MBA for Church Leaders

Mini-MBA
WHAT YOU NEED TO KNOW TO LEAD SMARTER

Organizations do not
grow larger than their
leader’s capacity.
- CAMERON TRIMBLE

Topics We Will Cover
 Start with Why
 Non-Profit Models
 Key Performance Indicators
 Show Me the Money
 Grant Writing Basics
 The Art of Cash Flow
 Your Database (and other Technology)
 Building Your Dream Team

Everyone gets
somewhere in life…
The rare person gets
somewhere on purpose.

Why
How
What
Organizational
Management Basics

Write Your Response:
Why does
your ministry
exist?

Types of Non-Profits
CHOOSING THE RIGHT LEGAL STRUCTURE

Types of Non-Profits
 501c3 – 33.3% Rule
 Type One: Charitable c3
 Type Two: Associations
 Type Three: Foundations
 UBIT Tax – 35%

Non-Profit Models
 Church board convenes a
separate non-profit board.
 An advisory team to the
church board could be
formed.
 Members of non-profit are
also members of the
church.
Church and
Non-Profit

Non-Profit Models
Faith-Based
Non-Profit
Secular Non-
Profit
 Some non-profit board
members come from
outside the church AND…
 Certain members of the
non-profit board are also
members of the church
board.
 A certain % of the board
seats are required to be
filled by church members.
 The Church Board can
approve and overrule any
decisions made by the non-profit
board.

Non-Profit Models
Faith-Based
Non-Profit
Secular Non-
Profit
 A separate nonprofit forms
without any formal ties to the
church.
 Board members for the non-profit
are selected because
of their expertise, experience
and competence rather
than their connection to the
church.
 Communication between
the non-profit and the
church becomes essential
since there are no formalized
ways for that to happen.

Non-Profit Models
Non-Profit For-Profit

Non-Profit Models
Non-Profit
For Profit Holding Company
For
Profi
t
For
Profi
t
For
Profi
t
Non-
Profi
t

Why Would You Need a
Separate Non-Profit?
 We need outside funding and these funders won’t give to churches.
 We need to attract staff or board members from outside a church to
bring expertise.
 We need more volunteers for the non-profit’s programs than our
church can provide.
 The collaborative partners we need to work with won’t work with
churches.
 Our dream is for a potentially controversial ministry that the church
itself would feel uncomfortable launching.
 The new ministry has financial and legal risks that the church should
be protected from.
 Our church culture would make it difficult to start a new ministry.
- Adapted from “Starting a Nonprofit at Your Church” by Joy Skjegstad

Why Wouldn’t You Need a
Separate Non-Profit?
 We are concerned that the non-profit would become disconnected
from the mission of the church.
 We are concerned that the ministries set up under the non-profit
would lose their faith focus.
 We are not equipped to undertake the administrative or fundraising
burdens of a non-profit.
 There is not enough support from key staff and church leaders for the
formation of a non-profit.
 We don’t have the funds we need for start up expenses.
 We are concerned that church members will lose their sense of
ownership for any ministries set up under the non-profit.
 Our congregation is going through major staff transitions.
 People in our congregation do not trust each other right now
because of a recent conflict.
- Adapted from “Starting a Nonprofit at Your Church” by Joy Skjegstad

Knowing What to
Measure
KEY PERFORMANCE INDICATORS

KPIs
“However beautiful the
strategy, you should
occasionally look at the results.”
- Winston Churchill

