Podcast Episode #276
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Church financial issues can sometimes precipitate church death. So today we cover a post by Art Rainer on the warning signs that a church may be dying financially.
Also, we’re collecting church budget data for a massive research project. If you’d like to participate, email your church budget to amy@churchanswers.com. Every participant will receive a free copy of the research once it releases, and the first 10 submissions will receive a free copy of Who Moved My Pulpit?
Some highlights from today’s episode include:
- Stewardship is part of the discipline of Christian life, therefore we should preach on it.
- Pastors should not apologize for preaching on money and stewardship.
- If members do not trust the church leadership, they will give less.
- Consider starting your church budget process with your ministry expenses—not personnel or facility costs.
- Offering more options for giving typically means all types of giving will increase.
- Churches should constantly be evaluating how they are spending their money.
- Churches should be taking steps of financial faith, not financial foolishness.
The eight signs of a financially dying church which we discuss on the show are:
- Failed to preach and teach stewardship.
- Took on too much debt.
- Was not transparent with finances.
- Used very few dollars to reach and minister to the community.
- Did not have multiple options for giving.
- Did not constantly evaluate how funds were spent.
- Never took wise steps of financial faith.
- The church relied on a few big givers.
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Feedback
If you have a question you would like answered on the show, fill out the form on the podcast page here at ThomRainer.com. If we use your question, you’ll receive a free copy of Who Moved My Pulpit?
Debt can equal church death. If a church borrows when things seem okay, and then the economy takes a downturn (or the young people simply leave), then the church may close. The big question is always, “Who is going to pay off this debt?” If you assume it will be today’s young people, prepare to disband.
Good word, Cynthia.
Our new pastor has brought with him many changes, most of them good and many have been baptized as a result. However, our committees have been disbanded with all decisions being made by the elder board with no committee input. Financial transparency has taken a hit as well. Should I worry?
It depends on what you mean by “financial transparency.” If the congregation is prevented from viewing any and all financial documents by “the elder board” then I’d be concerned. You should be able to request information and get it. There is no biblical mandate, however, for every expense to be put before the church for a vote. So it really depends on how murky the financial procedures are. As a pastor, I don’t have hardly anything to do with the finances outside of help in creating vision that a budget will support. I do not count money, or write checks. If someone tries to hand me their tithe, I guide them to someone else. Personal preference.
This kind of insight is desperately needed today, maybe more than ever. I’ve been in churches that prayed in community over everything, depending of God for everything and saw God do absolutely amazing things. I’ve also been in others that were guilty of just about all of these mistakes and stayed in a financial crisis.
I failed to preach on stewardship on a regular basis. I was taught that, “If a man’s heart is right, his pocketbook will be right.” While that sound plausible, it is not always true. I preached one Sunday about our church’s giving to the CP and Assn. They were used to designating an amount rather than a percentage. When I presented the facts to them, they rallied around me and began giving 8% to the CP and 4% to the Assn.
Not every church will respond the way that this one did.
#4 is the biggest challenge. By the time you pay the salaries of staff and the costs of keeping up the building and costs of programs and cooperative program, there’s not much left for outreach or the community.
Thanks, Jo. Subscribe to ArtRainer.com. He will be addressing this issue in detail in the near future.
Our church addressed this issue effectively by asking for (and receiving) a year end offering earmarked for “Ministry”.
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Thank you for this post Thom. I think #3 is very important, more so today than ever. There are so many ministries we can give to and see how those gifts affect real people. Yet, with some churches it’s a black box and we have no idea. It’s not that our heart isn’t right, it’s that we want to understand the impact to ministry and the kingdom. When I read about stewardship a recurring theme is you’re not managing your own money, but that of others. In the church it’s one step higher because people are giving to God. It’s a blessing for the flock to hear about the impact of their loyalty and obedience to scripture. To only publish a weekly budget and giving statement seems lazy, not just to me but to many. I’m sure some may not like to hear that, but it’s true.
I’ve been attending a church for three years and couldn’t tell you where one dollar goes, or what ministries we support. Yet, I’ve been working in a para-church ministry for three months and there’s full disclosure. Our church is always struggling yet the ministry is overflowing with abundance. I don’t know why there’s such a desire to conceal from the body what the body is ultimately providing (through God’s grace of course.) Maybe this is just a small church problem, but I suspect it’s not. I’ve mentioned it to leadership, but there seems to be some sort of wall there. I’ll be praying that leadership not only preaches on stewardship but practices it.