Financial Dangers for Fast-growing Churches
Casey Graham from my sponsorship partner The Change Group, recently shared some thoughts concerning fast-growing churches. As you’re planning for the new ministry year, you very well may want to consider teaming up with Casey and his team as well. They help churches with their finances, so you can focus on ministry. If you’d like to learn more about what they do, you may contact him directly. In the mean time, here are Casey’s thoughts on financial dangers for fast-growing churches:
First of all, you need to know I love fast-growing, healthy churches. I am pro-church-growth; however, as we have traveled the country meeting with fast growing churches, we have discovered a few financial consequences that can come along with that fast growth.
Danger 1: “We will always grow fast.”
The reality is the growth rate for most churches will slow down, stop or even go backwards at some point. This is dangerous because leaders become intoxicated with growth and start to hire and acquire like the growth will never stop. I see a lot of leaders bet the farm on that new facility that will “pay for itself” or load the staff with high-salary superstars. Another common mistake we see leaders make is the lack of accountability for staff budgets and spending. We also see a lot of churches that have millions of dollars coming in annually but they can’t make payroll if the church doesn’t meet this weekend.
To avoid these dangers, churches need written and agreed upon financial goals. As the growth is occurring, the accountability comes through developing healthy spending, saving and giving habits. As an example, this might include a goal to only spend 75% of your income, save 10% and give away 15%. Simple decisions like this will save you when the growth slows down.
Danger 2: “Because we have plenty, we must have a generous church.”
The reality is that fast growth can cover up hidden problems. When growing fast, churches see giving units start to go up quickly. Just because there are a lot of giving people doesn’t mean they are developing consistent biblical generosity. This usually doesn’t show up until the growth slows down. When the growth starts to wane, we are tempted to try to microwave folks into generous people.
Instead, churches need to create a systematic plan from early on that helps people have a growth track for their finances and generosity. Let me give you an example of a simple system to accomplish this:
- Provide on-going personal financial education and counseling for church attendees. (We suggest Joe Sangl.)
- Meet with your top 25 donors/families each year in a relational environment.
- Consistently help people move their gifts to online giving to develop consistency.
- Teach one four-week message series a year on the heart of God and generosity.
- Model generosity as a church.
Again, that is just a few simple items but they will help as you grow.
These are some great thoughts for fast-growing ministries. Again, feel free to connect with Casey to learn how he can help you discover financial health for your ministry.
Casey is a really smart, accessible guy. His passion for good stewardship is obvious.
One thought though:
“Meet with your top 25 donors/families each year in a relational environment.”
Is that top 25 based on percentage of annual household income or top 25 bottom line annual gift amount. I could see that getting a little hairy.
chris, i’m almost positive casey is going based on amount and not percentage because it would be impossible for us to guess how much people make.
to me this is no different than how we interact with the people that give the most time to our churches. we have to be willing to invest relationally with the folks that make ministry happen with both their time and their money.
i agree with casey on that one.
tony
I’m curious what you thinking behind meeting with the top givers is. Why is it even important to know who they are? Aren’t most of them just giving a lot because they have a lot? Why don’t you meet with the people who are giving the least? They could very well be giving a higher percentage than those 25 people.
I have to agree w/ the others here. Your top 25 may not even be giving a full tithe yet this amount may still be far above middle, lower income families who are giving their full 10%…maybe even more. If you have no way of determining what percentage of income is being given, then don’t give special honor. I think if these top 25 are giving out of true, sincere hearts, then they don’t need special relationship or honor. Same with volunteers. I think all should be honored equally b/c you obviously can’t determine how much free time they have to give and what percentage they are giving. Just some thoughts…
you’re certainly entitled to your opinions here, but my experience through the years has been that you’ll have more resources to fund ministry if you invest relationally with the folks that have the capacity to support your mission financially.