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Posts Tagged ‘relationships’

arm wresting competition

Soggydan

When most businesses think about their competition, they often identify businesses that offer similar products and services.

For example: HP thinks about Dell. American Airlines thinks about United Airlines. In essence, their competition is defined as those other businesses that compete for the same market share.

In a recent blog post, Shaun King highlighted that while this trend is true in business, it is not true for churches and nonprofits. In his post, “The MAJOR Disadvantage (& ugliness) of Non-Profits & Churches Misunderstanding Who Their Competition Is,” Shaun highlights that other nonprofits and churches are not in competition with each other.  He argues, instead, that the real competition is the factors that cause the problems.

For example:

  • If you are trying to fight hunger, the competition is poverty and access to food.
  • If you are trying to fight slavery, the competition is slave traders
  • If you are trying to fight drug crime, the competition is drug dealers

Unlike businesses, churches or nonprofits don’t compete against each other. Instead, they offer each other a partner for mission and work.

I really appreciated Shaun’s post and I would encourage other leaders to give it a read and to share it with their leaders in their organization. After all, operating a church is about changing lives, not fighting with other people who have the same goal.

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In its second edition of the World Giving Index, the Charities Aid Foundation has determined that the United States is the most charitable country in the world.

The study found that out of the 153 countries evaluated, the people in the United States were the most generous with their donation and volunteering for charities and other nonprofit organizations.

The study also showed that giving globally has increased by 2% and that volunteering has increased by 1%.

The report also has a great picture showing how giving has been distributed (originally found at http://taxprof.typepad.com/taxprof_blog/2011/12/world-giving-index-2011.html ) shown below:

Map of Giving

Charities Aid Foundation

 

For more information read the report at https://www.cafonline.org/publications/2011-publications/world-giving-index-2011.aspx

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five

svenwerk

Each year IBM makes 5 major predictions about what new 5 technological innovations will impact our lives in the next 5 years. They call it their 5 for 5 list.

Here are the top 5:

  1. Energy: People power will come to life– normal activities will soon be converted into energy to power our houses, work, and lives.
  2. Security: You will never need a password again– think biometrics and unique identification based your physical attributes
  3. Mind reading: no longer science fiction– linking of phones, computers, and the web to your personal preferences and body actions
  4. Mobile: The digital divide will cease to exist– mobile devices are making access to information and technology universal
  5. Analytics: Junk mail will become priority mail– via analytics, technology will begin to filter the information you prefer to your inbox

Obviously these shifts will impact our lives, how we communicate, and our culture…aka every aspect of our lives. As you consider how to position your nonprofit to serve others, these advances will also impact the mission work of our world.

I encourage you to read the full story on the IBM Website

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Reviewing Financial Reports

s_falkow

Recently, I was asked, “What are some basic steps we can do to improve our financial management?”

I was visiting a local congregation and the leaders were in the process of reviewing their financial history, operations, and current accounting controls. In the meeting I listed off about five items, but in reflection, I thought I would create an official list of financial basics for nonprofit management.

Financial Basics for Nonprofit Management:

  • Tracking of Data- by tracking data, you can determine benchmarks for growth or decline. Be sure to track participation, income, expenses, donations (and levels of giving), and long term goals (and to communicate these to leaders, donors, and members).
  • Accounting Controls-many small nonprofits rely upon 1 or 2 people to handle all of their bookkeeping. This leaves them vulnerable to fraud and usually limits financial communications. Be sure to have monthly review of finances, independent reviews of bookkeeping, limits on spending, and requirements for approval of spending.
  • 6 Months of Emergency Savings- every organization should have 6 months of cash savings available to cover expenses in an emergency.
  • Line of Credit- as organizations grow, they can improve their cash flow by taking out a line of credit or operating loan. LOC should be capped at around 3 months of expenses, and often operate similar to a credit card for an organization.
  • Multiple Income Streams-no organization should only have one line of income. By creating multiple revenue streams, nonprofits increase their stability.
  • Endowment & Net Assets– Gone are the days when a nonprofit organization should operate at a net zero. By creating endowments and net assets, nonprofits can cover the cost of their operations, allowing more of their donations to immediately  go into outreach.
  • Facility Management– Buildings cost a lot to maintain and operate. If you own a facility, be sure keep up with facility maintenance, use it as resource, and improve it as building code and mission needs change- otherwise it can become black-hole that sucks money away from your mission focus.
  • Board Development- Board members are ultimately responsible for organizations- be sure board members understand their roles and that they are giving proper oversight of staff and operations.
  • Insurance- Be sure that your organization has enough insurance to cover its liabilities for its staff, operations, facilities, and to protect the organization from lawsuits and emergencies.
  • Management & Gift Policies-smaller nonprofits often lack staff, organizational management (by laws), and gift policies which help organize and outline how nonprofit organizations operate and how donations should be accepted and used.
  • Financial Relationships– this may seem like an odd item for this list, but knowing your bank manager, accountant, insurance broker, and financial advisers personally can be critical in emergencies and/or when you need additional help.

