Showing posts with label church administration. Show all posts
Showing posts with label church administration. Show all posts

Sunday, April 23, 2017

Seminary in a Nutshell: Leadership, Management, Administration

What does a pastor need to know in the areas of leadership, management, and administration to be effective? In my "Seminary in a Nutshell" series. Here is an overview of the main topics, with some Bible, theology, and church history integrated into the discussion:

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration
Other topics in this series include:

Seminary PL42: Facilities

This is the eleventh and final post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the forty-second and last post in a section on the Pastor as a Leader (see at the bottom).

The previous post looked at communications. This final post is about facilities
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1. Gary McIntosh and Charles Arn, in What Every Pastor Should Know: 101 Indispensable Rules of Thumb for Leading Your Church, give several principles for facilities. While these do not all have to do with church administration, here are some that give good background:
  • A facility would ideally be 65 to 80 percent of room capacity to encourage growth. If your worship room is less than 50 percent full, you should do some rearranging. If it is more than 80%, consider structural changes, a building project, or additional services.
  • The lobby capacity should be 60 to 70 percent of the worship room capacity. This is for fellowship.
  • There needs to be a balance in space between: a) parking and seating, b) parking and people (half the parking as the people), c) child care and worship attendance (to accommodate 25% more than worship attendance), d) fellowship space and attendance (also to accommodate 25% more people outside of worship for small groups, Sunday School, etc).
  • One acre of land for every 100 in worship
  • Parking capacity puts a cap on growth
  • A church needs enough restrooms to accommodate everyone in a space of 15 minutes.
  • If the interior of the church is more than 15 years old, it probably is hindering growth.
  • 80 square feet of space for each child on a playground
2. Most churches have individuals who serve as trustees. In some cases they are elected. In others they might be appointed. These are individuals who have the authority to sign checks and are tasked with the maintenance of the church property and facilities. In general, they engage the legal dimensions of the church as concerns property, mortgages, and bequests. My denomination requires that there be at least 3 trustees for a church, but a larger church may have up to seven.

At least one member of the board of trustees should be a member of the larger church board. The trustees should not be empowered to make major decisions apart from the direction of this larger board. However, trustees are usually empowered to make routine decisions and expenditures up to a certain amount. More than that amount, they usually have to get approval from the larger board.

Here is a typical list of areas that are usually are the direct responsibility and are under the supervision of trustees:
  • insurance--does the church have sufficient and proper insurance as it relates to the church property?
  • Does the church have a custodian(s) to clean the property and keep it functional and attractive for its use?
  • Is the church appropriately secure? What steps need to be taken to keep the church safe?
  • Is everything functioning properly in the facilities? What is broken that needs to be fixed? Does the air conditioning/heating work? Is the roof leaking?
  • Is the church up to code with the city and zoning laws?
  • Is the property ready for its use this week?
  • Church vehicles--is the van working well? Is it safe? How are the tires?
  • Restrooms work? water flow? lights working? sidewalks cracked? landscape nice? classrooms functional? ... do we have enough toilet paper? Some of these might more directly fall to a custodian, but the trustees are ultimately responsible that these things are being taken care of.
3. The smaller the church, the more likely that the pastor will absorb some of these functions. Some pastors are quite handy when it comes to practical matters. Others are quite idea oriented and less likely to think of such things.

For example, let's say you are having baptisms on Sunday morning. How long does it take to fill the baptistery, if you have one? How long does it take the water to heat up? A green pastor usually only has to have one major mess up in this area before he or she remembers that it may take half a day's time to fill up and heat the baptistery.

Is the heat or air on sufficiently ahead of service for the temperature to be comfortable by the time people arrive? Are you wasting money by using the air or heat when people are not going to be in the building?

Is the church unlocked for those who arrive early to set up things or practice for the worship service? Does the lawn look good for Sunday morning? Like it or not, a church with an attractive property is more likely to grow and one with an unattractive property is likely to decline.

4. Culture changes and facilities expectations change. As I look back over the last fifty years, expectations have changed for what a good facility would be like. Older folk used to resist any change to the church buildings they grew up with. Meanwhile, younger folk used to mistake the latest fad for the new permanent thing.

We've been through the round churches (that had no direction for expansion) to the multi-purpose facility (that served as a gym when it wasn't being used as a worship space. The key learning is that none of these structures are wrong but neither are they the final structure. Over the next fifty years we will no doubt see varying trends in church structure again and the only ignorant person is the one that assumes there is a permanent answer. Change is a constant when it comes to such things.

5. Major expenditures arise from time to time, and we shift into fundraising mode. Does the church need a new roof? Does the church need a new central air conditioning/heating unit?

With growth, the church may need to expand its facilities or move to a new location. Again, these good situations will call for the engagement of knowledgeable, wise individuals who can help with a host of small but important decisions relating to facilities. Plans will need to be drafted. Contractors will need to be hired. Although trustees are usually volunteers, they are crucial to a well-functioning church.

Next Sunday: Foundations 1: The Law 1 (Content)

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, April 16, 2017

Seminary PL41: Communications

This is the tenth post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the forty-first post in a section on the Pastor as a Leader (see at the bottom).

The previous post looked fundraising. This post is about church communications.
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1. The communications of churches have evolved as technology has evolved. At one point, communications within and outside the church simply took place by word of mouth. Congregations were relatively small by modern reckoning usually within tight knit communities, so you could get word around just by one person telling another and so on.

