Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” Malachi 3:10
Working closely with churches and organizations as a financial ministry of generosity offers us a unique position and perspective to identify and address common challenges, pain points, and success stories, which helps us discover better ways to serve and resource church pastors, staff, and leadership.
Most churches, whether large or small, face challenges when it comes to finances and funding for continued ministry. Needs continue to arise from budget shortfalls, minor and major repairs, unexpected expenses, starting new ministries, and more. When these needs arise, it can be easy to dip into reserve and endowment funds with the intent to reimburse those funds later. These safety net funds are carefully crafted with the intention to sustain churches and ministries far into the future (and in extreme circumstances) and should be a last resort.
Reserve funds, usually given from various donors, have accumulated over time and would require similar effort to rebuild. Rather than depleting these reserves, it is important to consider how to utilize these funds along with Foundation services to creatively address any funding shortfalls. Consider whether spending reserve funds would address the problems or delay more significant issues and if there are other solutions to address long-term sustainability. We recommend the following options.
Try Transparency. A simple first step is to let your church know a need exists and give them a chance to step up, help, and show their generosity. Church members are often willing to give above and beyond their regular tithe when it is for a worthy cause or an immediate need. Depending on the financial gifts needed, consider asking your church from the pulpit, sending letters, and/or starting a capital campaign.
Apply for a Loan. Through the Development Fund, the Foundation offers loans up to $1 million for refinancing large loans, new church construction, purchasing property, and major renovation projects. We also have the ability to partner with other Foundations for larger loans. Learn more.
Build Funds for Minor Projects. Start setting aside funds for a “Rainy Day Account,” where the funds go towards unexpected expenses, repairs, normal wear and tear, and other similar needs. Having a designated account to cover these costs can provide peace of mind, knowing there is money set aside to cover unexpected expenses.
Examine Other Revenue Streams. In his book “The Coming Revolution in Church Economics,” Mark DeYmaz offers ways churches can sustain themselves and thrive in a culture where tithes and offerings are no longer enough. For more information and specific ways to leverage church property to sustain your mission, visit this article.
When to Spend Reserve and Endowment Funds. As a church, it is important to decide when and how to spend endowment and reserve funds before a need arises. Consider creating a church committee to develop a set of guidelines for using these funds, multiple people to authorize spending, steps to adhere to the guidelines, and implementing a repayment plan to reimburse any funds used.
Over the last several years, we have seen churches greatly benefit from reserve and endowment funds during the pandemic to prevent staff layoffs, address substantial hurricane and tornado damage, temporarily supplement the church budget to keep doors open through drastic
attendance changes, and more.
To learn more and find out how the Foundation can partner with you through consulting, financial and stewardship resources, endowment programs, loans, and more, contact us at [email protected] or 334-793-6820.
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