They want to change the world and will need intentional mentors to succeed.

The millennials – those born after 1980 – constitute the new mega generation. Right now there are about 80 million millennials in America. This confident, connected and ethnically diverse generation is a major force to be reckoned with. They will be the dominant adult population for the first half of the 21st century and will be moving into positions of power and influence, according to Thom
S. Rainer and Jess W. Rainer, authors of The Millennials: Connecting to America’s Largest Generation.

Yet the millennials desperately need guidance if they are to make a difference in the world. A lack of patience and loyalty, in addition to a strong feeling of entitlement, are some of the perceived weaknesses of this young generation.

But a more serious concern for many church leaders today is the millennial generation’s indifference to organized religion. According to the 2012 Millennial Values Survey – conducted jointly by Public Religion Research Institute and Georgetown University’s Berkley Center for Religion, Peace, and World Affairs – college-age millennials are more likely than the general population to be religiously unaffiliated. Another survey measuring religion among the millennials (produced by the Pew Research Center’s Forum on Religion & Public Life), reveals that 25 percent of adults under age 30 are unaffiliated, describing their religion as “atheist,” “agnostic” or “nothing in particular.”

So  what will it take for churches to reach the millennials and lead them to become faithful followers of Christ – equipped and empowered to make an eternal impact on the lives of others?

Reaching the millennials is not a complicated process, says 27-year-old author Jess W. Rainer, who also is the administration and outreach pastor at Grace Church in Hendersonville, TN. He says millennials like him already have so much that complicates life; that’s why they are looking for simplicity. The simplest and most creative way to reach the millennials, Rainer asserts, is to “get to know them, invite them to church, and share the Gospel with them.”

High tech, high touch
For Cross Pointe Church in Duluth, GA, one creative strategy is to take advantage of the millennials’ strengths, which is they are technologically wired and relationally connected.

“Our ministry strategy must be both high tech and high touch,” says Eric Echols, pastor of ministries at Cross Pointe Church.

“Technology is a way of life for millennials. They don’t just appreciate the use of technology in our ministries – they expect it. They also want relationships and personal connection.”

The same holds true for National Community Church in Washington, D.C., where about 60 percent of attendees are single and under the age of 35. “We meet in movie theaters around the D.C. area, and we utilize the movie theater screen much like modern-day stained glass to tell the story of God in moving pictures,” says Heather Zempel, discipleship pastor. NCC also communicates through Facebook and Twitter and podcasts its messages “so millennials can check us out online before they visit us in person.”

As a discipleship pastor, Zempel says her job is to cultivate environments where growth can happen – “not to dream up programs to disciple people, but to dream about how God wants to use each and every person at NCC to make disciples.” Zempel also serves on the teaching team and leads the church’s Protégé Program.

Character transformation
The Protégé Program is the brainchild of Steve Saccone, ministry development pastor at the Highway Community, Mountain View, CA, and author of Protégé: Developing Your Next Generation of Church Leaders. While serving on staff at Mosaic, a church in Los Angeles, Saccone grew passionate about investing in the development of the next generation of leaders that will lead the church into a better future.

The Protégé Program, a two-year customized development process for protégés (people who seek to learn and grow) between 20 and 35 years of age, was launched at Mosaic in 2005. Since then churches from various denominations and faith traditions have adapted the program.

“We longed to create a place where protégés would experience the dynamics of true character transformation as the bedrock that would fuel their pursuit to become world-class, successful, morally and spiritually grounded kingdom leaders,” Saccone explains.

Mentoring is about making time to be with a young leader, says Saccone. “Young leaders crave opportunity for someone to take a risk on them, believe in them, and to have a person who opens doors for them and cheers them on in their growth journey as a leader.”

Saccone says one of the most effective and unconventional approaches he has used in mentoring the next generation of church leaders involves what he calls “novel peer-to-peer learning experiences.”

For instance, Saccone has organized group tours through the Church of Scientology so young leaders can feel what it’s like to be on “the other side of conversion.” A debriefing among participants follows the tour to help them gain insight into how they ought to share the Gospel message. Another example is listening to other communicators outside the church and analyzing their communication styles. Saccone says powerful learning happens when peers share with other peers what they are learning and how they are processing and analyzing everything.

Critical challenges
The millennial generation has a lot to offer. Millennials are optimistic about the future and see themselves as change makers. But it can be easy to see that they’re not perfect.

Alex Bryant, college and young adults pastor at First Assembly of God, Fort Myers, FL, admits the biggest issue for him is that millennials think they know pretty much everything. “I encounter a generation that is extremely smart and knowledgeable in so many areas,” says Bryant. “The challenge is to get them to remain teachable.”

At National Community Church, many of the young adults work jobs that are in some way influencing or influenced by the political world. Zempel describes them as “a bit of a paradox.” She admits they are self-centered and consumeristic, but also eager to contribute to something bigger than themselves. They are wary, untrusting and even a bit cynical of authority, but crave to be mentored.

Zempel says it’s hard to get the millennials to commit to faithful attendance of a once-a-week Bible study, but if you ask them to give two years of their lives to work with the poor in Sudan, they jump in without looking back.

Engaging millennials
That’s why to keep the millennials engaged and involved in church and God’s work, they have to be recruited to a cause, not just a volunteer role in the church, argues Eric Echols, pastor of ministries at Cross Pointe Church. If they know they are making a difference and changing a small part of the world, Echols says the millennial generation is more likely to be engaged in God’s work.

The vision has to be big, says Bryant. “When the vision is too small, complaining and self-focus happen.”

For Zempel it’s not about recruiting millennials to come to God’s work at the church; it’s about helping them discover how to be the church wherever God has positioned them.

Zempel says community and responsibility are key to making the millennials stay connected. “If they feel like they have a community that cares about them and encourages them, they stick. If they feel like they have ownership of some project and will be missed if they aren’t there, they stick.”

Dream church
So what kind of church do millennials want? Here’s a short list:

• They are looking for churches that have a strong vision.
• They are looking for diversity in the church.
• They are looking for a church that is built around community.
• They want a church that is outwardly focused.
• They are not plugging into churches that make them wait until they are older to have leadership roles.
• They align more with community than denomination; with active vision than mission statements.

More importantly, they need a place where the word of God is preached without apology, says Bryant. “This church is bigger than any denomination and stronger than the force that stands against it.”