Most churches still have oral announcements of some sort within the context of a Sunday or other service. When I was growing up in a relatively small church, announcements were made either right before the offering or right before a special song preceding the sermon.

In my ministerial education, some professors urged that announcements be done before the service actually begins, so that the worship service could be entirely about worship and the focus on God not be interrupted. Now, many churches do not really speak announcements but have them projected in sequence on a screen prior to the service.

Be sure to recognize that in the modern casual church, families will stroll in late and many simply ignore the pre-service screen announcements. From a practical standpoint, the mid-service announcements were probably more effective as communication than either of these.

2. Most churches hand paper to each person who comes into a service. This serves at least two very important functions. First, in an age of large churches, this practice provides one-on-one contact both for newcomers and for those who might otherwise never make any personal contact with anyone else in the service. It is an opportunity for personal interaction, which is an essential element of what the church is.

What is in the "bulletin" or "worship guide" can vary. It often will contain an order of worship. [1] Sometimes it has a place for a person to take notes. These elements can be helpful for those like me who get bored easily. Fill in the blanks give people something to do and help them follow the main ideas of the sermon. In that respect, it can be a helpful tool for discipleship.

The bulletin is also a potential place to give announcements. Bulletins often remind the church of key events taking place that week as well as upcoming events. The bulletin can give key prayer requests. It can report on the finances of the church. Know that as helpful as this information is, many of us won't read the announcements in the bulletin.

Again, you may hate it, but mid-service oral announcements are going to be the most effective from a practical communications standpoint, despite the protests of purists and the "but, but, but, it should be this way" idealists. I am proof. For years I knew precious little of what was going on at my church. Was it my fault? Yes. Was the church effective at communicating with me? No. Each individual church must decide how effective of communication is effective enough. [2]

3. Churches often have "shut-ins" who are not physically able to attend church. Others are either on the road or have trouble getting out of bed on a given Sunday. Technology has increasingly made it possible for churches to extend their ministry to these individuals.

Some churches still have Sunday services at nursing homes. When it became possible to record services, many churches began making cassette tapes to distribute to its shut-ins and to people at a distance. If someone sang a special song or if there was a baptism, the cassette could be kept as a memory or keep sake.

Today, sermons--at least the audio--are usually downloadable from a website. For a while, churches were using iTunes for this service. Now, they are generally available directly from the church website. Larger churches usually video their services and can be broadcast over a local television station.

With the rise of YouTube and Vimeo, it has become increasingly easy to make all previous sermons permanently available and linked to a church website. Facebook Live is now an extremely easy way to livestream your service to those who, for whatever reason, cannot be with you during the service. 12Stone Church in Atlanta has a web version of its church with a dedicated pastor.

4. Another tool that developed over the years was the monthly newsletter. This tool could not only inform the church members of more strategic items and finances, but it became a way to keep in contact with people who were connected to the church in some broader way. For example, I received a monthly newsletter from a church in Wisconsin for years that I had never attended. This kept me informed of what was going on there. I could pray for them. I could give to their causes.

If a church has seasonal members, say individuals who come and go in the summers and winters, such a newsletter can keep these individuals up to date. In this day and age, the paper newsletter has mostly been replaced by email. A church should do its best to have the emails of all its members. Email contact once a month--not too much information but a little--can be a good tool of communication.

Visitor information should be collected in some way without being obtrusive (that is, only if the visitor wishes and gives permission). Often there is a point in the worship where visitors are asked to fill out cards in the pew. Email, phone number, address are crucial if you intend to do follow up. In that way you can at least text the visitor during the week (ask their permission). Calling on the phone is increasingly undesirable and personal visits are increasingly unheard of.

5. In this age of Twitter, Facebook, and Instagram, most churches will want to have them. Every church should not only have a website, but it should have a Facebook page, a Twitter handle, and an Instagram account.

As for Twitter, try to get everyone in the church with a smart phone to follow the church. Just the merest suggestion can inspire certain personalities to tweet key ideas from the sermon during or after the sermon. Someone at the church should then retweet them. This can also be a way of making prayer requests and other information known to the congregation during the week.

In the old days, there were prayer chains. If an emergency happened, so and so called so and so who called so and so. In this way, a chain of prayer went up to heaven almost instantly. Today, this can all be done almost instantly. Small groups can have GroupMe accounts so that they stay connected during the week.

A church should have both a website and a Facebook page. The Facebook page provides basic information on your church and can be used to broadcast a service live. However, official Facebook pages are not good for discussion. If a pastor or key staff member has a Facebook account, discipleship by way of discussion can continue long after Sunday morning. The church can also have one or more open Facebook groups (e.g., a high school Facebook group) to keep conversation going during the week. This is a great tool for discipleship.

Instagram is a way of recording the pictures of the congregation's life. Information can be disseminated very quickly by way of Facebook and Twitter.

I've never seen it done, but it would be interesting to experiment with Twitter as a way of letting the congregation raise questions about a sermon. A pastor of course will hardly be able to address these during the sermon. And if you livestreamed them on a screen to the side, it would distract from the sermon. But you could possibly have a Q and A after each service to discuss them, and certainly Sunday School classes could process them.

6. A church without a website these days is a church that doesn't want anyone to find them. A church website should 1) give the location of the church and contact information, 2) tell about the church--what does this church stand for? What is its ethos and identity? What is its mission and vision, 3) tell about the staff and ministries--who are the pastors, what are the various ways in which I can plug into this church, and 4) perhaps give up to date information and or ways to give.

