As capital stewardship campaigns evolve into processes that touch on the heart of a church's vision and ministry, more and more churches are turning to capital stewardship services for help. We invited John Hull, president of INJOY Stewardship Services; Doug Turner, president of RSI Stewardship Group; Pat Graham, president of the Church Division of Cargill Associates; and senior pastor Stan Toler, president of Vibrant Group, to email us their perspectives on a range of questions related to the ins and outs of waging successful capital stewardship campaigns—being as succinct and to the point as possible. Here are their unabridged responses.
1) Why do you think capital stewardship services have become so popular and so competitive in recent years?
HULL: The primary reason is that the two main issues that church leaders face are in the areas of leadership and stewardship. Therefore, the church marketplace will always have needs in these areas. In addition to these challenges, stewardship consulting has become a mature marketplace where many churches have done multiple campaigns. With any maturing market, there will be an increase of those delivery goods and services to that market.
GRAHAM: Stewardship development firms have proven track records. Over time these track records have created a sense of integrity between the firm and church. Most major firms have trained and created their competition.
TOLER: Capital fundraising is a financial fact of life for every church. No matter how much is spent on church properties they will soon (a) become inadequate due the growth of the church or (b) need to be renovated due to the age of the facilities or the need to be equipped to meet the special needs of members and attendees. In both cases funds will need to be raised. Additionally, many churches have indebtedness from the original purchase or later expansion. The sad fact is most pastors have not been trained in raising money for building programs and debt retirement. Very little is taught on the subject of stewardship in most ministerial study programs.
TURNER: Capital campaigns have become events that are so much more than fundraising activities. In fact, campaigns are a great diagnostic on the general health of a congregation. Jesus said that whatever we wrap our heart around is what we define as treasure. The same is true when a church wrestles with defining treasure in a campaign process. Frankly, the challenges facing a church are typically exposed when beginning this process. Conversely, the good things happening at a church will be magnified more intensely than at any other time.
Also, it is a great on-ramp to connect people to vision. As a result, churches struggle to move people from consumer to investor in the future of the church. Nothing will get everyone on the same page at the same time to move forward together into the future than a capital campaign. Willow Creek said at the end of their campaign with us, "This capital campaign provided an on-ramp for people who have been traveling down the road with us but not really on center line."
2) When should a church consider getting help from a consultant and/or stewardship service (circumstances, timing, size of project, etc.)?
HULL: The urgency of a particular project is the driver for any timeline for raising significant capital. If the urgency exists and the need is at least 1X a church's annual budget, the next question the church should ask is "When do we wish to see dollars coming in for this project?" When that date is determined, stewardship companies should be engaged a minimum of six to nine months prior to that time.
GRAHAM: With the cost of projects moving into the stratosphere, church leaders would be well served to engage the services of a stewardship consulting firm prior to contacting an architect. A seasoned firm that offers a process through which the church can cast its vision, test its vision, and then fund its vision can save the church a lot of money and headaches. This process enables church leaders to approach an architect with a vision they can afford.
TOLER: From my experience help is usually needed when the church's income needs are one-to-three times the church's annual income. Of course the sheer size of the project and the accompanying need for funding must be factored in.
TURNER: There are several indicators that suggest a church is ready for a capital campaign. Some of the most compelling include: Ideas for ministry are frequently postponed because facilities are not adequate, yet funds for ministry expansion are not available; the church has foregone large events or fellowship opportunities because there is no large multi-purpose space for the church to gather; the long-range plan is outdated and does not represent a vision for spiritual growth that stretches the members. More recently, we have churches doing campaigns for bold ministry initiatives without any brick and mortar components. This missional ingredient will be more significant in the years to come.
3) Under what conditions would you discourage a church from conducting a campaign?
HULL: There are several alignment items and key campaign success links that need to be in place for a church to achieve maximum results. Items such as vision alignment, project clarity, congregational trust, and leadership unity must be properly evaluated before moving forward.
GRAHAM: A church whose project would require more than two three-year capital campaigns to fund should reconsider the scope of the project. The climate in the pew, at the present time, is demanding that the church be a good corporate steward. We are seeing many churches that are suffering from unmanageable debt. The church can lose its reason for being at this point.
TOLER: At least two things must be in place before a capital stewardship campaign is launched: One, the church must have a vision for the project under consideration. And two, the congregation should have a strong sense of unity for the project.
TURNER: A successful campaign always begins with a clear and compelling vision. Proverbs 28:18 states that where there is no vision, the people perish. A compelling vision is at the heart of every successful effort. If the church is not able to describe its heart and soul and its purpose in mission, then we recommend postponing a campaign. RSI then works with the church and its leadership through a process to develop a clear and compelling vision for a campaign.
4) What should a pastor/church board consider when hiring a capital stewardship company?
HULL: As the marketplace has matured, there are many quality organizations that exist. Therefore, the key when selecting a ministry partner will not be whether a firm is a quality organization or not, they are. The key is which group is the most distinct? Which group is best equipped to help us meet our unique challenges as a church in this particular moment and time in our church's history. The most efficient way to determine this is to base your questions during the interview process on the issues you are facing and that firm's ability to probe, uncover, and creatively strategize solutions to your unique challenges.
