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CREATING A CULTURE OF GENEROSITY Salem Presbytery Stewardship Workshops Tom Norwood, CFRE May 2009.

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Presentation on theme: "CREATING A CULTURE OF GENEROSITY Salem Presbytery Stewardship Workshops Tom Norwood, CFRE May 2009."— Presentation transcript:

1 CREATING A CULTURE OF GENEROSITY Salem Presbytery Stewardship Workshops Tom Norwood, CFRE May 2009

2 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

3 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?

4 Reality #1 Over $300 billion was given to charities in 2007

5 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

6 Giving By Sector Religion33.4% Education14.1% Human Service9.7% Foundations9.1% Health7.6% Public Society7.4% Arts/Culture4.5% International4.3% Environment/Animal2.3%

7 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%

8 Bad News/Good News Bad News: Consumer confidence and the markets are in the tank Good News: Charitable giving has continued to grow

9 The Volatility of Consumers and the Markets

10 40 + Years of Giving

11 Reality #2 The environment in which today’s stewardship programs exist is both competitive and challenging

12 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!!!

13 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

14 Reality #3 One Size Does NOT Fit All

15 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

16 Today’s Generations GenerationBirth Generation YearsType  GI Generation1901-1924Civic  Silent Generation1925-1942Adaptive  Boomer Generation1943-1960Idealist  Thirteener (Xer) Generation1961-1981Reactive  Millennial Generation1982-2002Civic

17 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

18 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

19 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

20 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)

21 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

22 Reality #5 Many churches’ most faithful and generous donors are dying; they are being replaced by members who are younger and more financially overextended

23 Responding to these Realities: Creating a Culture of Generosity in your Church

24 Recommendation #1 Build your stewardship program on the generosity of God

25 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

26 Recommendation #3 Don’t assume that church members will give financial support to the church— Do create a compelling case for support

27 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)

28 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)

29 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

30 Typical Stewardship Programs: Done Faithfully but Done Wrong! 1.Session projects coming year’s budget (may be rough draft) 2.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 3.Pledge Cards returned by due date 4.Session totals pledge cards totaled, adjusts budgets, dedicates pledges in worship 5.Following year, process repeated

31 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

32 Recommendation #6 Remember that funds development is a process and that the “ask” is but one small part of that process

33 The Funds Development Process

34 Recommendation #7 Make planned giving a part of your stewardship program

35 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

36 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…………

37 By 2050 the Census Bureau estimates 1 million 100 year-olds Source: Alexander Macnab and Co.

38 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

39 The Later Years

40 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

41 One Final Thought “He who deliberates fully before taking a step will spend his entire life on one leg” -Chinese Proverb

42 Questions and Comments

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