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An Open Letter to PastorsFollowed by a word from
Rev. Douglas G. Peck, CFRE March 2009
IS THE SKY FALLING?No, but you might have to prop up the church ceiling. Does the economy affect what people give to your church? I can hear a resounding, yes! Some pastors are convinced of this because weekly offerings are shrinking. So many voices are saying the same thing, “Houston, we’ve had a problem.”1 The world economy ran downhill in 2008 and no one is sure where it will stop in 2009. It is alarming to many and rings a cautious warning to others. If your church feels its negative impact, what can you do to alleviate it? Everyone knows financial conditions are bad, but just how bad? Talk show host Dave Ramsey2 says that personal finance is just that—it’s personal. Pastors feel that way about their church offerings. The church offering is an important lifeline to the future. If your church is showing signs of financial weariness, could it have more to do with the Chicken Little effect3 than a real threat? In that old fable, the chicken’s belief that the sky is falling set off hysteria, a mistaken belief that disaster is imminent. History changes the moral of the story based on what version is told. One version’s moral says that Chicken Little jumped to conclusions creating mass hysteria, “which the unscrupulous fox uses to manipulate them for his own benefit, some as supper.”4 There are leaders in your church who may overreact or choose to manipulate the current economic climate to force or curtail the church agenda. Mature leaders understand that money is only a tool for accomplishing God’s work. Leaders who understand biblical generosity teaching know that generosity expressed through giving measures how fast and how deep a disciple matures in Christ.5 Possessions, wealth, spending and giving are subjects that are a “big deal” to God, reflected in the amount of Scripture devoted to the topic.6 Churches tend to minimize it, but God doesn’t. It is a powerful indicator of spiritual maturity. Dollars are important to advance ministry but should never be the deciding factor for determining God’s will. Pastors have the least to fear in the current economic crisis. They also have greater responsibility for believing and teaching God’s view of stewardship which demands godly sacrifice and biblical generosity. This is a time for living and giving the way Jesus taught. In this current economic climate, pastors should find solace in the following:
If your personal disposition leans toward viewing the glass as “half full,” you will like the perspective of Bradford Wm. Voigt, CFRE, and director of institutional advancement at Harvard University Art Museums. Voigt wrote a convincing article last fall showing the resiliency of charitable giving tracked over the past 25 years.11 Citing Giving USA data12 from 1980 through 2007, total charitable giving increased every year except one. The decrease of 1 percent in 1987 was directly affected by a 1986 announcement that changed the tax deductibility of gifts, which caused donors to “pre-give” that year to qualify for deductions to be phased out in 1987.13 Increased giving occurred 24 times in 25 consecutive years. There were three recessions during that period (1980-1982, 1990-1991 and 2001).14 In each recession, annual charitable giving continued to increase along a spectrum of 3 to 20 percent. Voigt concluded the sky is not falling. Giving USA 2008 reported in a press release that giving rose in 2007 by 3.9 percent (before adjusting for inflation).15 If your church is feeling the financial squeeze of a down economy, or you often see the glass “half empty,” you may identify more with the briefing presented by The Center on Philanthropy at Indiana University.16 This report pooled charitable giving trends over 40 years to measure true giving impact after adjusting for inflation. When the economy slows, giving also grows at a slower rate. During economic downturns giving tends to decline on average by 1 percent when adjusting for inflation. In years in which there are eight months or more, recession giving decreases by 2.7 percent. During the longest recession posted in recent years (1973-1975), giving fell by 9.2 percent after adjusting for inflation (5.4 percent in just one of those years, 1974).17 Giving USA18
Using the same raw data both reports arrive at a different conclusion. How could this be? The difference is obvious when adjusting for inflation. Before adjusting for inflation, giving grows in spite of the economy. Adjust for inflation and growth decreases by 1 percent. Both views are accurate. Inflation-adjusted numbers seem to show a direct correlation between giving and conditions in the overall economy.21 But compared to growth in giving during good years, the decrease has a minimal effect, including upon the offering plate. If the downward economy is not felt in your church, you’ll find Voigt’s analysis a source of hopeful encouragement that people continue to give, especially to their church or religious causes, during tough times (the church is high on their list of giving priorities). Your church may never experience a decline. The sky is not falling. If your church feels a squeeze or sees an economic threat building in its community, find strength in knowing the historical impact on the church in such times is small. Even in the darkest days of the mid 1970’s, during the worst recession, giving remained strong even for the church. If weekly offerings are shrinking, you will have to prop up your church’s financial ceiling by strategically reducing the church budget in certain areas, but the sky is not falling. The past is an indicator of the future. The economy will recover. It may take 12 to 18 months or more to fully recover, but the market will correct. One view (Voigt’s report, with figures not adjusted for inflation) shows no strong connection between increased giving and the economy. The other view (the report by The Center for Philanthropy, adjusting figures for inflation) shows a link between decreased giving and hard economic times. Interestingly, Voigt also provides data to prove giving does increase even in times of war, recession, and other crisis.22 A report released last November addressed Religious Giving in Uncertain Times: Insights for Congregations and Faith-Based Nonprofits.23 A similar report, the Briefing on the Economy and Charitable Giving, released in December 2008. Both make a connection between giving and conditions in the economy.24 However, its negative impact on giving to religion after adjusting for inflation is minimal even during periods of recession compared to growth rates in better times. Following are summary conclusions from these two reports. The statements are true for churches. Giving to evangelical churches is usually stronger than to churches of mainline denominations.
This same report provided wisdom for times of economic uncertainty. What should a pastor do in response? Among the best ideas suggested26 are these:
If your church is directly affected by the current down economy, this report suggests preparing a flat budget that reflects no more than 2 percent growth throughout the year. Also, think through a worst-case scenario: that giving may decrease, but not more than 5 percent. For some, 2008 was a wake-up call. These days are reminders of how vulnerable humans are to powers they cannot control. God is in control. God’s heart will protect the Church, Christ’s Bride. So lead with confidence. Consider a few more suggestions to help your church arrive at the other end of the current recession whole and financially strong.
Chicken Little wants us to believe the sky is falling. We are experiencing “the lowest overall level of confidence in the fundraising climate for U.S. charities in over a decade….”27 This may be a growing view, but it doesn’t reflect the facts of history. Whichever view of the glass (half full or empty) you adopt, the message is the same. Giving, especially to the church, remain strong in spite of economic realities or forecasts. In better conditions, giving grows quickly. In tougher times, any decrease is minimal. This is a testimony to the generosity of people. If this kind of goodness and generosity flows from a human heart, think what a believer in your church might do when he or she fully understands biblical generosity principles and practices them? It is God’s design for funding your ministry. Teach them God’s truth and watch what will happen in your church. Generosity is rewarded. Jesus promised. A special word follows from Dr. Jerry Sheveland.
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