Removing the Mysteries about Church Finance. Jerry L. Johnson

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over time creates a trend, and trends can be measurable. But first, the problem must be identified, framed and a plan of action formed.

      Too often though, symptoms are identified and “corrected” so that the illusion of effectiveness is maintained. This will lure the church into greater difficulty. It is much like attempting to cure measles one pimple at a time. This church was at the tipping point. Is the root of problems facing this church lack of resources, including shortage of money, or a Spiritual one?

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      1 Dictionary of Bible Themes Scripture index copyright Martin H. Manser, 2009. As Editor, Martin Manser wishes to thank all those who compiled or edited the NIV Thematic Study Bible, on which this work is based.

      SECTION 2 - REVIEW

      1. What does the Bible say about negotiations?

      Proverbs 16:7 - When a man's ways please the LORD, he maketh even his enemies to be at peace with him.

      2. How were the individual issues impacting other issues?

      3. How would you go about deciding where to start making changes?

      4. Could any of the issues have been ignored?

      SECTION 3 – DEFINING THE PROBLEM

      LEARNING OBJECTIVE – How to look at disparate symptoms and determine underlying problem

      WHAT YOU WILL LEARN

      1. Differences among Symptoms, Problems, and Predicaments

      2. Approaching a problem with a plan

      3. Communicating the plan

      4. Setting action steps

      5. Changing the organization

      To look at what was going on with this church required expanding the focus. There were clearly numerous problems present but were being dealt with bit by bit. Systemic issues were not successfully addressed.

       Problems vs Predicaments

      There were numerous problems that, taken together over time, produced the financial predicament the church faced. Any one of the issues enumerated previously could be classified as a problem, which could be dealt with easy enough. But taken together, the church was in a predicament, meaning the problems were interrelated and resolution had to encompass them all.

      Thinking you are going to correct a problem before clearly defining it is akin to putting the roof on a house before framing the walls. Up to this point the church was trying to pay bills and coming up short each month and getting further behind. To complicate the situation, there did not appear ways to make things better. The church valiantly attempted to correct their situation without making significant changes. A turnaround plan had to be put in place. First task was to keep the doors open this week; then keep the doors open next week.

      I have guided hundreds of commercial companies out of similar predicaments. This was my first church financial turnaround. In order to get through this, I had to give the deacons and pastor a plan. There was plenty to be worried about though, and some supernatural leverage would sure help. I took complete control of the checkbook and everything financial.

      I loaded data that seemed reliable into a spreadsheet. It was necessary to find out what we had to work with and to make some calculations. In order to make any plans there was data needed:

      a. Average weekly tithe for the past two years, showing seasonality. (Some churches ask for pledges to project how much will come in; more about forecasting later.)

      b. Average weekly attendance in church services and Sunday school.

      c. Seasonality was important since there were a number of people who would attend only during the certain seasons. Of these, a few continued to send their tithe when they moved back to their original homes.

       Deacons Meeting

      At the deacons’ meeting, the chairman asked, “How does it look?”“The situation looks dismal. There is a generally consistent offering stream coming in but it’s not adequate for the current debt load and operating expenses. The church is steadily sinking. Each month the church is falling farther behind on payment of bills. The attendance is down, but there is a dedicated few who are trying to hold it together.”

      “What can we do? We have to get out of this crisis.” The chairman was seeing the picture. All it takes to create a financial mess is a charismatic leader and followers who acquiesce or condone reckless decisions. Nevertheless, to clean it up requires action, not acquiesce. The paradigm that created it will not be the same one needed to correct it. New tools and skills are required. Do people learn from their mistakes? Some do, but it is easier to justify results than it is to change behavior.

      For this church to face their enterprise future, they would have to do it with a changed paradigm. Otherwise the church would eventually slide back into the same hole.

       Two Ways to Cause Organizational Change

      Prior to this intervention, there had not been a willingness to change, an understanding of how to make the necessary changes, or even what changes they needed to face. There was a feeling of discomfort, unease among the congregation but not enough to create a groundswell. Voluntary change comes as a result of prolonged pressure for change within: (i.e. street marches by millions of citizens in Puerto Rico calling for the Governor to resign; he did). The other way it is imposed on an organization is by a significant external event that shakes the organization, such as bankruptcy. The main discomfort within the church seemed to be the lack of air conditioning for the worship center.

      Since there was little internal pressure for this church to make any real changes, the focus was on external events. When a business cannot pay its bills, that is considered technical insolvency. When they continue doing business after affirming their insolvency it could make the Deacons or Ministers responsible for the subsequent debts. A church entering Chapter 11 Bankruptcy, may be viewed a moral failure, considering what bankruptcy does: wipes away debt owed their creditors. Instead, holding up the specter of civil court action that would embarrass the church in the eyes of the community and other churches, including leadership, and their own members, was a powerful incentive.

      To achieve a major impact on church behavior, be prepared for it to take a while, with constantly applied reinforcement. The church will be changed as the leaders learn what is expected of them regarding church finances. Whether they act on that new knowledge is up to the church. The age of the church, along with the general age of the congregation will provide some insight. The more entrenched the congregation, the less welcome any suggestion for change will be. Consider this a basic assumption, with the congregation never stopping to question or confront leadership.

      When an organization, a church, a trucking company, gets in serious financial trouble, changes within the organization must take place. Make the pain go away but let me keep doing what I was doing. That would be nice, but nowhere in the scheme of things is that an option, no matter how hard they work.

      Success is the art of preparation. We are what we repeatedly do. Excellence then is not an act but a habit. (Aristotle) When you are ready to learn, someone will come along to teach you. For the congregation to become more effective

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