This Kind of Giving is Actually Harmful to Your Church

If there is a topic that reaches me with frequency, it is the topic of church members designating funds. And the common theme is one of regret. The pastor or other church leader wishes the door of designated funds had never been opened.

For clarity, I am not speaking of designated funds approved by the church body as a whole. Many churches have excellent stewardship approaches that encourage members to give to a building fund or a mission fund, as two examples.

Instead, I am referring to those designated funds given to the church by a single or few members with guidelines not approved by the church as a whole. For example, one pastor shared with me about funds the church received with the strict stipulation that the church had to use them to buy stained-glass windows. The only problem is the church did not want to purchase stained-glass windows.

In another example, a pastor shared with me about a member who would only give designated funds to the youth ministry. The problem is that the youth ministry already had funds in the church budget, but these designated funds gave the youth ministry disproportionate funding compared to the other ministries. To make matters worse, the youth ministry was encouraging the donor to make the designated contribution.

So designated funds are not an intrinsic problem themselves. But they can become a dangerous precedent for several reasons. Here are five of them:

  1. They circumvent the will and the plan of the church as a whole. Designated givers are basically saying they don’t like the unified budget of the church, so they are going rogue and dictating their preferences over the church as a whole. A church with numerous designated funds can find it has a budget with no teeth.
  2. They create division in the church. Each designated giver is doing things his way or her way. Others tend to resent the imposition of will the person demands. Disunity is thus a natural consequence.
  3. They create an environment where advocates of a particular ministry or need of the church solicit designated funds. The youth minister in the example above spent an incredible amount of time and energy currying the favor of designated giving to the youth fund. Instead of ministering to the students, he was spending as much time becoming a fundraiser.
  4. They often come with stipulations that are difficult or impossible to comply. I recently heard from a pastor whose church had a designated endowment fund. The donor to that fund, however, established investment guidelines many years ago that required certain investment instruments that no longer exist.
  5. They often hurt the budget giving of the church. The person who designates to the youth fund is likely taking dollars that would have normally gone to the budget as a whole. In many cases, each designated dollar is thus a dollar deducted from the overall budget.

I encourage church leaders to develop clear guidelines for dealing with designated funds. It will make saying no to a potential donor much easier. And it will also send a clear message that the church seeks to move forward in stewardship unity, rather than different members deciding what their own financial preferences and whims are.

Read more from Thom.


 

Connect with an Auxano Navigator to learn more about Generosity at your church.

Download PDF

Tags: ,

| What is MyVisionRoom? > | Back to Resourcing >

ABOUT THE AUTHOR

Thom Rainer

Thom Rainer

Thom Rainer is the president and CEO of LifeWay Christian Resources.  Prior to LifeWay, he served at The Southern Baptist Theological Seminary for twelve years where he was the founding dean of the Billy Graham School of Missions and Evangelism.  He is a 1977 graduate of the University of Alabama and earned his Master of Divinity and Ph.D. degrees from The Southern Baptist Theological Seminary. In addition to speaking in hundreds of venues over the past 20 years, Rainer led Rainer Group, a church and denominational consulting firm, from 1990 to 2005. The firm provided church health insights to over 500 churches and other organizations over that period. Rainer and his wife, Nellie Jo, have three grown sons: Sam, Art and Jess, who are married to Erin, Sarah and Rachel respectively.  The Rainers have six grandchildren: Canon, Maggie, Nathaniel, Will (with the Lord), Harper, and Bren. He is the author of twenty-four books, including Breakout Churches, Simple Life, Simple Church, Raising Dad, The Millennials, and Essential Church.  His latest book, Autopsy of a Deceased Church, was released in 2014 by B&H Publishing Group.

See more articles by >

COMMENTS

What say you? Leave a comment!

Recent Comments
comment_post_ID); ?> good article. Where I would take exception in the seeming negativity to plant a church more organically/biblically through missional communities due to the slowness of growth. I think that's the problem with church planting in the US today is that speed of numerical growth has taken priority over true and authentic spiritual growth
 
— evansavage1
 
comment_post_ID); ?> Thanks Thom, You’re exactly correct. Now how about some solutions when confronted by one of these wayward actors?
 
— Mike
 
comment_post_ID); ?> This is hilarious. Well done!
 
— RussellC
 

Clarity Process

Three effective ways to start moving toward clarity right now.