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God-Honoring Stewardship
How people and churches handle money declares the kingdom to which they belong. Jesus laid out two options. We can either store up treasures for ourselves on earth or store up treasures for ourselves in heaven (see Matt. 6:19–20). He also said, “No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to one and despise the other. You cannot serve God and wealth” (v. 24).
It seems as though Jesus was always asking, “What do you value most?” He was always contrasting two perspectives—for example, two kingdoms, two masters, or two values. So what do fit churches value most? Simply put, they value investing in heavenly wealth. The key question for fit churches is, “Where is our treasure?”
Handling Money
Money has two primary distinctions in the Bible. It can be an instrument of good or an instrument of evil, and God does not leave us in the dark about how we should manage it. Consider the following biblical guidelines for managing money, and think about what they mean for a church.
The spiritual condition of the giver is important (see Ps. 51:10, 17, 19).
If your riches increase, do not set your heart on them (see Ps. 62:10).
We must first seek God’s kingdom and righteousness (see Matt. 6:33).
God’s grace calls believers to be generous (see Acts 4:32–35).
We are to give to God on the first day of the week (see 1 Cor. 16:2).
Even the poor can be generous in giving (see 2 Cor. 8:1–2).
Giving is first to the Lord, but is also a way to serve others (see vv. 4–6).
Believers should excel in everything, including the grace of giving (see v. 7).
Financial giving is a test of our sacrificial love (see v. 8).
Leaders should train believers to give (see 2 Cor. 9:3–5).
Those who handle God’s money wisely will receive more so that they may be even more generous (see vv. 10–14).
Leaders must be trustworthy with money (see 1 Tim. 3:2–3).
Accumulating money wrongly will bring harm (see James 5:1–3).
These passages present several principles that fit churches wisely embrace in their stewardship ministries.
Unfortunately, in many churches the lack of God-honoring stewardship is a major crisis, which, if allowed to continue without some intervention, will only get worse. In contrast to the lack of good financial stewardship found in some churches, fit churches honor God in the use of their finances. They believe wholeheartedly that to give is to sow, which results in generous churches. Writing to the Corinthians, Paul introduced an important piece of doctrinal instruction. “Now this I say,” Paul begins, which is his way of saying “pay attention—this is important.” “He who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully” (2 Cor. 9:6). While Paul was talking to individual believers, he addressed the church in Corinth as a whole body. Fit churches apply this passage to themselves in understanding that by being generous, the church is sowing seed. Like a farmer, leaders in fit churches recognize that when seed is sown, it may disappear for a time, but contrary to appearances, it will produce fruit in the future. Thus, fit churches seek to give generously to their staffs, their people, and the world around them, realizing that by doing so they will reap fruit in the future. The fruit reaped may be new believers or goodwill in the community or happy staff members.
Fit churches recognize their attitude toward finances reveals the heart of the congregation. Paul told the Corinthians, “Each one must do just as he has purposed in his heart, not grudgingly or under compulsion, for God loves a cheerful giver” (v. 7). Here Paul notes the quality of the gift is more important than the amount of the gift. The source of a church’s generosity is not its budget but its heart. Churches that choose to hoard money rather than provide generously for their staff, programs, and community outreach reveal a miserly heart. Each church should cheerfully give to others, but the Lord doesn’t have a specific quota or standard percentage he expects churches to provide. Like people, churches are free to control their expenditures as the leaders think best. Yet the true measure of a church’s heart is seen in its attitude of generosity. Since church leaders expect members to be generous in giving to the church, should they not lead the church in generously investing its resources for others?
The leaders of fit churches also realize that as they model generosity, God will meet the church’s financial needs and even provide additional income so they can sow even more in outreach ministries. “Now He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness; you will be enriched in everything for all liberality, which through us is producing thanksgiving to God” (vv. 10–11). As churches generously invest the finances God provides to serve others, he in turn provides even more income to meet their needs and presents more to invest. Being generous inspires thanksgiving to God. Generous churches literally enrich the corporate soul of the congregation while relieving others’ pains, inspiring people to praise God.
