When the economy’s down, non-profits suffer. 

When we talk about wealth building, our money, our spending plans, and retirement savings, we very often forget to mention a tiny little thing called CHARITABLE GIVING.  For some, this is really a small or non-existent part of their budget.  For others, it’s a lynch pin.  Many people believe that they should give 10% of their income to their church in the form of a tithe.  Many who don’t believe that feel that they are “off the hook” and not “required” to give, so they don’t.

Overall, though, Americans are fairly generous givers, and many of us enjoy the feeling of satisfaction that comes from supporting groups that we believe in, religious or not, with our time, talents and money.

However, when the economy is down, giving suffers, too.  Many of us take the position that charity begins at home, and when we’re forced to pare down discretionary spending, spending on our charities is often one of the line items found on the cutting room floor.

I recently had the opportunity to mastermind with the pastor at my church about this phenomenon and what could be done about it.  I warned her ahead of time that as a business owner, I was coming in with my “sales and marketing” hat on and looking at this thing as an entrepreneur.  She concluded that was an entirely appropriate approach, since the church really is a small independent enterprise very much like a business.  It just doesn’t happen to sell a product or service.

Ways For Churches To Make and Save Money In A Down Economy

We decided that the church could do a couple of things to increase its bottom line:

1. Increase income by increasing membership
2. Increase income by increasing donations contributed by each member
3. Decrease expenses by cutting programs
4. Decrease expenses by using “sweat equity” and volunteer labor from people who would be in a better position to donate time than money.

In the course of our discussion, I was also able to draw upon research I had done on fundraising for a speech to college students I delivered in Chicago last year.  In my research I discovered that many people become involved in charities through their friends and associates (personal invitation/referral) and that many people chose to volunteer their time first, before contributing significant amount of money to a cause.

Therefore, in our situation, we decided that action steps would include:

1. Surveying members to see how the church was meeting their needs and how it could improve it’s service offerings to members and participants.  (This would let us see which programs were most and least valued, as we decide whether anything would need to be expanded or cut).
2. Educating members to the financial challenges facing the church and asking them if they are personally willing to do anything (volunteering, giving more money) to help ameliorate the problem.  This will help us get a better sense of what resources will or will not be available to us in the upcoming year (Revenue forecasting).
3. Adjusting our social events to incorporate more education about church programs and educational activities.  This will allow us to consistently draw uninvolved members more deeply and consistently into church activities, and help visiting members and friends become aware of what type of programs they will be able to take part in, should they become a member of the church.

At our church it is very important to us that people not feel hounded for money or that they are being “sold” on giving cash whenever they come.  This probably applies to most business customers too.  If you say you want to have a relationship with your customers, you need to find ways to have conversations with them that don’t involve pushing them into buying your next product or service.  Instead, focus on providing good old-fashioned value, human interest, referrals FOR THEM, etc. when you talk to them, and they will be much more likely to view you as a friend than a salesman.  People enjoy doing business with friends, they only do business with salesmen when they have to.

Re-Visit Your Value Proposition

So, we are re-embracing our mission of providing meaningful spiritual experiences, community support, and family-friendly activities to make sure that our congregation continues to have its needs met in full without being pressured to give financially.  In this way, we hope to re-inspire and re-excite people about the idea of giving, as they always do, in a way that is respectful and appropriate for them.

Emily

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