As a church leader, you know that donations are essential to the success of your ministry. But what can you do to encourage your congregation to give more? And how can you ensure that your donations are used wisely?
We’ll share some ideas for increasing donations to your church, and how the money raised affects your annual financial planning. One way of guaranteeing a set amount of annual income is planned giving, which can help make your church sustainable for many years in the future. Read on to learn more, and consider planned giving as another way to raise money for your church.
Thoughtful Ways to Increase Donations
There are several easy things you can do to encourage your congregation to give more. Here are just a few:
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Be clear about your needs. Your congregation should know how their donations are being used. Make sure you have a clear and concise budget that outlines your expenses. You can also share stories about how donations have made a difference in the lives of others.
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Make it easy to give. Make sure there are multiple ways for people to give to your church. You should have an online giving option, as well as more traditional ways for people to give by mail or in person.
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Always be sure to thank your donors for their generosity. A personal thank-you note or email is always appreciated. Or consider acknowledging your donors in a newsletter or creating a social media post to recognize your donors.
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Offer incentives. Some churches offer incentives to donors, such as tax breaks or naming opportunities. You can also offer non-monetary incentives, such as a free meal or a gift certificate.
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Pray for your donors. Ask God to bless your donors and touch their generous hearts to encourage them to give whatever they can afford.
How Donations Affect Your Annual Financial Planning
Donations are essential to the financial health of your church. They help you cover your expenses, such as rent, utilities and staff salaries. They enable the church’s ongoing charitable initiatives, and allow the funding of crucial ministries and community outreach programs.
When you are planning your annual budget, be sure to factor in your expected donations. You should also have a plan in place for what you can do to fund the church if donations fall short.
Planned Giving
Planned giving is a wonderful way for people to make a lasting charitable gift through their will or estate plan. It’s set up as a promised sum to be donated to the church upon their passing. Devoted congregants are enabled to leave a legacy for the church they have attended throughout their life, and to have the knowledge that they will be supporting the church's mission for years to come. Planned giving enables the church to better predict their future cash flow. There are many different types of planned giving, so they should be sure to discuss their planned giving with a financial advisor or an attorney to find out which option is right for your organization.
Donations are and always have been an important part of managing a church. There are ways that you can encourage your congregation to give more without asking for money outright. Always make sure that your donations are used wisely and that your organization is transparent about where the money goes and how it benefits the church and those helped by the church. Consider Planned Giving as a way to encourage your congregants or parishioners to leave a legacy that will support their church's mission for years to come.
If you’re ready to learn more about planned giving and how to organize your church’s financial planning process, a good first step is hiring a CPA who understands non-profits and how to manage a church’s financial planning. Whether you need a one-time service or want to add us to your team, contact us to arrange a meeting. Myrick CPA has extensive experience assisting church leaders with their finances.