Solid Stewardship Practices
Church leaders spend a great deal of time figuring out how to reduce spending but give little attention to increasing giving. Perhaps they get what they expect—low giving. Fit churches find the following practices help them increase giving so they can be generous.
First, fit churches work from a well-defined budget. As churches go through predictable economic ups and downs, leaders find it extremely helpful to work from a well-defined budget. Most often, I find church budgets are divided into six categories.
Salaries/benefits. This includes cash salaries for pastors and support staff, as well as a host of possible benefits, such as retirement contributions, medical insurance, tuition assistance, etc.
Missions. This includes financial support for foreign and home missionaries, which may be a percentage of the general church budget or raised through separate offerings.
Education/discipleship. This includes expenditures for study materials, school curriculum, and various other resources that assist in spiritual formation.
Mortgage/debt service. This includes all payments to pay off debt, usually for physical property.
Fixed operation costs. This includes all costs of doing business, such as insurance, upkeep, utilities, etc.
Evangelism/outreach. This includes money for outreach in the immediate community, including advertising, visitor welcome packets, training materials, etc.
Second, fit churches develop a ratio of expenditures to various operations and adjust it from year to year. Obviously, ratios of expenditures to operations vary from church to church. The size, age, location, complexity, and demographic profile of a church make setting standard guidelines difficult, but the following are typical guidelines employed by fit churches.
Salaries/benefits. Churches usually spend between a high of 89 percent and a low of 27 percent of the total church budget on salaries and benefits. Smaller churches tend to dedicate a higher percentage and larger churches a lower percentage.
Missions. The rule that many churches use for giving to foreign and home missions is a tithe (10 percent) of the total church budget. Some churches raise money for missions through special offerings and give between 15 and 20 percent. A few churches dedicate 50 percent of their budgets to missions but create problems funding local ministry by doing so.
Education/discipleship. Expenses for spiritual formation are normally about 10 percent of the church budget. This may be higher in churches with large, traditional Sunday school programs but can be lower in churches that use small groups.
Mortgage/debt service. This category of expenditures has the potential to strap a church’s ministry if it is too high. It is best if the cost of debt service does not take more than 15 percent of the total church budget, but in today’s economy, 25 percent is not an unusual percentage. If the amount of a church’s budget rises above 25 percent, the church’s ministry is often hampered because funds are taken away that could be used for more direct ministry.
Fixed operation costs. Fixed costs are expenses that do not change much over time, such as rent, utilities, and insurance. Other expenses that may change yearly are called variable costs. It is best if a church’s fixed costs are in the range of 15 percent of the budget, but this varies greatly according to the location of the church.
Evangelism/outreach. The amount dedicated for evangelism and outreach usually represents the lowest percentage of a church’s budget expenditures. This is unfortunate, since money spent in this category is the most likely to bring new people to Christ and the church. Growing churches typically spend a minimum of 5 percent of the entire church budget for evangelism and outreach. The fastest-growing churches target up to 10 percent of the budget for this category.
Third, fit churches place a priority on staff, ministry, and facilities—in that order. While each church allocates budget expenditures differently, wise leaders make staffing a priority. In many ways, the quality of the staff determines the future of the church. Fit churches typically spend between 40 and 50 percent of their budgets on staff salaries, benefits, and reimbursements. While some churches proudly declare they give 50 percent of every dollar to missions, there is usually an unseen problem—the staff members are not generously paid. In other words, to give half of its income to missions, a church usually does so to the neglect of its own staff, which is certainly unbiblical. Fit churches follow the lead of Scripture, which declares, “The one who is taught the word is to share all good things with the one who teaches” (Gal. 6:6). “The elders who rule well are to be considered worthy of double honor, especially those who work hard at preaching and teaching. For the Scripture says, ‘YOU SHALL NOT MUZZLE THE OX WHILE HE IS THRESHING,’ and ‘The laborer is worthy of his wages’” (1 Tim. 5:17–18).