There are many other items that could be added to this list (brand management, communications, mission focus, etc), but these are some highlights to help you review how your church or nonprofit organization manages its financial operations.

 

 

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Picture of Twitter Bird

some_communication

Last week I was interviewed by MSNBC for an article about how churches are using social media (read it here). As I prepped for the article, I created a list of reasons why churches should consider using Social Media (SM).

5 Reasons to Consider Using Social Media for Your Church:

  1. Local Context– Unlike most communication mediums, SM is grassroots based- meaning it provides a powerful way to reach out to people in your specific community.
  2. Be Present in the Conversation about You– People discuss all kinds of issues on SM- including their church. In order to be part of conversation, you need to be present. This is especially key when communicating about brand, major events, or in times of a crisis.
  3. Reach Gen X and Millenials– Younger generations are skeptical about institutional church- SM offers a way to engage with them, whereas they would be hesitant walk into a church building.
  4. Connect with People not Present– SM offers tools to connect with people who are unable to be physically present- traveling, hospital, shut-ins, etc. With SM they can participate live or by watching/engaging with an event later.
  5. Facilitate Conversation– more than just telling people about your church and its ministry, SM provides a place for a larger conversation where everyone has a voice- providing more transparency and accountability for organizations.

If you want to consider how Social Media can improve the operations and ministry of your church, I would also encourage you to follow Rev. Courtney Richards on facebook or twitter (@c_rev) – links are for her pages.

Courtney is a minister at Geist Christian Church in Indianapolis (facebook link), and when I asked her about SM, she said, “I use SM all the time to keep us with members and with what is going on in the community. It has been great way to reach out to people and to offer either a word of support or to give someone a shout out for their hard work.”

If you are considering using Social Media, feel free to read a number of blogs that I have posted here, and to also find someone in your local community who can assist you. You can begin by just listening and observing first, and then jump in as you feel ready.

Blog Notes: Special thanks to Courtney Richards for the quote and letting me share her online twitter profile.

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On Monday I was interviewed by Alex Johnson, a reporter for MSNBC.com about how churches are using social media.

In the interview I really tried to stress that churches really have a great opportunity to connect with their local communities (via social media), and that the conversation was taking place, with or without their official presence.  Here is the link to the full article: “For Some Churches, The Internet Clicks; for Others It Doesn’t”

social media

some_communication

Much of article focuses on how different denominations and local churches have adapted to using social media.  But, the article also helps to spell out that congregations need to think through how they plan to use it.  It is not enough just to create a facebook page or to have a static website.  Instead, churches really need to think about their ‘brand’ and what messages they hope to convey to their potential audience.

As you read the article, here are some helpful questions to ask about your church’s use of Social Media:

  1. Who are we trying to target?
  2. What is our overall goal for using Social Media
  3. What messages should we try to communicate?
  4. How can we participate in the conversation, rather than just push out information? (more…)

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Worship Bulletin

Paulo Brabo

Over the past three weeks, I have been a visitor to three different churches, and at each, I was struck by what their worship bulletin (program) told me about the congregation and its overall ministry.

Here are some questions to consider as you review your bulletin:

  • Does your bulletin look historic or modern?– Visiting a traditional and historic church, it was no surprise that their bulletin looked out of date. It looked like the church had not updated their bulletin design since the 1980’s. In contrast one church’s bulletin had a more recent design, with colors, that conveyed a sense of life in the church.
  • Does your bulletin have pictures and colors?– similar question, but a good one to consider as we increasingly live in a world defined by visual images.
  • Is your bulletin easy to read?-This is more than just the size of your font. Hopefully the layout and flow of your bulletin is easy to read by visitors who will not be familiar with the rituals of your worship.
  • Does your bulletin welcome visitors?- Certainly a welcome note is helpful, but does it help give instructions for people who are unfamiliar with when to stand, sit, sing, take communion, pray out loud, etc?
  • Is more than half of your bulletin about the news of the church?- Some news and announcements can be good, but often (more…)

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