Many churches now make it possible to give online. There is still something important about physically taking up an offering, it seems. Nevertheless, while the plate is being passed, I am getting on my smart phone to give electronically. Sometimes I will remember that I haven't given yet while I'm driving. When I reach my next destination, I sometimes take out my phone and give. Churches should also have the capability of auto-withdrawals so that church members can tithe automatically.

There are individuals who specialize in creating church websites. However, you can create one for free using wordpress.com and other sites.

Who should people contact in the case of an emergency? This should be known. Many churches have pastors rotate being on call. Of course in the small church, the pastor tends to be on call 24/7. The pastor needs to have a sabbath, though, when he or she just isn't available except in the direst of emergencies.

7. A church should have a good sense of who is attending. It should have the names, addresses, emails, and phone numbers of its regular attenders. Many churches used to create paper directories every few years. These are great for reminding yourself of people whose names you have forgotten.

Certainly such directories could be put online these days. The danger is of course in this age of electronic stalking, you are making the people in your church potentially available to unsavory characters. Great discretion is advised. Perhaps more private and dis-aggregated Facebook directories could be created.

8. The community should know that your church is there. If you are not engaged enough in your community for it to know you are there, something is wrong. Pastors should be involved in prayer breakfasts with other pastors. People should be involved with community events and opportunities for ministry.

In earlier days, churches did door-to-door inviting of people to church. Today, this is often seen as creepy. Nevertheless, it may still be appropriate in some places. Other churches take out billboards or take out advertisements on local television. Certainly having an attractive church campus with good signage is obvious. Many churches put out something funny on their signs to draw the eye.

But nothing communicates the loving invitation of Christ better than your people being the body of Christ in the world.

Next Week: Pastor as Leader 41: Facilities

[1] I lead a liturgical service for about ten years. At first, I printed a distinct liturgy for each week. Later on, we provided a generic liturgy but printed the specifics for each week on a single half sheet.

[2] This is a perennial observation in regard to so many things. You can say "it should be this way" until you are blue in the face. But if you can't get people to change, then you are the failure in the end for being unwilling to change yourself. As the crass saying almost goes, "You can wish in one hand and crap in the other, and I'll tell you which one you'll end up with."

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, April 09, 2017

Seminary PL40: Fundraising and Capital Campaigns

This is the ninth post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the fortieth post in a section on the Pastor as a Leader (see at the bottom).

The previous post looked at giving in the Bible. This post is about fundraising and capital campaigns.
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1. Gary McIntosh and Charles Arn suggest that there are five reasons why people give to a church:
  • to pay the bills
  • to further missions
  • to support education
  • to help those in need
  • to build something
The oldest generation, those born before 1945, are the ones most likely to give toward paying the bills. Older congregations still often also have a strong (overseas) missions emphasis and often sponsor specific missionary families. Specific individuals and families often have a special burden for this kind of giving.

If I continue this series and do a series on mission, we can discuss this rapidly changing area of the church. Much overseas church planting is increasingly done either by those of the same ethnicity as the country of planting or by missionaries from the two-thirds world, who are now increasingly coming as missionaries to North America as well. Rapidly diminishing are the days when mission work had a not so faint overtone of unintended colonialism.

So, in the future, the second and fourth reasons for giving will likely be folded together into one bucket, something along the lines of "outreach." But of course if you are in a "missions"church, then keeping the two separate makes more sense.

2. People give for specific purposes far more than they give just to give. McIntosh and Arn suggest that giving for each bucket doesn't tend to take away too much from the giving for other buckets (207). If a person has a passion for missions, then they are going to give to missions. If you have a building fund offering, it probably isn't going to take too much away from their giving to missions.

Their point is that balancing the different kinds of giving opportunities will tend to increase the overall giving more than to diminish the giving in a particular area. Let people give in the area of their passion! Trying to move a person from their passion to another area is not likely to be fully successful. [1]

3. It is good for a church to pursue projects associated with its giving over time. If your church hasn't had a major vision project in the last 10 years, perhaps it's time to have one. It could be a project for something in the community. It could be a project overseas. It could be a project to plant a church. It could be a project to raise up ministers. It could be a building or renovation project.

Of course many churches struggle year over year simply to stay open. That's a challenge again for a series on mission. As far as finances are concerned, McIntosh and Arn suggest that "A church needs a minimum of twenty-five giving units to be financially stable and independent" (211). They define a giving unit as an individual, group, or family that gives 10% of its income to the church.

4. Building projects are probably the most notorious reason for having a "capital" campaign, a season in which you are trying to raise a large amount of money. Studies show that churches that hire a professional to lead the campaign tend to raise about 50% or more of the amount that they would raise on their own. However, a smaller church is not likely to have the resources or the desire to do this.

There are, however, firms that specialize in church fundraising of this sort: national firms, regional firms, local firms, and denominational resources (214).

McIntosh and Arn suggest that all good fundraising campaigns have the following elements (214-15):
  • participation (Give everyone something to do.)
  • clear timing (a beginning, a middle, and an end)
  • giving (everyone's gift counts)
  • information (do people know what's going on)
  • a clear goal (when will we have arrived?)
  • enthusiasm and celebration
5. A church shouldn't take on an indebtedness for such a campaign that is more than 2.5 times its normal yearly undesignated income. The first phase of a capital campaign thus might aim at raising the amount of money that gets you below that threshhold of indebtedness.

