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Fundraising Prayers Getting Answered

February 27, 2009

By: The NonProfit Times

Most evangelical parachurch ministries exceeded, met or came very close to their 2008 fourth-quarter contributions goals, despite the downturn, according to a new survey by the Evangelical Council for Financial Accountability (ECFA).

In a survey of ECFA members, 72 percent of responding organizations reported they exceeded, met or came within 10 percent of their goals. 28 percent reported they were more than 10 percent below their goals.

Parachurch ministries are organizations that work outside of and across denominations to promote evangelism and social welfare, relying heavily on charitable contributions to launch and sustain vital programs and initiatives.  

"Many of the parachurch ministries we surveyed reported small donations of $10 to $100 were relatively unaffected, and in some cases, donations in this category increased," said Dan Busby, acting president of ECFA. "In fact, some of our members had the strongest fourth quarter they've had in years and ended the year debt-free."

Some ministries attributed steady or increased contributions to increased prayer and widespread humanitarian interest in supporting organizations that help the poor and disadvantaged.

When asked what specific measures were taken to support fund-raising during the downturn, 53 percent said they increased one-on-one contact with key donors. More than 30 percent reported changing their messaging to donors and developing materials on how their organization is responding to the changing economy.

Although most ministries exceeded, met or came close to fourth-quarter 2008 goals, 50 percent reported their investments lost 15-30 percent of their value. In addition, many have concerns about how the ongoing economic crisis may affect 2009 contributions.

To navigate through the downturn and recoup or minimizes losses, some ministries implemented strategies to keep operating costs and spending down. Some of those moves include:

  • 41 percent have frozen or delayed salary increases;
  • 38 percent have frozen or reduced hiring;
  • 53 percent cut travel and conference expenses;
  • 30 percent cut or delayed capital projects; and,
  • 21 percent have partnered with other organizations and businesses for additional support and to share resources.

Other less common strategies reported included: renegotiating office leases, asking staff members to raise support for specific projects, borrowing money from restricted funds or considering a new loan.

"Most ECFA member ministries expect 2009 to be more challenging, primarily because major donors who made gifts in 2008 have expressed they may not be able to renew their financial commitments because of the economy," said Busby. "But for leadership and staff members, this is ministry, not a job. Despite challenges, most remain committed to making positive operational and structural decisions, including developing contingency plans, which will enable them to continue to carry out God's purpose despite limited resources."

 

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