All churches have "premiums" that they can offer to encourage participation and grow their giving base. The question is will you do the hard work, the necessary creative thinking to find those things that inspire others to become a part of what you are doing? Better yet, is what you are doing so compelling that others want to join you in your efforts and fund your ministry?

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April 8, 2009

Should churches offer "premiums" to encourage online giving

I recently subscribed to a magazine that offered me a free gift if I completed the transaction by a certain date. This is what the direct marketing industry calls a "premium." And its wide acceptance and use confirms it works.

Traditional non-profit fundraising appeals have also utilized this technique. Just listen to the latest public radio or television membership drives, and you'll hear: "All members giving at "x" level, get "y."" The bigger the giving, the better or "more valuable" the gift.

As the fundraising world looks to the internet as the new frontier, some are wondering if this mainstay approach to growing your giving base will translate into the digital giving experience too. According to one study, the simple answer is yes.

Recent research confirmed that this technique still works. In most cases the best results come with the increase of new givers, the most difficult and costly segment to recruit. Nonetheless, the research also confirmed that a premium helped increase the average gift or overall response from current or existing donors.

"Offering a premium significantly boosted response rates and average gifts for two of the four organizations. The other two organizations saw a significant increase in either the response rate or the average gift. On average, response rates rose by 95% and average gift size increased by 37% when a premium was offered.1 That translates to nearly twice as many new donors, on average!"

Should the church consider employing this technique as well? As churches seek to expand their giving base to fund their complex ministry budgets, is there room within the practice of the church to offer a premium to attract new givers and encourage more consistent and larger gifts from existing giving base?

Before I answer that question, I want to hear your thoughts. Hit the "comments" button below or send me a reply via e-mail.

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March 25, 2009

Online donors don't come back

The NYT reported in Study Shows First-Time Online Donors Often Do Not Return that first-time online givers are unlikely to return and donate again online with any consistency.

Even though the online gift and the online giver is an attractive audience (online gifts tend to be larger than gifts given through more traditional channels and online givers tend to be higher income earners and better educated), online giving has a long way to go before it replaces traditional methods of giving.

One thing to note before you use this data to discredit online giving as a viable funding channel is that as the culture continues to place an emphasis on the exchange of electronic rather than paper currency, the interest and use of online giving will become more mainstream. Until then, it's important to include online giving as one of many options.

"I think what we're learning is that we need to be less worried about what channels these donors use and offer them a variety of channels through which they can give," said Mr. Smith of CARE.

Is your church using online giving? If so, what trends are you noticing among this segment your membership?

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March 19, 2009

Church Marketing Sucks considers the message of giving

Church Marketing Sucks posted some great thoughts about how giving functions with the Worship experience at your church, what message it sends to your membership, and what - if any - changes should be made. I would encourage you to go read the post, read the comments, and consider how you can become more strategic about giving in your church setting.

Note: Sometimes becoming more strategic means building in educational opportunities to teach and remind our membership why we give, the giving options the church makes available to them, and what those gifts accomplish.

Related Posts:
See Pulpit vs. Pew on Tithing

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March 11, 2009

9 steps to survival in a challenging economy

Mal Warwick writes about Fundraising in Tough Times for the Stanford Social Innovation Review, a publication from Stanford University's Graduate School of Business. This fundraising giant points out 9 things that every nonprofit (that includes churches) should do RIGHT NOW to hedge against the impact our spirialing economy will have on giving.

One suggestion that jumped off the page for me was implementing online giving. If you're not already - at the very least - talking about online giving, you are leaving money on the table. Electronic transfer of funds is quickly replacing the use of paper money and checks. Churches should be seriously considering adding this as an option for your membership.

Remember, giving is not about you but your membership. Offering Envelopes, Online Giving, etc. are all systematic tools you can strategically use to encourage faithful, consistent giving among your membership base.

Are you currently using online giving? I'm interested in how you're using it as part of your overall funding plan and what level of acceptable or use it has reached.

Review the entire E-giving catagory.

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January 8, 2009

Online contributions increased in 2008

How Did Online Fund Raising Fare In 2008? highlights these thoughts:

Online giving grew four times as quickly in December as it did in other months, a trend that is consistent with the past several years. Despite the economic turmoil, December accounted for 21 percent of the total transactions made during the year and 48 percent of the total dollars raised....

Maybe it's time to consider one more way for your members to support the ministry of your church: online giving.

Review the entire E-giving catagory.

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December 10, 2008

Good reminders and best practices about year-end donations

The end of the year is quickly approaching. It's time to refresh your memory of all the rules related to year-end donations. In Gift or Gaffe? How to get the full benefit from year-end donations the writer outlines what the IRS has to say on the subject and identifies some real world examples and advice from church leaders.

You might want to consider making this information available to your membership through your Web site, bulletin insert, etc. It may help hedge against a series of like questions and may even prevent some of those uncomfortable post year-end contribution conversations in the hallway between Sunday School and Worship.

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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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