Fourth, fit churches plan for funding God’s work. Nehemiah is one example of a leader who understood stewardship principles. After learning the walls of Jerusalem were in ruins, he prayed about it (see Neh. 1:4–11). The fact that he spent time praying about the issue before designing his plan points to the purity of his motives. During Nehemiah’s prayer, God revealed to him a mission to rebuild the walls. Fit church leaders realize the truth that people give to vision, and they work hard to find and communicate a clear vision for the future of the church they lead. Nehemiah asked directly for what he needed to complete God’s vision (see 2:4–8). He developed a plan, knew what resources were needed, and asked the right person to help. Of course, Nehemiah understood the resources were God’s, but he was ready when the king asked him to give a specific, detailed response regarding what was needed. The leaders of fit churches understand they must do the work of developing plans and guiding God’s people to give sacrificially to accomplish God’s plans in the world.
Fifth, fit churches train their people to give. In many churches today, very few people appear to give from the firstfruits of their income, with church members giving only about 2–3 percent of their income to their church, while living on the remaining 97–98 percent. Ten percent of people give 75 percent of the total income of the church, with only 25 percent of the church’s total income coming from the remaining 90 percent of the people. Less than 20 percent of churches teach worshipers to give financially. Oftentimes pressure tactics, budget appeals, garage sales, legalistic petitions, and additional strategies influence people’s financial giving. While these often produce a short-term response, it is far better to teach people to follow biblical principles. Giving flows most naturally from an informed mind and a loving heart. Waldo Werning, former director of the Discipling/Stewardship Center in Fort Wayne, Indiana, writes, “We cannot expect fiscal responsibility from people whose belief system is weakened by a crisis of faith. The best predictor of generous giving is a strong faith and an informed mind. To be a faithful steward, a Christian must be fed and in a healthy congregation.”1
Sixth, fit churches prepare a resource development strategy. A good plan includes a specific strategy to communicate the vision, needs, and opportunities for giving all year long. Such a strategy involves an annual stewardship emphasis, instruction on giving in new member classes, biblical teaching on giving each year from the pulpit, personal testimonies from those who give, annual commitment cards, specific giving projects, and regular reporting on the church’s finances to the total constituency.
Fit churches build trust with the congregation by taking care of financial business and by how church leaders spend the church’s money. Leaders must spend wisely. When church attendees see they can trust their leaders not to overspend, and thus get maximum value out of the budget, they become more generous in their giving. Proper accounting of income and expenditures is also essential. Fit churches insist on proper accountability and organize the financial affairs of the church to keep risks at a minimum. Churches are not immune from dishonesty and temptation in financial affairs. Establishing controls to help eliminate problems builds trust among the people. This means separating roles; for example, the person who writes checks should not deposit money. A yearly audit by an independent, qualified outside firm also builds trust. Requiring detailed reports from the treasurer is also a critical component. Monitoring the cash flow, accounts payable, budget percentages, and legitimacy of expenses week to week pays off. Such actions keep the church on track financially and may save the church thousands of dollars.
Trust also comes from being able to raise money for the church and its special projects. Along with having godly character, which is the primary requirement, potential board members must also bring qualifications of wisdom, work, and wealth, but too often we overlook the importance of understanding wealth and settle for too many people who just bring wisdom and work to a board. While board members do not need to be wealthy, a key part of board leadership is assuming primary responsibility for securing financial resources. When church leaders are able to handle money wisely and help raise the level of financial giving, they prove themselves as leaders and find the congregation will quickly rally behind their vision and goals.
Beginner Churches
Beginner churches haphazardly handle their financial affairs. A single person or members of the same family control accounting functions. Teaching on the subject of financial stewardship rarely occurs from the pulpit or in classes or small groups. Beginner churches have no organized stewardship plan in place. Urgent financial appeals are regularly given in emergency situations or at the end of the church’s fiscal year. The financial books are cared for by a church volunteer, who may keep the books and records at their home.
