Drafting and Presenting an Effective Narrative Budget Jim Newman (Retired) Director of Stewardship and Financial Development Anglican Diocese of Niagara October 18, 2008

Today’s workshop The Impact of a Narrative Budget The Impact of a Narrative Budget A very important insight A very important insight Tools and Techniques Tools and Techniques Saving development time and effort Saving development time and effort Telling your story Telling your story Keeping it simmering all year long Keeping it simmering all year long

Inquiry from a Rector Would I come to a parish meeting to talk about doing an every-member visitation? Would I come to a parish meeting to talk about doing an every-member visitation? Would I talk about stewardship too? Would I talk about stewardship too? Some problems Some problems

At the meeting... Body language... Body language... Comments... Comments...

“I don’t want to do an every member visitation. People will just think I’m asking for their money!”

“Let me show you something...” It’s a booklet about your parish It’s a booklet about your parish It’s called a Narrative Budget It’s called a Narrative Budget If you like it, I’ll show you how you can modify and improve it... easily! If you like it, I’ll show you how you can modify and improve it... easily!

The impact was amazing! The impact was amazing! The body language changed completely! The body language changed completely!

Remember that person who said: “I don’t want to do an every member visitation. People will just think I’m asking for their money!”

parishioners She interrupted with: “We could take this along when we go on our visits, couldn’t we!”

So what is a Narrative Budget? the sacred story of the ministry of a parish the sacred story of the ministry of a parish One of the most important ways we can effect on-going stewardship education One of the most important ways we can effect on-going stewardship education an essential element in educating your congregation about how their money is being utilized to support the ministry of the parish an essential element in educating your congregation about how their money is being utilized to support the ministry of the parish

An important insight Donors don’t give their money TO the church… Donors don’t give their money TO the church… …they give THROUGH the church to touch the lives of other people …they give THROUGH the church to touch the lives of other people Donors will give generously when they feel their money is making a difference Donors will give generously when they feel their money is making a difference

Churches have a different starting point Our faith calls us to view the deployment of money much differently than secular institutions Our faith calls us to view the deployment of money much differently than secular institutions

The difference A Line Item Budget is an accounting tool A Line Item Budget is an accounting tool A Narrative Budget is an educational and visioning tool A Narrative Budget is an educational and visioning tool We need both but we must be more intentional in how we use both We need both but we must be more intentional in how we use both

Line item budgets do not show how money is being invested in ministry do not show how money is being invested in ministry do not show how volunteer time and talent are impacting parish life do not show how volunteer time and talent are impacting parish life Worst of all – they do not inspire! Worst of all – they do not inspire!

A Narrative Budget Clearly shows how money is being invested in the various components of parish life Clearly shows how money is being invested in the various components of parish life Helps donors to re-frame what the parish is all about Helps donors to re-frame what the parish is all about

A Narrative Budget Inspires donors and helps them see their donations are really making a difference Inspires donors and helps them see their donations are really making a difference Is a proven tool for increasing financial commitment to the ministry of the parish Is a proven tool for increasing financial commitment to the ministry of the parish

So how does a parish create a Narrative Budgeting? So how does a parish create a Narrative Budgeting? It looks like a lot of work! It looks like a lot of work!

Every parish has several key components of ministry... Pastoral Care Pastoral Care Christian Education Christian Education Worship and Music Worship and Music Evangelism and Hospitality Evangelism and Hospitality Outreach Outreach In-reach and Fellowship (Parish Life) In-reach and Fellowship (Parish Life)

All parish expenditures can be allocated to these six ministries All parish expenditures can be allocated to these six ministries

Pastoral Care Pastoral Care Christian Education Christian Education Worship and Music Worship and Music Evangelism and Hospitality Evangelism and Hospitality Outreach Outreach In-reach and Fellowship (Parish Life) In-reach and Fellowship (Parish Life) Notice that ADMINISTRATION is not a category on this list Notice that ADMINISTRATION is not a category on this list

Line item budget

A Narrative budget allocates those costs to Ministries

A Narrative Budget: Combines allocated costs, ministry descriptions, and future plans Combines allocated costs, ministry descriptions, and future plans It’s meaningful, motivating, and inspiring It’s meaningful, motivating, and inspiring

Creating a Narrative Budget There are lots of people in your parish who will assist you to There are lots of people in your parish who will assist you to Allocate costs to ministries Allocate costs to ministries Develop the spreadsheet Develop the spreadsheet Create graphs Create graphs Write descriptive comments Write descriptive comments Assemble the narrative budget document Assemble the narrative budget document

BTW, you can... Download spreadsheet templates and text from Niagara’s website Download spreadsheet templates and text from Niagara’s website Modify them, fill in your own data, and generate pie charts for your parish’s Narrative Budget Modify them, fill in your own data, and generate pie charts for your parish’s Narrative Budget Reduce development time by 75% OR MORE! Reduce development time by 75% OR MORE!

