ECCU Blog

Have you attended a Financial Forum for Ministries in the past? If so, you’ve experienced the benefits of this unique event. With the 2012 forums fast approaching, I asked Jeremy Moser, who has attended the past couple of years, a few questions about why it’s a good investment of time. Jeremy is the CFO at Mariners Church in Irvine, California. Here’s what he had to say.

Jeremy, you’ve signed up again for this year’s forum. Why?

It’s because the information that’s presented helps me do my job better at Mariners. I’m a learner and am always looking to improve how we do things. So the information provided at the forum tends to add value to my church. 

Talk about the format of the forums. How does it add value to this particular learning opportunity?

The forums cover several topics each year. The diversity of information has been great.  It is also great to network with other ministry leaders during the event.

What’s one reason you’d recommend that others attend the Financial Forum for Ministries?

I recommend this forum to other ministry leaders because just picking up one idea can make their ministries more effective. That means the time spent is well worth it.

How can someone who attends make the most of the experience?

Come expecting to learn. It is a lot of information to absorb, so take notes and review the information at least one time (within a week) after the event. Make action items for yourself so you know what to implement when you go back to the office. Another thing I recommend is making at least one new contact at the event. I frequently contact other ministries throughout the year, asking for advice on topics I think they may have expertise in.

Have you attended past financial forums? What was your experience?

Follow this link to learn more and sign up for the financial forum in your area.

To help you know what to expect if you attend the upcoming 2011 Financial Forum for Ministries, I’ve interviewed each of the presenters to find out what they’ll be covering. First up is David Lee, ministry development officer with ECCU. His session is titled, “How to Measure and Communicate the Financial Health of Your Ministry.” 

MBG: How will your presentation help attendees better serve their ministries?

David: My main objective is to be a catalyst. I’ll encourage those who attend to begin identifying key ministry and financial metrics that should be measured and who they should communicated to.   

MBG: What are three important takeaways attendees will learn during your presentation?

David: First would be a clear understanding of why it’s important for every ministry to measure and communicate their financial condition. Second would be some sample metrics (ministry and financial) that ministries tend to measure. Finally, people will walk away with a better understanding of the kinds of dashboards ministries use to communicate financial information to different stakeholders.                                                                                                      

MBG: What is one suggestion you’d offer to help attendees gain the most from this learning experience?

David: Take advantage of the opportunity to talk with the experts who are there, both presenters and people from other ministries. At ECCU, for example, we have expertise identifying and evaluating financial metrics. John Butler with CapinCrouse has expertise in non-profit tax issues. And ministry peers have experience with many of the same issues you deal with every day. 

MBG: What do you think are the biggest challenges facing ministries today?

David: For many it’s limited financial and human resources to pursue their missions. For others it’s ongoing economic uncertainty. They’re wondering how long the recession will continue to impact their ministries, which is making it difficult to budget and plan for the future. 

What is the biggest challenge you face regarding the financial health of your ministry?

If your church is growing—and growing—you are probably headed in one of two directions: Embracing the “small church” to “big church” culture change, or starting a church plant.

Jackie Vance, CFO at Harbor Church in San Diego (with eight church plants), talked about some of the challenges church plants face in last month’s post Managing the Money and Other Realities of a Multi-Site Church. I asked Jackie about the perks of a multi-site approach, and why Harbor Church was intentional from the beginning about growing in this way. Here’s what she said:

• Multi-sites allow for each offshoot to meet the unique needs of their community, opening up more ministry opportunities. For Harbor, this means that Sunday mornings are not the same for each site. They are contextualized for their communities, with the overall message of preaching the gospel.
• Church plants offer a team ministry approach, allowing each plant to focus on the areas of giftedness within their teaching and staff members. And while each site has its own pastor, there is always a readily available pulpit supply. Harbor has also discovered that younger people in the church value the concept of a team ministry, so church plants are attractive to them.
• Because Harbor has a Church Planting Center (overseeing all of the plants), there is a big emphasis on training and nurturing the pastors, staff, and even their spouses. Through the Center, they are offered training and mentoring, along with a monthly church planting meeting (open to other church planters in the community too), and retreats several times a year. Spouses have their own meetings and mentoring opportunities, specific to their unique roles.
• Ultimately, multi-sites offer large churches a “small church feel.”

