In the aftershocks of the COVID-19 crisis, many churches face a period of financial reckoning. These eight principles can help right the ship. They are all sound practices in the best of times, but are even more critical now as the church navigates uncharted territory in the post-pandemic world.
The COVID-19 shutdown was a dramatic illustration of the church’s dependence on place-based giving linked to worship. But traditional ways of cultivating generosity have, in fact, been waning in effectiveness for years.
1. Know your givers - Not every family or individual felt the economic impact of the pandemic in the same way. Some lost wages, jobs, or businesses. Others drew paychecks while working safely from home, reduced expenses, pocketed stimulus checks, and saw their retirement portfolios grow.
2. Keep asking people to give, but do so in sensitive ways - Some congregations simply assumed people couldn’t afford to give during the pandemic or felt it was inappropriate to ask in a challenging time. Such churches surely worsened their own financial plight.
3. Extend generosity efforts beyond the walls of the church - The COVID-19 shutdown was a dramatic illustration of the church’s dependence on place-based giving linked to worship. But traditional ways of cultivating generosity have, in fact, been waning in effectiveness for years. Churches that don’t expand their generosity efforts are fishing in a smaller and smaller pond.
4. Develop multiple streams of income - In the post-pandemic era, many more churches will find it necessary to develop funding sources beyond tithes and offerings. Churches often see their financial circumstances through the lens of scarcity, failing to recognize assets and opportunities within their grasp.
5. Take the opportunity to reassess expenses - As the pandemic pause lifts and new patterns of ministry emerge, congregations have a unique opportunity to reassess programs and activities that were put on hold and ask: What needs to continue? What can be set aside permanently? What needs to be done differently? And what do the changes mean for staffing and building use patterns?
6. Be realistic when setting your budget - In tough times it’s tempting to boost the revenue side of your budget on the basis of wishful thinking, hopefully assuming that new members, higher giving, or lucrative fundraising opportunities will suddenly materialize in the next budget year. While we all work and pray for these developments, it’s not prudent to build a budget on the assumption that these things will come to pass.
7. Maintain a reserve fund -The pandemic has underscored the importance of budgeting for a reserve fund and maintaining a reasonable cash reserve. While no budget is disaster proof, your budget will be more resilient if you don’t live too close to the edge.
8. Know where you stand -Too often, churches are caught off guard when their financial circumstances change simply because they haven’t paid close enough attention to key indicators and trends. As we enter a new and uncertain period, it is more important than ever for churches to establish systems for monitoring key financial indicators
The pandemic was in some ways a wakeup call to face problems and opportunities that had existed long before the advent of COVID-19. The crisis has revealed areas of vulnerability and has increased the receptivity to change. Savvy church leaders will take this opportunity to create a healthier financial future for their congregations by managing resources wisely, engaging givers more effectively, and seeking creative new approaches to economic sustainability.
excerpt from a story by Lovett H. Weems, Jr. and Ann A. Michel, The Lewis Center for Church Leadership
First published on June 29, 2021 Lewis Center for Church Leadership website
United Methodist Church Giving is about people working together to accomplish something bigger than themselves. In so doing, we effect change around the world, all in the name of Jesus Christ. To read stories about the generosity of United Methodists click here.