New Church Development Weekly Dash Board
Last updated:
<enter date of last update here>
Week 1 Week 2 Week 3 Week 4 Total
Contacts
Face-to Face Contacts by Planter 0 0 0 0 0
Face to Face Contacts by Lead. Team 0 0 0 0 0
Email Contacts by Planter 0 0 0 0 0
Email Contacts by Leadership Team 0 0 0 0 0
Notes Written by Planter 0 0 0 0 0
Notes Written by Leadership Team 0 0 0 0 0
Community Events attended by Pastor 0 0 0 0 0
Community Events attended by Lead. Team 0 0 0 0 0
Contacts Total 0 0 0 0 0
Financials
Income
One Time Financial Gifts $ - $ - $ - $ - $0
Offerings from Leadership Team $ - $ - $ - $ - $0
Offerings from Launch Team $ - $ - $ - $ - $0
Offerings from Visitors and Guests $ - $ - $ - $ - $0
Offering Per Attendee $ - $ - $ - $ - $0
Income Total $0 $0 $0 $0 $0
Budget Requirements $0 $0 $0 $0 $0
Difference $0 $0 $0 $0 $0
Expenses
Promotional Material $ - $ - $ - $ - $0
Small Group Supplies $ - $ - $ - $ - $0
Office Supplies $ - $ - $ - $ - $0
Staffing/Salaries $ - $ - $ - $ - $0
Other $ - $ - $ - $ - $0
Expenses Total $0 $0 $0 $0 $0
Budget Requirements $0 $0 $0 $0 $0
Difference $0 $0 $0 $0 $0
Participants
Taste and See Event Participation 0 0 0 0 0
Leadership Team Members 0 0 0 0 0
Launch Team Members 0 0 0 0 0
First Contact Prospects 0 0 0 0 0
Second Contact Prospects 0 0 0 0 0
Small Groups 0 0 0 0 0
Small Group Leaders 0 0 0 0 0
Small Group Participants 0 0 0 0 0
Outreach Leaders 0 0 0 0 0
Baptisms 0 0 0 0 0
Participation Total 0 0 0 0 0
Outreach
Hits on Website 0 0 0 0 0
Links from Other Websites 0 0 0 0 0
Press Releases 0 0 0 0 0
Business Cards Distributed 0 0 0 0 0
Postcards Mailed 0 0 0 0 0
You Tube Videos Posted 0 0 0 0 0
Flyers Distributed 0 0 0 0 0
Outreach Total 0 0 0 0 0
Event Participation
Taste and See Events 0 0 0 0 0
Worship Attendance 0 0 0 0 0
Event Participation Total 0 0 0 0 0
NCD Weekly Dashboard Center for Progressive Renewal © 2014

Seven Steps to Measuring
Impact
 Step 1: Define your goal(s). What outcomes is this strategy or tactic
going to achieve? What are your measurable objectives?
 Step 2: Define your audiences. Who are you are trying to reach?
How do your efforts connect with those audiences to achieve the
goal.
 Step 3: Define your investments. What is it really costing you to
achieve this outcome?
 Step 4: Define your benchmarks. Who or what are you going to
compare your results to?
 Step 5: Define your metrics. What are the Indicators by which you
will judge your progress?
 Step 6: Select your data collection tool(s).
 Step 7: Analyze your data, turn it into action, measure again.

Show Me the Money
RAISING MONEY IS EASY…BUT NOT SIMPLE.

Money is Not a
Four-Letter Word!

The church is as delinquent
around the issue of money, if it
fails to provide moral and
spiritual leadership, as it has
been in its historic silence
about human sexuality.

Like sex,
money is value neutral.

Where your treasure is
there will your heart
be also.
Show Where me your your treasure, heart is
and
I’ll tell you the truth about
will your treasure be
your life.
also.
MATTHEW 6:21

Only a generous
person can speak of
generosity without a
catch in their throat.

Reasons we MUST become effective
spiritual leaders about money:
 It is a prominent, perhaps dominant, spiritual
truth taught in the Bible.
 We must give people a chance to make a
difference and find meaning.
 Generosity is the ONLY antidote to materialism.

Formula for Failure
+ =
DESPERATION
Idea du Jour

Why Do People Give?
In good times or bad, people
give to a compelling vision.

We never should have given up
HELL!

Why Do People Give?
 Emotional: Connection to a cause or purpose
 Rational: Credible based on vision, leadership and track record.
 Spiritual: Generosity rooted in spiritual values and beliefs.
 Someone Asks: Trusted friend or leader.

Principles for
Transformation
 Ask people to give.

