October 16, 2013

Stewardship: A Broken Model?

A common misperception is that new members are needed to increase income to the operating budget. This assumes that new members will and are able to give.

Working with congregations, I’m aware of an emerging theme: the current financial model used by many Episcopal Churches can no longer consistently support the Episcopal Church’s ministries. Largely based on income derived from members’ annual giving, this financial model is donor based and reliant upon yearly fundraising efforts. 

I’d like to suggest this model is broken because it relies on two assumptions that may not be realistic:

1. The presence of full time clergy. 

As congregational giving has declined, an increasing number of parish operating budgets are no longer able to support full-time clergy. In 2010, it cost congregations between $99,000-111,000 to employ full time clergy. The Church Pension Group, in response to the question of increased use of part-time clergy in congregations, reported that the number of “active” clergy dropped 2 to 1. 

Without full-time clergy leadership, the current model of financial practice is unhinged. That is not to say that moving to part-time clergy leadership is a right/wrong decision. Employing part-time clergy is a different leadership model and one that can work well for a congregation. However, I've observed that at times the current – or traditional – stewardship model used in congregations without full-time clergy without adequately compensating for that difference in leadership. 

What I have seen in these congregations are part-time volunteers stepping in to fill the roles of communicating a common mission, meeting with major donors, offering education related to the importance of stewardship both as a spiritual practice and as means of organizational sustenance ---in most cases without a volunteer coordinator. We are still putting all our eggs in one basket (basing our operating budget completely on annual fall campaigns) but working without the resources used in the past that contributed to the success of our campaigns.

2. New members will lead to increased operating income.

The financial model that is still employed by parishes relies primarily on donor support to continue operations rather than looking at new income streams and new ways to use their assets. A common misperception is that new members are needed to increase income to the operating budget. This assumes that new members will and are able to give – which, for many of our churches is unrealistic.

Providing a “side door” to looking at finances allows members to re-imagine how their space can be used for greater funding. By engaging in this process, both parishes and diocese will benefit from an increased sense of common mission and excitement, which in turn may increase parish growth as a bi-product. 

Annual fall drives are important both for the spiritual and financial life of the parish. That said, I wonder what new and innovate ways you’ve used to increase your parish’s income? If the present model of stewardship is inherently flawed, have you found a model that has worked for your parish?