Confessions of a Poor Money Manager

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This Year Is Different!

Pastors and church administrators wait expectantly and yes, confidently, every year to see what the “year end giving” will be. Every church, every non profit and charity for that matter, receives more gifts at year’s end than at any other period of time during the year. In every church I have served, we have had the church doors open and someone available to receive last minute gifts up until close of day, Dec 31.

Most churches actually rely upon these gifts to make up any shortfall that has occurred or will occur in the church budget throughout the year. This year is different! We are in a recession! Banks have failed, stocks have crashed, unemployment is up, mortgage banking is in trouble and on and on it goes. This year really is different. There is a better than even chance, year end giving will not be as high this year as it was last year!

Year End Gifts Are Asset Gifts!

It’s not that people don’t want to give and we shouldn’t believe they won’t give again, next year or the year after. Year end gifts will be down this year because of the economy! Year end gifts are mostly “asset” gifts. These gifts do not come from income and paychecks. For most Americans, the majority of their wealth, whether modest or large, consists of assets, not cash.

The typical American has 91% of their net worth in assets versus 9% in cash. These assets include home, IRA, life insurance, etc. and, therefore, are not liquid and not available for gifts. Yet, most conversation about stewardship and giving is focused on cash – that is the 9%.

In many cases you will have church members who are working right up until year’s end with their accountants to find how much they actually have and how much they actually can give! Clearly it is incumbent upon Pastors, church administrators and church leaders, now more than ever before, to be careful with budget planning and expenditures. God is never surprised by world events and He is fully capable to fund the work and ministry in all our churches.

Looking For Revenue?

What if I told you there was an incredible revenue stream out there, a stream of dollars larger than you ever dreamed. I’m not talking about a fund raising program, and this is not a gimmick. I am talking about over $41 trillion dollars that are currently changing hands from one generation to the next. A Boston College study reports the WW II generation and the older Boomer generation are passing on to their families, the next generation, those who are following in their steps, the largest intergenerational transfer of wealth that has ever occurred.

Let me tell you how much $41 trillion dollars is. If you were to give away $10 million dollars a day, it would take you (this is going to blow your mind) over 11 thousand years to give away $41 trillion dollars. That money is changing hands now, and will continue for another 40 years!

Now, let me ask you this. Who are these people with all this wealth? The answer is, they are the everyday, workaday folks in every community, every church and every fiber in the fabric of American society. They are your faithful church members, the ones who were there before you got there, the ones who have a lifetime history in their church, one of faithfulness and giving. Why wouldn’t they want to leave a portion of their estate to the church and to the Kingdom? My experience suggests the only reason these good and godly people do not “tithe their estate”, is they are never asked!

It is estimated that more than 70% of Americans do not have a current will.

For the committed donor, giving via their will or trust is a natural continuation of their lifetime pattern of giving…they just need help.

Pastors Are The Key!

Pastor, when was the last time you simply said to your people, “Have you, will you, pray and ask the Lord what He would have you to do in stewarding your estate!” When I was first asked that question, not long ago, my first response was, “I don’t have an estate.” Guess what, I was wrong. With my life insurance, home equity, and 401K, I had a surprisingly good amount of dollars, all of which I will leave behind and pass on to others. Now, back to the question at hand, of course I want to tithe my estate. I have been giving to the church and Kingdom work all my life. Of course I want to leave a legacy and continue reaching people for Christ long after I am gone!

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