In the Washington, D.C. area, we have found that there’s a high turnover rate within our church lay ministry leadership. The trend seems to be that our leaders spend about a year and a half with us. People do not settle down in our area, which has a high concentration of single adults, military personnel and government workers.

People come to our church because they have moved here for work, only to be transferred elsewhere after a few years. In church leadership, this can become exhausting and frustrating as right about the time you have a leader built up and trained, they leave.

We had to develop a method around this madness, a way to navigate the problem. We had to learn how to mobilize people for service and for the Great Commission. What worked for us was to start training the best to train the rest.  People are going to pass through your church, and you have to realize that God brings them to you for a reason. Find out why they have come and how they are best able to lead. Then take ownership of them and train them to lead, whether it is at your church or elsewhere.

In the book of Acts, we see the new believers praying, training and sending. Their mission was to see people come to Christ, and their focus was on training people to go and make disciples. Their passion was part of a larger picture that extended outside their walls and penetrated the world with the Gospel. This was the model we wanted to emulate, where everyone was trained to take responsibility for the work of the church.

We had to learn that we could have a much bigger impact on the world if we stopped focusing on how long a leader was going to stick around to serve with us before we invested in them. We started praying for people to come through our doors who desired to be trained, we prepared them for their mission and we let God do the rest. It’s an employ-to-deploy mentality, and you know that you are making a global impact when you can say that you have leaders all over the world who have passed through your church and are now serving someplace else, bringing people to Christ.

So how do you become a training center for leaders? How do you keep a constant flow of leaders streaming through so that when the turnovers happen, you have enough people to staff your ministries while at the same time you are launching people to serve elsewhere?  We have found four principles that can be used to shape and mold leaders for their mission and ministry.

GROW: We desire life change for every individual who walks through our doors. Let’s face it, they are a miracle from God, and it is not by chance that they are with us. Our purpose statement is to lead people into a growing relationship with Jesus Christ. Everything from our teaching series, programs and events revolves around helping people grow.

Your leaders may come from all walks of life, backgrounds and educational levels, but there must be one common denominator – continual growth in their relationship with Christ. When people are growing in their walk with God, they will naturally want to serve and lead others to do the same.

KNOW: We want people to know that everyone matters to God and has a job to do. We emphasize that each person is uniquely created and gifted for a specific purpose. We are all to be about our Father’s business, and it is our job to create an atmosphere within the church that will allow God to do great things in and through our people.

When people understand that they have a responsibility to use the gifts God has given them to help advance the cause of Christ, they will be more likely to lead others to do the same.

SHOW: We want to show people what they are gifted to do and where they fit in. First, we train them in the DNA of our church and in the habits of a growing Christian. Then they are given a battery of self-assessments and inventories on their spiritual gifts, strengths, weaknesses and personality so that they see how God wired them for leadership and service.

We show them their options for using those skills and where they are best suited to lead, and we provide them the opportunity to do it. For many people this is a valuable time of self-discovery as they learn where they best fit into our mission and purpose.

GO: Lastly, we want people to go. After their time with us, we pray that our lay ministry leaders will have discovered who they are, what God wants from them and what they want God to do in their lives. In the Great Commission (Matt. 28:19-20), we see how Jesus trained his leaders and then told them to go and do the same. This should be the heartbeat of every church, training people to go and train others.

Don’t be afraid to invest in leaders just because they may not be around for the long haul. Use the four principles of grow, know, show and go to train, utilize and launch leaders that are going to make a difference for the cause of Christ wherever God takes them.

Gary J. Moritz is executive pastor at Capital Baptist Church, Annandale, VA, and board member and advisor to Outreach to Asia Nationals. www.CapitalBaptist.org

Develop a policy in the context of discipleship and full reconciliation.

“Frank” arrived at our Celebrate Recovery meeting on Friday night for his first visit. He looked vaguely familiar to a few members who became suddenly alarmed when they recalled seeing his face on the evening news several nights before.

Frank had recently been released from prison, labeled a Level III Sex Offender (L3SO), and the community was warned of his presence via the local newscast. Church members’ concern over Frank’s presence grew to the level that the ministry leaders approached Frank and asked him to leave the premises. This was done graciously, and perhaps anticipating their response, Frank agreed to leave. It was Thanksgiving weekend when one of my staff called to alert me to a growing firestorm. The director of the local ministry to ex-offenders, a ministry with whom our church has very close ties, was very upset.

Professed his faith
I soon learned that not only had Frank made a profession of faith while in prison, but for the last year had been discipled by the chairman of our elder board. These men knew Frank well and joyfully anticipated his release from prison and his fellowship in the ministry of the church.  They could not believe that a church otherwise known for its loving embrace of all seekers could have acted so thoughtlessly.

“Aren’t we all forgiven sinners?” “No sin is greater than any other.” Phrases like these formed the conversations of the next several weeks as we gained a clearer picture of exactly what happened and why. Those who knew Frank as a believer wondered why others had responded in such an unchristian manner. Those who knew Frank only as a L3SO wondered why others seemed dismissive of their fears.

In retrospect, the leaders of Celebrate Recovery made the best decision they could at the time with the information available to them. In any case where the safety of those attending a church ministry is at stake, it makes sense to err on the side of caution. Our senior pastor met with Frank and his spiritual mentors to apologize and welcome him to the church. In the end the situation was resolved to everyone’s satisfaction and identified the need for a policy to provide future guidance.

I did some online research to see how other churches had dealt with this issue. What I found was truly surprising. The prevailing tone of many of the policies I reviewed reflected the justifiable fear of the congregation but seemed to overlook the needs of the ex-offender.

Most of the policies rang with phrases like, “You will not go to this part of the building…” and “You must be within 15 feet of your supervisor…” and the like. Upon reading the tone and stipulations of these policies, one wonders why an ex-offender would want to endure the humiliation of attending church. I understand the legitimate responsibility of church leaders to protect members and their children from predators, but it seems logical that any offender with predatory intentions is not going to identify himself to church leaders in the first place.

Fears are considered
The imbalance of many of the policies we reviewed led us to develop a policy that appreciates the fears of the congregation and the responsibility to protect vulnerable children and adults, but attempts to do so in the context of the discipleship and spiritual growth of the ex-offender. We refer to our L3SO policy as a Personal Discipleship Plan and we hope that this is more than mere semantics.

