By Editor Bob Terry
Many Alabama Baptist churches are in the 2017 budget-making process. That makes information recently released by Leadership Network especially timely. The information comes from an analysis of more than $1.5 billion in personal giving to churches.
Some of the giving patterns documented may seem obvious but perhaps not all.
For example, the study found the new givers provide about 6 percent of annual giving to a church’s general fund. Six percent is a respectable increase in year-to-year giving but some may have expected a larger contribution from first-time givers and new members.
First-time givers
The Leadership Network report points out that just because someone makes a first-time gift to the church that does not mean they will make a second gift. In fact, almost half (45 percent) of first-time givers never make a second financial gift to the church budget.
When first-time givers were tracked forward, analysts found that 52 percent of them dropped out of giving to the church at all during the second year.
So far the idea of trying to grow the church budget through new givers is not encouraging but there is some good news. The 48 percent of first-time givers who continue giving to the church into the second year increase their giving by 64 percent on average.
Budget-making
When a church is fortunate enough to enlist a new family that practices tithing those averages are blown out of the water. Unfortunately that is relatively rare. Leadership Network found less than 1 percent (0.6 percent) of new giving units (a family) contributed $10,000 or more to a church budget in a calendar year.
Another strategy often discussed at budget-making time is how to get those who did not give during the past year to become active givers. Again the news is not good. Despite untold attempts, no one has yet discovered a good way of moving someone from the nongiver side to the giver side.
The report stated that only 3 percent of those who did not contribute to the church budget in the current year will make a gift in the coming year.
The percentage of reclaimed givers is low but nothing is reported about their average gifts to the church budget. That means the group cannot be overlooked.
Changes in members
One area seldom discussed during budget time is the impact of people who will leave the congregation during the coming year.
This is not a reference to people becoming angry and leaving. It only recognizes that churches are impacted by changes in the lives of members.
The report said large churches will lose 10 giving units for every seven gained during a 12-month period. That is a 30 percent loss.
Though the numbers may be different, it is probably true that all churches face a challenge of reaching new givers to replace those who die, become inactive or move away. This should not be overlooked in budget planning.
Inevitably the focus for increased giving to the church budget turns back to currently active members. That is where the bulk of the giving must come, but even there a church faces a challenge.
Only 6 percent of church families give $10,000 or more to the church in a year’s time, Leadership Network found.
The giving of that 6 percent makes up about 41 percent of a church’s offerings. It is not exactly the 80–20 rule (80 percent of the work done by 20 percent of the people) but it is close. A handful of church giving units provide the core of a church’s giving.
The report went further. The families that fall into this top category usually grow in giving so that the average giving for all in this category is $18,842. In today’s economy that is generous giving.
Major financial challenge
But all of these categories combined make up only half of the church’s giving — 6 percent from new givers, 41 percent from major givers and whatever amounts reactivated givers contribute.
That is about 50 percent. The church still faces a major financial challenge.
An additional finding provides insight. The study reported that for every $1 million in gifts to the church budget, it takes 396 giving units to reach that goal.
Doing the math that means the vast majority of giving units (families) give about $2,525 annually to the church budget.
According to several sources, that is about as much as the average working husband and wife spend for coffee during the course of the year.
Charitable causes
Another interesting insight: millennials generally view giving to other charitable causes on par with giving to the church. Millennials value direct assistance in their giving and church budgets do not provide that connection, experts say.
Also millennials give about one-third as much to charitable causes as baby boomers. That may reflect that they usually have fewer resources than baby boomers but whatever the reason, it should be considered.
Challenging task
Taken as a whole the findings of the Leadership Network study indicate churches have a challenging task trying to increase their annual giving. Characteristics of the millennial generation only amplify that task.
Perhaps a starting point is to help people understand the tithe “is the Lord’s” (Lev. 27:30). Helping people grasp the principles of biblical stewardship may be the best place to begin. After all the primary reason Christians give to the church is not for a particular need but in obedience and faithfulness to God.
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