As the fiscal year comes to a close, it’s time for churches everywhere to start building the annual financial report for the congregation to review. As expected, this essential report should include basic financial information like donations by designation, donations vs. budget, spending vs. budget, cash flow, etc. However, churches working toward transparency may want to include some non-financial statistics that help to provide context to the financial information. For example, showing attendance trends may help the church to understand why giving was up or down, depending upon the trend. Showing significant investments in the ministry or the facility helps bridge the gap in understanding why expenses exceeded donations. But there’s another metric that churches should monitor – giving units.
Giving Units
Admittedly, the term “giving unit” sounds less than spiritual and maybe even a bit confusing. Simply defined, a giving unit is either an individual, couple, or family that financially contributes to the church. For example, a single person who donates is a giving unit. When a married couple donates to the church, they are a giving unit. When a family with eight kids donates, they are a giving unit. The metric compares prior years to the current year to identify whether the church gains or loses giving units.
Giving unit data provides a multitude of insights into the health of the church and, when appropriately analyzed, can reveal the success of converting first-time donors into consistent financial partners. According to Mark Brooks at onlinegiving.org, statistically, if a first-time donor does not give again within the first 90 days, they won’t give again. The church’s mission is too critical not to create a strategy to engage with those who give to the church for the first time. Here are three steps churches can develop to improve their giving unit statistics and fund their ministry.
Identify First-Time Givers
Over the last ten years, the ChMS (Church Management Software) market has exploded with affordable, quality, cloud-based solutions for churches. These online solutions are so much more than a database that tracks donations and church members. These highly sophisticated solutions help manage several church functions and drive engagement. Using their ChMS, churches must set up a process to generate weekly reports identifying first-time givers. The report alone is worthless without a plan to utilize this information, making the next step in the process crucial.
Thank First-Time Givers
Armed with a list of those who donated for the first time to your church in the last week, it’s time to take action and engage them with a simple thank you letter. When possible, send a handwritten note or letter to the donor. Handwritten letters provide a personal touch that most find engaging and genuine. But sometimes, the church does not have the physical address of the donor, and sending an email is the next best option. The letter’s content should be concise with an appreciative tone and convey the importance of their contribution to fulfilling the mission. The communication should come from either the Lead Pastor or the Executive Pastor.
Promote Recurring Giving
Now that the church has a weekly process to identify and acknowledge first-time donors, it must encourage consistency through recurring giving. As tempting as it may be, do not include instructions on how to set up recurring giving in the thank you letter. Keep the thank you letter pure, allowing it to show appreciation for the donation and how it helps fulfill the church’s mission. Instead of using the thank you letter, churches need a strategy to promote ongoing giving. Here are a few ways to encourage recurring giving:
- Through Weekly Emails – Most churches use a third-party app like MailChimp, ConstantContact, BombBomb, etc., to send weekly emails to the congregation. While promoting upcoming services and events is a mainstay in these emails, churches should include information on how to support the church financially.
- During the Worship Service – Most churches set aside time in the services to allow the congregation to worship God through their giving. Provide clear instructions during this pastoral or “pass the plate” moment. For churches with a livestream option, make sure online giving is readily available to this growing demographic.
- On the Website – Church websites must include a donation page. Adding a link to the online processor or where to send a check is not enough. Churches need to use this page to inspire generosity – to show why followers of Jesus give.
Churches looking to convert first-time donors into long-term financial partners must establish practices that identify these giving units as quickly as possible, thank them through a handwritten letter, and inspire them through the church’s mission and vision to become generous followers of Jesus.
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