GRAHAM: Things to consider when hiring a capital stewardship company is years of service, their track record, multiple program offerings, multiple staff, and solid research and follow-up departments. Can they prove what they are telling you? Do they have integrity?
TOLER: There are three considerations. First, does it have the experience to handle the church's project? Second, what is its reputation? Third, has the company been successful in raising monies? Pastors and other church leaders have a right to know about a company that will have such close association with their church.
TURNER: What is the experience and expertise of the firm? How long have they been providing stewardship counsel? Who are their clients? Does the firm focus on biblical stewardship and teaching stewardship as a way of life, not just as a campaign gimmick? Does the firm transfer knowledge, leaving the church more able and equipped to foster a culture of stewardship? If so, how? What does the firm provide in the way of follow-up services to a campaign?
5) What are the most common errors of churches that do not reach their financial goals?
HULL: The biggest mistake churches make in not reaching their goals is a lack of understanding of what their true financial capacity is as a church. Therefore, incorrect goals are established which set the church up for failure. Because of data received from over 3,000 church partnerships, ISS has developed a Financial Analysis package that can give a church the proper understanding of what they can expect to receive.
GRAHAM: The most common error of churches that fail to reach their financial goals are usually caused by church leaders that take the process out of the hands of the consultant and refuse to listen to counsel. One starts to wonder, "Why did they hire us in the first place?" Churches that do not want to talk about money as a spiritual issue are prone to fall short of their financial goals and also churches that cannot make a compelling case for "why" the project is needed.
TOLER: For one thing, a lack of involvement by the congregation and its leadership will deter the church from reaching its goal. At least 50 percent of the people should be involved. Other factors may include prayer vigils, banquets—with assistance from the capital stewardship company, personal contact teams, and so forth. When those additional components are not in place, the chances for success began to dwindle.
TURNER: Lack of a clear and compelling vision. Addressed above in #3.
Too little buy-in. A vision for ministry may be exciting and compelling, but in order for it to move from thought to reality there must be widespread buy-in from laity. The congregation and its members, visitors, and regular attendees must share the vision for ministry. During a capital stewardship campaign, careful attention should be given to the process of building laity ownership.
Lay ownership is best cultivated by created opportunities for people to participate in campaign activities. By inviting people to lead, volunteer, and contribute to the vision casting, each person begins to take responsibility for the success of the campaign. Before a campaign asks the congregation to respond by pledging gifts of time, talent, and treasure, there must be evidence of widespread enthusiasm and support for the future ministry of the church from the congregation as a whole.
Inadequate communication. If the time of commitment approaches and people are asking, "What is this campaign about?" then the communication has not been effective. The key to a successful communication strategy is to use a variety of methods to ensure each person who comes in contact with your church is made aware of the campaign vision and is invited to participate at some level.
Each church has a varied and diverse congregation that makes it unique. As I have mentioned before, the best strategy is to customize a variety of communication tactics and mediums to fit your unique needs. Written publications, such as worship bulletins, newsletters, and magazines, are an important place to begin. A campaign video is another effective way to share the campaign vision. A well-produced video can be a crucial element in communicating the vision and will truly tug at the hearts of your congregants. Additionally, a well-designed campaign website will provide an important online presence and access to campaign materials that can be downloaded, saving on printing costs. Also, emails, small groups, focus groups, and town hall meetings all provide forums for discussion.
Closely related to the communication of the vision is a safe environment to process vision. It is one thing to have a knowledge of the vision, it is quite another to deeply process the vision spiritually and emotionally to invest, even sacrifice for it. Processing vision doesn't happen with brochures or videos, but creating a safe place for someone to do something risky. We spend a great deal of time helping churches with the art of creating that safe place.
Not enough time. Succumbing to fears or a desire to "just get it over with," churches sometimes rush into a campaign. From time to time, an immediate need, such as the opportunity to purchase real estate, precedes the campaign. In those cases, the campaign begins with a heightened sense of urgency. However, most of the time, allowing plenty of time to prepare and conduct a capital stewardship campaign is the best approach.
Too much time. On rare occasions, churches have a timeline that is very difficult to sustain the momentum. In those cases, the workers are tired before the campaign concludes, and it limps to the finish line. More often than not, churches are rushing the process as stated above, but on occasion we find one that is too long in the public phase of the campaign. It just goes to show that timing is everything.
In order to avoid the mistakes I mentioned above, it will take time to effectively craft a vision for the campaign, build ownership from the congregation, and shape an effective communication strategy for the campaign. In addition, providing plenty of time for these activities prevents stress and burnout among your staff and volunteers who are working on the campaign in addition to their other commitments. The amount of time necessary to accomplish each of these tasks will vary from church to church. However, the commitment to allowing space and time in your campaign will help ensure its success.
6) Some critics of capital fundraising organizations say that it's not good stewardship for a church to pay so much money to hire someone who uses the same basic template or program that requires the church to do a majority of the organization and effort. How do you respond to this criticism?