I have tried raising
money by not
asking for it and by
asking for it, and I
always got more by
asking for it.
Millard Fuller

Who will say yes?
 90% of all money comes from individuals.
 82% from families earning less than $60,000.
 People who pledge give three times as much as
those who don’t.
 Electronic gifts from 2005 to 2010 grew by 37%
a year, from $880.7 million to $4.2 billion.
 Online donors tend to be young, with a median
age of 38. Offline donors average over 60.
 More than half of online donors are female, and
most have given to a charity before.
 Women are three times more likely to give than
men.

You have not because you ask
not. Ask and you shall receive.
 44% of fundraisers give up after the first
objection.
 22% after the second.
 16% after the third.
 10% after the fourth.
 92% are defeated by 4 objections.
 73% of donors offer at least FIVE
objections before they give a gift.

Principles for
Transformation
 Have a “pledge drive.”

People who pledge
give an average of
three times as much
as those who don’t.

Principles for
Transformation
 Have a pledge drive.
 Exploit the shift from giving to spending.

Americans are
increasingly
spenders not givers.

follow a star…
find a child…

Principles for
Transformation
 Find new ways to encourage giving.

One size fits some.
and
You can always have
your way … if you have
enough ways.

One size fits some. You can always have
your way … if you have enough ways.
 People give out of different pockets.
 Givers vs. spenders.
 Special appeals at special times.
 Remember the overhead.
 Take at least 12 “second” offerings.
 Use offering envelopes.
 Develop automatic givers.
 Encourage website donations.

Engage the Audience
 Use every tool you
can afford.
 Provide easy and
convenient ways to
give.
 Use technology
creatively.
Website Donate Page
Auto-Giver Program
www.americanchurch.com
www.ucc.org/stewardship/electronic-giving

http://facebook mobile donations

Engage the “Audience”
 Use every tool you
can afford.
 Provide easy and
convenient ways to
give.
 Use technology
creatively.
http://Social Media Examiner/

Principles for
Transformation
 Use your Bible and your database.

A Bible and a Database
 Take notes on every phone call/visit.
 Remember birthdays, anniversaries, deaths.
 Record relationships.
 Keep track of hobbies/passions.
 Collect every address.
 Write three notes a day.
 Forward articles of special interest to them.
 Plaxo, Outlook, etc.
 Take/send digital photos.
 Don’t stop thinking about tomorrow …

Database
 Collect and maintain
constituent records.
 Sort and use data
based on constituent
attributes.
 Build trusting
relationships through
judicious use of
personal information.
www.DonorPerfect.com

You can’t say,
“Thank you”
too often
AND YOU HAVE TO KNOW WHO TO THANK!

Principles for
Transformation
 Create an effective case statement.

Create an Effective Case Statement
A document stating your vision, who you are,
and why there is a need for what you have to offer.
1. WHY?
2. WHO BENEFITS?
3. PHILOSOPHY AND MISSION.
4. NATURE AND EXTENT OF YOUR FINANCIAL NEEDS.
5. HOW THE FUNDS WILL MAKE A DIFFERENCE.
6. WHAT IMPERATIVES MOVE YOUR ORGANIZATION?
7. WHY ARE YOU WORTHY OF SUPPORT?
8. 10-30 PAGES: AN ORGANIZATIONAL DATA DUMP.
9. TWO-PAGE SUMMARY.
10. ONE-PAGE SUMMARY.

Principles for
Transformation
 Create excellent materials.

Create Excellent Written Materials
 Customize them.
 Use color.
 Use photographs.
 Type style is important.
 Make it visual, auditory, and feeling.
 Use headings and subheadings effectively.
 Proof, proof, and then proof it again.
 Edit, edit, and then edit it again.
 No “insider” language.
 Use active voice/verbs.

Principles for
Transformation
 Create excellent materials.
 Have some fundraisers!

Fundraisers
 Raise very little money.
 Raise visibility.
 Are safe entry points.
 Build relationships.
 Build volunteers.
 Volunteers give THREE times as much as non-volunteers.
 MUST succeed:
 Put together a team, with a captain, a budget, and a task
list.
 Evaluate and follow up.
 Buy more thank you notes … you are gonna need them.

