Confessions of a Poor Money Manager

The million-plus organizations recognized by the government as non-profit agencies have reason to worry about the economic climate. Nearly one-third of all adults (31%) said they have already reduced the amount of money they are donating to non-profit entities. No surprise churches are already feeling the effect of the downturn in the economy.

According to a recent George Barna survey, “one of the ways that adults have adjusted to their financial hardships has been by reducing their charitable giving. In total, one out of every five households (20%) has decreased its giving to churches or other religious centers.” Read the full Barna story at Money Crunch. Cutbacks in gifts to non-profits are especially common among the one-quarter of the population who are immersed in “serious financial debt.”

Again, the Barna survey reports, Americans believe it will take about three years before the economy fully recovers. Only one out of four adults (24%) said the economy would completely recover within a year; 30% said it would take two or three years; and 32% said it would take more than three years. A small proportion (2%) said they do not believe the economy will ever completely recover.

Year End Giving For Churches Will Take A BIG Hit!

The economic woes hitting families will be felt in a major way by churches and non-profits by the end of the year. Most non-profits and churches count on the fourth quarter of the year to produce at least one-third of their annual income. Deficit spending is common during the first three quarters, with the expectation that holiday giving will enable the organization to meet its budget projections. This year is likely to be very different.

Churches Offer Solutions!

Depending upon how you look at this situation, this is the worst of times for churches or maybe it is the best of times for churches! Churches, accustomed to offering financial planning and counseling, will say, “we’re ready to meet this challenge,” whereas churches that have overlooked the financial component are now saying, “what do we do now!”

Ashley Clayton, money management expert, providing support and guidance to pastor’s financial management ministry to their congregations.