HULL: I would agree that if your partner uses the same basic program and requires the church do the majority of the organization and work that is not good stewardship. However, if you secure the services of a stewardship group that truly delivers a customized partnership, you will raise two to three times more with a partner than you would yourself, if the campaign success links are in place.
GRAHAM: We let our track record speak for itself.
TOLER: A basic template for stewardship campaigns is the norm. Like building an automobile, some basic parts must be in place. Much of the campaign's success will come from a good relationship between the consultant and the church leadership team. When that relationship is satisfactory the "engine" will run smoother and with more power.
TURNER: Many churches look at the vast needs of the church and wonder if hiring counsel is the best use of resources. There are several reasons to consider partnering with professional stewardship counsel. The first is that your pastoral staff is fully occupied right now, without a capital campaign. Counsel will help you to match the gifts and talents of your staff to campaign activities, maximizing their efforts. An experienced consultant is likely to identify pitfalls before they occur, guiding you around them with suggestions. Therefore, counsel reduces the risk of error and failure, in addition to taking the workload off of the pastor.
In regards to volunteers, professional counsel gives them confidence by providing training and constant support. Counsel is able to protect volunteers by using their time and energy efficiently and only when necessary. Finally, counsel is objective. The presence of counsel brings discipline to the campaign and a layer of protection to your senior pastor by delivering hard messages to volunteers and leaders when needed.
The experience and expertise of consultants who have partnered with many churches during their campaigns has many advantages for helping to avoid mistakes during the journey, saving the church costly mistakes, time, and money.
7) What advice would you give a church that needs to reduce its debt, since raising money for debt reduction is not exciting or motivating?
HULL: The primary driver for any capital campaign effort is the urgency of the project. The project, in this example, is debt rather than a new facility or relocation. Every dollar that goes to debt is a dollar that does not go to ministry. Therefore, if the vision for ministry that will take place with the freed up resources is compelling, the response of the people can be better than expected.
GRAHAM: If debt is having a negative impact on mission and ministry, the church can make a compelling case to reduce or eliminate it.
TOLER: Debt reduction is one of the greatest challenges in capital stewardship. People get used to mortgages on their homes and financing for their automobiles, so they are usually not very excited about reducing the church's indebtedness. It can be done, however. It will take both a vibrant vision for the future of the church and a complete explanation of what the church could achieve without that indebtedness.
TURNER: A campaign can still be a motivating spiritual journey that will refocus the church on the future. A debt campaign will provide a platform to communicate the ministry opportunities lost with resources tied up in debt. Also, at RSI our debt campaigns in 2006 averaged over two times the annual income of the church.
8) What cultural trends do you see that may be affecting capital fundraising in the coming years?
HULL: Everything rises and falls on leadership. As ministries are growing at an exponential rate, the need to expand the leadership base will be a necessity in sustaining a church's growth, thus maximizing and maintaining their momentum. Therefore, capital campaigns will need to integrate leadership and stewardship education tracks that will allow sustainable ministry paradigms after the traditional three-year giving periods. Otherwise, an expansion and contraction process could occur.
GRAHAM: What are the "Boomers" going to do with their money? Most churches have relied on loyalty for the past 60-plus years and now a large group of nonconformists will begin to retire. The church is losing its influence in helping shape our society. If this trend continues to develop, the church will see its financial resources dry up and move toward other outlets of philanthropy.
TOLER: The local church must be fully aware of the cultural trends in faith communities and for that matter, in the general community where the campaign will be conducted. It's a new day for the church, including its fundraising. For example, Gen X and postmodern churches will want a different approach than that of a more traditional church. Gen Xers and postmoderns will generally resist what seems to them as "strong-arming."
TURNER: Churches will be doing campaigns for multi-site initiatives, as well as bold missional initiatives. Churches built out a lot of campuses in the '90s, and now many are rethinking how to use their resources. For example, Granger Community Church's My Life campaign included a component to build the Monroe Circle Community Center in inner city South Bend.
9) There seems to be a growing number of products or services that appear to be far cheaper and are more of a do-it-yourself approach to capital campaigns. What should a pastor or church board think about when considering one of these lower cost approaches to capital fundraising?
HULL: When looking at a stewardship firm as an option, you must realize this is all the firm does. We spend every moment of our working day using all our energy and strategic thought helping churches do two things—raising maximum dollars and having maximum participation at the church level. As a result we know where mistakes can be in strategy, sequencing, timing, and alignment related to vision, leadership, and your project. You want that level of expertise at the table when you are making strategic decisions.
GRAHAM: A pastor should ask, "Do I want to maximize our ability to raise money?" The most costly money is the money you don't raise. Do-it-yourself approaches do not have a proven track record. We have over 5,000 campaigns under our belt, and we know what works and who won't work. Pastors should ask, "Can the do-it-yourself approaches make the same claim?"
TOLER: Generally churches raise far less dollars without help from consulting agencies. Cost should be of vital concern in the selection of an agency; but it should not keep those churches from finding and using the best available organizations. The end goal is to bring honor to the Kingdom by strengthening the ministries of the local church through good stewardship practices.
TURNER: To be blunt: you get what you pay for. Our experience is that purely self-led campaigns in the box raise as many questions as they answer.
copyright © 2009 Group Publishing Inc.
