finance

You have undoubtedly heard the rumblings in the news this week about Bank of America's and other large banks' plans to implement new debit card use fees. These fees are a direct result of a new law passed last summer that went into effect October 1, limiting what banks can charge vendors for each debit card use.

Recently I had the opportunity to have lunch with Bryce Collman, President of Ardent Giving Solutions. Our conversation turned to those new changes in transaction fees regarding debit card transactions that I thought important to share with my readers. Here is that conversation:

I hear Congress passed a new law recently that impacts debit transactions - what are the details?

Congress passed the Durbin Amendment this summer which limits how much the majority of banks can charge for processing a debit card.  The pricing difference is significant and takes effect Oct. 1st.

How will that law change impact costs to your clients? Read more »

In October I started a series to look at ways you can effectively compete and WIN the battle for contributions. Do you not think you are in a competition for charitable dollars? You might want to review these statistics. It is not simply a checklist of things you can work on for two weeks and move on. But instead, it will require a significant amount of time and energy.  For many of you, this may mean a complete rework of how you currently approach stewardship and generosity in your church.

Part One was devoted to Mission 

Part Two was devoted to Communication

Part Three considered “Donor Stewardship”

This issue looks at Options for Receiving Gifts…Making it Easy for your donors to give to your organization.

First and foremost – because this series is about competing for the charitable dollar, most non-profits are offering an online giving solution to receive gifts from their constituency. Don’t think so? Pull up their websites and have a look. Online giving options are everywhere.

To my amazement, the conversation with churches over whether to offer online giving still meets with resistance from some who do not feel it is necessary. One lay leader recently told me that he strongly disagreed with my statement “Your church makes it difficult for some to be generous.” 

They take the offering the way most churches have taken the offering for years – by passing an offering plate or basket during worship services. And that’s the only way one can make a gift, without stopping by the church office or mailing in a check during the week.

Read more »

You can increase your charitable giving in 2011 by two percentage points and not miss the money!

Beginning January 1, 2011, working Americans are going to realize a 2% increase in their paychecks. As part of the extended Bush Tax cut plan passed by congress in December, payroll taxes (also called FICA taxes) have been reduced from 7.65% to 5.65%.

Payroll taxes go to fund Social Security (6.2% on income up to $106,800) and Medicare (1.45% with no income limit). For a person earning $106,800 in 2011, their tax savings will equal the maximum $2,136.

For those ministries who have been diligently encouraging their congregations to "step up" their giving, there is now a new source from which giving can occur. If your church is in a capital campaign season, your participants have a new pocket from which they can fulfill their financial commitments. Many sought God's leading in making those commitments, stepped out in faith to make a pledge, counting on God to provide ways for them to fulfill the faith commitment. Could this be one of those ways? Read more »

In honor of the new year, here are 11 reasons to not offer online giving:

1. You want to frustrate those who no longer use checks or carry cash. Many today, especially those under age 30, do not carry or use checks. Nor do they carry much cash. Their financial lives revolve around the use of debit and credit cards. So when offering time comes, they are frustrated, even embarrassed that they are unprepared to participate.

2. You do not want to link stories of life change to generosity. After watching a video you’ve uploaded that tells the story of a new life in Christ that occurred as a result of your church’s ministry, why not provide a link to your online giving page? Help your donors connect the dots between their generosity and the impact it is having through your ministry.

3. You would prefer people give to other non-profits who DO offer online giving. Just a reminder – there are over 1.2 million charities in the United States alone. If one is led to give and doesn’t find an easy, convenient way to give to your mission, they will find another one that does and make their gift there. Read more »

“People no longer give to the church simply because it is the church. The church must prove it is worthy of donations.” George Barna

This quote from Barna and the following statistics should sound an alarm. More than ever, you and your church are competing for charitable contributions. And the church is losing.

Facts you need to know:

-        From 1985 – 2009, the total percentage of all charitable dollars that went to religious causes fell from 53% to 33%. Read more »