CHURCH REVENUE PARISH TRANSFORMATION. Finance Action Guide. Church Revenue. Assessment Questions

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1 CHURCH REVENUE to us 1. Do we have an to better communicate with parishioners about the financial state of our parish? Parishioners are often unaware of a parish s financial situation and are often willing to contribute more once they understand the situation. Should we more regularly publish our progress in our weekly bulletin (e.g., weekly comparisons to budget and last year)? Should the pastor and/or Finance Council more regularly talk with parishioners about our financial condition and the importance of financial stewardship? Should we consider posting our financial goals prominently in our parish (e.g., thermostat chart) with regular updates on the progress we are making? Do we have an to publish an annual report with our financial statements as well all of the services and ministries we provide? Do we have an to communicate suggested giving ranges so parishioners can relate this to other aspects of their economic lives (e.g. ask for equivalent of one hour s wage, ask for the equivalent of what they spend on certain discretionary expenses)? Do we have an to communicate the impact of even small amounts of incremental giving (e.g. a parish with 1,000 adults would have more than $100,000 more revenue each year if each adult gave $2 more each week)? Do we have an to support our pastor by involving more lay parishioners to communicate the need for giving? Overall Communications Opportunity 1

2 2. Should we conduct a regular planned offering program each year where parishioners are asked to prayerfully consider and pledge an annual giving amount? Planned offering programs encourage parishioners to determine an annual contribution amount after prayerful thought and reflection. Contributions through a planned offering program are typically higher than what they would be if parishioners were just given envelopes or just put contributions in the offertory collection basket. Do we have an to conduct a planned offering program in our parish? Do we have an to conduct our planned offering programs more regularly? Overall Planned Offering Program Opportunity 3. Should we consider an active electronic giving program that enables automatic contributions from parishioners checking accounts or credit cards? Electronic giving enables parishioners to increase the frequency and consistency of giving. It also saves time and money for the parish. Do we have an to provide parishioners with an option to give through an electronic giving program? If we do, do we have an to increase our parishioners' use of this program by communicating it better or more frequently? Overall Electronic Giving Program Opportunity 2

3 4. Should we consider a large gifts program targeted to high-potential donors (e.g. dinners with the pastor, wine-tasting event, etc.)? High-potential donors are not often asked by their parishes for significant gifts. These possible donors could become more significant contributors to the parish if they understood the parish's needs better. Do we have parishioners who might be able to be significant givers to our parish? Do we know who these parishioners might be? Do we have an to more actively reach out to inform them of the financial needs of our parish (e.g., through dinners in the homes of parishioners, wine-tasting events, etc )? Overall Major Gifts Program Opportunity 5. Should we establish a giving society for particular needs of our parish (e.g. a Good Shepherds program focused on capital repairs or particular ministries the parish supports)? Some parishes establish separate giving societies to focus on particular needs of the parish. Parishioners might be motivated to join these societies because they are passionate about the particular programs or because they value the perks that might come with joining the society (e.g., receptions with the pastor, special events). Do we have particular parish needs that a giving society could support? Do we have an to establish a dedicated giving society focused on these needs? Overall Giving Society Opportunity 3

4 6. Do we have an to launch special high-impact fundraisers? Fundraisers can contribute meaningfully to a parish's revenue, but some parishes often do not hold fundraisers, or they do fundraisers that might require a lot of work with low impact. Certain types of fundraisers typically have much higher impact than others. Do our fundraisers today provide us with a significant source of revenue for our parish? Should we develop different kinds of fundraisers that might bring more benefit to the parish (e.g. auctions vs. bake sales)? Overall Special High-Impact Fundraisers Opportunity 7. Are we incorporating a sense of ownership and financial responsibility in our outreach to new parishioners? Actively reaching out to welcome new parishioners is important to the vitality of the parish and gets new people involved as parish leaders. Creating a spirit of ownership for the parish also makes parishioners more invested in the financial health of the parish. Could we do a better job of registering Mass-goers as a means of increasing their sense of ownership of our parish? Could we provide more opportunities for new parishioners to become involved in the parish (e.g., volunteer fair, regular sign-ups to participate in parish activities, rotating committee membership, etc.)? Overall New Parishioner Communications Program 4