McIntosh and Arn give the following example. Say your annual undesignated income is $500,000. Then the church shouldn't borrow more than 1.25 million dollars. So if you want to enter a building project of two million dollars, you will need to raise 0.75 million ($750,000) that is not borrowed. That would make a good first phase of a building project, getting down to the amount that you need to borrow.

Over a three year period, a church can raise the amount of its yearly income over and above its normal income. Perhaps that's a good deadline for the second, middle phase of a campaign.
6. A church often has key givers who are able to contribute more to a building project. Such individuals often are more than happy to be part of such projects. If they are approached individually, they will give much more than if they are simply part of a general petition to everyone.

I heard of a building project campaign that was within a couple million of reaching its goal. The pastor, given the awkwardness, was tempted to make a generic pitch for the last two million from the pulpit. But he was strongly counseled to go personally to the homes of some key givers in the church and to challenge them.

They gave, and now when the pastor made the final push he only had to raise about 500,000, which the church easily reached. Individuals who know about such things said the church would have never reached the two million if he had only made a generic pitch from the pulpit.

7. A pastor inevitably uses up "influence capital" when she leads a capital campaign. But it is part of the responsibility of being a lead pastor. The pastor I mentioned above knew for a couple years that the church needed to build a new facility before he finally was willing to spend his influence on it. It is usually much more pleasant to focus on preaching the word. But occasionally a leader has to embody the spirit.

Next Week: Pastor as Leader 41: Communications

[1] I also take this from Terry Munday's, It's Not About the Monday: How to Tap into God-Given Generosity.

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, April 02, 2017

Seminary PL39: Giving in the Bible

This is the eighth post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the thirty-ninth post in a section on the Pastor as a Leader (see at the bottom).

The previous post looked at church budgeting. This post is about giving in the Bible.
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1. The idea of giving of your flock or crop to God stretches back in time well beyond the time of Israel. In Genesis 14, when Abraham is returning from a successful battle in which he has taken spoils, he gives a tenth of the spoils to Melchizedek, the priest of "El-Elyon." At that time, God was not yet known by his name YHWH and so those who worshiped him simply knew him as "the highest God," in Hebrew "El-Elyon." [1]

This practice of giving a tenth not only signified one's thankfulness to God but also provided food to the priests of God as well. Leviticus 27:30-32 indicates that the Israelites were to give a tenth of their crops and a tenth of their flocks and herds to the LORD. Apparently if you wanted to keep the food, you could give shekels (money) worth 120% the value (Lev. 27:31).

It is currently popular to suggest that when you splice together all the passages in the Law on the tithe, you end up with something like 23.3% worth of tithe. [2] This is in fact how some later Jews interpreted these passages. For Josephus, writing in the late first century AD, a first tithe was for the Levites (Num. 18:21-26). A second tithe was to be eaten at the festivals (Deut. 14:22-27). Then a third tithe was for the poor of your village, every third year (Deut. 14:28-29). [3]

However, most experts on the original meaning of the Pentateuch believe that differing versions of the same traditions appear in different books of the Law. For example, we have the 10 Commandments not only in Exodus 20 and Deuteronomy 6, but also scattered in passages like Leviticus 19.

So when we look at Leviticus 27:30-32, Numbers 18:21-26, and Deuteronomy 14, we probably should not think of different tithes but different traditions about the same basic concept. Some standardization of the tithe no doubt took place after the exile.

2.  In late 1800s America, tithing became the model for churches to support themselves. It was not the case previously. For example, Methodists funded their churches largely by charging for the pew in which you sat. The "Free" Methodist Church was in fact founded in 1860 in part as a church where you could sit anywhere for free.

But around the turn of the century, the model of "storehouse tithing" became popular, based on Malachi 3:10: "Bring the whole tithe into the house of storage." Malachi, written perhaps in the late 400s BC, criticized Israel both for not bringing all their agricultural tithe to the LORD and for bringing defective sacrifices to his altar (1:8).

This model was used at the end of the 1800s to argue that the church should be supported by giving a tenth of a person's income to the church. There was some opposition to this movement at the time, especially by those who felt that a tenth wasn't enough. Because many groups believed that the Lord was going to return any day, some argued that Christians needed to surrender everything to the Lord, not just a tenth.

3. Jesus does assume the tithe in relation to his Jewish audience (Matt. 23:23), and we can wonder if Matthew's Jewish Christian audience in Palestine tithed. Presumably this would have been an agricultural and herd/flock tithe for agricultural families rather than a money tithe. The giving of most Jews outside of Jerusalem was the "half-shekel" tax they sent yearly to Jerusalem, not a very large amount of money.

However, the New Testament never applies the tithe in relation to Gentile converts. The New Testament does teach that Christians need to give to support its ministers and to help others from their surplus. It even honors those who give all that they have to the community of faith. But it does not instruct a specific amount, placing the specifics of Christian giving into the category of personal conviction or of membership in specific church groups.

4. What are the New Testament principles in relation to giving. First, we have already looked at 1 Corinthians 9:9-10, where Paul suggests that churches are obligated to support materially those who minister to them. The Pauline model of giving seems to be that a church should share whatever abundance of blessing God gives it.

