With economic times tight it is key to remember a board's Three C's of stewardship.
- Consider all possibilities
- Clarify our responses to each eventuality
- Create an action plan for each response
Consider all possibilities
What will we do if giving drops 25%? On the other end of the spectrum, what is our visionary budget if giving is up 25%? How about 50% or 100%? Considering the possibilities does two things: First, it prepares us for negative situations so we are not caught flat-footed. Second, this approach keeps our vision fresh and strong. A board meeting where we are talking about a jump of $50,000 in funding is full of new thinking.
Clarify our responses to each eventuality
What happens to our ministry should giving drop in a time of downturn? Before answering that, let's remember that many financial supporters step up in a new way during tough economic times. But so that we are prepared let's look at the possibility of tighter times. Many ministries do not prepare so they react instead of responding with a plan. This can mean everything from slashing advertising spending and other important investments to terminating an employee. Or worse, nothing is officially agreed upon and the CEO winds up missing paychecks as the ministry waits on God to bail it out. Don't misunderstand the point here: Waiting on God is often the right thing to do. Unfortunately, many ministries use this as an excuse when in fact the ministry has not properly carried out its responsibility to seek the Lord and plan for possible eventualities.
Create a plan of action for each response
Unless we finalize this process by creating an actual plan, we're still in a reactive mode. For instance, how long will it take to properly institute a plan to offset a 25% drop in funding? Will it take two weeks or three months or more? Who must be in place? Are we going to overload our executive director or others to institute this plan? These questions should be answered. The plan may include an emergency appeal letter and/or prepared and careful cuts in spending that take place over a matter of months. For instance, we may not suddenly lay off an employee, but we may with proper notice limit her hours from 20 to 15 each week over a three-month period. This way, she is not laid off but is prepared well in advance of the situation for this eventuality. We plan, so she can plan as well.
The Three C's: Consider, Clarify and Create. A wise board keeps each in mind.
Letter reprinted by permission from LifeTrends. If you'd like to know more about the resources provided by LifeTrends that can be used to encourage your volunteers, educate your Board and reach your supporters, or if you're looking for a great speaker for your next banquet, contact Kirk Walden at kirk.walden@comcast.net or visit LifeTrends' web site at LifeTrendsOnline.com.
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