Lessons Learned
 Even in hard economic times, people will give to a compelling
vision/mission.
 Fewer and fewer people carry cash or write paper checks; we
must adapt!
 A well-maintained mailing list—with email addresses—is one of
your most important assets.
 Every communication method should drive readers to your
website; your website is a brand.
 Effective acknowledgements create enthusiastic supporters.
 Persistence is key.

Fear and Generosity
What is the impact of
fear on generosity?
What is the impact of
generosity on fear?

After the final no, there comes a
yes, and on that yes, the future
of the world depends.
Wallace Stevens

Grant Writing
A LONGER-TERM STRATEGY FOR SUSTAINING MINISTRY

 Golden Rule of Grant Writing
 Types of Grants and Funders
 Identifying Funding Needs
 Four Keys to Getting Grants
 Where to Find Grants
 Beginning the Courtship
 How to Write a Proposal
 Standard Documentation
 Examples of Grants
Overview

The Golden Rule
 He/she who has the gold makes
the rules.
 Do your homework!
 Align your proposal with THEIR
priorities.
 You are THEIR change agent – not the
other way around.

Types of Grants & Funders
 Types of Grants
 General Operating
 Program or Project
 Capital
 Capacity Building
Types of Funders
– Corporate
– Corporate Foundations
– Community Foundations
– Private Foundations

Questions Funders Will Ask
• Does this project fit funding guidelines and funding areas?
• What is the importance of this project?
• Who is affected by this project?
• Is this project realistic?
• Are the project goals and objectives realistic?
• Can the timeline be met?
• Are they capable of carrying out the project?
• Is the cost of this project justified and realistic?
• What is the history of the organization; has it shown success?
• Will this project be continued when the money is gone?
• Is there collaboration involved in the project?
• Do the submitters have external support?
• Is this an all-or-none type of project, or can we choose to fund portions of it?
• Is this a solid investment for our organization or another?
• Does submitting organization need help in further developing the idea or has it been done
well?

Identify Funding Need
• Why, Who, What, How, Where & When?
 Why are we providing it? What problem are we
addressing?
 Who benefits? Who will be served?
 What are we providing?
 How are we providing?
 Where?
 When are we providing it?
• For what will we ask?
 Program, Capital, General Operating
 How much will it cost?

Grant Writing
 Where do you start?
 Relationships – It is all about networking
 Websites of similar organizations
 Online Databases
 www.foundationcenter.org
 www.foundationsearch.com

Grant Writing
Four Keys to Getting A Grant
Get the
Guidelines
Read the
Guidelines
Understand the Guidelines
Follow the Guidelines

Grant Writing
What Makes a Good Fit?
 Interest area
 Types of Grants
 Regional Affinity
 Type of Project
 Scope of Project Impact
 Size of the Grant

Grant Writing
 Before You Begin Writing…
 Outline your ideas
 Identify potential partners and leverage your
networks
 Colleagues in your field
 Seminaries, church-related non-profits, networks, other
churches, conferences, ecumenical partners
 Incorporate your partners’ feedback
 Re-read the guidelines to ensure alignment
 Develop a timeline

Grant Writing
 Why Do You Need Partners/Networks?
 Partners multiply your resources, enabling you to accomplish more
 Leveraging your networks creates internal/political support and
larger investment
 Partners can extend your reach and increase your impact.
Don’t forget –
Foundations want to change the world.
You have to show them how you can help.

Grant Writing
 Developing a Timeline
 How much time before the deadline?
 When do you bring your partners onboard?
 What actions need to happen first?
 How long will major activities take?
Management is the key to success in the granting world.
Don’t mismanage the process!