2 Corinthians 8-9 suggests a model where God at times blesses one segment of the church and at other times blesses another. When one group is blessed, they should give of their excess to those in need. Then when the situation is reversed, the giving will reversed. We are talking more than ten percent here. The model is that all of your excess is available for those in need, especially those in the church.

We should keep in mind how different the economics were in New Testament times. Most people barely had enough to live--they were on a "subsistence" living. Excess was thus anything above what you needed to eat. I know I could easily eat individually for $300 a month. My excess is way more than 10%. The bulk of my income is excess, although most of us get ourselves entangled in mortgage payments, student loans, and much much more.

The earliest church of Acts 2 shared their possessions in common. Groups that are planning for Jesus to come back any day often go completely communal. Some of those that did so in the late 1800s and early 1900s ended up without anything for their people to live on. There is nothing unbiblical about using a core of resources to generate a continuing stream of blessing for others.

Nevertheless, Acts holds up as a model the idea of sharing any excess we might have with those in need. Paul tells of how Peter and James wanted him to remember the poor (Gal. 2:10). Galatians 6:10 implies that this spreading of good is not limited to the people of God.

5. In the end, nothing we have is ours. It all belongs to the Lord. We are but stewards of it. So do we love the Lord with all our income? Do we love our neighbor as ourselves with all our income?

Next Week: Pastor as Leader 40: Capital Campaigns

[1] Jacob also promises to give Yahweh a tenth of all God gives him at Bethel. The name of YHWH may be an after-the-fact reference to God's name, since Exodus 6:3 suggests that Jacob only knew God as "El-Shaddai," "God Almighty," and that the name YHWH was only revealed at the time of Moses.

[2] E.g., https://www.gotquestions.org/tithing-Christian.html

[3] Josephus, Antiquities, 4.67, 226, 240; cf also Tobit 1:6-8.

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, March 12, 2017

Seminary PL38: Church Budgeting

This is the seventh post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the thirty-eighth post in a section on the Pastor as a Leader (see at the bottom).

The previous post looked at some biblical passages of interest in relation to using a church's resources. This post is about budgeting and the finances of a church.
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1. In the denomination to which I belong (The Wesleyan Church), the "fiscal year," the finance year, the budgeting year, runs from May 1 to April 30. [1] A church's finances should thus be audited yearly thereafter, in May or June. In smaller churches, the books are usually kept by a volunteer treasurer. In larger churches, there is usually a paid staff member who keeps the books, a "director of finance" or "chief financial officer" (CFO).

One source suggests that the process for approving a church budget for the following year should begin at least four months before the next fiscal year. [1] In the church to which I belong, the board mostly voted on next year's budget in February, which some follow-up discussion in March.

The bulk of the budget planning can be done by a special budget committee or, in the case of the church to which I belong, a standing finance committee. In the church to which I belong, of a size between 1000 and 1500, the finance committee works with the director of finance to propose a budget that the broader board then adjusts or approves. In a smaller church, the board might play a more detailed role and the drafting of a proposal entrusted to the pastor/treasurer.

2. Most church boards will want to receive a monthly report that gives a sense of where the church is in its spending. This usually includes a breakdown of basic categories (a complete line item is probably overkill, although the treasurer should be able to provide it), the proposed budget for that category and the "year to date" expenditure in that category.

A good treasurer will know the typical ebb and flow of giving over the course of a year. So a church usually receives more in December than January because people are wanting to get some last minute charitable giving in so they can take it off of their taxes. Many churches in Florida lose a sizable portion of their congregation in the summer, as retirees head back north to Michigan and other places. So a good treasurer will know that the summer will be lean giving months and the winter much fatter.

A majority of church goers do not tithe. If 20% of your church attenders tithe, you are doing well. Personal giving information should be kept in strictest of confidence and pastors should resist the temptation to shame a congregation. Very few individuals should be privy to individual giving information. In some cases, a pastor may not want to know so that it does not interfere with relationships.

If the spending gets well beyond what it should be to date, expenses should be tightened. If individual ministry areas have a budget, each area might be asked to cut their budget by a certain amount. Financial expenditures can be curbed by cutting any number of corners (e.g., office supplies).

3. In 2015, churches of less than 200 in attendance had an annual budget of between $100,000 and $300,000. [2] Churches from 200 to 500 attendees ranged mainly between $300,000 to over $750,000 in budget. Churches of 500 to 1,000 ranged mainly between $750,000 and $2,000,000. Churches of over 1,000 tended to have a budget of over 1.5 million.

The percentages spent on various areas seem to be fairly consistent regardless of church size. The biggest expenditure of a church budget is often the salaries and benefits of the pastoral staff. A typical church might spend 45-50% of its budget in this area. This amount includes everything from base salaries to housing allowances to insurance to pension.

A number of resources suggest that a healthy ratio of church staff to church attendees is 76:1. [3] For every 76 people attending your church, you have one FTE or full-time equivalent of a staff member. A full-time equivalent (FTE) adds up part time staff. So if you have two part-time staff at 29 hours each, you might consider that the equivalent of one full-time person. [4]

The typical pay raise each year for the top-staff at a church is around 3%.

4. About another 20% of a church's budget might typical go for expenditures having to do with facilities and the debt thereon. So hopefully a church is not paying more than 10% of its yearly income on a mortgage and debt service in general. Then another 10% might go to utilities and maintenance of property.

