GBOD | Stewardship




	Frequently Asked Questions About Stewardship *CHRISTIAN STEWARDSHIP* What is the mission of the Center for Christian Stewardship? What is Christian stewardship? *ANNUAL CAMPAIGN* Does every local church need to conduct an annual campaign? How many years can a local church use the same annual campaign? What are the best annual campaign programs? Who should run the annual campaign? Does an annual campaign need to be held in the fall? *CHURCH BUDGET* What is the relationship between the annual operating budget and the annual campaign? What is a narrative budget? Is it different from a line-item budget? What percentage of a church's total budget should be allocated for staff salaries and benefits? How much money should a church keep in a reserve fund? *ELECTRONIC GIVING* Why would people want to give to the church electronically? When would this automatic contribution be withdrawn from a personal account? How does a church begin an electronic giving program? What does a parishioner need to do to set up an EFT with a church that has an established electronic giving program? Is there a minimum amount that a parishioner needs to give in order to establish an EFT transaction? Is an EFT transaction risky? How can one keep a record of one's contributions? What if the church member changes banks, closes/opens accounts, or desires to make a change in the contribution amount? Will church members face any bank charges for EFT transactions? Can parishioners give to the church by making a credit card contribution? *CHRISTIAN STEWARDSHIP* What is the mission of the Center for Christian Stewardship? Our mission is "to encourage the joy of generous giving in congregations and individuals by providing church leaders with exceptional stewardship resources, training, and consultation." What is Christian stewardship? Clarence Stoughton said, "Stewardship is everything you do after you say, 'Yes' to Jesus." Stewardship is a lifestyle choice that recognizes that everything is a gift from God. Our responsibility as Christian stewards is to manage all the gifts that we have received from God. God is the true owner of all that we have in life. Jesus consistently taught that our responsibility as his disciples is to recognize that God is the provider of all that we possess and that our call is to be generous givers of our financial resources. A Christian steward contributes his or her time, talent, prayers, and financial resources with a willing and joyful spirit. Being a generous giver is a spiritual response to God's goodness. *ANNUAL CAMPAIGN* Does every local church need to conduct an annual campaign? Not necessarily; however, every local church needs to emphasize percentage giving and tithing at least once a year. For many churches, the most appropriate way to conduct this annual emphasis is through an annual campaign. This annual emphasis, including annual campaigns, should be a focused time in the life of the church when the congregation, individually and collectively, is encouraged to develop the joy-filled spiritual gift of generous giving. How many years can a local church use the same annual campaign? Generally, three consecutive years is the maximum lifespan of any annual campaign program. A church will experience diminishing financial results from an annual campaign in the fourth year and following years. However, a campaign program may be reintroduced to a congregation in four to six years after at least two other campaign programs have been used. What are the best annual campaign programs? The best program for one congregation may not be the best program for another congregation. Review two or three programs and make a decision based on the match between your local church and the program. Click here for a list and descriptions of spiritually-based annual campaigns with proven results. If a local church has not conducted an annual campaign in several years or has never conducted a campaign, then the Center recommends The New Consecration Sunday by Herb Miller. Who should run the annual campaign? A group of visionary people who have the spiritual gift of generous giving! Ideally, all the members of the Committee on Finance are generous givers (in relation to their financial ability to be able to give). However, they may not be the most visionary people in the church. It is usually most effective for the campaign to be run by members who are not part of the Committee on Finance. It is helpful for a member of the Committee on Finance to be involved with the annual campaign and to provide reports to the Committee on Finance. Most Committee on Finance members have so many other responsibilities and gifts that they may welcome another group of leaders being responsible for the campaign. Seek people who are passionate about their faith, have a dream for the church, often suggest new ministries for the church, and may like to serve on a committee that has a specific task and a specific timeline. Does an annual campaign need to be held in the fall? No. An annual campaign may be conducted at any time during the year; however, fall and spring tend to be the most appropriate times. Annual campaigns held in the fall related traditionally to an agrarian society and the fall harvest. While most communities are no longer agriculturally rooted, the fall season remains popular — primarily because of tradition and people's charitable giving patterns. The number of annual campaigns held in the spring has been increasing steadily. The spiritual gift of giving correlates with the themes of Lent and Easter. *CHURCH BUDGET* What is the relationship between the annual operating budget and the annual campaign? The development of the budget and the implementation of an annual campaign should be distinct and separate from each other. The purpose of the annual campaign is NOT to underwrite the budget and to pay for expenses. Its purpose is to provide a focused time in the life of the congregation when individuals are encouraged to develop the spiritual discipline of financial giving. What is a narrative budget? Is it different from a line-item budget? The narrative budget is one way to give people — especially those in leadership