Three Things Churches Must Do Before They Deserve Large Gifts from Their People

Thinking Out Loud with Jana about Fundraising

The editor of “To Be A Fundraiser” is Kelly Wendell, Coordinator of Communications for South Dakota State University.

Paul Hanson: Welcome back, Jana! It’s always great to think about fundraising in congregations with you. I learn something new every time.

Jana Swenson: We’re having fun with this Substack project of yours! Thanks for inviting me.

Paul: Today’s topic: What churches must do before they will receive large gifts.

Twenty years ago, in 2006, Congress changed the rules. Individuals over 70½ could give directly from their IRAs to charity — tax free. That change became permanent in 2015.

Suddenly, older adults began giving serious money — not from their checking accounts, but from their wealth.

Nonprofits adapted. Churches…mostly didn’t.

Before IRAs, RMDs, donor-advised funds and appreciated assets, most church leaders rarely thought about how people actually hold their money. Giving stock or real estate felt exotic — something “other people” did, or something that happened after death.

Meanwhile, their members were doing exactly that — just not with the church.

When I served as a major gift officer for a seminary, I interviewed donors who were active church members. These were people giving $10,000 to over $250,000 a year to the seminary.

I asked a simple question: How does your giving to the seminary compare to your giving to your church?

Here’s what I learned:

Their church was number one in their heart.
But it was not number one in their checkbook.

When I pressed them, they didn’t hesitate:

• “If I gave my full tithe to the church, it would suppress the giving of others.”

• “The church couldn’t handle a large gift. My alma mater can.”

• “I love my church — but it doesn’t have big plans. Let me tell you what my favorite charity is doing.”

Pastors routinely underestimate the wealth sitting in their pews. They are often unaware of the scale of generosity their people are already practicing — just not with them.

It does not have to be this way.

Here are three things churches must do before they deserve large gifts of wealth from their people.

Jana — take it away.

Jana:

First: Stop asking people to fund problems. Start inviting them to invest in impact.

Most churches are very clear about what’s broken, and what they would fix if people gave:

• A new roof or furnace

• An improved accessible entry

• Adding parking or classrooms

• Paying off the mortgage

These are real needs — but removing problems can only reduce dissatisfaction. It does not inspire generosity. It doesn’t strengthen relationships or help people.

People don’t make transformational gifts to fix institutions. They make them to change lives.

If you want large gifts, you must be able to articulate mission impact:

• Why does paying down the mortgage matter for ministry?

• What becomes possible when interest payments disappear?

• Whose lives will be different because of this gift?

People with capacity don’t want to help the church survive. They want to fuel something that matters.

Paul:

Second: Stop treating people like members. Start treating them like donors.

Members pay dues.
Donors make choices.

Churches say they believe Biblical giving is joyful, proportional, sacrificial — but then behave as if people are obligated to fund a budget.

Two examples are probably sitting in your church lobby right now!

Offering envelope boxes. On a table.
Hello?? What year is this? No thriving nonprofit expects donors to perform these steps:

Come to the church building; remember to pick up a box (feeling mild shame if the box is still there on Easter); carry envelopes home and know where to find them; write a check or locate some cash, and bring one envelope back to church. Put it in the plate. Every week.

I count seven or eight points of failure! Only churches think this system encourages generosity.

Many of you now have multiple pathways for weekly donations — good job. If you think that making offering envelopes available is still important, I challenge you to act like they are important: deliver them with a moving impact report. Don’t leave them out on a table.

And then there are church giving statements. Most are nothing more than a printout with dates and amounts, plus a generic line at the bottom: “Thank you for your support.”

Unsigned.
Impersonal.
Emotionally empty.

No major nonprofit would dare send that to a donor.

Yes, churches are required to provide giving statements. Why not make it an opportunity to celebrate the ministry that was possible because of their gifts!

Jana:

Paul, you bring up a good point here! Generic giving statements don’t inspire generosity. Over-communicating about financial shortfalls doesn’t either.

When you receive an appeal from a nonprofit curing disease, protecting the environment, or feeding children — do they lead with their budget? Never.

They lead with people. With outcomes. With hope.

Churches, by contrast, constantly report how giving compares to budget. That motivates exactly no one.

People don’t give because the spreadsheet is sad.
They give because the mission is compelling.

So tell them:

• What difference their gift makes

• Who is changed because they give

• What ministry goals were exceeded

• What new possibilities are opening up

And then — this part matters — thank them. Your people are already generous. They have options. They give more to organizations that see them, value them, and report back with meaning.

When you acknowledge their giving, make it an impact report, not a ledger.

Paul:

Here’s our last point: Run your financial house like you expect to be trusted with serious money.

Church leaders often excuse sloppy financial practices with spiritual language:

• “We trust each other.”

• “We’re not a business.”

• “We just have faith.”

That logic is backwards. Instead, try “Because we trust each other, we protect everyone’s integrity with clear, professional, accountable systems.”

People with wealth will not make their best gift — even to their church — if the organization looks unprepared, informal or careless with money.

A capital campaign is a great time for a church to shore up their systems. What have you seen, Jana?

Jana:

Churches are nonprofit organizations, and they are bound by the same IRS rules that protect donors and donations.

That includes:

• Written acknowledgments for any single gift of $250 or more

• Proper documentation for all non-cash gifts

• Careful tracking of restricted gifts

If you want large gifts — which are often asset-based — you must be ready:

• Have a brokerage account to receive stock

• Have a clear policy for when stock is sold

• Know when gifts come from IRAs or donor-advised funds

• Track donors who make this kind of gift

Additional best practices:

• Relationships with professionals for complex gifts

• Internal and external audits

• Strict confidentiality of giving data

These systems cost time and money, but the alternative is far more expensive. Financial fraud and embezzlement are far more common in churches than most leaders realize — often because accountability structures are weak or nonexistent.

Paul:

Think of these systems not as costs, but as investments — low-risk ones! People with wealth don’t just ask, “Do I love this place?” They also ask, “Is this organization ready for my best gift?” Is your church ready?

In summary, every congregation has people with wealth. Many of them love their church deeply. But before they give at the level they’re capable of, they need to see three things:

1. A mission worth investing in — not just problems to fix

2. Donors treated as partners, not dues-paying members

3. Professional, trustworthy financial practices

Thanks again, Jana, for joining me on Substack!

Jana: You’re welcome, Paul. Any time!