We have many of the same requirements in place as other policies, but include these both to protect the ex-offender from false accusations and to protect the congregation. We assume that a L3SO who desires fellowship with the body of Christ has experienced true repentance and is eager to embrace a discipleship plan that includes spiritual mentorship, Bible study, corporate worship and authentic spiritual community.

Our policy attempts to immerse the ex-offender in a gracious spiritual environment that leads to full reconciliation with God and the church. Our plan is not perfect, but offered for consideration of other churches looking for a model as they develop their own policies for the discipleship of ex-offenders.

Bill Price is executive pastor of Autumn Ridge Church, Rochester, MN. www.autumnridgechurch.org

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A policy for the congregation and the offender

Autumn Ridge Church has an L3SO Discipleship Plan that tries to take a responsible approach both to the congregation and to the offender. It explores theological, biblical and pastoral implications and deserves careful reading. For a copy write price.bill@autumnridgechurch.org. Excerpts follow:

The response of church attendees
Because of the nature of the ex-offender’s previous crimes, people’s initial response to the presence of an L3SO is fear … .

In some cases fear of an ex-offender is unwarranted.  The ex-offender may have completed their sentence and probation and have been released by the courts but still be under the L3SO designation for several years after probation.  In addition, the person may have been involved in a successful discipleship relationship with a church for a number of years while labeled L3SO, but this would not be generally known.

While the fear response of the general population may be irrational, disproportionate or unwarranted, the fear is real and must be taken seriously by church leadership. While much of the ministry in this situation is directed toward fostering a discipleship relationship with the ex-offender, the leadership also has a responsibility to allay the fears of the congregation through accurate information and meaningful relationships with the ex-offender.

Most every church that has an L3SO policy includes mentoring with a mature believer as a component of the discipleship process, even to the point of accompanying the ex-offender while on church premises. The purpose of the mentor and disciple being seen together is not to prevent the ex-offender from getting into trouble; it is to demonstrate to the congregation that the disciple has established a meaningful relationship with the mentor.

An important part of helping members of the congregation overcome their fear is to assist the ex-offender to re-establish trust with society. Forgiveness must be immediate, but from a practical perspective it often takes time to rebuild trust.  Even though a sexual offender may have paid their debt to society they lose in varying degrees the common trust that society gives to each member. In doing so, they lose some of the common freedoms that accompanies that trust.  The goal of this discipleship plan is to recover lost freedom and rebuild lost trust.

Ministry to the ex-offender
It is the purpose of Autumn Ridge Church to make disciples of all men, baptizing them and teaching them to follow the commandments of Christ (Mt 28:19-20).  It is important for any ex-offender who desires to be a part of Autumn Ridge Church to understand that the intentions of this policy are not meant to be condemning or demeaning in any way. If on one hand they have fulfilled the sentencing of the criminal justice system and are abiding by any prolonged requirements, and as well have truly repented of their sin and have expressed a desire to grow in faith, they will be welcomed into the fellowship of this church just as they are welcomed by a gracious God, fully justified by the atoning blood of Christ … .

[O]ur purpose is to welcome the ex-offender, to help them grow in their faith, to protect them from the temptation to reoffend, and to establish meaningful spiritual and social relationships with the body of Christ; to allay the fears of the congregation, to teach the congregation to respond with love and forgiveness, to encourage them to build relationships with all who desire to grow in faith and to honor God in all ways.

Church people often are quick to admit that they’re not perfect. While the statement is true and may even suggest humility, when it comes to church business – such as hiring staff – it simply is not good policy.

Unlike a secular company, a church carries the mandate to impact people’s lives both for the here and now and eternity. Borrowing from Jim Collins’ famous metaphor, if church is like a bus headed to its destination, it must seek to have the right people in the right seats, and it must strive to be the right bus for those people.

A tall order, but it can be done. Five executive staff from four megachurches all agree: If church leaders make quality hiring decisions, they will find the right employees who will steer their imperfect churches in the right direction.

Don’t cut corners
Hiring the right way is a multistep process, says Glenn Wood, pastor of church administration at Seacoast Church, Mount Pleasant, SC. At Seacoast, the process starts with correctly defining the needs for the position. Then the position is advertised internally and, if needed, outside the church. Applicants are evaluated. Those qualified move on to the interview level. After this point, the list narrows to the top two or three candidates. More interviews follow. Next, the final selection is made. Then, finally, the chosen one gets an offer.

Still, bad hires happen, Wood admits. “We were interviewing for an accounting position and found what appeared to be a great match. After they started, it became very evident that while the employee was qualified, they weren’t the best fit for the position. We both agreed it wasn’t a good fit and they left to find another position outside of the church.”

As with most churches, Real Life Church, Valencia, CA, also has experienced a few situations where an applicant had a good resume and the interview went well, but things didn’t work out as well as they had hoped. “Most of the time it was because we rushed the hiring process or we didn’t ask enough questions,” says executive pastor Jeremy Vanderlinden. “We’ve learned that it’s better to lengthen the interview process and not make a hasty decision,” adds Jane Gilbertson, the church’s HR generalist.

Gregg Swadener, senior director of operations at Vineyard Community Church, Cincinnati, OH, puts it this way: “We strongly believe that if we don’t get impatient, [if we] do our homework and listen well enough, God will send us the right people with the right gifting to fill our open positions in a way that furthers our calling and His kingdom.”

Swadener estimates that hiring an employee can cost from $1,000 to $2,000 or more depending on other costs like advertising or agency assistance. But the bigger issue, he points out, is what it costs to hire the wrong person. “That could range in the tens of thousands, depending on how long the mistake is accommodated,” he says.

Why bad hires happen
Bad hires usually stem from one of the following mistakes, says Jerry Hurley, team development leader at LifeChurch.tv, Edmond, OK:

• A lack of clarity on deliverables for a specific role, making it more difficult to find the right fit.
• Focusing more on experience and not paying enough attention to fit.
• Loss of objectivity in the selection process.

Hurley says loss of objectivity can come from perceived pressure to fill a position, becoming overly invested in a candidate too early, and not recognizing when personal biases come into play.

The starting point to finding the right fit, Hurley adds, is a clear understanding of an organization’s values and key behaviors. “Too many churches don’t take the time to identify these critical components in the hiring process,” he says.

