10 Ways to Maximize Your Year-End Offering
Year-end giving is a crucial time for your church. Here are 10 ways you can maximize end of the year giving in your church.
November 14, 2019
It’s easy for your church’s budget to start leaking money. Here are 4 ways your church is wasting money or overspending.
August 29, 2018
It’s easy for your church’s budget to start leaking money.
Like anything in life, if you don’t regularly monitor your church’s finances, your church’s budget will begin to drift. In other words, you’ll end up wasting money or overspending money.
To help your church avoid wasting money, here are four essential areas in your budget you’ll need to keep an eye on to make sure you’re stewarding your financial resources well.
Staffing costs will be the most significant expense for your church.
According to AG Financial Solutions, your personnel costs should range between 33-45% of your total church budget.
How does your church’s budget compare to this benchmark?
Do your staffing costs occupy less than 33% of your church's budget? If so, then you have room to grow by adding new staff members, increasing salaries, or you can maintain things as they are.
Do your staffing costs exceed 45% of your church’s budget? If so, then it may be time to reevaluate your personnel budget.
Now, before you get overtly anxious, I’m not talking about letting people go just for the sake of saving money. In certain situations, this may be necessary. But I can’t say whether or not that’s the case for your church sitting at my computer writing this post.
As you do evaluate your personnel costs, here are a few things to keep in mind:
One last thought about staffing:
If your staffing costs exceed 45%, don’t do anything drastic without involving your leadership, seeking counsel, read Bible verses about making decisions, and pray.
The second largest line item in your budget is your building and facilities.
Referring back to the budget benchmarks observed by AG Financial Solutions, the money you spend on your facilities—including, utilities, insurance, telephone, Internet, and repairs—should range between 25-30% of your church’s budget.
If you spend more than 30% of your church’s budget on your occupancy costs, there’s a good chance you’re wasting money.
Before you decide to sell your building, find a less expensive lease, or turn off your telephone services, there are several ways you can reduce costs, including:
From how much you spend on utilities and insurance to your church’s mortgage or rent, this list of steps will help you to get started with saving your church money.
Another significant expenditure for your church are your office expenses.
As a line item in your budget, your office expenses shouldn’t exceed 10% of your budget.
Beneath this umbrella of expenses includes:
If I were a gambling man, I’d wager you spend more on printing than you realize.
There’s a good chance your church literally prints a ton of paper.
Think about every document you send to your printer:
I understand bulletins are a sacred cow for many churches, and I also appreciate that many churches use bulletins as a guide to their worship service liturgy.
I’m not saying you need to erase printing bulletins as an expense in your budget. But it would be a good idea to ask yourself these questions:
You may not have a problem with spending excessive amounts of money on printing church bulletins. But are there other line items in your office expenses you can evaluate to see if you can reduce your costs?
How much money does your church spend on advertising?
If your church has been in existence for several years, then there’s a good chance you’re wasting money on your advertising.
Do you spend money on…
Advertisements in your local paper?
Local outreach events?
For some forms of advertisement, such as direct mailers and events, you’ll incur significant costs.
Now, on the one hand, if you’re reaching people with your promotions, and you can justify the costs, then spend away. On the other hand, if the money you spend on marketing is not leading new people to connect with your church, then you need to reconsider your plans.
Whether you’re evaluating your marketing efforts or you’re just getting started, one of the most cost-effective ways you can reach people in your community is with Facebook Ads.
On Facebook, you can reach people in your community, make new connections, and draw people into your worship services for as little as $100.
Don’t believe me?
Brady Shearer of Pro Church Tools shares how one church of 150 spent $109 on Facebook Ads and got 241 new visitors. This is just one example among many testifying to the power of Facebook Ads.
Do you have a leaky church budget?
Are you wasting money or overspending in other areas?
Take the time to review these line items in your budget:
If you haven’t evaluated your church’s budget in quite some time, you’ll be able to identify ways you can save money by looking at these four areas with a fine tooth comb.
In a previous blog post, I shared the different ways your church can thank donors—from automated emails to year-end giving reports. Printed donation letters also play an essential role in your church’s stewardship efforts.
Donation letters are the Swiss Army knife of your church’s gratitude arsenal. It may not be the most powerful—but it’s versatile, handy, and gets used often.
Your basic church donation letter can serve many different purposes, including:
A single, well-crafted donation letter can pull together several of these things simultaneously. Better donation letters lead to more giving, which leads to more donation letters—thus creating a cycle of on-going church generosity.
Here’s the good news—you don’t have to write an individualized letter for every person who gives to your church. That would be tough to do for even smaller churches. And most donors don’t expect you to. They’d rather you be putting their gift to better use in the community, instead of ceaselessly writing thank you notes.
With the possible exception of some unique circumstances, your church can use template language for the majority of your church donation letters. You’ll have to add in custom details like the donor’s name and gift amount, but you can write everything else in advance.
To make this even easier on you, here are a few basic church donation letter templates you can copy and paste. Keep in mind that not all of these have to be in print—you could just as easily turn some of these samples into email appeals.
The Donation Acknowledgement Letter is a basic way you can confirm and affirm a monetary gift to your church. Sending these is standard practice in church and nonprofit culture.
Dear [first name],
I want to personally thank you for your donation of [gift amount] to [church name]. We’re honored you would bless us with your generosity. Donations like yours make a big difference in the work our church is doing in the community.
