church planting fundraising seminar presentation

Mission to North AmericaChurch Planting Orientation

Church Planter Financial Management and Fundraising Webinar

Welcome – please note our contact info:

Jill Gamez, MNA Financial [email protected]

Fred Marsh, MNA Associate Coordinator

[email protected] 404 307 8266

Thursday, December 2 -- 1:00 pm (ET)

mailto:[email protected]

MNA Cash Management

Services

Cash Management Servicesprovided by MNA

Receiving/receipting donations – all donors receive tax deductible receipt

Cash flow: rather than having to physically wait for funds to be received, MNA will advance funds based on written pledges.MNA will advance church and presbytery pledges up to a $30,000 deficit in your account; we provide no advances against individual pledges.

Church plant receives 100% of funds raised; MNA charges no fees

MNA accepts cash gifts, stock, and donations via credit card and EFT (electronic funds transfer)– MNA does not accept gifts in-kind

Cash Management Services

MNA offers services to presbytery on behalf of assessment qualified church planters and apprentices.

Financial services may include project expenses and project staff in addition to the church planter

Pledge Cards

Per IRS - You MUST use exact wording!

STATEMENT OF PLEDGE TO SUPPORT (NAME OF CHURCH PLANT)MINISTRY OF CHURCH PLANTER - LOCATION OF CHURCH PLANT

Yes, I would like to express my intent to pledge support to (Name of Church Plant Project) and to MNA by:

PRAYER: I would like to pray for the development of this ministry and for the hearts of people to be touched by the Gospel. Daily Weekly

FINANCIAL TAX DEDUCTIBLE GIFTS:Pledge of $___________ per ____________________________ for ________years

Choose one: Month, Quarter, Year, or One-timeGift 1, 2 or 3 Pledge date range: Start___________ Month/Year End ______________ Month/Year

Receive Church Planter prayer letters. (Please DO NOT check if you are currently receiving the prayer letter)

Agree that funds may be advanced to the church planter based on the above pledge with my understanding that as I continue to give in fulfillment of my pledge, I am replenishing to MNA the funds MNA has advanced to (church planter).

NAME_________________________________________________________________________________________ (Title, Mr., Mrs., Ms.) (First) (Last Name)ADDRESS_____________________________________________________________________________________CITY__________________________________ STATE____________________ ZIP__________________________ TELEPHONE______________________________EMAIL_______________________________________________SIGNATURE____________________________________________DATE __________________________________

Please make checks payable and mail to:

Mission to North America I would like information on Electronic Funds

1700 N. Brown Rd, Suite 101 Transfers through bank draft or credit card Lawrenceville, GA 30043 This contribution will be made with the understanding that Mission to North America has complete discretion

and control over the use of all donated funds, to assure their use for the intended exempt purposes.

Cash Management Servicesprovided by MNA – cont’d

MNA provides donor reports– Report details by donor all funds received – It gives you a snapshot of your total fundraising efforts

MNA provides quarterly review of church planter’s account and of giving compared to amounts pledged

MNA Church Planting Coordinator, Ted Powers provides budget review and consultation

MNA Associate Coordinator, Fred Marsh provides consultation in fundraising

Cash Management Services Agreement

Agreement between Presbytery and General Assembly MNA

Accountability for oversight of the church planter rests entirely with Presbytery– Budget approval– Management of funds– Approval of spending and reimbursement– Fundraising

MNA provides cash to mission church based on budget and schedule of payments determined by church planter and approved by Presbytery

Role of General Assembly MNA is purely advisory; MNA has no authority or responsibility other than to serve Presbytery

Presbytery Agreement Presbytery must record approval of governance structure of

mission church in its minutes; appoint a Commission

Presbytery acknowledges that General Assembly MNA is not the employer of the church planter but that the church planter is an employee of either a mother church, the presbytery, or the mission church.

