Fundraising for Churches
In 1988, tax-deductible contributions to US charities surpassed $100 billion for the first time in history and church fundraising was a major portion of that number. To put it in perspective, $100 billion is more than the profits of all the Fortune 500 companies combined. And if charitable donations were used as a sales figure, charitable organizations would rank second in the Fortune 500 behind only General Motors and almost Twenty billion ahead of Exxon Mobil. It's no exaggeration to say church fundraising is major business.
The chase for charitable contributions has soared to new levels in recent years, particularly in church fundraising. To offset reductions in government funding during the 1980s and to maximize their share of philanthropic giving, the estimated 800,000 organizations that are categorized by the IRS as charities are more commonly hiring fundraising practitioners and charging them to raise increasingly larger totals of gift profit.
Although no reliable statistics are available, it can be estimated that tens of thousands of women and men today carry out fundraising duties as paid workers involved in church fundraising as well as activities for other non-profit organizations. One indicator of this growth is that membership in the National Society of Fund Raising Executives has risen from fewer than 2,000 to more than than 10,000 in only 10 years.
The practitioners, whether they are involved in church fundraising or raising contributions for another organization, conduct prospect searches to identify potential donors, accept credit card payments from donors, coordinate special events to cultivate donors, solicit gifts by direct mail, proposals, phonathons, and face-to-face meetings; and write and edit publications to report fundraising results and to recognize donors.
To help them carry out these duties, practitioners rely on church fundraising principles that have evolved through anecdotal material and studies that have mostly been administrative in function. Collectively, these principles form a dominant perspective of the church fundraising purpose that focuses on how to generate money without questioning the rationale for the function of its effect on recipient organizations and society.
Although different opinions may be offered in response, church fundraising research has made little progress in answering these important questions. Without a theoretical base grounded in the literature of academic disciplines, church fundraising traditionally has been dismissed by educators as a subject worthy of scholarly study.
Part-time practitioner/scholars normally have provided research on church fundraising that has been rare. Even though there has been a large increase of scholarly activity in the area of philanthropy, church fundraising as an organizational function has not been targeted as one of the agreed upon problems that define that domain of study. This lack of scholarly excitement in church fundraising is illustrated by the fact that only 3% of research projects on philanthropy and nonprofit organizations over the last 5 years have focused on church fundraising, but interest in this area continues to increase.
This article was written by Todd Nelson, Marketing Director for Capital Merchant Solutions, Inc (HolyProcessing.com). CMS has been in the merchant account business for nearly 10 years, and offers free merchant accounts to both online and retail businesses. CMS also offers special programs for Churches and their members. One of these unique programs is called "Automatic Tithing", which allows Churches to allow their members to automatically donate using their credit card or debit card. This article may be republished as long as absolutely no changes are made, and the resource box is included. Copyright 2007 - Capital merchant Solutions, Inc. - All rights reserved.
Published June 13th, 2007
Filed in Business