Swadener, on the other hand, emphasizes objectivity and the spiritual factor when hiring employees. “You can certainly increase your chances of success if you objectively consider and honestly evaluate their core behavioral assessment, mental aptitudes, spiritual beliefs, where they are in their personal walk with Christ, do they feel called to the position and the church … ”

Similarly, at Real Life Church, the biggest indicator that a person is the right fit is their humility and willingness to take direction and coaching, says Gilbertson. “If they are teachable, most likely they will fit well in the job because their humble spirit comes through.”

Hiring tools are a big help
Like most organizations, large churches use assessment tools and systematic processes to help increase their success in hiring the right people.

At Seacoast Church, specific tools are used for specific positions. If it’s to evaluate an applicant’s software skills, the church uses TotalTesting.com. At one point, when the church couldn’t decide between two qualified applicants, this tool, says Wood, helped them make the right choice.

Wood says the church also has used a “roundtable” interview approach. Applicants are not only interviewed by the person they would be working for, but also by others on staff who might interact with the person. “This helps us make sure we have multiple people providing input and having a say in the hiring of staff,” adds Wood.

A pre-employment testing called The Achiever is the tool of choice for Vineyard Community Church. According to Swadener, it measures six mental aptitudes and 10 personality or behavioral dimensions and compares the results for a particular candidate to the results of others who have been successful in similar positions.

“We believe the objective information we get from this tool significantly enhances our success in selecting the right person and not overlooking critical issues,” says Swadener. However, he quickly points out that the tool should be used to supplement good judgment and excellent interviewing skills. It should not be weighted more than one-third in the hiring decision, yet he adds, “We would be lost without the information it provides.”

At LifeChurch.tv, a multi-interview approach is also used, as well as tools and tests to evaluate an applicant’s personality, basic skills, cognitive ability, attitude and spiritual gifts. “Some of the tools can’t predict overall fit or effectiveness, but they help us make sure a person has the skills to perform tasks pertinent to their job,” says Hurley. “For example, does a person interviewing for a role in finance have math skills?”

And some tests and tools are very strategic and have a high correlation to long-term success and performance, Hurley adds.

‘Judgment’ day
Now that you found the right person for the job, the challenge is how to check the employee’s progress and help them get to the next level of effectiveness. Performance reviews play a key role.

“We give performance evaluations once a year in the fall,” says Real Life Church’s Jeremy Vanderlinden. He says evaluations are based on the previous 12 months of work and highlight specific events during the year, both good and bad.

Vineyard Community Church, Seacoast Church, and LifeChurch.tv also conduct performance appraisals annually. At Vineyard, employees complete a staff questionnaire and set their critical goals for the coming year. Both the employee and his or her director discuss the review and the questionnaire and reach a consensus on the employee’s goals.

At LifeChurch.tv, the evaluation has two components – half of the review is based on performance to measurable goals, and the other half is based on how the team member exemplifies important cultural values. Hurley says the church has developed an online performance management system called MyPerformance that they hope to make available free to churches soon.

For Seacoast Church, performance evaluations are a time to ensure employees are meeting the expectations of the position and the church, says Wood. For Real Life Church, it’s usually a time to give a merit increase, “so our employees can leave the room feeling good about their accomplishments during the past year,” says Vanderlinden.

All four churches put a high premium on recognizing and rewarding great employees. Wood says at Seacoast Church they give a monthly “You Da” award to employees voted by their peers. Prizes include movie tickets and gift cards. At Vineyard, outstanding performance by a staff member, volunteer or ministry team is recognized in their monthly all-staff meetings, says Swadener.

When it comes to disciplining nonperforming staff, Wood says at Seacoast discipline is done in private.  “We work to document the situation and keep the employee informed of the challenges we face,” he says. “Ultimately this could lead to termination but we try and work to correct the behavior without having to move to this step. We have a culture of grace on the staff, which is sometimes a challenge in getting challenging behaviors and situations properly documented, but we strive to make this a regular habit. We strive to make sure that if we have to let someone go, they aren’t surprised by the action.”

Graceful exit
Grace goes a long way at Seacoast. When it becomes necessary to let a nonperforming employee go, Wood says the church works to find a solution so they can move on and find another position. “This may include severance pay, job placement, additional training, and similar functions to assist them. We work to make it more than fair for the employee.”

At Vineyard, if performance is an issue, the church initiates a performance development plan process. Swadener says this is a formal, documented process that describes what the issues are, what needs to change in order to be successful, what the time frame is for improvement to be accomplished and sustained, what  the church can do to help the employee with the process, and what the consequences of failure will be.

If performance is an issue because the employee is not satisfied with their position, future opportunities – or for any other reason – Vineyard also does not hesitate to suggest, in a graceful way, that it can assist the employee in finding something elsewhere that is a better match for them. “We offer them resume assistance, job coaching or time off for interviews to assist them in the process,” says Swadener.

LifeChurch.tv echoes the same graceful spirit. Hurley says the church recognizes that not every employee is supposed to be part of the team forever. “If it comes time for a great person to leave our team, our goal is to help the team member transition in as healthy a manner as possible.”

For Real Life Church, it’s important that the employee who is leaving leaves well. “We ask the employee to be considerate of God’s church and not create negativity that can impact the mission we are all trying to accomplish,” says Vanderlinden.

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First choice: character or skill?

Glenn Wood (Seacoast Church): Character by far; we can teach skills.

Gregg Swadener (Vineyard Community Church): Skill can do the job without character, but the results will be diminished, and character alone without skill will fail. Both are critical.

Jerry Hurley (LifeChurch.tv): No question, character.

Jeremy Vanderlinden (Real Life Church): Definitely character. Usually people with character have the skills necessary to do the job and do it with integrity.  Our church would rather hire someone with more character than skill, because usually that person is willing to learn the skill and outperform in the long run.

______________________________________________

• www.Seacoast.org
• www.RealLifeChurch.org
• www.VineyardCincinnati.com
• www.LifeChurch.tv

The issues surrounding compensation for key employees have grown more complex.

Errors in compensation planning can be costly to both churches and to the employees.

Churches and all organizations exempt under the Internal Revenue Code Section 501(c)(3) are prohibited from allowing the assets or profits of the organization to inure to the benefit of an insider or a control party. If a key employee is paid unreasonable compensation or uses other assets for personal benefit without fair consideration, a church’s exempt status may be threatened.

