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Planning Now For the Changed World
September 2008 can best be described as a dramatic reminder of the transient nature of things of this world, and of the need to live for the world to come. Psalm 46 begins “God is our refuge and strength, a very present help in trouble. Therefore we will not fear though the earth gives way, though the mountains be moved into the heart of the sea”. The collapse of Lehman Brothers, desperate corporate marriages, and established companies struggling to survive marked an historic September of change in the Financial Services Industry. The Industry that often marketed itself “rock solid or solid as a rock” became a very old and large rock that fell into the sea. The experience of this psalmist has now been shared by God’s people in a very dramatic way.
This quickly changed financial landscape must now be acknowledged as churches begin the process of planning and budgeting for the years of challenge ahead. The Eastern Pennsylvania-Peninsula United Methodist Foundation’s Ministry is ready to support churches seeking to achieve a secure financial future. Established over 20 years ago as an independent 501(c) Methodist Church owned corporation, the EPP Foundation is resourced by both the Eastern Pennsylvania and Peninsula Delaware Conferences. The four cornerstones of our Foundation are to offer independent and objective consultation, transparent fees, high quality investments, and asset management in accordance with the social principals outlined in the United Methodist Book of Discipline. At the conclusion of this article I have some action steps that may help your church stand up to face today’s hard economic times and work toward building a stronger church family.
Economic Outlook
The average price of heating oil in September was $4.13 a gallon, down slightly from the prior month, but up more than 61 percent from last September. The average price of heating oil from last October through March was $3.15 a gallon with households spending an average of $2,520 (800 gallons). A 30 percent price increase would add another $756. Churches are now faced with budgeting for mounting energy bills. Bulk purchase and energy reduction programs with other Churches are offered through your Conference Treasurer.
Stewardship and Giving Outlook
The collapse of corporate balance sheets, along with strained household budgets, could start cutting into the more-than-$300 billion annual charitable gifts; $100 billion of this is generally given to churches. U.S. charitable donations only grew by 1% adjusted for inflation in 2007, according to the Giving USA Foundation. That was before the worst of the housing correction and the current Wall Street crisis. Look to establish planned giving programs utilizing charitable gift annuities, stock contributions, and donor advised funds. Call the Foundation at 800-828-9093 to learn the many ways to take action and quickly implement these programs now.
In a recent Chronicle of Philanthropy survey of 77 businesses, 50 said they expected giving to remain flat in 2008. U.S. companies donated an average of 0.8% of their pretax profits in 2007, down from 1.4% in 2004, according to the Association of Corporate Contribution Professionals in Mount Pleasant, S.C. The height of the financial crisis is now hitting just before the end of the year. However, this is when many individuals can take part in a company’s matching gift programs. Seek to make this program easy for companies to make the contributions to your church.
Outlook for People in Congregations
Employees in all types of jobs are being affected by the economic downturn and for others there is an understandable sense of apprehension. Unfortunately people may be embarrassed to come to church if they have lost their jobs, especially in some of the affluent areas of our Conferences. Reach out and invite them in. Once generous and dependable members of our congregations may now be experiencing financial stress or need to support family members. This is a wonderful opportunity for the United Methodist Church to extend our hospitality, renew faith, and shape our future as we support all God’s people in need. Traditional church giving from a sense of obligation can now be dynamically shifted to giving for true transformation of lives.
Churches report to us they are mentoring or hosting career workshops for those who have lost their jobs and struggling with the psychological impact. Others are offering financial management, budget, or debt reduction classes. We know people are hurting, and as a church we’re equipped to reflect the love of God for the people of God. As a Ministry the Foundation is equipped to facilitate Stewardship, Planned Giving, and Endowment programs or help connect with other church based giving programs as the awareness for the needs of others is increased.
Action Steps to Take Now
• Focus on providing cost effective services that meet the critical needs of your congregation.
• Build boards comprised of members willing to commit talent and time to develop needed programs.
• Develop a culture within the church emphasizing hard work, frugality, and financial responsibility.
• Show your congregation where and how money is being spent and where it is needed.
• Plan aggressively for the long term to position the church favorably for bad times.
• Involve all committees to help plan and raise funds for needed Ministry.
• Budget for the future based on expected income not just on expenses needing to be covered.
• Take a businesslike approach to decision making about sustainability, self-sufficiency, and goals.
• Seek help and ideas from beyond your pews and share resources and ideas with others. Mission and Ministry are not designed to go it alone.
A Personal Note on Lessons I’ve Learned
For many years I worked as a Financial Advisor for the investment firm Morgan Stanley and its predecessor Dean Witter. My opportunity to work in the Financial Services Industry came as a direct result of the scary market crash of October 1987. What was perceived as the end of an era for some was a new era of life’s work for me. Throughout my career I witnessed good honest people help in the creation of abundant wealth for charities and also witnessed the pitfalls of unfortunate corporate greed.
Abundant wealth and greed, economic growth and recession, these are fleeting and measured in number of days. But God’s generosity to us and our church is forever and enduring. If we acknowledge God as the source of all our gifts then we are called upon to care for one another in sharing these gifts. The challenge for us as God’s people is to live to this in both good times and bad.
All of us have been blessed by God in times of economic expansion and challenged by God in the inevitable corrections that follow. I have supported family and friends going through downsizing and layoffs and celebrated with them in excitement when they strike out in a new job. The lessons I’ve learned and will share are simple: nothing is ever as bad as it seems, financial systems are designed to adapt and recover, and the opportunity for personal change is always present.
Psalm 46 concludes with this potent reminder “Our God says Calm down and learn that I am God! All nations on earth will honor me. The Lord all powerful is with us. The God of Jacob is our Fortress”. The challenge before us may be to do more good work with fewer resources. God will be with us as we move together into the future and we can take great comfort in the realization that not only will the strong survive but also the well planned.
For more information or to share your ideas on these topics please contact: Jack Brooks, Executive Director, 800-828-9093 or email Jack.Brooks@epaumc.org.
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