PLAN OF ACTION IF YOU LEAD A BEGINNER CHURCH
- Encourage the pastor to preach or teach a series on biblical stewardship in the coming year.
- Evaluate who handles money in the church and separate the functions of counting, depositing, approving expenditures, and writing checks among four different people and/or families in the church.
- If your church does not operate with a yearly budget, develop a budget for the coming year and track income and expenditures.
- Require that all financial books and records remain at the church office rather than in the home of a volunteer treasurer or accountant.
- Give a minimum of 10 percent of your church’s income to international missions.
Novice Churches
Novice churches have basic budgets in place, and leaders receive monthly reports on income, expenditures, accounts payable, and projections for the rest of the year. The churches implement financial stewardship campaigns once a year, during which time people are encouraged to give sacrificially to ministries. Special offerings for a few specific projects are taken during the year.
PLAN OF ACTION IF YOU LEAD A NOVICE CHURCH
- Move away from a volunteer treasurer or accountant as soon as possible by hiring a part-time employee or contracting with an outside firm to take care of the financial records.
- Complete a ministry audit of where money is invested, and evaluate the value of each investment. For example, how much money is being spent on worship, administration, care ministry, education/small groups, children’s ministry, youth ministry, facilities, etc.
- To get a larger picture of the cost of each ministry category, place a portion of each staff member’s salary into each category of ministry. For example, if the pastor spends 50 percent of his time on worship, 30 percent of his time on administration, and 20 percent of his time on pastoral care, then dedicate 50 percent of his salary to the worship category, 30 percent to administration, and 20 percent to care ministry. Do this with each staff member to obtain an accurate picture of the real cost of each area of ministry or service. Then evaluate the true investment costs and return to the total ministry. Where are the largest costs? Where are the greatest returns? How does this fit with the church’s mission, vision, and goals?
- Give 10 percent of the budget to international missions and 5 percent to outreach in the church’s immediate ministry area.
- Put enough money in reserve for three months’ worth of expenses.
Intermediate churches have part-time paid treasurers and/or accountants who do the books on-site. An independent, outside firm conducts a yearly audit to assure good accountability.
PLAN OF ACTION IF YOU LEAD AN INTERMEDIATE CHURCH
- Determine the major financial categories of the budget and develop expected percentages for each area.
- Hire a full-time treasurer or accountant as soon as possible.
- Develop a detailed financial stewardship plan for the entire church year.
- Save a four-month reserve of money to be used in emergencies or during times of financial downturn.
- Give 10 percent of the budget to international missions, 5 percent to outreach in the church’s immediate ministry area, and 5 percent to church planting.
Advanced Churches
Advanced churches staff full-time accountants who handle the financial books in a highly professional manner. Weekly reports on income, expenditures, accounts payable, and future projects are on the pastor’s desk each week. The church develops a budget each year with the input of every ministry leader.
PLAN OF ACTION IF YOU LEAD AN ADVANCED CHURCH
- Put aside enough cash to cover five months’ worth of expenses.
- Invest in a pastor of outreach and assimilation.
- Raise money to support a church planter and start a daughter church.
- Investigate how other churches the same size engage their people in active stewardship.
- Hire a professional accountant on the church staff.
Elite Churches
Elite churches employ specialists to take excellent care of the church’s finances. A well-respected, independent firm conducts a yearly audit with no conflict of interest to the church. Due to many years of excellent stewardship training, the people give sacrificially to the general budget, as well as to several special projects.
PLAN OF ACTION IF YOU LEAD AN ELITE CHURCH
- Keep enough cash in reserve to cover six months’ worth of expenses.
- Increase the level of monitoring of church finances, especially the oversight of those who handle the weekly offerings, deposits, and expenditure of funds.
- Bring in an outside consulting firm to analyze the church’s total financial stewardship process and plan.
- Invest in a church multiplication pastor and help plant a church every two years.
- Openly report the church’s financial condition to all its constituents.