stewardship

Now that you have a solid list of reasons to produce an annual report, what does an effective report look like? 

Here are links to three reports that are easily accessible through the church’s respective websites. You will note in all three that the reports are colorful and engaging. They contain images reflecting changed lives, and graphs that reflect a growth in ministry impact. 

Example 1 - Community Christian Church

Example 2 - Elevation Church

Example 3 - New Spring Church

Hopefully 2012 is off to an outstanding start for you and your ministry. And as exciting as it is to look ahead to 2012, it is vital that you review with your people the ministry successes of 2011. 

January and February are the months companies are required to release to their investors annual reports on the previous year. You will note that many non-profits and churches have learned the value and are doing the same. But rather than the staid format of spreadsheets and statistics, it is imperative to tell the success story of your ministry through compelling images, stories and graphics.

Why should you invest the time and energy to compile such a report? Here are 7 reasons to do so:

The joint committee on deficit reduction appears to be stalled, with the deadline this month for them to have proposed sweeping changes to avoid automatic cuts in government spending. As of this writing, it is still up in the air whether the committee will actually produce any recommendations.

Regardless of the ineffectiveness of the committee, there is one important part of the tax code that was on the table for possible revision and you need to know about it. In exchange for the permanent reductions in the marginal tax rates set by congress, Republicans are now willing to consider the elimination of certain tax deductions. Among them is the tax deduction for charitable contributions.

While details have not been determined, two options under consideration include:

WARNING: The last Sunday of 2011 falls on Christmas Day!

Many of your givers plan on making that year-end gift on the last Sunday of the year. What many haven’t thought of this year however, is that they may not be in one of your worship services that weekend due to holiday travel or other reasons.

I anticipate there will be several who drive to your church during that last week of the year to give that last gift in time for the 2011 tax deduction. What should you be doing to prepare for this?

Begin educating your people now. Remind them that Christmas falls on the last Sunday of the year. Tell them that gifts received after December 31 will go on the 2012 giving statement.

Post your office hours that last week of December - make sure people know the times they can submit that final gift of the year. If they can’t get it to you but still want it to count for their tax-deductible charitable contributions for the year, they will likely give it somewhere else!

Plan and implement an end-of-the-year online giving appeal:

It is still possible to make charitable contributions from your IRA, but the opportunity is set to expire December 31, 2011 unless the government acts to extend it. The provision originally expired at the beginning of 2010, but was reinstated as part of the 2010 Tax Act. Here are the details that you need to share with those who are in the qualifying age bracket:

• The provision allows someone over 70 1/2 years of age to donate up to $100,000 of their IRA assets to a charitable organization.
• The donor's contribution can satisfy the required minimum distribution for the year and does not have to be counted as taxable income.
• Those who qualify to make this gift need to seek counsel from their tax attorney or licensed financial planner for the details.

You would be wise to make those in your church who meet the age qualification aware of this opportunity to support your ministry in this way.

A recent Forbes article offers additional information - you can read it here.