CREATING A CULTURE OF GENEROSITY Salem Presbytery Stewardship Workshops Tom Norwood, CFRE

1. CREATING A CULTURE OF GENEROSITYSalem Presbytery Stewardship WorkshopsTom Norwood, CFRE May 2009

2. PRESENTATION OUTLINE • Understanding stewardship and the world of philanthropy in 2009: Tom’s Top Five List • Creating a culture of generosity in your church: addressing those realities • Resources for pastors and stewardship committees • Discussion

3. Questions for Discussion • What is the biggest stewardship challenge in your congregation? • What was the best part of your 2008 stewardship program? • What part of your 2008 stewardship program would you do differently?

4. Reality #1 Over $300 billion was given to charities in 2007

5. 2007 Giving in the US • Individuals: $ 229 billion 75% +2.7% • Foundations: $ 38.5 billion 12% +9.1% • Corporations $ 15.7 billion 5% +1.9% • Bequests $ 23.1 billion 8% +6.9% • TOTAL $ 306.4 billion +3.9 • Source: Giving USA, 2008

6. Giving By Sector Religion 33.4% Education 14.1% Human Service 9.7% Foundations 9.1% Health 7.6% Public Society 7.4% Arts/Culture 4.5% International 4.3% Environment/Animal 2.3%

7. Good News/Bad News • Good News: More money is given to religious causes than to any other sector • Bad News: In the last 40 years, religion’s share of the philanthropic pie has declined from 51% to 33%

8. Bad News/Good News Bad News: Consumer confidence and the markets are in the tank Good News: Charitable giving has continued to grow

9. The Volatility of Consumers and the Markets

10. 40 + Years of Giving

11. Reality #2 • The environment in which today’s stewardship programs exist is both competitive and challenging

12. The Competition Year# of Nonprofits Amount Given 1986 375,000 $121 billion 2006 1,478,000 $295 billion Charitable giving has doubled in the past 20 years, but the number of nonprofits has tripled!!!

13. The Challenges • Since 9/11 donors are giving to half as many charities as they did before then • The top 400 charities receive more than 25% of all contributions; the other million plus organizations split the remaining 75% • Last year continued a trend in which fewer and fewer donors are providing most of the contributions to many big organizations, including churches

14. Reality #3 One Size Does NOT Fit All

15. Differences Matter • Donors in their 70s think about philanthropy differently from those in their 30s and they give by different means as well • Different donors give for different reasons • Most churches’ support comes from a small group of givers

16. Today’s Generations • Generation Birth Generation Years Type • GI Generation 1901-1924 Civic • Silent Generation 1925-1942 Adaptive • Boomer Generation 1943-1960 Idealist • Thirteener (Xer) Generation 1961-1981 Reactive • Millennial Generation 1982-2002 Civic

17. GI and Silent Generations • Trained in stewardship from childhood • Giving is a public responsibility, a necessity • Trusting attitude toward institutional church • Money = security • Money followed mission

18. Boomer and 13-er Generations • Grew up in time of economic expansion and rising stocks markets; affluence a given • Boomers: distrust of institutional church… little denominational loyalty • 13-ers: will trust church if it “works”… looking for a community, not a church • Both groups: money is a “tool” …mission must follow money

19. Donor Motivation • The Communitarian: Doing Good Makes Sense • The Devout: Doing Good is God’s Will • The Investor: Doing Good is Good Business • The Socialite: Doing Good is Fun • The Altruist: Doing Good Feels Right • The Re-payer: Doing Good in Return • The Dynast: Doing Good is a Family Tradition

20. Donor Gifts • One study of church giving patterns: • 10% of members give 50% of support • 10% give 30% (thus, top 20% give 80% of support) • 30% give 10% • 50% give 10% (including 33% who give nothing)

21. Reality #4 • Churches and pastors are uncomfortable talking about money. As a result: • Assume (and hope) that people will give • Pastoral ministry opportunities limited • Pay limited attention to donors • Minimal number of “money” sermons • “One size fits all” stewardship programs • Struggle to fund mission

22. Reality #5 Many churches’ most faithful and generous donors are dying; they are being replaced by members who are younger and more financially overextended

23. Responding to these Realities: Creating a Culture of Generosity in your Church

24. Recommendation #1 Build your stewardship program on the generosity of God

25. Recommendation #2 Create a strategic plan in order to clearly define your church’s mission and the specific steps necessary to carry out that mission, then (AND ONLY THEN) create a stewardship program to fund the strategic plan

26. Recommendation #3 Don’t assume that church members will give financial support to the church— Do create a compelling case for support

27. Quotes of the Day • “People don’t give to the church because it HAS needs, they give to the church because it MEETS needs.” (Bob Shelton) • “The reality of human life is that people don’t like to give away money. They will, however, give generously if they know that they are changing lives or making a difference.” (Bob Hartsook)

28. Recommendation #4 • Create a “narrative budget” • Put “faces” on the budget numbers • Use the current budget to thank members for their support • Focus on ministry areas (worship, education, outreach, etc.) rather than on budget categories (personnel, facilities) • Prioritize ministry areas from congregation’s perspective (e.g., worship is where most members make contact with the church and thus priority #1)

29. Recommendation #5 • Take seriously the different giving motivations and generations within your congregation • Segment the members of your congregation by generation • Design materials that address the concerns of that generation • Include different generations on the stewardship planning committee

30. Typical Stewardship Programs: Done Faithfully but Done Wrong! • Session projects coming year’s budget (may be rough draft) • Interprets budget to congregation • Newsletter articles, Minutes for Mission, letters, brochures • Pastor preaches motivational stewardship sermon on single stewardship Sunday • Pledge Cards toward coming year’s budget circulated by • US mail • Handed out in church • Pony Express or other house to house system • Pledge Cards returned by due date • Session totals pledge cards totaled, adjusts budgets, dedicates pledges in worship • Following year, process repeated

31. Speaking to the Generations • GI and Silent: • Emphasize Planned Giving • Fear management • Encourage them to share stories and values • Boomer/13er: • Earn trust • Provide choice and control in giving • Educate about stewardship • Model sacrifice: set an example with church giving

32. Recommendation #6 • Remember that funds development is a process and that the “ask” is but one small part of that process

33. The Funds Development Process

34. Recommendation #7 • Make planned giving a part of your stewardship program

35. Planned Giving Realities • Bad News: Less than half of adults have a valid will or other estate plans • More Bad News: Only about 8% of Americans leave a bequest to charity • Good News: Bequest receipts double from 1985-1995 and doubled again between 1995-2005 • Surprising News: Income from bequests has been the fastest growing source of gift income over the past 40 years Source: Robert F. Sharpe, Give and Take, July 2007

36. Demographic Trends • 1 in 8 people in the US is over 65 • Those over 50 control 75% of US wealth • 70% of those over 85 are women • There were 70,000 100-year-olds in the US in 2005 • and…………

37. By 2050 the Census Bureau estimates 1 million 100 year-oldsSource: Alexander Macnab and Co.

38. Remember • Donor giving patterns change over the course of their lifetimes • A small minority of Americans leave a charitable bequest • Donors choose the bequest recipient in the last five years of their lives

39. The Later Years

40. Recommendation #8 • Don’t be afraid or ashamed to talk about money in the church • The roof will NOT cave in • Pastors will be more effective church leaders • The church will increase its support of its mission

41. One Final Thought “He who deliberates fully before taking a step will spend his entire life on one leg” -Chinese Proverb

42. Questions and Comments