Is your church considering a church plant? What are the benefits you see?

I’ve been thinking about what’s new and interesting in the world of ministry financial services, wanting to wow you with fun facts and useful information. Which is why I’m devoting this post to…(drumroll please)…a new ministry report card. Okay, technically it’s called the Borrower Health Assessment, but that doesn’t make your stomach drop the way “report card” does. And it really works like a report card for ministries asking questions like: Are we making wise financial decisions? Are we financially healthy? Will we qualify to refinance when our loan matures? (This last one is most important to many ministries these days.)   

Helping to explain the Borrower Health Assessment is David Lee, ministry development officer for ECCU, and two representatives from ministries that have already benefited from this tool: Dave Beatty from West Bowles Community Church in Littleton, Colorado, and Ross Harrop from Springs Community Church in Colorado Springs, Colorado.

Ministry Banking Guy: What inspired this new tool for ministries?

Lee: Our research has shown that a major concern for ministries today is that they simply don’t know if they are financially sound enough to qualify for a refinance once their 5-year term is up. The tool was designed to help ministries understand—objectively and in laymen’s terms—their own financial health.

MBG: When is the best time for a ministry to take advantage of this tool?

Lee: The Borrower Health Assessment is preventative rather than a treatment tool. Like understanding the symptoms before you have the heart attack. Engaging ministries even two to three years before their loan matures lets them know what they need to work on long before they need to renew. It even gives them time to launch a capital campaign, if necessary, to compensate for things like declining property values.

Beatty: We used this tool three years before our renewal, and it prompted us to pare back our budget and look hard at personnel costs. We now look carefully at our numbers on a monthly basis, preparing us to pass with flying colors when it comes time to renew our loan.

Harrop: For us, we got the information too late. Our lender at the time was saying, “We like you….but there are some yellow caution flags with renewing your loan.” Then we were referred to ECCU, and David (Lee) offered us the Borrower Health Assessment. While the results aligned with our other lender’s feedback, the difference was that ECCU was objective, not trying to persuade us to do anything, but just saying, “Here is what we see.” It really helped us understand our strengths and weaknesses.

MBG: So, why doesn’t every ministry borrower just ask their lender for this pre-underwriting evaluation?

Lee: You can’t just talk to any lender to get the best pulse on your financial health. They don’t all understand the financial realities of a church or ministry.

Harrop: ECCU not only understands our belief system, but they also get the business side of ministry. So, when David came along with a tool that took an unbiased look at our budget and financials and could objectively explain why we did not have a sustainable financial model…I realized I have a partner in ministry. ECCU helped us bring a business sense to our decision making. We finally understood that a budget is simply ministry expressed in dollars.

Beatty: We used to go to our lender and ask these questions. Our former lender would say, “Here’s what you should have done.” ECCU was much more proactive. They said, “Here’s what we need to do together; here’s what we’re forecasting….” Going through the pre-approval process was hugely helpful. They walked through it with us.

MBG: What advice do you have for ministries approaching a loan renewal?

Beatty: Get a good picture of what you need to qualify for your renewal and maintain your lending relationship. There should not be any surprises. The Borrower Health Assessment—combined with a working relationship with someone who can walk you though it—is extremely valuable. One without the other may not be as effective. Anyone can generate numbers and say, “Look at this and take an inventory of how you’re doing.” But actually sitting down and talking with someone about it? That’s excellent.

Harrop: Get objective information on the health of your ministry. ECCU did not tell us what to do, but gave us information they had compiled from national percentages, allowing us to compare to some of the most successful churches. This put things in the spotlight for us, giving us financial clarification that we had never experienced before.

Lee: It sounds cheesy, but ask yourself, “Have we had our fiscal?” Your ministry should assess its financial health annually—even monthly—just like you should assess your own personal health long before problems arise. Talk to ECCU about using the Borrower Health Assessment and treat any ailments now, before it’s time to renew your loan. Whether you’re an ECCU member or not, if we can help your ministry become better aware and more in tune with what is healthy financially, then we have fulfilled our mission.