By George Bullard at GBullard@TheColumbiaPartnership.org
Download Congregational Funding Streams
One congregational solution in uncertain economic times is to embrace multiple funding streams. It is way past time to innovate in this area. Some congregations have. Many have not. Here is a baker’s dozen list of possible funding streams that include the typical and traditional ones, and also suggest a wider range of possibilities. What would you add to or strengthen in this list?
Stream One—Tithes and Offerings: The basic foundational funding stream for congregations is their tithes and offerings from members and regular attendees. Tithing as a basic commitment of Christians should continue to be taught in innovative ways that connects all generations with this core concept.
Stream Two—Special Designated Offerings: Increasingly people want to see that their funds are supporting causes around which they have great passion. Therefore, a limited number of carefully selected special designated offerings should be part of the annual funding plan of congregations.
Stream Three—Capital Fundraising Campaigns: Traditional and innovative approaches to capital fundraising campaigns is an appropriate strategy when a significant amount of money is needed for facilities or major program or missional efforts. It continues to work well in numerous congregations.
Stream Four—Fees for Events and Services: Congregations should divide what they do into basic services and premium services. Basic services should be free, and premium services should have a cost. A third category is that some events and services, like meals at congregational events, should be cost recovery.
Stream Five—Product Sales: Congregations have products they do or can sale or resale. They need to look for more possibilities, and for persons outside the congregation to whom they can sell various products. Congregations should use a store on their web site and other digital venues to increase their sales.
Stream Six—Fundraisers: Various fundraisers for special projects of the congregation are very appropriate. Certainly fundraisers by youth groups are a staple in many congregations. Such fundraisers can be cause-focused where the proceeds are going for a missional endeavor of some type.
Stream Seven—Financial Development Efforts: Many people are open to providing gifts over and above their tithes, offerings, and special designated offerings either through current or deferred giving. Congregations should include an approach that focuses on bequests, trusts, deferred gifts, and investment vehicles.
Stream Eight—Investments: Congregations are discovering a new benefit in investment income. While the investment climate may not always be great, a long-term commitment to an investment of even one percent of the gross income of a congregation makes an amazing difference in the funding base over the long-term.Stream Nine—Grants From Foundations, Businesses, and Other Entities: A number of foundations are funding Christian organizations. They are becoming an important source of seed money for human needs, leadership development, staff sabbatical, and congregational redevelopment projects.
Stream Ten—Networks, Strategic Alliances, and Partnerships: Networks, strategic alliances, and partnerships with non-profits, government, and businesses may result in discounted or in-kind resources and services from organizations with products and services that can benefit congregations.
Stream Eleven—Sale of Lease of Assets: The sale or lease of assets can provide funding. What assets, and how the funds are used, should be carefully thought through. For example, generally it is better to sale appreciating assets that are also renewable in that the core asset remaining may continue to increase in value.
Steam Twelve—Income From Non-Members Benefiting from Events, Products, Services: When a premium event, product, or service is marketed to non-members, it can have an appeal that will more than pay for the cost of writing, production, marketing, and fulfillment. An example is a seasonal music event.
Stream Thirteen—Rental Income: The facilities of congregations may be the source of rental income. Other congregations, compatible Christian ministries needing office space, and ancillary services such as a day care program are all reasonable sources of rental income.What are other funding streams you would suggest? What are additional thoughts on some of these streams you would share? For how many of these streams does you congregation already have a proactive strategy?