Without givers like you, our church can’t have an impact or influence in our community. With your support, we’re partnering with local nonprofits, sending out global mission trips, and hosting small groups on topics that help real people like you. Together, we can make a difference.
Because we’re a tax-exempt nonprofit, you also get to write this donation off on your taxes. This letter serves as official proof of your donation, so keep it in your records come tax season. At the end of the year, we’ll also send you an annual recap with how much you’ve given to the church.
Thank you for supporting [church name]!
Not every church member realizes the importance of giving, or understand Bible verses about tithing and giving. So a Donation Request Letter helps to spread that awareness and encourage a spirit of generosity.
Dear [first name],
How are the finances in your household? That was a rhetorical question, so you don’t have to answer—besides, this is a letter so we wouldn’t hear you anyway. But we still want you to think about that question.
Money is a uniquely human issue, one we all struggle with to one degree or another. Even if you’re financially blessed, you still have the burden of stewarding your money wisely. And we believe that one of the best ways to invest your money is into the local church.
Tithing (giving 10% of your income) on a regular basis not only supports the work we do at [church name]. It doesn’t just support local missions and community growth. It also shows an obedience to God by making his work a financial priority in your life.
So if you find yourself ready to put God first in both your heart and your wallet, we encourage you to make a one-time gift or sign up to make recurring donations. That way, you won’t have to ever wonder again about the financial status of your household.
Many church donations aren’t just one-time gifts. Plenty of givers contribute monthly—and that should be acknowledged.
Use this template to correspond with recurring givers.
Dear [first name],
Thank you for being an active and faithful member of our church community. By giving to our church on a monthly basis, you’re showing that our church has a meaningful place in your heart. We just wanted to write this to let you know that you’re in our heart, too.
Donating to the church monthly allows us to preach the gospel, make disciples, and support others in our community who need help. Others like the local food bank and the nearby homeless shelter. We’re answering the cry of the needy, and it’s all thanks to contributors like you.
We earnestly appreciate your ongoing support and want to let you know we’re here for you. If there’s ever anything we can do for you and your family, don’t hesitate to reach out. You are a valued member of our church family. And you’re financial support is making a difference.
At the end of each year, it’s customary to give your church supporters a summary of their gifts. The primary reason is for tax purposes, but it’s also a way to recap everything your church has done over the past year with their support.
Dear [first name],
You’re getting this letter because you gave to [church name] at some point during the past year. That might have been a one-time gift, or recurring donations. Either way, we want to thank you for your generous support. Every contribution helps.
One of the official reasons for this letter is for tax purposes. That’s right—you get to write these donations off on your taxes. Which is why we’ve included a summary of all the contributions you’ve made to our church this year.
But the other reason for this letter is to let you know what we’ve done with the money you gave. We take stewardship very seriously, which means we value spending our time and resources wisely.
During the year, our church supported local nonprofits, sent global missions teams, and baptised quite a few people. It was a great year for us—thanks in large part to donors like you.
So thank you for your support of our church, and we hope you’ll consider continuing to contribute to our mission in the coming year.
Sometimes you need to make a more significant financial push using tried and true church fundraising ideas. Some churches call this a Stewardship Campaign or a Church Capital Campaign. Either way, the goal is to raise a certain amount of money for a big project. And typically, a solid letter of appeal is an integral part of that.
Dear [first name],
God has a plan for everyone and everything. That includes you, and it includes [church name]. None of us can fully know God’s plan—the best we can do is pray and listen for clarity. Our church leadership has been doing just that and are excited to announce our latest church project.
[Detail the outline of the major church project—this could include a building campaign, or raising support for a global mission trip. Anything specific to your church that requires a fundraising letter. Be sure to include a fundraising goal so everyone knows what you’re shooting for.]
But we can’t pull this off without your support. Whether you give to the church on a regular basis, or just attend on occasion, we’re asking you to consider contributing to this massive undertaking prayerfully. It’s something we need our entire church community’s help with.
Even if you can’t make a large gift, know that every little bit helps. It’s more about coming together as a community united behind a common cause. We hope that you’ll consider making a donation towards this great step forward that we’re making together.
It’s not enough to just copy and paste this content and send away. The key to an effective church donation letter is a touch of personalization. Follow these tips to take your donation letters to the next level:
There’s no one right or wrong way to write a donation letter or request contributions. You’ve got to do what is right for your church and congregation. But if you stick to these general tips, you’ll probably start to see some traction when it comes to giving.
Most people don’t love talking about money in church. But it’s a necessary and vital part of your church. And maximizing your efforts when it comes to donation letters will help make those conversations more comfortable. So what do you do next to put this into effect?
And if you’re looking for ways to grow your church’s giving capacity, Tithely can help.
Tithely’s systems make it as easy as possible for people to give to your church. Now all you need to start doing is generating a culture of gratitude. There’s nothing standing in your way. Go unleash generosity in your church.
How does your church use donation letters to spread generosity? Share your thoughts in the comments below!
Editor's Note: This is a guest post from Robert Carnes. Robert is a writer and storyteller. He's the author of The Original Storyteller: Become a Better Storyteller in 30 Days. A former church communicator and nonprofit marketer, Robert works as a managing editor for Orange in Atlanta.