Do we have a Stewardship Crisis in the American Church and Non-profits?

The Barna Group recent published a study indicating that less than 1/3 of Americans trust their local church with the money. Long story short. Churches in America, Nonprofits in America and Ministries are struggling to partner with individuals financially because a lack of trust has developed. Giving is largely down across the country. Giving USA estimated that last year giving was down 10.5%.

Local churches are still struggling coming out of the COVID pandemic. Fighting against the uncertainty of inflation data. They are fighting against economic factors and much more. Right now we see more than 500 church properties for sale on Loopnet. Tons of varying reasons are likely, but speaks to an issue.

I believe it boils down to 5 main reasons why people have "had it up to HERE" and we are seeing giving dive. And yes, I believe we are in a Stewardship Crisis here in America, and likely globally. But stick around to the end. I believe there is a way out of this. I believe the answer is actually very simple.

1. The Perception of Mismanagement: You don't go very long without seeing news stories that are riddled with organizations being accused of some type of financial malpractice. In some (maybe even most) cases it is true. But in today's day and age the 'accusation' is all it takes to rip trust and cripple an organization. Some individuals perceive that churches may not manage funds effectively or transparently. This perception can be exacerbated when churches do not clearly communicate how donations are used, leading to suspicions about financial stewardship. The other issue at play here is that churches and ministries are often just trying to "get by" and rely on volunteers or "well-intended" and underqualified individuals to manage financial stewardship practices within the organization. There is a lack of qualified individuals in the nonprofit and ministry space that have adequate "credentials" to be able to effectively manage finances.
2. Lack of Thankfulness and Communication: Churches, Ministries, Schools and nonprofits often fail to express gratitude to donors in the same way that secular charities do. This lack of acknowledgment can lead to a perception that churches are less appreciative or transparent about how donations are used. I will still not forget the first time I picked up the phone to thank a donor for giving. They were shocked that anyone even noticed they gave.
3. Fear of Reinforcing Stereotypes: Many pastors and ministry leaders are hesitant to discuss money openly due to the fear of reinforcing negative stereotypes that churches and ministries are primarily focused on financial gain. This reluctance can lead to a lack of communication about financial needs and the spiritual importance of giving, further contributing to mistrust. This leads to the question... How do we have good and helpful conversations about financial stewardship without walking down this road?
4. Financial Pressures: Rising costs and inflation have increased financial pressures on christian schools, colleges, ministries and churches, which may lead to more frequent appeals for donations. This can create the impression that churches are more focused on financial survival than on their spiritual mission. Again, how can we reframe the conversation?
5. Spiritual vs Financial Focus: Here is often a tension between viewing giving as a spiritual act versus a financial necessity. When churches emphasize financial needs over spiritual growth, it can lead to mistrust and a misunderstanding of the purpose of giving.

Answer: Yes, I believe we do have a Stewardship Crisis in America.

What do we do now?

The good news is I believe that there is hope. When we choose to act wisely and to steward what God has entrusted to us well, it provides for a sense of freedom. No matter how much money is left in the bank.

Here are some ideas:

1. Examine Leadership and Stewardship: Church and ministry leaders should first evaluate their own financial stewardship and leadership decisions and processes. The commitment to proper financial stewardship starts at the top with the Board and trickles its throughout. This is a culture shift moment. How are you engaging these conversations at the highest level of your organization or church?
2. Implement Strong Financial Systems: Do you remember the last time you, as the leader of the church or organization stood before your board trying to interpret the financial statements to them? Can you read and interpret the finances? Do you have that training? Churches and ministries need to establish robust financial systems with layers of accountability and safeguards. This includes ensuring no single individual has control over multiple financial processes, such as counting and depositing money or signing checks. Evaluating and improving financial systems can prevent mismanagement and build trust within the congregation. This might also involve an investment in hiring individuals who are properly trained and experienced in nonprofit, financial workings. Contact me if you need any help here.
3. Develop a Clear Vision and Budget: Ministries and Churches should lead with a clear vision that guides their financial decisions. Budgeting should be strategic and aligned with the church's mission, ensuring resources are used effectively and not wasted. This approach helps in planning for future growth and addressing current financial needs.
4. Engage in Stewardship Training: Providing financial stewardship training to the congregation can help members understand the biblical principles of money management. This education can empower congregants to manage their personal finances better and increase their willingness to contribute to the church's mission. But don't forget... You (the organization) should also take on Stewardship Training). Again, contact me if you need ideas.
5. Adapt to Economic Conditions: Ministries should be flexible in their financial planning, adapting to economic changes and challenges. This might involve postponing non-essential projects, renegotiating contracts, or creatively using volunteers to manage costs. Stewardship involves being flexible based on what God provides.

By taking a few of these ideas you can begin to shift the culture in your organization. What are you doing to change this trend? Your Response is everything. Don't ask your church congregation to go through training you as the church are not willing to also engage in.

I would value you feedback and my hope is to start a discussion around this topic. Let's dive in and begin to shift the narrative. Stewardship is essential. Response is everything.

Resources and Citations:

Barna Group. "The Deeply Personal Reasons People Give Financially." Barna Group, 2022, www.barna.com/research/true-generosity. Accessed 17 Aug. 2024.

Wilson, Jonathan, et al. The Realities of Money and Missions: Global Challenges and Case Studies. William Carey Publishing, 2024. -- Amazon Purchase Affiliate LInk