Mike
This is an unprecedented time in which to lead any kind of organization – church, ministry, business, school, government. That much is obvious. What is not obvious is how to lead right now. My previous blog focused on ways to get a better read on your congregation in this virtual reality world where we don’t interact in person each week.
But what about your church or ministry’s finances? It’s also obvious that the coronavirus is having a massive economic impact, but it’s less clear how to respond. One option is to start slashing costs. Another option is to ignore the issue and hope for the best. Both extremes are versions of flying blind.
The decisions that you make (or don’t make) now will affect your church or ministry now and in the future. To make the best decisions in this chaotic environment, you should:
- Lean on people with expertise. Financial analysis is not part of a seminary degree and is not a strength for most pastors. But it is a strength for others on your staff or in your congregation. Now is the time to enlist their help. It’s also the time to involve your board in conversations about major financial decisions.
- Develop a model with different scenarios. To plan for the future, you need a cash flow model that accounts for all available funds. And with the amount of uncertainty today, the best models will have several different scenarios for future expenses and contributions.
- Take the pulse of your congregation. The biggest uncertainty right now is related to how the national and local economy will affect contributions. Rather than guessing, ask your largest donors if they expect their giving to change, and if so, by what amount. Sure, this is a sensitive topic, but they should understand that you’re not asking for a guarantee. You might even be surprised that some are able to increase their contributions!
- Seek input from your network. Your ministry peers are all dealing with similar questions. This is a great time to schedule a video call to compare different approaches and to share creative ideas.
As I write this blog, Congress appears to be on the verge of passing a massive financial stimulus package that includes some provisions for non-profits (including churches). Once the bill is passed, look for information on whether this might be a valuable source of aid for your congregation.
My conclusion is the same as in my earlier blog: in this time of great uncertainty, you don’t have to fly completely blind!
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