IRC Section 4958 provides for monetary penalties (intermediate sanctions) to be assessed to people who receive unreasonable compensation or improperly use the assets of the organization (excess benefit transactions). Penalties may reach 225 percent of the value of the unreasonable compensation or the assets misused.

Additionally, assets improperly used or diverted must be returned to the organization. In cases of extreme abuse where the improper reporting of compensation or use of church assets results in a significant understatement of an employee’s income, the employee may face charges of criminal tax evasion.

IRC Section 4958 provides guidance on the actions to be taken to avoid the above defined risks. Internal Revenue Reg. 53.4958-6 provides a rebuttable presumption for reasonable compensation. Compensation must be determined by people independent to the recipient, be based on outside comparable data and be documented in writing.

Error No. 1: The single most costly error arises from a lack of understanding of tax law. The basis of U.S. tax law is that everything that benefits an employee is a form of compensation for services. Additionally, all benefits are taxable until IRC provides an exclusion from tax.

Many churches tend to consider only cash benefits as compensation and not include noncash benefits or items that are paid directly by the church. Common elements of compensation improperly handled include retirement benefits, autos, clothing allowances, payment of personal expenses via the church credit cards, free tuition at the church-sponsored school, life insurance, spousal and family travel, and the use of church assets to create privately owned intellectual property.

Failure to consider these additional elements of compensation creates the following adverse consequences:

• The compensation package is not properly documented in writing;
• The taxable income of the key employee can be understated; and
• The actual total compensation package may exceed reasonable compensation.

Error No. 2: Decision makers must be independent to the employee being compensated. However, many times decision makers may either be relatives of the employee or may work under the employee. This error may appear even where there is an appearance of independence.

For example, a church places its attorney on the compensation committee handling the approval of the senior pastor’s compensation. If the senior pastor has the ability to hire or fire the outside legal counsel for the church, then the attorney is not independent to the pastor.

Error No. 3: Obtaining reliable outside comparable data is challenging. Common errors arise in (a) the source of the data, (b) the age of the data and (c) the interpretation of the data.

Source of the data – The Internal Revenue Regulations under IRC Section 4958 require outside comparable data be used in determining reasonable compensation, but there is little guidance given as to what outside data may be used. There are several reliable salary surveys available to churches, but larger churches do not generally find these surveys helpful and may use outside compensation consultants. The IRS has not defined the criteria for who is to be considered a qualified compensation consultant.

However, it has stated that attorneys and CPAs that do not work as compensation experts on a full-time basis and have not been specifically trained in the area of compensation analysis are not qualified consultants for this requirement. This includes attorneys and CPAs who work extensively with churches.

A consultant should have strong credentials and experience in the field of compensation and human resources. An unqualified consultant can negate the validity of the outside data and place both the church and the employee at great risk.

Age of the data – There is a misconception that once data is obtained, it never needs to be updated. There is no clear definition of how long a church may rely on outside date, but the IRS has stated that data five years old was too old to be relied on for purposes of meeting the requirements for IRS Section 4958. Salary data should be updated every few years as well as when there is a change in the facts and circumstances on which the data is based. Example: The size of the church has significantly changed.

Interpretation of the data – Any data obtained has to be interpreted within the context of the church’s operations. The decision makers must understand the data provided and view it in the proper context of other pertinent data, that is, the employee/minister’s qualifications; the nature and scope of the employment; the size and complexity of the church; the prevailing economic conditions of the area; the church’s overall salary philosophy; and the financial condition of the church. These areas need to be considered in order to make the data more relevant

With issues involving compensation, churches should seek advice from professionals trained in the unique rules that surround churches. While this may be an increased cost to the church, preventative costs are always less than the costs incurred when the IRS or a state’s attorney general comes calling.

Elaine L. Sommerville is a partner in the law firm Sommerville & Associates, PC, in Arlington, TX. www.nonprofit-tax.com

Conventional wisdom says that the average youth pastor stays only 18 months.

Right now at some church in America, someone is asking the question many of us have heard at one time or another: “Did you know a youth pastor stays at a church an average of only 18 months?”

While there may be data backing up this statistic, what’s interesting is how conversations like this color the youth pastor as a commitment-phobe, laying all of the blame at the youth pastor’s feet.

What if part of the problem – and the solution – were in the church leadership? What if churches asked, “What can we do to hire – and keep – a great youth pastor?”

Our team brainstormed and came up with a number of ways that can help churches increase the chances of a long, fruitful tenure for their student pastors.

Don’t treat student pastors like second-class staff: It’s probably not intentional, but a lot of youth ministries get looked down like the “baby church” compared to the “big church.” Because most youth ministries have their own programming and staff, it’s easy to look at them as an ancillary part of a church. This causes youth pastors and their teams to feel isolated from the church’s overall vision.

To avoid this, integrate your youth ministry with the mission of your church. Give your youth pastor input into overall strategies and opportunities for ministry.

No bread crumbs: Youth pastors often get the budgetary bread crumbs, both in pay and in money available to their ministry. Remember these pastors are not only dealing with adolescents, but with volunteers, as well as parents. They work weird hours and go to places your pastor of adults would never have to visit.

This is a unique skill set and they should be compensated appropriately.

Develop them: Provide opportunities for learning, networking and mentoring. Don’t be afraid your youth pastor will leave if they network with other churches. For many pastors, it’s this kind of camaraderie that they can’t and don’t get in the church where they serve. Encourage them to reach out to others. They’ll stay engaged and not burn out. Pay for their conferences and networking lunches.

R-E-S-P-E-C-T: Some youth pastors leave because the church where they serve imposes regulations that simply don’t make sense in their context. Having an 8-to-5 schedule on top of their nightly meetings, dressing in professional attire and being treated like a student instead of a pastor are things that get youth pastors searching for that next job. Allowing flexibility for student pastors will show that you value them and their ministry approach.

Create a safe place: Many times, pastors worry their student pastors are simply using the position as a stepping stone into other ministry roles. Sometimes, that is the case. But there are those who truly have a calling and a passion for students. Create a safe culture where young pastors can be very honest about their calling and specific career paths. Too often, senior leaders are driven by scarcity, a fear that something won’t last. As has been said so many times before, get the right people on the bus, develop them and see what God does.