5. Most churches have ministry related and outreach expenditures. This can include giving to missions far away or missional projects closer to home. The typical church spends at least 10% of its intake toward outreach or mission in some form or another.

The Wesleyan Church has a rather large (and complicated) expectation for contributions of local churches toward the denomination at large and its educational institutions. For the first $500,000 of a church with normal status, 2.75% goes to the denomination at large and 3.25% goes to the denomination's educational institutions. [6] The district in which that church is located then takes a cut as well. As such, a local church in the Wesleyan Church can find itself paying 10% of its income to the denomination.

6. The typical church has at least 2% of its budget in cash reserve. Perhaps it would be more ideal for an organization/individual to have at least a month's worth of reserve (a little over 8 percent).

7. When setting budget for the next year, there is a balance to find between realism and optimism. On the one hand, if a church never pushes itself to give more, it is unlikely it will. On the other hand, one personality segment of your church is likely to get frustrated if a church is always failing to reach its giving goals, even if it manages to end every year in the black.

Know thy congregation. Not every year needs to be a stretch year, but not every year has to end in budgetary defeat either.

Next Week: Pastor as Leader 39: Capital Campaigns

[1] Here is an annual report for a local church reporting attendance, income, and giving to the larger denomination of The Wesleyan Church.

[2] D. Martin Butler, Foundations of Church Administration: Professional Tools for Church Leadership, B. L. Petersen, E. A. Thomas, and B. Whitesel, eds (Kansas City, Beacon Hill, 2010), 67-79.

[3] "How Churches Spend Their Monday: An Executive Report," Church Law and Tax Store, 2014.

[4] E.g., "Salary, Staff, and Budget Trends of Large Churches," Church Law & Tax.

[5] While the Affordable Care Act is law, it is conventional to keep part-time staff under 29 hours so that an organization is not legally required to provide health care for them. In that sense, two part-time staff at 29 hours each is not really the financial equivalent of one full-time employee.

[6] Monies used for loans, received by bequests, given to missions, and so forth are subtracted from the income number. Income beyond $500,000 is then graded in the percent on which USF-EIF (United Stewardship Fund-Educational Investment Fund) has to be paid. From $500,000 to a million in income, the 6% total goes down to 4%. From 1 to 2 million, it goes down to 2%, and there is no assessment on funds over 2 million.

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, March 05, 2017

Seminary PL37: Muzzling Oxen and Burying Talents

This is the sixth post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the thirty-seventh post in a section on the Pastor as a Leader (see at the bottom).

The previous post was on risk management. In this post we look at some passages in the Bible that relate to church administration.
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1. The Parable of the Talents (Matt. 25:14-30) is about a man who goes on a journey, but entrusts some incredibly large amounts of gold with three of his servants. A talent was well over what would be a million dollars today, so an ancient person hearing such amounts would perhaps shudder at the responsibility given to these three. The first servant gets five talents (over six million dollars). The second two (2.5 million). The final servant got one talent.

As you know, the first two servants invest and double the amount of money. But the third servant is afraid, as perhaps most hearing this parable would have been. He hid the talent in the ground and only had the same talent to return to his boss when he returned.

The first two servants are rewarded. The third, in the imagery of Matthew, is sent into the fire of hell, while his talent is given to the first servant.

Luke has what may be another version of the parable, the Parable of the Ten Minas (Luke 19:11-27). A mina was a sixtieth of a talent, more like $20,000.

2. In their contexts in Matthew and Luke, it is clear that these parables have to do with the time between Jesus' resurrection and return, the time we are in right now. In Matthew, the parable is situated between a parable about having our lamps full of oil when Christ returns (Parable of the Ten Bridesmaids) and a parable about helping others in the meantime (Sheep and Goats).

In Luke the context is similar. Those with Jesus think that that the kingdom of God is going to appear immediately. The Parable of the Minas is thus about what we are to do as we await Jesus' return.

So what does the "investing" of the money stand for? The context of Matthew 25 makes it quite clear. "I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me" (Matt. 25:35-36). The investment in Matthew is focused on investing in others.

3. Certainly the parable has been used in a much broader way, and of course the English word talent comes from this parable. God has given us all different gifts. While we await his return, we should put those gifts to work for his kingdom. Yes, that includes the material resources he has given us. We should invest them into his kingdom and steward them wisely.

As it relates to leading the church, we should be good stewards of what God has given us and his church for the betterment of the kingdom. It goes without saying that leaders should not get rich off the gospel. I have always admired Billy Graham who took a salary from his organization rather than getting rich off of it. Similarly, we should not waste the resources our congregations entrust to us, for we then will have less to give to the master when he returns.

But we must not be too timid either with those resources, like the one who buried the master's money in the ground. I wonder if I have known leaders promoted beyond their capacity (the "Peter principle") who seemed to get paralyzed at the weight of new decisions. But like someone in a house on fire, failure to move can be the worst decision of all. So leaders must at times force themselves to invest their minas, rather than hide them away for safety reasons. And if they cannot handle the pressures of such responsibility, they might honorably seek to work for others who can.

4. The second passage I wanted to cover today is in 1 Corinthians 9:7-11. In this particular chapter, Paul is using himself as an example of how the church is not about personal freedom or rights but about giving glory to God and building up the community of faith. So if I feel free to do something in the Lord but I know it will damage the faith of someone else in the church, I should not exercise my freedom.