Here’s the website Click on Programs, and then Click on Stewardship Development Refer to NARRATIVE BUDGET TOOLKIT

A small team approach Start by getting your full time staff to track how they spend their time for a month Start by getting your full time staff to track how they spend their time for a month (reviewing day planners is helpful) (reviewing day planners is helpful)

E.g. Rector’s time: Christian Education15% Christian Education15% Outreach10% Outreach10% Worship 10% Worship 10% In-reach and Fellowship10% In-reach and Fellowship10% Evangelism and Hospitality35% Evangelism and Hospitality35% Pastoral Care20% Pastoral Care20% Use this formula for related line items that are difficult to allocate e.g. Benefits Use this formula for related line items that are difficult to allocate e.g. Benefits

Some line items in your budget will be easy to allocate Some line items in your budget will be easy to allocate E.g. Church school supplies to Christian education E.g. Church school supplies to Christian education

Other items will be more difficult to allocate Other items will be more difficult to allocate E.g. Office Supplies E.g. Office Supplies

It’s important to remember A Narrative Budget is directional A Narrative Budget is directional Don’t get too caught up on delivering accuracy Don’t get too caught up on delivering accuracy

And remember it’s an educational tool it’s an educational tool Helping reframe minds and getting donors to think about how their donation is used is more important than accuracy Helping reframe minds and getting donors to think about how their donation is used is more important than accuracy The line item budget still exists The line item budget still exists

Sample pie chart

The net message you want donors to take away is 14 cents of every dollar I give goes to Pastoral Care 14 cents of every dollar I give goes to Pastoral Care 34 cents of every dollar I give goes to Outreach 34 cents of every dollar I give goes to Outreach etc. etc.

We can emphasize other messages

Creating the “narrative” for each ministry Download the text from Niagara’s web site Download the text from Niagara’s web site Modify the “bullets” to show the impact the ministry is having in YOUR parish Modify the “bullets” to show the impact the ministry is having in YOUR parish Your donors will be inspired to take much greater ownership of parish ministries Your donors will be inspired to take much greater ownership of parish ministries

Sample narrative content Our Ministry of Pastoral Care involves the following services: Our Ministry of Pastoral Care involves the following services: taking of home communion to three local nursing homes each month taking of home communion to three local nursing homes each month on call at two local funeral homes and follow up with the mourners from 30 funerals last year on call at two local funeral homes and follow up with the mourners from 30 funerals last year frequent visiting at three local hospitals to care for parishioners recovering from illness frequent visiting at three local hospitals to care for parishioners recovering from illness Etc. Etc.

Getting your story out... Narrative Budgeting booklets Narrative Budgeting booklets Bulletin inserts Bulletin inserts Parish website Parish website Fall Stewardship mailings Fall Stewardship mailings Personal contact Personal contact Intercessory prayers Intercessory prayers Vestry reports Vestry reports Parish newsletter Parish newsletter

Using Sunday Worship to tell your ministry stories Include a bulletin insert each week for six weeks highlighting a different ministry (NB pages) Include a bulletin insert each week for six weeks highlighting a different ministry (NB pages) Pray specifically for that ministry Pray specifically for that ministry Ministry Moments: Tell a story about (or by) a person being touched by that ministry Ministry Moments: Tell a story about (or by) a person being touched by that ministry

You can also find a basic template for calculating and reporting volunteer hours against the six categories of ministry at the same web address You can also find a basic template for calculating and reporting volunteer hours against the six categories of ministry at the same web address

Volunteer time for Sunday worship Altar guild – two people X 2 hours= 4 hours Choir – ten members X 2 hours of worship and two hours of practice time = 40 hours Readers, chalice bearers, server, crucifer, counters, sides- people, litanist, 10 X 1.5 hours = 15 hours Totals almost 70 hours of volunteer time per week Over 44 weeks =3,080 hours of volunteer time in Sunday morning worship alone!

In an average parish When you factor in all ministries, we estimate that 10,000 – 15,000 hours per year are volunteered When you factor in all ministries, we estimate that 10,000 – 15,000 hours per year are volunteered That’s a significant impact on any local community That’s a significant impact on any local community Include in your Narrative Budget! Include in your Narrative Budget!

Narrative Budgeting is an evolving process Each year you will get better at it Each year you will get better at it You’ll add stories about volunteer time and talent, plans for the future, planned giving, etc. You’ll add stories about volunteer time and talent, plans for the future, planned giving, etc. The documents improve with each cycle The documents improve with each cycle People will begin to think of the funding of the ministries of the parish in a new way People will begin to think of the funding of the ministries of the parish in a new way

Vestry Meetings We need to change how we view money and ministry We need to change how we view money and ministry Long before vestry you will have begun the process of education and awareness around the Narrative Budget Long before vestry you will have begun the process of education and awareness around the Narrative Budget

Vestry Meetings We distribute the Narrative Budget prior to our annual vestry meeting We distribute the Narrative Budget prior to our annual vestry meeting

As a faith-based organization be determined in your desire to talk about money and ministry in a new way. As a faith-based organization be determined in your desire to talk about money and ministry in a new way. Don’t fall back on the line item budget for future decision making. Don’t fall back on the line item budget for future decision making.

Vestry will no longer be viewed as the annual BUSINESS meeting of the parish Vestry will no longer be viewed as the annual BUSINESS meeting of the parish It will become THE ANNUAL MISSION AND MINISTRY MEETING It will become THE ANNUAL MISSION AND MINISTRY MEETING

Parishioners start looking forward to your annual Vestry meeting!! Parishioners start looking forward to your annual Vestry meeting!!