The Presbytery or sponsoring church will provide the following oversight:

• Presbytery will approve church planter’s total project budget and fundraising goals; presbytery will approve the church planter salary and benefits

• Presbytery will review fundraising progress and approve timing of move to the field; do not move to the field until 100% of fundraising goal is given or pledged

Presbytery Agreement (cont’d)• Presbytery should only permit early move to field if using

credible plan for raising additional funds

• Presbytery will approve mission church budget on annual basis

• Presbytery will review mission church financial records quarterly

• Presbytery will review mission church MNA account quarterly

• Presbytery will approve all expenditures of mission church and expense reimbursements to church planter prior to submission

• Presbytery will approve all exceptions and changes to established budget

Overview of Essentials

Call Letter

Church Planter’s responsibility for formal call Written by oversight body Include specific annual dollar amount for

salary, housing allowance, and benefits Proper form/Meet presbytery deadlines Book of Church Order 20-6

Mission Church Status

Sponsoring Presbytery votes and records in minutes

Arrange to be approved as mission church by motion of Presbytery prior to transferring to begin work

Establishing Church Plantwith IRS

1. Employer Identification Number (EIN)aka: Federal Tax ID Numberaka: Taxpayer Identification Number (TIN)

2. Three options to establish tax exempt status:A. Presbytery votes that your church plant is a

mission church. You obtain an EIN for the church, and use PCA’s tax exemption as your own (BOC 5-2 and 5-3). Get the tax number from the PCA Administrative Committee.

B. Church plant is direct ministry of mother church.

C. Incorporate and seek non-profit status with IRS.

Church Plant Finances

Bank Account Financial

Management Accounting

Services/Software Accountability Church Planter

Benefits

Preparing the Budget forYour Church Plant

Budget

Oversight body approves

MNA does NOT approve

Include church planter salary and benefits

Principles of Budget Development

Key Factors:– Salary package– Calculate core group giving– Include funds for training and coaching– Budget for staff members

Salary Package Guidelines

Go to the Church Planter Financial Procedures on the MNA website

Consult with the MNA Church Planting Coordinator

MNA Cash Management

Services

The Funding of Church Plants

Fred MarshMNA Associate Coordinator

“14And how can they hear without someone preaching to them?

15And how can they preach Unless they are sent?”

Romans 10:14b-15a

Changes in Church PlanterFunding 1993 - 2000

Support Raised by Church Planter

– 1993: $0 (all funds raised by MNA staff or presbyteries)

– 1995: $35,000 (balance of funds by MNA or presbyteries)

– 2000: Entire Project raised by church planter.


Reasons

Growing commitment to church planting across the PCA.

Demographic changes in how people give.


• Cost of a Typical Suburban/Small Town Church plant. (Total outside support in addition to Launch Team/Core Group giving)

– 1993: $80, 000– 2004: $125,000 - $300,000

$125,000 - $300,000

$80,000


• Cost of a Typical Center City Church plant. (Total outside support in addition to Launch Team/Core Group giving)

– 1993: $125,000– 2000: $350,000 - $500,000

$350,000 - $500,000

Result of These Changes

Total support given to church planting is growing rapidly.

For the church planter without a personal network, raising the support can be a significant challenge.

Realistic assessment of total fund raising potential for each project is crucial.

The Long-term View

As your new church gets established, remember what it took to get you there:

Work as creatively as possible to raise funds, so that the church planting church and presbytery can supply a major portion of funding.

Form networks of individuals and churches to support church planting.

MNA Fund Raising Services

to Church Planters1. Qualification of the church planter through an MNA

credentialed assessment.

2. MNA staff actively seek sponsoring churches and individual donors.

3. MNA will work with each church planter to define the maximum list of churches.

4. Training and coaching in fund raising is provided to the church planter.

5. Cash Flow management for the project at no cost – next slide illustrates this.

How MNA Assists

with Cash Flow

$$ Given to Church Planter

Over 2- 3 years

Pledges Fulfilled to MNA

Over

3-4 Years

“For you know the grace of our Lord Jesus Christ, that though He was rich, yet for your sakes He

became poor, so that you through His poverty might become rich.”