positions — an opportunity to experience the mission and ministry that are achieved through the various line items. It focuses less on the financial numbers and more on what the income accomplishes. It is a one- to two-page presentation that explains: (1) what the church hopes to accomplish and (2) why the funding is needed to reach and exceed its goals. Click here to learn more about narrative budgets and see an example. What percentage of a church's total budget should be allocated for staff salaries and benefits? The percentage of budget allocated for staff salaries and benefits will vary widely depending on the size, program, mission, and ministry of a particular church. Even with similar size congregations, this percentage has a tremendous range. For instance, one church dedicates more than fifty percent of its budget to staff salaries and benefits, while another church of similar size expenses less than thirty percent of its budget on staff salaries and benefits. One generalization can be observed: As with any organization, personnel costs in the local church are typically one of the greatest line-item expenses. Rather than focusing on personnel costs, church leaders should be examining staffing as it relates to fulfilling the church's mission. Thus, church leaders might raise this question: "Is the church adequately staffed to fulfill its mission and ministry?" How much money should a church keep in a reserve fund? A reserve fund is different from an endowment fund or any other ongoing designated fund. The purpose of a reserve fund is to meet expenses in the event that income does not equal or surpass expenses in a given time period (i.e., month, quarter, or year). Most churches need to maintain at least a small reserve fund because of the variability of expenses and income throughout the fiscal year. Some experts suggest a reserve fund should range between three percent and ten percent of the annual budget. To determine a specific reserve fund level, consider the following steps: Chart the church's normal income and expenses by month. Determine the times of year when the church experiences its greatest income and its greatest expenses. Once you have determined an appropriate reserve fund level, establish a clear policy for remaining reserve funds at year end. The goal of maintaining a reserve fund is not to hoard money, but to establish a safe cushion in the event of expenses exceeding the income. *ELECTRONIC GIVING* Why would people want to give to the church electronically? Many people who give regularly find that giving by electronic transfer is a convenient option. Convenience is especially important during times when people cannot attend worship. Electronic giving also helps the church predict its income so that the mission and ministry of the church can be planned adequately. When would this automatic contribution be withdrawn from a personal account? Most automatic contributions are withdrawn on a biweekly or monthly basis. The contributor is informed of the specific numerical date of withdrawal when the EFT is established. Most third party administrators withdraw funds around the 5th or 20th of each month, although the numerical date is selected by the local church. How does a church begin an electronic giving program? Click here for information. What does a parishioner need to do to set up an EFT with a church that has an established electronic giving program? In most instances, a parishioner simply completes an enrollment form, attaches a voided check, and submits them to the church office. After approximately three weeks, contributions will start being deducted on a regular basis. Is there a minimum amount that a parishioner needs to give in order to establish an EFT transaction? Most churches do not have a minimum contribution requirement. Is an EFT transaction risky? No. Actually, an EFT transaction is considered to be safer than writing a check or giving cash. An EFT is governed by strict regulations and guidelines. Nearly 10 billion EFT transactions are processed annually in the United States and Canada. How can one keep a record of one's contributions? Each bank statement will include an itemized list of automatic withdrawals from the account. The EFT contribution to the church will be included in this list. Most churches will continue to send members a year-end giving statement. What if the church member changes banks, closes/opens accounts, or desires to make a change in the contribution amount? A church member can change accounts or the amount contributed by contacting the church office or volunteer in charge of EFT transactions. The change will be effective with the next withdrawal. In the event that notification is not received with enough advance notice, an adjustment will be made within a few business days. Will church members face any bank charges for EFT transactions? No. In fact, the church member will actually save money since no check is written to the church. Can parishioners give to the church by making a credit card contribution? Although some churches do accept credit card transactions as contributions, serious concerns may arise from a church accepting credit cards. These concerns include the high service fee assessed to the church in processing credit card contributions and the potential impact that credit card acceptance may have on the escalating consumer debt. Extreme caution should be exercised for both the church and the parishioner before completing credit card transactions. • • • Written by the Rev. David S. Bell (dbell@gbod.org), Director of the Center for Christian Stewardship, the General Board of Discipleship of The United Methodist Church. Copyright © 2005 The General Board of Discipleship of The United Methodist Church. All rights reserved. Any local church, regardless of denominational affiliation, or any United Methodist organization may reprint any or all of this document provided that the author is cited and the following copyright notice appears: Copyright © 2005 The General Board of Discipleship of The United Methodist Church. Used with permission. We request that websites not republish this material, but link to it instead. Revised 2-9-05		« Back to articles