by Scott Hoover

In 1977, Malone Dodson joined the 1,700-member Roswell United Methodist Church as senior pastor and set to work to make the most of a $200,000 budget and staff of five. Today, the budget has swelled to $3.8 million, the staff has grown to 23 part-time and 36 full-time employees while the membership has expanded to 7,184. During this time, Roswell has instituted five expansion projects and currently is in the middle of its sixth

This is just one of the success stories in the church stewardship community. However, the days when churches continually could ask for more money without being held accountable are over. Today, when a church comes to its congregation with a fund-raising idea, the congregation stands together and asks, "Why are we fund-raising and what is the money going to be used for?"

Thus, the role of church stewardship companies has expanded. It is the job of these experts not only to raise money for the church without mortgaging the future, but also to lay the groundwork for church leaders to educate their congregations for biblical stewardship.

The Changing Face Of Stewardship

Twenty years ago, stewardship campaigns strictly were held to raise money for capital campaigns. Today, the landscape of stewardship is changing. Not only is money being raised for building projects, but also to reduce long-term debt.

According to Jim Sheppard, president of the Atlanta-based The Genesis Group, 15 percent to 20 percent of stewardship campaigns now are being used to retire debt.

"Churches and lay people are becoming very debt conscious," he notes. "People look at the way the government is run and the huge debt the country has, they look at consumer reports and read that, as a nation, we have tremendous amount of unsecured credit cards relative to income, and they look at the church and want it to be different."

Dr. John H. Hewett, CFRE, vice president of the church division of Cargill Associates in Fort Worth, Texas agrees. He says churches that are using campaigns to pay off long-term debt is a trend in the industry. However, it also can be extremely difficult.

"Many church leaders find that debt retirement on newer buildings is not the difficult part," he says. "However, it gets more difficult when churches are trying to pay down debt on older buildings. It's like when you borrow money to buy a car. After the car gets a little beat up and doesn't smell new anymore, it is a lot tougher to continue to make payments. It is the same with a church."

Be Prepared

Most church leaders today are visionaries and have learned over time that, in order to be successful, churches need to build a vision and communicate that vision to the congregation. The vision of a church also is extremely important when it comes to determining the right time to begin a capital campaign.

According to Dell Rogers Jr., vice president of the Dallas-based The Rogers Co., growth of a church is a part of the vision that has to be monitored constantly.

"Church leaders have to realize that a stewardship campaign needs to be done before it becomes a necessity," he says. "If a church is reaching 70 percent to 80 percent of its capacity, and it has not yet initiated a stewardship campaign, there could be trouble. Church administrators need to be cognizant of the congregation's growth. They need to watch how the congregation is growing as well as be prepared to study and project the future growth of the church."

Often the perfect time to bring in a stewardship consultant to conduct a market analysis is during times of rapid growth. This allows church leaders to learn how the church is growing, where the majority of the expansion is coming from and the amount of growth the church may see in the future.

Sheppard notes that church leaders need to be prepared at the first inclination of sustained growth.

"Finances place more limitations on the ability of the church to grow and minister than any other single item," he says. "One of the biggest mistakes that churches make is waiting until it is too late. Church leaders need to begin contacting and interviewing stewardship companies immediately after realizing the church may have to undergo a facilities expansion. The more time a company has to study a church's situation and plan the campaign the better off the church will be."

Hewett agrees, noting that the perfect time to start a campaign simply comes down to when the church needs the money.

"Often, people are not willing to give to a savings account," he says. "They want to see what they are paying for. I believe the best time to start a campaign is six to nine months before the project is ready to break ground and construction begin."

Choosing A Stewardship Company

Choosing the correct stewardship company for a church's capital campaign project is one of the most important decisions a church leader needs to make. One of the first and most important criteria to consider is the track record and history of the company. Churches should ask for, follow through and check all the references the company provides.

"Church leaders need to be committed to checking references on any company they are going to hire," Sheppard says. "Companies should have more than a handful of references, and some companies are even willing to give a full list of the churches that they have worked with."

Another criteria is the ability for the stewardship company to design a program for each individual church. This might entail the company coming in before the campaign begins and spending some time with the congregation and church leaders to get a feel for the church's personality and its philosophy.

