We all do it. We report our thoughts and information from our observations or second-hand information, often without any actual facts or data. While anecdotal information may fit the bias of the person reporting it, when it comes to running a small business or non-profit, it’s best to use facts. For some reason, churches seem more prone than other organizations to use anecdotal information when determining growth. Admittedly, some church data is more complex to obtain than others. Reports are only as good as the data collected, and maintaining an accurate church database is not as easy as it sounds. While some information is hard to obtain and maintain, churches must analyze donor trends based on facts, not observations.
With that in mind, here are three simple areas churches need to analyze to evaluate donor trends:
Giving Unit Comparison
One way churches can measure growth is through the increase or decrease of giving units. Let’s start by defining the term giving unit. In the Church Management Software (ChMS) world, a giving unit is a person, couple, or family that donates to the church. For example, every single person who donates equals one giving unit. When two single people get married, they are no longer two but one giving unit. When that married couple has children, even though there are many people in the household, they count as one giving unit. While attendance tracks the people in attendance in person and online, measuring giving units indicates when they’re entering a different commitment level – they are financially supporting what God is doing in and through the church.
Using this metric is simple – compare the number of giving units in the most current 12-month period to that of the same 12 months a year ago. For example:
September 2023 – August 2024 = 450 giving units
September 2022 – August 2023 = 385 giving units
An increase of 65 giving units (17%)
Consistency
Every church loves to see a large, unexpected donation that inspires the staff and congregation alike, but it’s impossible to budget on unknowns. However, studies show that 40% of church donations are from recurring gifts, and churches that offer recurring gifts have higher donations than churches that don’t. Another data point to measure is giving consistency. In other words, how many times in the last 12-month period did each giving unit donate to the church?
Export a report from the ChMS that lists each giving unit by month in a 12-month period. Using a simple formula (like =counta in Excel), count the number of months and then sort the report from largest to smallest on the total number of months given in the period. Once sorted, create a report showing consistency percentages.
Example:
12 Months = 130 (43%)
11 Months = 45 (15%)
10 Months = 35 (12%)
9 Months = 20 (7%)
8 Months = 15 (5%)
7 Months = 5 (2%)
6 Months = 7 (2%)
5 Months = 3 (1%)
4 Months or less = 40 (13%)
This example shows a church with high giving consistency, which means they’re doing a good job converting givers into consistent donors through digital giving and recurring giving.
Ratio of New Donors vs. Donors that Stopped Giving
People stop giving to a church for a multitude of reasons, like losing a job or moving, and yes, leaving the church or are planning to. On the flip side, healthy, growing churches see an influx of new people each week, and when they are ready to support the mission financially, they become regular donors. When operating a church, especially when budgeting, it’s important to know the ratio of new donors to those who stopped giving. Using the same report used to calculate consistency, look for giving trends in the donors below 10 out of 12 months. For example, if the report shows the Jones family consistently gave, except for the last few months of the reporting period, there’s a good chance something has happened; they are either in financial distress or contemplating leaving the church. Either way, it’s a good idea to follow up on them.
On the other side of the equation, if the Smith family shows no giving for the first few months of the reporting period but the last few months show donations, they crossed the line from guest or attendee to a financial partner. Be sure to write or contact them to thank them for their financial investment in helping the church fulfill its mission.
Identify the number of discernable losses and gains and determine the ratio. For example, if the church identifies ten giving units that stopped giving but determines that 24 giving units began supporting the church, then that’s a 2:1 growth ratio.
The next time those in church leadership say that it seems full in the worship center, we must be growing – let’s increase the budget, take a pause, and gather data. Before making changes to the budget, identify if giving units are up. Verify the consistency of donors. And determine the ratio of new donors vs. those who stopped giving. Answering these questions turns an anecdotal supposition into actionable facts.
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