II Corinthians 8:9

Building Building PartnershipsPartnerships for for Church PlantingChurch Planting

Mission to North AmericaFred Marsh, Associate Coordinator [email protected] • 404-307-8266

In all my prayers for all of you, I always pray with joy

because of your partnership in the Gospel from the first

day until now. Philippians 1: 4 – 5

Mission to North America – Fund Raising 101 Checklist

Project:___________________________

Step 1. Define the mission, goals and strategy. • Target Date:________________________________• Date Completed:____________________________

Step 2. Prepare a written proposal for fund raising

purposes. • Target Date:_________________________________• Date Completed:_____________________________


Step 3. Identify prospective donors. Work through

board members and other key leaders

• Target Date:________________________________• Date Completed:____________________________

Step 4. Make estimates of what each of your prospective donors might give. If your

prospective gifts do not significantly exceed your goal, keep developing more prospects.

• Target Date:_________________________________• Date Completed:_____________________________


Step 5. Define a structured process for approaching

and following up donors.

• Target Date:________________________________• Date Completed:____________________________

Step 6. Personalize your approach to each donor • Target Date:_________________________________• Date Completed:_____________________________

Step 7. Make it easy to respond. If seeking pledges

use the MNA pledge card format.


Step 8. Communicate, communicate, communicate!

Faithfully follow up with your donors and

prayer supporters. Send regular newsletters.

Keep your web site up to date.

II. GET READY TO ENLIST YOUR SUPPORT TEAM

• Begin With a Philosophy of Biblical Stewardship

• The Lord has declared, “You are His people, His treasured possession…” Deuteronomy 26:18

• Your calling: to be used of the Lord to lead in planting a Gospel-centered, Gospel-driven, Kingdom-advancing church, whose purpose is to grow into a church multiplying movement• This context keeps your role in perspective. • This context also keeps the role of the other members

of the Body of Christ in perspective. ...without those who send, we cannot go.

I TIMOTHY 6:17-18 YOUR PLENTY MEETS THEIR NEEDS

“Command those who are rich in this present world not to be arrogant nor to put

their hope in wealth, which is so uncertain, but to put their hope in God,

who richly provides us with everything for our enjoyment.

Command them to do good, to be rich in good deeds,

and to be generous and willing to share.”

Resources

•Christian Stewards

HAVING OPTIONS

Lack of Resources

•People Lacking Gospel

•Saints in Need

•The Poor

LACKING IN OPTIONS

I Timothy 6:19 Reward in the coming age

“In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly

life.”

Sin and fallenness

Philippians 2: 6 - 11

“Who, being in the very nature God, did not consider equality with God something to be grasped, but made himself nothing, taking the very nature of a servant, being made in human likeness. And being found in appearance as a man, he humbled himself and became obedient to death --- even death on a cross! Therefore God exalted him to the highest place and gave him the name above every name, that at the name of Jesus every knee should bow, in heaven and on earth and under the earth, and every tongue confess that Jesus Christ is Lord, to the glory of God the Father.”

Person

and

work of

C H R I S TSTEWARDSHIP

•Paradigm

•Power

•Principles

Mission to North AmericaHow Your Partnership Completes the Lord’s

Work

Lives Transformed By the Gospel

Future Members of Christ’s Kingdom-the Church

Armed Services Personnel

College & University Students

Gospel Ministry Leadership

Church Planters Chaplains Campus Ministers

Your Partnership bridges the gap, bringing ministers Of the Gospel to those in need of

the GospelIn all my prayers for all of you, I always pray with joy because of your partnership in the Gospel from the first day until now. Philippians 1: 4 - 5

“There are three irrefutable rules which will assure you success as a fund raiser. Unfortunately, no one has ever discovered what they

are.” ---John Russell, Born to

Raise

In fact, there are at least three qualities that are found in every successful fund raising project:

• Character expressed in a vision• Imagination and creativity• Personal focus, recognizing that

people give to people.

When it Comes to Effective Fund Raising ---

Character is What Counts

These competencies are listed in order of priority, as identified by donors in a

secular context. In other words, these are the qualities that donors to non-sectarian organizations rated as priority for those

organization’s leadership.