Communicate: You may understand and support your student pastor, but is this message being communicated throughout the entire church leadership? Are your elders or deacons, other staff members and key volunteers viewing your youth ministry through the same lens?
Junior high and high school are such critical years. Students are trying to understand so much about life, faith and relationships during these six short years.

By supporting, valuing and encouraging student pastor in your church, the students will be shepherded in ways that allow for spiritual growth to continue.
These students will be our decision-makers in a decade or less. Pouring into your youth ministry with due diligence is vital to creating disciples who will influence your community for generations to come.

William Vanderbloemen is CEO of Vanderbloemen Search Group, in Houston, TX, a retained executive search firm. www.findourleader.com

It’s been said that the three most important rules of real estate are “location, location, location!” Likewise, managing any size church staff has a similar critical rule: “communication, communication, communication.”  Like most great leadership lessons, we learned this the hard way.

Early last year I sat in a meeting discussing the challenges of keeping a staff of high-octane people on the same page, avoiding train wrecks, easing frustration, and building trust between more than 50 teammates.

As our church reached adolescence (14 years old) we were experiencing some growing pains that accompany double-digit attendance growth each year for the last five years, including a year of 65 percent growth when we moved out of a school and into a permanent facility.

Our leadership staff knew we had to make some changes to maintain the healthy culture we had spent years cultivating. We narrowed the communication issues (which are still in process) to two general areas of focus to be immediately addressed: staff-wide communication and one-on-one communication.

Staff-wide communication
During a providential trip to a great church in Indiana for some benchmarking, I was encouraged and challenged by the intentionality with which they joined their whole staff together each week for a time of fellowship, worship, teaching and prayer. Rather than the typical all-staff business meeting, this time served to join the large staff together and pour life and encouragement into them. I quickly felt the sense of urgency and confirmation that Faithbridge needed a similar moment in our busy week.

We decided to phase in the meeting, first quarterly, then monthly, and now we have “StaffLink,” our weekly Tuesday morning all-staff meeting, for one hour. We come together for fellowship, worship, teaching, prayer and announcements.  This moment in our week has made a huge difference in the forging of relationships and trust between ministry areas and between the leadership and our staff.

We are continually revamping and retooling to make sure that the one hour is a “get-to” and not a “have-to,” discerning the overall temperature of the staff. This past December we opened our second on-site venue during the Advent season capped off by eight Christmas Eve services and we could tell that the staff was tired.

We needed a way to celebrate a great year, a completed building project, and a successful Advent season, so we converted “StaffLink” into a three-hour long “Staff Fun Day.” We asked the staff members for interesting facts about themselves, created a sheet for all to guess which fact went with which staff member, took all (now 60) team members to lunch at a local family-style Italian restaurant and just enjoyed each other’s company.

It truly was a special time and everyone came back to the church offices with big smiles and happy memories. Celebrating all God has done in our midst was definitely a landmark on the landscape of our staff culture.

One-on-one communication
There is nothing worse than doing a good job and not knowing if your supervisor even notices all the hard work and effort you put forth. The flip-side is also true; it is completely unfair to an employee to let them continue down a path that is unhelpful, unhealthy, or just plain wrong.  With that in mind, we have decided to no longer accept the minimum standards of an annual review that deals with 12-month-old information and delays praise or correction. Instead, an annual review is only part of our overall performance review process.

Currently, we have in place a three-tiered approach: monthly check-in, quarterly review, and annual review. The monthly check-in is an informal hour set aside specifically for celebrating achievements and dealing with correction. The timeliness of the celebration of an achievement is so important and helps keep momentum and energy building within the employee. Likewise, the timeliness of dealing with an employee or a situation that needs some correction is vital to maintaining health, holding short accounts, and clearly defining expectations.

The quarterly review
The quarterly review is a set of five questions that focuses on key information for discussion and future planning. We essentially do three quarterly reviews (1st, 2nd, and 3rd quarter) while the fourth-quarter review is a combination of an annual review and all three previous quarters.  The five questions we ask our staff to complete prior to each quarterly review are:

1. My greatest sense of ministry accomplishment or fulfillment the past quarter has been …
2. The ministry goals I am prioritizing highest the next three months are …
3. We will know when each of these goals has been achieved when we see the following outcomes …
4. To help lead my area of ministry to achieve these goals, I am presently taking the following steps/prioritizing the following key activities …
5. The way you (your supervisor) could best help me in my ministry right now is …

The annual/fourth-quarter review is a 20-question self-review and adds questions regarding long-term goals and dreams. The annual review rarely has any surprises since we hopefully have celebrated accomplishments and dealt with issues as they arise in the monthly check-in and quarterly review times. This three-tiered approach has served the leadership and staff well in communicating very deliberately and clearly the expectations for both supervisors and employees.

Frequent, specific and focused communication is the pulse of any healthy organization.  We are striving to communicate well on a large scale and on a personal level, pursuing what we call “Ministry Excellence,” recognizing we are not perfect but giving our best to honor God and inspire others.

Brian McGown is executive pastor at Faithbridge, a United Methodist Church, Spring, TX. www.Faithbridge.org

Begin a new retirement plan with the end in mind.

Retirement. We all hope one day to do it. As church and ministry executives, you likely want to make sure you can offer your employees a competitive, robust retirement plan at a reasonable cost to your bottom line.

But how do you know if your current plan is on the right track, or, if you don’t have one yet, how to choose the right one?

“Establishing employee benefits is a very important consideration for any church or ministry and its employees,” says Dixie Beard, director of business development at GuideStone Financial Resources. “But before rushing into establishing an employee retirement plan, it is important to establish your ministry’s objectives, such as meeting your moral obligation to employees, evaluating your cultural environment and establishing cost parameters.”

Employer needs
Beard recommends ministries begin with the end in mind. “Establishing – and later managing – an employee retirement plan can be an overwhelming task,” Beard concedes. “You have to determine what an effective retirement plan looks like from your ministry’s perspective, while considering what one looks like from your employees’ perspectives. And you must have a trusted and experienced partner with expertise to assist you.”

Six key areas should be addressed from the employer’s perspective. The retirement plan should:

• Satisfy the ministry’s moral obligations
• Support the ministry’s fiduciary responsibilities
• Be cost-effective
• Attract, retain and reward staff
• Be flexible and easy to administer
• Be understood and appreciated by employees.