Paul uses himself as an example. While he technically should have been materially supported by the Corinthians when he was there, he did not expect that support for the betterment of the gospel. Paul worked with his own hands and at times took material support from other churches perhaps so that he would not become entangled with the strings of patronage at the church he was at.

The ancient world functioned extensively on the basis of what are called "patron-client" relationships. Someone with resources gave to someone without, with an informal expectation of receiving honor in return. [1] If Paul had taken such patronage from the Corinthians, he may have felt it would tie his hands some when it came to preaching the gospel with forthrightness. Without such strings, he could exercise full apostolic authority.

So Paul uses himself as an example of giving up his "rights" for the betterment of the kingdom in hope that the Corinthians would stop using their freedom to eat at pagan temples in a way that threatened to destroy the faith of others in the church.

5. Nevertheless, this passage provides a model for churches needing to support their pastors and spiritual workers materially. "Do not muzzle the ox when it is treading the grain" (Deut. 25:4). Being from the city, Paul finds the literal meaning of this verse irrelevant. Rather, this verse for him had everything to do with those who minister the gospel. He receives a word from the Lord from this verse indicating that ministers should be supported materially for the spiritual work they do.

During the Depression, many preachers were paid in food. Certainly there are ministers who work for almost nothing so that church doors can stay open. Many ministers are bivocational, working other jobs like Paul to support themselves.

But if a church can, it should not be stingy with its "spiritual oxen." Hopefully the days when people think "The pastor only works one hour a week" are over. Churches with a preponderance of that kind of thinking (or worse, with a pastor who is actually like that) are doomed to close. Better to take their mina and give it to another church anyway.

But a pastor should get a living wage from a church. A pastor should get reasonable health insurance and a retirement of some sort. A pastor should either get a parsonage, a housing allowance, or be paid enough to have housing. If a church cannot manage such things, it should think of closing and joining another church.

Next Week: Pastor as Leader 38: Budgeting

[1] This patron-client system arguably is the key cultural background for understanding grace and spiritual gift language in the New Testament. Grace was the propensity to give to others disproportionately to what they might give back in return. It would be wrong to think, however, that one might not play a role in getting that grace or that there were never any informal expectations of how you might respond. We would be wrong, therefore, to assume that grace in the New Testament was unconditional.

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration

Sunday, February 26, 2017

Seminary PL36: Risk Management

This is the fifth post on church administration in my "Seminary in a Nutshell" series. In this series, I first did a section on the Person and Calling of a Minister. Now this is the thirty-sixth post in a section on the Pastor as a Leader (see at the bottom).

The previous post was on leading meetings. This post is on the topic of risk management.
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1. Risk is part of human life, and the church is no exception. Our individual personalities vary in our propensity for risk. The young tend to take more risks, it sometimes seems. They are more resilient, better equipped to rebound from failure or tragedy, and often unaware of potential consequences.

We tend to get more conservative in our risk-taking as we get older. As we get older, we often have less to gain from risk and more to lose. We may also know more stories of failure and be more aware of danger.

"Nothing ventured, nothing gained," goes the quote by Benjamin Franklin, and the church is no different. A church that risks nothing is probably a dying church. Jonathan Haidt suggests that the majority of human beings probably fall on the more protectionist end of the spectrum, which suits our survival as a species. [1] At the same time, there is usually a minority of risk-takers in a culture who push the protectors out of their comfort zone. And of course sometimes the protectors kill the risk-takers.

2. Risk management is that part of an organization that calculates the risks associated with various practices, policies, or procedures. It is an important part of any organization, although it should only speak into the decisions of an organization. An organization run by those whose major focus is to avoid risk is probably an organization on the decline.

I heard a parable of two presidents of an organization once. The first president used lawyers to get the organization out of trouble. The second ran decisions through lawyers before making decisions. The organization experienced phenomenal growth under the first. It started a significant downward trend under the second.

Risk should not be taken lightly, but it should not be allowed to paralyze a church or organization. Small churches are notorious for change and risk avoidance. Meanwhile, growing churches and organizations can usually point to key moments when reasonable risks were taken. Mind you, we are probably not talking about crazy risks. Jim Collins and Morton Hansen disabuse us of the notion that successful businesses are run by leaders who are wild, intuitive risk takers. Rather, they are individuals who have good data-driven intuitions. [2]

3. What kinds of risks are there? Here are some areas of risk for a church:
  • legal risk - the major focus of this entry, risks relating to potential lawsuits or legal penalties
  • financial risk - risks to the financial health of the church
  • operational risk - risks to the healthy functioning of the church's operations
  • membership risk - risks to the attendance or participation of a church's attendees
  • impact risk - risks to the impact of the church on the community or the world
  • spiritual risk - risks to the church's relationship with God
Church boards and congregations weigh these sorts of risks all the time when making decisions. How will those who come to this church react to this decision? What impact will this decision have on the community around us? Will this decision improve the spiritual condition of the church or cause it to deteriorate? Will this decision help the church function better or worse? Do we have adequate finances to undertake this venture or will it have a negative impact? What will be the impact on morale if we make this decision?

4. Even though I classified this post in terms of legal risk, I don't mean to give the wrong impression. For the most part, the regulations of the law serve to protect and benefit the people in our churches, including the pastor and staff. Excesses here and there do not outweigh the general good of the law for the people in the church.

Local contexts often have laws that an individual congregation has to address. There are zoning laws, for example, that affect where a church can be located. I knew a church that had to make major changes to its landscaping when it entered into a building program because of local laws. Some contexts can be hostile to churches, making it increasingly difficult to advance. Others direct their prejudices toward other groups.