"A company that tries to use one campaign for every church that it deals with, no matter what the size or denomination, is not a company church leaders should choose," Rogers adds. "A stewardship company has to have the ability to be flexible, to change and to modify a program to fit the personality of the church. In order to prove its flexibility, a company should be able to give examples of different churches and show how the program was modified for each one."

According to Bill Wilson, president of the Dallas-based Resource Services Inc., churches also need to establish a screening process with the objective to bring in two or three stewardship companies for an interview.

"Too often, churches bring in five or six companies and interview them over a three-week process which just confuses the building committee," he says. "Church leaders need to talk to someone at the company about the programs that are offered and the type of staff that is available. They should ask to see stewardship education materials and call churches of similar size and denomination that have worked with the company. After all this is complete, then church leaders can bring in two or three companies that they believe will be the best fit for their particular church."

Additionally, Hewett says churches should meet with the consultant that will be handling stewardship campaign.

"Church administrators need to realize they are going to be dealing with the company and even more so, the consultant, for the next three years," he says. "Leaders need to select a consultant that they believe will provide the best chemistry for themselves and the consulting organization."

The Finance Plan

Loans, bonds and stewardship campaigns are all avenues that churches must utilize with almost any capital campaign. More than 95 percent of the churches in the United States do not have the ability to do a capital campaign and wait until all the money is in before construction begins. So, loans and bonds are areas that most churches need to use in combination with a strong stewardship campaign.

In addition, many churches realize that the funds needed for a construction project are more than it can raise over a 3-year capital campaign. There also are several advantages to using a stewardship campaign rather than just getting a loan from a bank. One of the most important is it gets the congregation involved and gives them the feeling of ownership.

"Our philosophy is to help churches accomplish their plans without mortgaging their futures through long-term debt," Hewett says. "Our primary task is to train and equip lay leaders to change the mindset of the congregation. When priorities are examined and lifestyles are changed, the money always follows."

Financial planning should run parallel to the building planning. The campaign itself should follow an official positive vote by the congregation in regard to the building program and before construction begins. Church leaders are encouraged first to ask congregation members what they are willing to contribute through a stewardship campaign before going to a bank and securing any long-term financing. Additionally, most financial institutions will need to see a contribution breakdown before guaranteeing any loans.

Staying Positive

Due to the fact that most capital campaigns run for at least three years, keeping a congregation positive for the duration can be difficult. According to Rogers, one of the most important steps also is one of the easiest.

"Congregations have to be kept aware," he says. "Church leaders need to tell their congregations what the money is being used for each step of the way. Additionally, another way to keep congregations positive simply is to say 'thank you' either from the pulpit or through church communications."

Wilson adds that church staff as well as church leaders and the congregation are all going to have different levels of understanding about the capital campaign so involving these groups in program designs can be helpful.

"RSI creates support and educational materials such as calendars so the entire staff can get involved," he says. We also invite key personnel of the church to meetings and lay out the entire campaign for them. From an administrator's standpoint, the more involved the congregation and staff, the more positive the attitude."

Hewett says Cargill offers a vision workshop to help the church focus on its priorities and a capital feasibility study where the company comes in and interviews the congregation and confidentially surveys how the congregation feels about the project and how much they are willing to give.

"This process gives church leaders a clear signal of the congregation's attitude," he says.

The assimilation of new members is another key to a successful capital campaign. Not only do new congregation members bring in new money, but they also can help to offset the money lost through the attrition of families who have left the church before meeting their intended goals.

"Involving new members is a "must" for a successful campaign," Sheppard notes. "Not only does it bring in additional funds to the campaign, but it also allows these new members to participate and feel as if they are part of the process."

Another successful way to increase the percentage of dollars received is to distribute quarterly financial statements that shows what a family has pledged and what has been given year-to-date.

"Oftentimes, church leaders say they don't want to pressure the congregation; however, many times congregation members might not be keeping track of how much they have given and a quarterly financial statement serves more as a helpful tool than a hindrance," Rogers notes.

Finally, all of the stewardship professionals agree that a successful follow-up has to be an important part of the equation.

"During the construction phase, people tend to stay highly motivated," Wilson says. "Congregations run into trouble when the project is completed ahead of schedule and it loses its urgency. Church leaders and the stewardship consultants have to keep the project before the people and keep them focused."