“It’s also important, from the employer’s perspective, that the service from the vendor is aligned with the church or ministry’s needs and values,” Beard says.

Before determining the type of retirement plan that best meets your ministry’s objectives, first explore the government regulations that would apply to your church. All retirement plans are subject to certain regulatory and fiduciary standards but some ministries, such as churches and church-related organizations, may have reduced governmental reporting requirements.

These plans are known as “Church Retirement Plans” and are not subject to the more cumbersome requirements of the Employee Retirement Income Security Act of 1974 (ERISA). For example, church plans are not required to file an annual Form 5500 or file a request for a Determination Letter from the IRS.

Having knowledgeable legal counsel and a retirement plan provider with plan administrative expertise is imperative in understanding whether your ministry is eligible to maintain a church plan, then developing and maintaining the right type of plan for your ministry so your goals for your organization and your employees can be attained.

Retirement plans
Which is right for your ministry? Defined benefit plans? 403(b)? 401(k)? 401(a)?

It can be easy to get lost in the terminology. According to Beard, the two most common types of retirement plans fall into one of two categories: Defined benefit and defined contribution plans.

Defined benefit plans are sometimes referred to as pension plans. In this type of plan, the employer is obligated to pay a certain benefit at retirement based on a formula. The ministry funds the plan based on required funding standards. Employee contributions are generally not permitted. Since all investment decisions are made by the plan sponsor, the investment risk is borne completely by the plan sponsor.

Depending on whether the ministry is eligible to maintain a church retirement plan, these plans may be church plans or may be subject to ERISA.

Defined contribution plans include 403(b), 401(a) and the well-known 401(k). The employer or the employee (or both) can make contributions to the plan, but the employee generally bears all the risk and the responsibility for investment decisions. Retirement benefits are based on the participant’s account value at retirement.

Defined contribution plans may also be church plans or may be subject to ERISA. 403(b)(9) “Church” retirement plans are the most common type of plan utilized by churches and church-related ministries.

“Regardless of the plan chosen, all plans are subject to certain legal and fiduciary requirements,” Beard explains. “For example, regulations require that employers follow the plan provisions as outlined in the plan documents which means plan administration should align with plan features, contributions must be made on a timely basis and contribution limits must be monitored to ensure contributions don’t exceed legal limits.”

However, not all 403(b) retirement plans are created equal. For example, 403(b)(9) church retirement plans are exempt from Form 5500 filing and a Determination Letter is not required, but an employer-contributed 403(b)(7) plan generally requires both.

“Many ministries who have worked with a provider that isn’t well-versed in the intricacies of church retirement plans have found themselves in the wrong type of plan and are either inadvertently subjecting themselves to the requirements of ERISA or are not adhering to ERISA requirements that apply to them,” Beard says.

Employee expectations
“Once the employer’s needs are well-defined, ministries should also consider what an effective program looks like from their employees’ perspective,” Beard says. Employees generally want a program that:

• Is easily understandable
• Offers online access to account information and education
• Provides a sufficient number of investment options
• Provides professional, personalized and courteous service
• Puts them in a position to retire with adequate income and with dignity.

“Having an adequate number of solid, diversified investment choices is a must for most employees,” says Beard. “Many churches and ministers also appreciate having Christian-based, socially screened investment options available to them. These types of options frequently screen out companies in which ministers may not want their money invested.”

Employees also want answers to their investment-related questions. Those questions can include how much they should

contribute, which investments they should invest in and how to make sure they’re on track with their retirement goals.

“Additionally, ministers for tax purposes may be eligible to claim part or all of their retirement distributions as a tax-free housing allowance if they reside in a church plan,”

Beard says, “It’s imperative that a retirement plan provider for churches and other ministries is able to facilitate housing allowance on retirement distributions.”

Final considerations
Other than the financial stewardship of the organization, the top priority for establishing a retirement plan is to ensure that employees are able to retire successfully and with dignity.

“Since most ministers intend to continue to serve in retirement, a retirement plan can be a blessing for employees in that they are able to set aside money to self-fund their future ministry,” Beard says. “It can also be a blessing for ministries and churches as they seek to recruit, reward and retain employees who are dedicated to their ministry and its goals.”

Roy Hayhurst is editorial services manager at Dallas-based GuideStone Financial Resources.   www.GuideStone.org

If there is any group of people who feel unappreciated, it is the staff of a large church, including the pastor.

We even have a special month for pastor appreciation (October). Gary Chapman and Paul White has written The 5 Languages of Appreciation in the Workplace (Northfield Publishing/Moody Publishers), and Church Executive asked the authors to apply their concepts to the church.

Dr. Chapman is the director of Marriage and Family Life Consultants Inc. in Winston-Salem, NC, and has served as senior associate pastor of Calvary Baptist Church in that city for 40 years.

Dr. White is director of Family Coaching and Personal Development for Navitas Wealth Advisors Inc., and is a member and small group leader of River Community Church, Wichita, KS.

Can you give an example of meaningful communication that will make coworkers feel appreciated?

White: To ensure that communication of appreciation is meaningful and impactful, the message sent must be:  a) individualized and personal;  b) in a language that is valued by the recipient;  and c) viewed as authentic and genuine.  So, within these broad parameters, there are literally thousands of actions that will help make coworkers feel valued and appreciated.

The key is to match the type of communication sent with the style of message desired by the recipient.  Conversely, there is no one universal act of appreciation that will be meaningful and valued by everyone; we need to find out what is important to the person we want to encourage.

To give a personal example, I value words of affirmation, while tangible gifts are less important to me.  So, if someone wants to communicate appreciation in a way that is meaningful to me, I would prefer they tell me how what I did impacted them personally (positively, hopefully!) rather than get me a gift card to go out to dinner.

Chapman: One man said to me, “My boss stopped me in the hallway and told me how much he appreciated my hard work on a project I finished two weeks ago. I thanked him, and walked back to my office.  I thought about what he said all afternoon. I went home and told my wife, and went to work the next day with a positive attitude.  I never realized how much I appreciated ‘words of affirmation.’” His boss definitely spoke his primary language of appreciation.

Are church staffs any different when it comes to applying the appreciation principles?