Perhaps 1 Peter 2:12 is relevant here: "Have such good conduct among the nations that, even when they slander you as bad people, they will be forced to glorify God on the Day of his visitation because they have seen your good conduct." Similarly, "Always be prepared to testify to those who ask about the reason for the hope that is in you" (1 Pet. 3:15). If Romans 13:1-7 means anything, it suggests that Christians and churches should abide by the laws of the land--whether they make sense or not--unless they come into direct conflict with serving God.

5. Some of the topics related to legal risk include:
  • contracts
  • background checks
  • taxes
  • insurance
  • financial audit
There are sites that go into much more detail with much more expertise on these sorts of matters than I possibly could. Here are a few:
6. Smaller churches have traditionally handled such things by way of someone who happens to be gifted with accounting or finance. Small churches often have individuals with such gifts in attendance and they often get elected church treasurer. Churches also usually have a small group of individuals appointed trustees to be the legal representatives of the church.

Being part of a denomination usually helps in these areas, as there are usually individuals within the larger organization who can create forms and inform about best practices. The larger organization usually has a legal structure within which it operates and the smaller church can simply fill in the blanks of that legal framework. Larger churches will typically hire someone to take care of these dimensions of the church.

7. So a church should have by-laws that establish who has legal authority within the church. For my church, The Wesleyan Church, our Discipline establishes the overall legal framework for churches in the denomination.

My denomination gives yearly tax advice to its pastors and churches. The tax situation of ministers is more complicated than for most people, and it is not uncommon for those who prepare taxes not to be familiar with the details. Ministers are usually considered to be self-employed, which means that they can deduct a housing allowance from their salary. They also then have to pay their social security directly (rather than the church paying it).

8. The ins and outs of such things can be rather complicated. For example, the Affordable Care Act and the Fair Labor Standards Act put restrictions on part time labor and require insurance for certain people. But these are moving targets, especially as presidential administrations change. Hopefully a local church is either part of a denomination tracking such things for them or it has one or more gifted individuals who can seek out the proper information.

The Affordable Care Act provided new means for pastors to have solid health care. Denominations use different insurance groups. Some pastors use groups like Brotherhood Mutual or Christian Healthcare Ministries. Some of these groups operate by reimbursing members after they have paid for an expense. In this way, their yearly cost depends on the actual amount of medical expense after the fact rather than on a calculation of a probability beforehand. The downside is that the insuree may be out of pocket some in the meantime.

9. A church's financial books should have a yearly audit by a third party that does not have conflicts of interest with the treasurer. Accountability is key to preventing and catching wrongdoing, as well as to making the broader congregation have confidence in the church.

10. Special care should be taken in relation to those who would work directly with children. A background check is in order. This should be a policy rather than a matter of special resource. No one should be singled out.

It is good practice for youth groups to have parents sign their permission for any special activities that may take place. Such permission usually asks for emergency contact information and perhaps permission to get medical treatment if necessary. Sometimes such permission forms ask the parent not to hold the church responsible for any accidents that may take place on the trip or outing. Such statements would not let the church off the hook for any gross negligence.

11. Confidentiality is not only loving and therefore Christ-like. It is wise. The private information of employees should be kept private. The biblical world was a shame culture but the Western world is not, and shaming does not have the same consequences that it had in the biblical world. "Discretion is the better part of valor."

12. I would hope that the church--of all institutions--would be an equal opportunity employer. Churches that do not hire women or people of color for those reasons are a disgrace and embarrassment to God and the kingdom. The composition of a church should at least look like the community in which it is located. Even better, it should move toward the kingdom of God in Revelation 7:9, where people of every nation, tribe, people, and language will be present on an equal footing.

13. When deciding whether to take a risk, there are a number of options:
  • Don't take the risk.
  • Reduce the risk in some way.
  • Share the risk with some other entity.
  • Fully take on the risk. [3]
Doing a risk assessment should be part of any new proposal. There will always be risk in any decision--including not making a decision. Doing nothing is often much riskier than taking a chance on some other course of action. This relates to the hats of Edward de Bono's Six Thinking Hats. In this tool, he suggests your group think through a decision by going through several "hats" in the process. You are not supposed to mix the hats but only use the way of thinking of each hat, one at a time (I have changed the hats from how he used the colors):
  • gray hat - facts and figures, data only
  • red hat - how are you feeling about it (no facts, just feelings)
  • yellow hat - what are the negatives (I am changing this to relate to caution)
  • orange hat - possibilities thinking, positive speculation (changed from his list)
  • green hat - creative thinking
So when you are wearing the yellow hat, as I am defining it, you consider risk and possible negatives. You get it all out of your system. Then you have to let the other hats have their full say when you are doing them. The yellow hat can be put on again but it is not allowed to infect the orange or green hat times as I am defining them. This limits naturally negative people to just those parts of the discussion when the negatives are being discussed, when the "yellow hat" is on.

Bottom line: "Be wise as serpents and harmless as doves" (Matt. 10:16).

Next Week: Pastor as Leader 37: Muzzling Oxen and Burying Talents

[1] The Righteous Mind.

[2] Great by Choice.

[3] See "Risk Management" in Wikipedia.

Leadership in General
Strategic Planning
Church Management
Conflict Management
Church Administration