5 8. Could we more actively benefit from the Archdiocesan Annual Appeal? Each year, the Archdiocese conducts an Annual Appeal through all parishes, focused on raising funds to support Archdiocesan missions. Individual parishes can benefit directly from this appeal in 2 ways: a) surpassing the parish goal, since the parish is allowed to keep 100% of all dollars over goal and b) participating in the Debt Reduction Initiative, where parishes receive matching debt forgiveness for each dollar raised. Direct contact: Barbara Shea Collins Office of Stewardship and Development bcollins@archchicago.org. Are there actions we can take to ensure that we surpass our parish goal and receive a rebate of 100% of the excess funds? Should we apply for the Debt Reduction Initiative offered through the Annual Appeal? Overall Archdiocesan Annual Appeal Opportunity 9. Do we have an to raise more funds through estate and planned giving opportunities? Bequests can have a tremendous impact on our ministries. While these are unpredictable, and therefore should not be counted on as part of a parish's ongoing operating budget, they can help fund important capital projects or endowments to cover ongoing expenses. Direct contact: Rich Goode Office of Stewardship and Development Do we regularly ask our parishioners to include our parish in their estate plans? Could our parish benefit from having a planned giving seminar? Overall Planned Giving Opportunity 5

6 Possible opportunities with parishioners new to the US approach to funding parishes Many parishioners may originally come from countries where parishes are not directly funded by the people (e.g. parishes are instead funded by government contributions). Extra effort is required to educate these parishioners about how much it costs to operate a parish and the need for contributions from parishioners. 1. Do we have an to improve how we communicate our financial situation to our immigrant parishioners? Should we explicitly dedicate some homilies each year to explaining our parish s financial situation, how it gets funded, and how the money is used, with an emphasis on the differences between the US and Latin American countries? to us Do we have an to communicate to our immigrant parishioners with language better adapted to their culture? Should we develop a team of committed immigrant parishioners who will help us communicate these messages throughout the community? Overall Communication Opportunity 2. Can we improve registration and envelope-giving? Should we consider registration drives emphasizing our pastor s ability to confirm parish membership including Catholic in good standing certificates for sacraments or recommendation letters? 6

7 Can we make being registered and using envelopes more attractive by offering perks, such as free tickets, discounted prices, preferential access to event sign-ups, etc.? to us Should we make a pitch to register our potential undocumented workers and their families, emphasizing data confidentiality and the benefit of having a record of stay for potential legislation? Should we consider launching envelope dropping drives asking registered parishioners to bring envelopes in every Sunday and contribute with one s means (offer option of dropping empty envelopes or with a prayer)? Overall Registration and Envelope-Giving Opportunity 3. Should we develop new fund-raising approaches to be more attractive to our parishioners from other countries? Should we consider more fund-raisers for very specific projects (e.g., new windows, a new outreach program, a youth group trip) so that parishioners can more clearly see directly where the money is going? Should we consider asking for more donations at very specific times (e.g., harvest time, quinceañeras) instead of expecting consistent weekly contributions? Should we provide tokens of appreciation for gifts (e.g., prayer cards, prayer medallions)? Overall Fund-Raising Opportunity 7

8 4. Do we have an to improve the sense of ownership and investment in our parish? Do we have an to develop a volunteer program for individually welcoming new parishioners or neighbors into the parish so that they immediately meet people and feel welcome? Should we set up additional children and teen-focused groups and programs to increase the sense of community among families? Should we offer GED or language classes, cultural opportunities, or sporting leagues to promote community development? Overall Ownership and Investment Opportunity 8

9 CHURCH EXPENSES (NON-PERSONNEL) Church Expenses (Non-Personnel) 1. Do we have an to benefit from the Archdiocesan group purchasing arrangement? The Archdiocese has negotiated favorable rates on many products and services through the Resource Renewal program, managed by the Coleman Group. Purchasing through this program can save parishes money on many types of supplies and services. Direct contact: Coleman Group to us Are we using the Coleman Group purchasing arrangement for any of our purchases? If so, do we have an to purchase more of our volume in any given area through the program? If so, do we have an to expand the number of categories purchased through the program? Overall Opportunity to Benefit from Archdiocese Purchasing Arrangement 2. Do we have an to reduce our utilities expense? Parishes can often take several types of actions to reduce their utilities expense, which is often a considerable percentage of overall expenses for the parish. Natural Gas In the winter, should we lower our thermostat to the degree range during the day and lower it further at night and when rooms are not in use? 9