White: No and yes. No, in that we have found virtually all individuals, regardless of where they work, desperately want to know that what they do is valued by those with whom they work. We each have a deep need to lead a meaningful life and to feel appreciated by those around us.

However, applying the appreciation principles in church settings has some unique challenges.  First, you are usually dealing both with paid staff and volunteers – and the dynamics for these two groups differ (we wrote a chapter in the book specifically to deal with communicating appreciation to volunteers).

Secondly, there is the aspect of working in the context of ministry and serving God. Sometimes this results in leaders believing that their co-laborers don’t need encouragement or appreciation communicated from humans – that they should be internally motivated or just work for “treasure in heaven.”  Unfortunately, as a result, we find that many church staff members are “dying on the vine” because they rarely receive any affirmation for the services they provide.

Chapman: “On a scale of 0 – 10 how much appreciation do you feel from your immediate supervisor?”  The honest answer to that question may reveal that many staff members do not feel highly appreciated.

Is transparency with the CEO/pastor important in encouraging coworkers?

White: This is a great question, and one that came up recently when I was speaking at a pastors’ conference.  Many pastors struggle with how transparent to be with those around them regarding their own personal needs. Let me answer the question with a series of questions. If you were thirsty, would you hesitate to ask someone for a drink?  If you were tired and needed to rest, would you balk at asking for a chair or a place to sit? Do you think your co-laborers would like to know how best to encourage you – or do they like  “shooting in the dark”?  Would you be a better pastor if you felt truly valued, appreciated and encouraged by those with whom you work?  Or do you minister best when you are discouraged and feel unappreciated?

Chapman: When a pastor/CEO appears to be perfect, people begin to withdraw. When a leader shares his own struggles, mistakes, and is honest about his/her humanity, people are more likely to identify and be open to learning.  Relationship requires a level of transparency.  Where there is no relationship, people tend to resist the leaders ideas or respond with apathy.  Real people respond to real leaders.

What one thing will go a long way in improving the workplace in a church?

White: If we would stop to take time to find out how to encourage and show appreciation in the ways that are meaningful to the people around us, tremendous changes would occur. And we could really make a difference in communicating the value of each staff and volunteer in ways that impact them significantly.

This would lead to better staff relationships, less internal conflict, reduce turnover among both staff and volunteers, and – as research demonstrates – make the workplace a more positive, enjoyable environment.

Chapman: Pastors and other staff leaders tend to express appreciation in ways that are meaningful to them. That is, they speak their own appreciation language. Then, they often wonder why the person does not feel appreciated.  Imagine what would happen to the work climate if we all learned how to speak each other’s appreciation language. I believe it would greatly enhance staff relationships.

_____________________________________________________

A quick review of the 5 languages

While the five languages of appreciation are the same (in name) as the five love languages, the ways they are demonstrated in the workplace can differ significantly from personal relationships. Let us explain each:

Words of Affirmation. White: Words, both oral and written, can be used to affirm and encourage those around us. Some people prefer personal one-on-one communication, while others value being praised in front of others (but it is important to know that relatively few people like to receive public affirmation in front of a large group).

Chapman: The words may focus on the person’s performance, but may also focus on his personality, his dedication, or his value to the company. The important thing is to be as specific as possible.

Quality Time. White: Personal, focused time and attention with your supervisor is highly affirming for some. But others enjoy different types of time — “hanging out” with their coworkers, working together as a team on a project, or just having someone take the time to listen to them. And the type of time desired can differ significantly depending on whether it is with colleagues or with their supervisor.

Chapman: Quality time may not focus on the work, but on family. How is your son doing in college?  Did your daughter make the team? Asking such questions and listening to the answer speaks loudly to the person whose language is quality time.

Acts of Service. White: Assisting a colleague in getting a task done can be extremely encouraging to them.

Helping a teammate “dig out” from being behind, working collaboratively on a project that would be difficult to do alone, or just working alongside of them: are all ways to demonstrate appreciation for their efforts.

Chapman: Ask, Is there anything I could do that would lighten your load? Or, Would it be helpful if I took this to the post office for you?  Such questions open the door to the possibility of speaking appreciation to the person whose language is Acts of Service.

Tangible Gifts. White: The key to an effective gift in the workplace is the “thought,” not the amount of money spent. Taking time to notice what your colleagues enjoy (chocolate, coffee, cashews), observing their hobbies and interests (sports, books, crafts) and buying them a small related gift shows that you are getting to know them as a person and understand what is important to them.

Chapman: Often co-workers know what gift would be meaningful to someone with whom they work closely.

Appropriate Physical Touch. White: While we acknowledge that physical touch is less important in work-based relationships, and the potential for abuse exists, we still find that appropriate physical touch is meaningful. Usually, it occurs spontaneously and in the context of celebration – a “high five,” fistbump, slap on the back, or congratulatory handshake. To not touch one another at all leads to a cold, impersonal environment.  — GC, PW

Franklyn is the associate publisher for the Common English Bible and led the translation team on the project.

“Our language has changed a lot in the past 30 years,” he says, “due to a digital revolution, the replacement of institutions in our society, and the mingling of cultures around the globe. That’s what we did with the CEB — for the whole church of Jesus Christ.” Franklyn responded to questions from Church Executive.

Among all the contemporary translations, how is the Common English Bible (CEB) different and fills a felt need? What is uncommon about it?

The CEB is unusual in several respects. First, it takes into account the past 30 years of accurate biblical scholarship, since the major best selling translations (NIV and NKJV) appeared. It does so without depending on the King James vocabulary that is still so dominant in current translations such as the RSV (which is the source of the ESV) or the NRSV.

Second, women constituted 34 percent of the CEB translation teams. This is the first major Bible translation to include women on the translation teams. Third, the translators and editors came from 24 denominations, which is much larger than earlier projects. This participation helps guard against bias in the translation.

Fourth, the use of contractions in the translation is evidence of how we actually speak the English language. As a subtle touch, notice how dialogue is set in paragraphs, rather than combining spoken parts in a single paragraph. This helps with readability.

Do we understand that at least six other editions will be released in August?

Go to the website where there are 20 editions available for personal use and in church settings. The CEB Deep Blue Kid’s Bible: Dive Deep Into God’s Word is coming in August 2012, and the CEB Study Bible will follow in fall 2013

— Ron Keener