13 Associational Funding Streams
The dynamics of the financial support of a three-tiered religious system have shifted. According to Nonprofit Source, if there are one-hundred people in a congregation, only 10-25 give regularly. Of those who contribute regularly, they are only providing 2.5% of their income. A whopping thirty-seven percent of people who call themselves evangelicals don't give at all. Add to that dynamic that 92% of churches run less than 250, and the financial weight becomes even heavier. What does all this mean for the long-term sustainability of a system where three organizations depend on the local congregation to meet their financial obligations? Nothing good.
It has fallen upon the backs of the 2.5% to support the local church, the local association, the State Convention, and the North American Mission Board.
As a result, two of these organizations have shifted their focus from their respective lanes and turned their attention to their most valued customer, the local church and its pastor. The only one that hasn't wholesale shifted its focus is the local association. The association is the churches within a regional context. They are a contextual faith family of churches flavored and fueled by the community in which they exist. They understand their local churches' dynamics and inner workings, much like a family at Thanksgiving.
However, in many cases, not having the necessary resources or adequate training to shift (in some cases because that funding was cut) or even seeing that a shift was coming, many associations are now struggling to understand how to bring long-term value to churches with excellence and expertise.
George Bullard summarizes the current situation in this way, "Churches will not continue to financially support three dimensions of the denominational structure unless they see added value to their mission and vision resulting from their support. They are likely to drop at least one dimension. In Baptist life, that is likely to be the association unless the association has clearly defined benefits which churches want to support."
Therefore, below are a list of thirteen alternative sources of revenue for a local association. Our very own George Bullard put this list together.
Stream One—Church Contributions: The percentage of the budget receipts or a specific dollar amount in the budget or determined during the year to contribute.
Stream Two—Special Offerings: Associational missions offerings are other unique offerings.
Stream Three—Designated Gifts: Support from individuals, organizations, or churches for the association.
Stream Four—Fees for Events and Services: Registration for events or premium services offered to congregations.
Stream Five—Product Sales: The association might sell books, marketing items, and other products.
Stream Six—Capital Fundraising Campaigns: Campaigns for specific facilities or missional causes.
Stream Seven—Development Efforts: Deferred giving from individuals, organizations, or churches that may form an endowment for the association.
Stream Eight—Investment Efforts: Investment of reserve or restricted funds.
Stream Nine—Grants from Denominational Organizations, Foundations, Businesses, Government, and Other Entities: Grants for special projects or programs from various organizations.
Stream Ten—Networks, Strategic Alliances, and Partnerships: Using networks, strategic alliances, and partnerships may result in discounted or in-kind resources and services from various professional individuals and businesses. Many professionals, particularly Christian laypersons, may have a ministry rate that makes their services cost-efficient.
Included is the geometric increase in volunteerism that has characterized the past several decades of religious life in North America. Denominations often underestimate the time, products, and services laypersons are willing to provide if appropriately challenged.Stream Eleven—Sale or Lease of Assets: The sale or lease of assets such as equipment or real estate. This can include church facilities given to the association that it is not feasible to use for associational purposes.
Stream Twelve—Sponsorships: Various businesses and organizations provide income for premium events where the sponsor can market their services.
Stream Thirteen—Income from People from Non-Member Churches: Registration fees are charged to people who attend associational events from churches that are not members of the association.
If your association, network, or state entity is looking to make a paradigmatic shift to help churches in this new era of ministry then the Prism Process may be what you've been looking for.
The Prism Process is a toolbox-based interactive consulting process designed to guide network and denominational leaders to imagine their network through a whole new light to develop strategies for delivering greater value to the churches they serve. For More Information, visit https://theprismprocess.com/networks