• Impeccable Integrity• A Good Listener• Ability to Motivate• Love to Work• Concern for People• Hard Working

• High Expectations• High Energy• Quality of Leadership• Has Perseverance• Self-Confidence• Common Sense

Here’s one you can use, free of charge in your next sermon:

“MENE MENE TIKEL PARSIN”

III. WHO DOES WHAT IN FUND RAISING

Current MNA Services Related to Church Plant Project Funding

1. Qualification of the church planter through assessment: Regardless of the church planter’s funding sources or cash flow management, the term, “MNA project” may be applied to any project in which the church planter is assessment qualified by an MNA credentialed assessment center (and by virtue of that approved by the MNA Committee), or approved for church planting by the MNA Committee based on previous church planting experience.

Current MNA Services Related to Church Plant Project Funding

2. MNA staff actively seek sponsoring churches and individual donors.

3. MNA will work with each church planter to define the maximum list of churches.

4. Training and coaching in fund raising is provided to the church planter.



5. Cash flow management for the project at no cost. Benefits of this service:

• Provides “up front” funding based on written commitments.

• Financial accountability to the donor.• Receipts and thank you letters are sent promptly.

6. What MNA will not do: MNA makes no commitment to provide any funds for any project, except as MNA staff are able to identify churches and individual donors who wish to commit specific giving to that project. MNA will not commit to raising specified sums for a project.

MNA STAFF WILL ASSIST YOU AT LEAST IN THESE WAYS

Review your total goal for outside funding: • Church Planting Coordinator: expenses and total

budget.• Development Staff: fund raising goals.

Review network of contacts: for $130,000 goal, possible distribution:• $30,000 by the presbytery in which church to be

planted• $25,000 by church currently serving• $35,000 by individuals you know • $40,000 by churches

MNA STAFF WILL ASSIST YOU AT LEAST IN THESE WAYS

Coach you on the approach for each potential donor: • Whom do you approach alone? • What amounts/how do you ask various potential

donors?• From whom cover letters or recommendations

helpful?• Contacts with whom MNA staff would make

difference?

As you formulate your plan and make contacts, please keep in touch with Development Staff until the process is complete.

YOUR PARTICIPATION IN THE FUND RAISING PROCESS IS A KEY INGREDIENT IN YOUR SUCCESS

• More churches are planted. Far more dollars and prayers are going into church plants today than were in the days when “MNA raised it all.” The level of church planting used to be good. Now it’s truly exciting.

• You enlist your very own support team for:

PrayerEncouragementFinancial SupportParticipation

YOUR PARTICIPATION IN THE FUND RAISING PROCESS IS A KEY INGREDIENT IN YOUR SUCCESS

• As you lead in the planting of a church, it is not just a church plant. It is the beginning of a movement of churches planting churches. Every movement has to have resources. As you build the resource base for this first church plant, you are establishing a resource base for the future movement. In addition, the skills you gain in developing these resources now will equip you to continue that development for the movement in the future.

IV. FROM RELATIONSHIP TO SUPPORT—HOW TO GET GOING IN SUPPORT RAISING

“Timing is Everything” – the Timing of Your Fund Raising is Important

• Duty• Present Excitement• Anticipation

THE FUND RAISING PROCESS

1. Participate in assessment and approval by the MNA Committee.

2. Identify every potential donor.

3. Determine church plant assignment.

4. Determine Budget.

5. Prepare Project Proposal.

6. Develop a Leadership list to open doors for you.

THE FUND RAISING PROCESS

7. Develop the full prospective donor list.

8. Build your strategy and time line/plan

9. Launch your asking process. Mail letters and proposals, followed by telephone calls and personal visits. Continue this process until funding is complete. Where visits to potential donors are helpful, MNA will advance the funds necessary to cover expenses. In all cases in which the church planter does ultimately begin a church plant, all of these funds must be reimbursed to MNA, regardless of how the church planter’s project is financed.

V. PROJECT PROPOSAL

PURPOSE: The Project Proposal is the basic presentation of your project and your key fund raising tool.

The process of preparing your Project Proposal is opportunity to:

• Think through how you will unite around vision• Strengthen your vision• Force hard questions and clear thinking.

Project Proposal is marketing piece:• Focus on mission, not financial goal. • Proposal will guide your work in fund raising.• Fund raising without Proposal is like running business without business plan.

Just Start Writing! The format can be very simple or more elaborate. Simple formats are very acceptable; we have seen no evidence that color or other “slick print” formats make any difference in end result. From the human perspective, results depend on your vision, your network of contacts, and how thorough you are in conveying your vision to your network of contacts.