Grant Writing
 Beginning the Courtship
 Contact the Foundation Director and pitch your idea
 Letter of Inquiry
 Sell your project!
 Discuss the project in general terms. Too much is a bad
thing!
 Read between the lines and listen carefully
 Offer to provide a full grant proposal if requested

Grant Writing
 Letter of Inquiry Includes…
 The organization and it’s mission.
 What does the organization propose to do;
why is the project or program needed; how will
it be administered and by whom; who will be
served and where; and how does the project
or program relate to the Foundation’s areas of
concern.
 The amount of the grant request, how the
funds will be used, the amount of the total
project or program budget, and other sources
of funds.

Grant Writing
Letter of Inquiry

Grant Proposal
Includes:
 Cover Letter
 Organization History & Mission
 Statement of Need
 Project Activities
 Outcomes
 Evaluation
 Budget
 Conclusion
 Attachments

Example Statement of Need
A 2003 article in the journal "Clinical Infectious Diseases" listed
“Severe malnutrition and weight loss, particularly loss of lean
tissue” as a major nutritional concern that arises during the
course of HIV infection. Open Hand respectfully requests
$45,000.00 for our Prepared Meals Program, which provides
two freshly prepared nutritious meals and a snack bag daily to
medically certified, low-income, persons living with
symptomatic HIV/AIDS in metropolitan Atlanta. A grant in the
amount of $45,000.00 will allow Open Hand to purchase food,
juice, nutritional supplements, and containers for the
preparation and delivery of 7,550 freshly prepared, nutritious
meals - equivalent to a full year's worth of meals for 25 people
living with symptomatic HIV/AIDS in metropolitan Atlanta.

Outcome Measurement
Exercise
Program Goal
Outcome
Indicator

Youth Tutoring Program Budget
Expenses
Salaries: $44,000
Program Director $30,000
Part-time Staff $12,000
Benefits $8,500
Health & Dental (FT staff) $4,200
Payroll taxes $4,000
Staff Training $2,000
Program Supplies $4,000
Reading & math curriculum $1,000
Books for students $ 500
Food ($50/week) $2,500
Liability Insurance $2,000
Rent $12,000
Transportation $1,500
Printing $ 500
Postage $ 500
TOTAL PROGRAM EXPENSES $75,000
The Budget

Typical Attachments
 IRS determination letter of 501(c)(3) status
 Current Financial Reports (Balance Sheet and P/L
Statements)
 Program & Operational Budget
 Audited Financial Statement
 IRS Form 990 (not applicable to most churches)
 List of Board of Trustees/Directors (with affiliations)
 Organizational strategic plan (if applicable)
 Letters of support
 Bios of key project personnel
 Annual Report (if you have one)

Resources
 Winning Grants to Strengthen Your Ministry by Joy Skjegstad (Alban
Institute, 2007)
 Growing Givers' Hearts : Treating Fundraising As A Ministry by Thomas H.
Jeavons & Rebekah Basinger (Wiley & Sons, 2000)
 The Spirituality of Fundraising by Henri Nowen (Doubleday, 1985)
 Southeastern Council of Foundations (http://www.secf.org)

The Art of Cash Flow
AS EASY AS FLYING A PLANE

Your Database
IT’S YOUR MOST VALUABLE ASSET

Technology in Church
 People Gathering and Management
 Website
 Communication/Marketing
 Financial Vision
 Policies and Procedures

Databases Are…
 Contact Management System
 Financial Management System
 Social Networking System
 Event Planning System
 Product & Donation System

Website CSM
Word Press
Joomla
Drupal
HTML

Types of Websites
 Informational
 Blog/Forum
 Social/Community
Building
 File Sharing
 Mobile

Website Basics
 Install Analytics!
 Create an eye-catching header/logo.
 Ensure you have the right balance between text
and graphics.
 Allow space for a minimum of 250 words of relevant
text if possible.
 Your phone number should be dominant and listed
on every page.
 Use a readable font and font size, and one that is
hopefully easily scalable for low-vision users.

Developing Your
Leadership Team
EVERYTHING RISES AND FALLS ON LEADERS

My First Coach
Everyone gets
somewhere in
life – the rare
person gets
somewhere on
purpose.

Everything rises and falls on
leadership.

Crazy
=
Doing the same thing and
expecting different
results.