10 Church Expenses (Non-Personnel) Can we do a better job of keeping our furnace clean and replacing or cleaning filters monthly? to us Is our hot water temperature set to "normal" (120 degrees)? Should we more frequently check for air leaks and regularly caulk around windows and doors and repair or replace weather-stripping? Should we do a better job of keeping all exit and entry doors closed, including outer and inner vestibule doors? Should we install flow restrictors and aerators in our sink faucets to reduce the use of hot water? Electricity Do we have an to use energy-efficient lighting by replacing standard incandescent light bulbs with compact fluorescent bulbs and/or replacing "T-8" bulbs with "T-5" bulbs? Could we be more diligent in turning off computers or putting them to sleep when not in use (e.g., turning computers off overnight, encouraging staff to put computers to sleep vs. screen savers)? Overall, could we benefit from a utilities assessment of our parish by the Archdiocese Department of Facilities and Construction? Overall Opportunity to Reduce Utility Expense 10

11 Church Expenses (Non-Personnel) 3. Do we have an to reduce other expenses? There may be opportunities to reduce other expenses by reducing usage or purchasing differently. Exhibit A has sample worksheets that can be completed to identify opportunities for key expense areas. Do we have opportunities to reduce the usage of some of our products or services (e.g., floral)? Do we have an to use volunteers instead of paying for some products or services (e.g., bread-bakers instead of purchasing hosts)? (Please note that volunteers should not be used for construction, facilities maintenance, or other heavy labor.) Do we have an to consolidate purchases with one vendor instead of using multiple vendors in some areas (e.g., liturgical supplies)? Do we have an to renegotiate pricing by requesting new bids from a broad group of possible suppliers (e.g., maintenance services)? Overall Opportunity to Reduce Other Expenses 11

12 PARISH CAPITAL Parish Capital We already do Not applicable to us 1. Do we have an in-depth understanding of our parish s capital needs and a plan in place to address them? The Archdiocese is blessed with many beautiful buildings built many years ago. Maintaining these buildings require significant time and funding. Having a good understanding of the parish s capital needs enables a parish to understand funding requirements, prioritize projects appropriately, and complete repairs on a timely basis. Could we benefit from a buildings assessment of our parish by the Archdiocese Department of Facilities and Construction? Should we invest in a reserve study, where a professional firm would evaluate our buildings and provide a complete perspective on repairs needed, funding that should be reserved to cover these expenses, and estimated timing of required of required repairs? Should we invest in a master plan, where a professional firm helps us evaluate all of our capital and space needs and develop a long-term plan for us to meet our needs effectively and efficiently? Should we establish an active Buildings Committee to monitor the health of our buildings and prioritize needed projects? Overall Understanding and Planning Opportunity 12

13 Parish Capital 2. Are we ensuring we have the funding required to meet our capital needs? Parishes that fall behind on capital maintenance may end up with significantly more costs later. Parishes need to explicitly consider the funding required to maintain their buildings and develop plans to raise the capital required Are we reserving adequate funds each year to cover estimated future expenses? (A parish-specific reserve study would provide this estimated amount; a rule of thumb is that a parish should set aside $2.36 per square foot each year.) Should we consider special fund-raising efforts to meet our capital needs? (See fund-raising opportunities in Church and School Revenue sections.) Overall Capital Funding Opportunity Not applicable 3. Do we have an to better utilize the buildings on our parish campus? Many parishes have different needs than when the original buildings were developed. Some parishes have found significant by utilizing their space differently. Do we have an to consolidate some of our space? Could some of our buildings be re-purposed (e.g., rent to not-for-profit)? Would we be better served by actually eliminating some space (e.g., tear down a building instead of paying all of the utilities and maintenance on it, tear down a building to create a parking lot)? Overall Building Utilization Opportunity 13

14 Parish Capital 4. Do we have good processes for selecting contractors? Good processes for selecting vendors can help ensure quality work at cost-effective pricing, with just wages for contractor employees. We already do Not applicable Do we follow Archdiocesan guidelines in contractor selection? Do we collect bids from more than one vendor? Overall Contractor Selection Opportunity 5. Are we managing leases effectively? Some parishes rent their buildings but do not manage their leases effectively. Direct contact: Tom Kennedy Director of Real Estate Management and Development Do we charge an appropriate level of rent? Do we ensure timely collections of our rental income? Do we have good leasing contracts in place? Overall Lease Management Opportunity 14