CONTENT RECOMMENDATIONS

1. Theme: summarize your mission statement2. Need of the Community3. Mission: “Why church planting, specifically in

this community and region?” 4. Your Call: Articulate your call to this project 5. Goals: What are the long‑term results you

envision 6. Program to carry out mission7. Accomplishments/Impact

YOUR PROPOSAL SHOULD INCLUDE:

8. Vision for the Future: • Where do you see “the plant” headed over the

long‑term? • What is the leadership's overall vision?

9. Development Plan: • Avoid the term “need.” Use: goal, challenge,

opportunity.• Indicate only funding required from sources

outside the launch team, for the total life of the project. Do not include any giving by the emerging new church.

• Do not indicate the total budget or any expenses.

• Indicate the span of time in which outside support is required.

YOUR PROPOSAL SHOULD INCLUDE (CONTINUED):

YOUR PROPOSAL SHOULD INCLUDE (CONTINUED):

10. Gift Plans: What levels of giving over what period of time?

11. Prayer, referrals and other involvement

12. Profile: • Who are the key players leading your

organization and programs? • Who is in this with you? MNA, name of

presbytery, mother churches, etc.• How can you be reached? (Make sure you

include email.)• Where do they send gifts and commitments to

give?

STANDARD PROJECT PROPOSAL FORMAT (8.5 X 11)

• Length: 3 pages are usually sufficient• Keep it clean – visually attractive• Keep it simple to send by email easily• Photocopy friendly• Use color if cheap• Graphic design volunteer helpful• Add pictures, if can be emailed over regular

phone lines• Samples in the appendices

OTHER MEDIA / COMPONENTS

• Cover letters: good place to include:

• A new highlight about the target community• Personal stories about any contacts• Some personal update about you and your family• Progress report on your fund raising efforts thus far• Tailored support request for the church or individual• Invitation for prayer support and contacts/referrals

Pledge cards and return envelopes: make it easy to respond. Contact Jill Gamez, Financial Analyst, at 678-825-1253 or [email protected] for a sample pledge card and wording. Use the content of the samples, whether or not MNA is handling your cash management. The samples have been reviewed carefully to meet IRS and accounting standards. Web site: establish a web site as early as possible. Other possible media.

PLEDGE CARDS AND RETURN ENVELOPES

A SAMPLE GIFT PLAN MIGHT LOOK LIKE THIS:

Number of Churches or Individuals(Giving is over a 4 year period) TOTAL

2 churches or individuals giving $50,000 each provides

$100,000


$ 50,000


$ 50,000


$ 50,000

30 churches or individuals giving Under $5,000 provides

$ 50,000

TOTAL giving over 4 years $300,000

HIGHLIGHTING THE FINANCIAL GOAL

Partnership Funds to Complete this Project

$60,000 – Year One$45,000 – Year Two$30,000 – Year Three$135,000 – TOTAL

This is the total of all giving required for this church planting project, in addition to giving by the new congregation. Please prayerfully consider whether you can join as a partner with us in this challenging work.

Please note that your commitment to give and actual giving can extend over three years.

WE ARE PRAYING FOR THE FOLLOWING PARTNERSHIPS

$ 25,000 – Name the presbytery in which the church is planted$ 30,000 – Name of church you currently serve$ 40,000 – Individuals whom we know personally$ 40,000 – PCA churches outside the presbytery$135,000 – Total commitments to this project

Another alternative to the latter set of figures above is to list gifts by size: 2 gifts of $25,000 each, 5 gifts of $10,000 each, etc., to form the total goal

THE IMPACT OF GIFT SIZE

If you receive…1 gift of $10,000 = $10,0002 gifts of $5,000 = $10,00040 gifts of $250 = $10,000

It takes…43 donors to give a total of $30,000

Compare…If all gifts are $250 each,

120 donors to give a total of $30,000

THINK OF OTHERS WHO MAY MULTIPLY YOUR EFFORTS:

The Effect of Enlisting the Help of Others if …

One helper raises $10,000Another helper raises $5,000Another helper raises $2,500Another helper raises $2,500

And you raise only $10,000 directly,For a total of $30,000…

Compare the Number of Contacts You Would Have to Make to Raise All $30,000 BY Yourself.

