Q&A: IT’S CHRISTMAS IN AUGUST!

Expert advice for driving maximum year-end generosity … starting now

 

Church Executive: First, how important is year-end giving in most churches, really?

Ryan Matthews: Year-end giving isn’t just important; it’s crucial. Many churches receive about 30% of their yearly giving in December alone.

Jena Lynch: Yes. And of that 30%, we see the majority of it coming in in the last 48 hours of the year!      

Year-end is a time when people are feeling more generous. And it’s a chance to engage those who only go to church on Christmas and Easter and, hopefully, build a relationship that will continue into the new year.

CE: When should churches start the ‘full-court press’ around year-end giving?

Lynch: Not to scare anybody, but folks are already thinking about year-end. Summer is the time to start communicating, building relationships and showing gratitude, because it’s not ideal to abruptly approach people at year-ends and ask for gifts.

Then, September is the time to go full-court-press. It might seem early, but this gives churches an opportunity to set foundations before the holiday push, which is when people start to check out and get bombarded with asks from other organizations.

CE: How can technologies like yours drive more generous giving at year’s end?

Lynch: Speaking as a millennial, I never carry cash. So, when folks ask me to give and cash is the only option, I can’t. The whole ethos of Donorbox is to make giving easier than traditional methods, with online donation forms that supporters can use to set up recurring gifts, as well as our Live Kiosks and text-to-give — the one time you can take out your phone during service, right?

These all work great year-round, of course, but they’re especially effective for capturing generosity when people are feeling most moved: around the holidays.

CE: How can having donors’ complete giving history and preferences help maximize year-end giving?

Lynch: I always say, If you’re talking to everyone, then you’re not really talking to anyone.

For example, if a supporter has been giving consistently throughout the year, they should get a personalized message thanking them for their ongoing support.

Understanding how they’re engaging is also so important. You can segment your messages and connect their year-end gift to something tangible like, ‘Your $50 will go towards our mission trip,’ or youth programs, and so on. People love to know exactly how their offerings, tithes or gifts make a direct impact.

Matthews: I agree; it’s really important to openly communicate where funds go. If there are renderings of the new lobby you’re building, share them. Or explain the new VBS curriculum you’re hoping to be able to afford by next summer. People want something to rally around.

CE: What about non-traditional gifts, like stock transfers — are these good year-end giving options?

Matthews: Yes, 110%. Especially because every church has high-net-worth individuals who, at year’s end, are looking for some form of tax benefit that also blesses the church. Gifting cryptocurrency and stock transfers are two of the best ways to do that, specifically because capital gains tax is more painful for them than other congregants. When an individual donates those two things, it allows them to fully avoid the capital gains tax on the asset’s growth. They can also deduct the full amount on their income taxes. So, it’s a win-win for the church and for the individual.

Lynch: Still, donating stocks or crypto can be intimidating for some folks. That’s why we have a partnership and an integration with a company called The Giving Block that makes it so easy. A church enables this integration in its donation form, a giver selects stocks and crypto, and it’s taken care of on the back end. The Giving Block handles the rest, and donors get receipts for their gifts.

CE: How can churches use tools like yours to drive sustained giving — in effect, lessening their dependence on year-end gifts?

Lynch: Focusing on recurring giving is our bread and butter because it’s more affordable to nurture your donor base than to get new donors. We offer seven recurring intervals, including weekly, bi-weekly, monthly, quarterly and annually. Monthly giving is the most popular; the retention rate for monthly donors is around 80% and goes up every year that an individual continues to give.

Those intervals can be selected right on the donation form. And it’s easy for donors to manage their own donor accounts, adjust their giving levels, and even pause their giving. It eliminates the administrative burden on the back end while giving donors autonomy.

Matthews: Even as a believer and an ordained minister, I’m horrible at remembering to tithe every month. So, recurring donations are a great option for me.

We use the term ‘set it and forget it’ because it’s something we’re called to do: give 10% of our income to the Church. Setting up recurring giving means I don’t have to think about it; it’s just an act out of obedience, and I get to see the spiritual blessings that come from it.

— Reporting by RaeAnn Slaybaugh