How can a shrinking church grow generosity? Part 1: Paying attention
I am a huge fan of financial advice columns where people write into the newspaper and describe their money situation. Endlessly fascinating!
What if there was a financial advice column for churches?
This blog will start with a real financial profile of someone who wrote into the Toronto Star. Then we’ll use our imaginations and pretend a church wrote in looking for financial advice. But first, a person.
Can Andrew S. Church afford to buy a home?
Andrew S. Church is 32 years old and makes $60,000 a year as a custodian. He lives in a one-bedroom apartment which costs $1,350. (Andrew does not live in Toronto, that’s why his rent is so cheap!) His monthly take-home pay is $3,500 and his expenses are nearly $3,000. He has $50,000 in savings.
Can Andrew afford to buy a house in Ontario?
Short answer: No, it’s not likely in the short term. Even if the mortgage payment was the same as his $1,350 rent , there are all sorts of costs associated with owning a home in addition to the monthly payments. There’s insurance, maintenance and taxes to consider.
To buy a home, Andrew would need to move away from his family, which he does not want to do. He has identified his values, an important part of the exercise, and he values staying close to home. Andrew should invest his savings. That way, he’s not losing ground to inflation as he looks to the future. (Based on Toronto Star Millennial Money, Oct 16, 2023)
Nostalgia and Knowledge
Notice that the columnist didn’t tell Andrew to hang tight and wait for 1955 housing prices to return. Nostalgia would just make Andrew feel sorry for himself, instead of focusing on what he can do. Investing will keep his options open in future.
Readers might have all sorts of other ideas for Andrew: find a room-mate, get married, borrow money from family, get another job, move away.
A wise friend said recently, “Knowledge doesn’t change hearts or behaviors.” True! Andrew might choose to make changes, or he might choose to appreciate where he’s at. Knowledge is a good start either way. Andrew has a better idea of what’s possible and what is not.
What if Andrew S. Church was Appleseed Church?
How should Appleseed Church invest its reserve fund?
Appleseed’s original letter to the newspaper included:
We are a small church. The building is completely paid for, no mortgage. We have $438,000 in reserve funds. How can we best invest to keep our church going for as long as possible?
In a follow-up call, the writer from Appleseed was unwilling to share monthly income and expenses. That’s a secret! The details of the reserve fund are closely held also. The people best positioned to make decisions about the future of the church - that is, the people who attend Appleseed - lack information.
When asked about the building, the writer boasts that they run a tight ship and don’t spend money on unnecessary repairs or maintenance. The roof leaks are manageable and the oil furnace still works. Elevator? Like many of us, people at Appleseed don’t want to talk about hard things.
Nostalgia and Knowledge
Fun fact: While Appleseed employs a part-time pastor, their equivalent annual salary is the same as Andrew S. Church’s custodial salary. This means that Appleseed’s pastor couldn’t afford to buy a house either.
Trendlines do not favour either Andrew S. Church, nor Appleseed. Housing prices are extraordinarily high. Fewer Canadians go to church. Nostalgia can help people understand their values, but it is essential to be facing forward and not backward. What is God calling the church towards in this current moment?
The church can be a good role model for Andrew, and for its members, by paying attention to its financial situation. Secrecy and silence around money give money more power than it deserves. Like Andrew S. Church, Appleseed Church needs to talk about its values and look at their finances.
This is a longish blog post (for me anyhow!) and it’s definitely a “to be continued…” As you’ll note from the newspaper graphic, church finances are a deeply theological topic!
You might also like…
I’ve written a book Growing a Generous Church: A Year in the Life of Peach Blossom Church. Available through my website, Common Word bookstore or Amazon, it’s a small investment and an easy and accessible read.
Great church funding podcast - also available as a video
My friend Grace Pomroy from Luther Seminary has been researching churches. How can they find new funding sources - and also find joy? This is a great podcast, also available as a video. It’s about 30 minutes and well worth your time.