VII. PROSPECT DEVELOPMENT

Why do people give?

There are a variety of motivations,

even among Christian people.

SUPPORTING A CHURCH PLANT PROJECT IS VERY ATTRACTIVE TO TODAY’S DONORS

Today’s Demographics And Their Effect on Fund Raising

Today’s individual donors as well as the rising generation of church leadership is a people who prefer to give to (1) short-term projects, (2) in which they take a direct personal interest, (3) anticipating quick and (4) highly visible results. This is decidedly to your advantage as you seek one-time support for your project.

Keynote text:

“Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” II Corinthians 9:7

“Timing is Everything” – the Timing of Your Fund Raising is Important

– Duty– Present Excitement– Anticipation

TIMING IS EVERYTHING

“...God has arranged the parts in the body, every one of them, just as He wanted them to be. If they were all one part, where would the body be? As it is, there are many parts, but one body.” “The eye cannot say to the hand, ‘I don’t need you!’ And the head cannot say to the feet, ‘I don’t need you!’ On the contrary, those parts of the body that seem to be weaker are indispensable.”

I Corinthians 12:18-22

HOW TO IDENTIFY GOOD PROSPECTS

Utilize the Funding Sources Worksheet in the Appendices. Step One: Identify everyone you know.Step Two: Identify third parties. Step Three: Identify people and churches supporting movement you are part of.Step Four: Evaluate based on three key factors:

1. They have a connection to you, and your church plant.

2. They have resources to give.3. They are givers.

Step Five: Speak with MNA Development Staff; prioritize your list.

IX. HOW TO ASK FOR MONEY –FOCUS ON INDIVIDUALS

Letter/Phone Strategy1.Send your proposal, cover letter, and an endorsing letter. 2.Follow up within 7 days with a phone call

3.Follow up as much as you can. Face-to-Face Strategy

For any individual who has the potential of giving $10,000 or more, always talk with MNA Development Staff before approaching that individual, to talk through the best approach. The same applies to all churches capable of giving $10,000 or more, unless you have a very close personal relationship with that church.

– A major commitment usually requires an in-person visit

– The contact is often a two-step process with individuals

– Personalize your request for support, tailoring it – “Return on investment” is a major motivation

today – Recognize every church and individual is unique

Love them Treat them with respectHonor them as stewards. See The Seven

Faces of Philanthropy

THESE GENERAL GUIDELINES APPLY TO ASKING FOR LARGE GIFTS:

FOCUS ON CHURCHES: A CHURCH IS A GROUP OF INDIVIDUALS

1. Start with the senior pastor, missions pastor, or chair of the missions committee

2. Send your proposal, cover letter, and an endorsing letter

3. Follow up in 7 days 4. Persist: typically, a minimum of 5-7

contacts required

COMMON QUESTIONS

What does a meeting with a potential donor look like?

Step One: Listening

Step Two: Telling Your Story Step Three: Asking THE Question

Step Four: The Follow-Up When should you ask for specific amounts of support? Persist. Don’t Give Up.

X. THE ART OF COMMUNICATION—FOLLOW-UP

Track Your Contacts carefully

Keep in Close Touch with Donors Forever!

This is important because:• They have given generously to this ministry

and deserve accountability and enjoyment of results

• You most likely will invite involvement in future projects

• They may be regular participants with other church plants

XI. CONCLUSION: HOW GREAT IS YOUR FAITH?

Think of the great ways in which the Lord has blessed. You are seeing just the beginning of that blessing! This

manual has focused on a lot of action

steps, a lot of issues that have to do

with very human stuff. Above all else,

be sure that you walk in faith, with the

assurance of the Lord’s presence and

success in His calling. This is His work.

Rejoice in that! Rest in that!

Now to him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us, to him be glory in the church and in Christ

Jesus throughout all generations, for ever and ever! Amen.

Ephesians 3:20-21

Mission to North America

Fred MarshAssociate Coordinator

(404) 307-8266 • [email protected]

church planting fundraising seminar presentation

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