Pastor’s To Do List
 Email/correspondence
 Writing - Sermon/Curriculum/Devotions
 Administration/Finance
 Meetings
 Counseling/Visitation
 Worship Planning
 Denomination/Community/Ecumenical work
 Volunteer Recruiting/Training/Management
 PR/Marketing/Evangelism
 Reading/Research/Study
 Prayer/Devotions

Pastor’s To Do List
 Leadership Development
 Email/correspondence
 Writing - Sermon/Curriculum/Devotions
 Administration/Finance
 Meetings
 Counseling/Visitation
 Worship Planning
 Denomination/Community/Ecumenical work
 Volunteer Recruiting/Training/Management
 PR/Marketing/Evangelism
 Reading/Research/Study
 Prayer/Devotions

Churches do not grow
larger than their leader’s
capacity.

Developing Your
Leadership Team

A single person can pastor and
lead around 60-80 people fairly
effectively.

Leadership Development
Recruit
Train
Coach

Distinguish
LEADERSHIP
from
MANAGEMENT.

Let the managers manage
and the leaders lead.

Ten Most Significant People
1. Mary
2. Mark
3. David
4. Rahab
5. Nicodemus
6. Sarah
7. Deborah
8. Shadrach
9. Rachel
10. Fred

Spending Time vs.
Investing Time

Leadership development is the
best investment you can make in
your ministry.
RECRUIT, TRAIN, COACH

The Leadership Cycle
I do, you watch, we talk.
I do, you help, we talk.
You do, I help, we talk.
You do, I watch, we talk.
You do, someone else
watches…

I couldn’t start enough small groups…
But I didn’t need to.

Investing time
vs.
Spending time

The congregation had
to change their image of who a
pastor is and what a pastor does.

Step-Fix Theory
Family Size
Pastoral
Size
Corporate
Size

From GUEST to HOST
From CONSUMER to PRODUCER

The pastor has to shift how the
pastoral role is understood.

There is no limit to
what a person can
achieve if they
don’t care who
gets the credit.
ZIG ZIGLAR

Never, never, never surrender leadership.
Specifically, never surrender the leadership
of your church to the management of
your church.

You can ALWAYS have your way
If you have enough ways!

How do you build a
leadership team that will
build your church?
VS

Barna Group Survey
Spiritual Gifts
8
Leadership Others

A true leader is not
someone who can
do the work of
10 people, but
someone who can
organize 10 people
to do the work.

How do you build a
build your church?
1. Put on your own oxygen mask first.
2. Find the people who
are better at it than
you are.

The gifts God gave were that
some would be apostles, some
prophets, some evangelists, some
pastors and teachers, to equip the
saints for the work of ministry.
EPHESIANS 4:11

“Will you help me?”
1. Find a person you think might be good at a
job—hopefully someone who ultimately will be
better at it than you.
2. Ask them to help you.
3. Show them how it is done.
4. Next time let them do it while YOU help.
5. Then ask them to recruit and train someone to
help them.

How do you build a
build your church?
2. Find the people who are better at it than you are.
3. Empower leaders to
lead.

OUR STUDY OF 300
CONGREGATIONS THAT
HAVE BEEN PARTICULARLY
EFFECTIVE IN RETAINING
THEIR MEMBERS LEARNED
THAT AN IMPORTANT
BONDING AGENT IS THEIR
MEMBERS’ DISCOVERY OF
MEANING FOR LIVING.

“There are two great
moments in every
human being's life: the
moment when they are
born and the moment
when they begin to
discover why they are
born.” Dr. Ernest
Campbell

Leaders respond to why.
Managers respond to what or how.

A strong WHY
will overcome any HOW.

WHY?
Ministry
or
Management?

How do you build a
build your church?
3. Empower leaders to lead.
4. A mirror is a powerful
tool, if you know which
side to use.

If you want to feel good about
yourself, be a good person.

How do you build a
build your church?
3. Empower leaders to lead.
4. A mirror is a powerful tool, if you know which side to
use.
5. Celebrate Mistakes

MBA for Church Leaders

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