Church Executive Digital Edition June/July 2013

Helping Leaders Become Better Stewards

JUNE/JULY 2013 June/july

FUNDING The vision in a Tough economy | 26

INSURANCE: ARE YOU REALLY COVERED? | 30

GREEN CONSTRUCTION TO LEED OR NOT TO LEED | 20

TIM Harlow BOLD AND INTENTIONAL | 10

june/july 2013

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the ce interv iew

By Rez Gopez-Sindac

14

Tim Harlow, senior pastor of Parkview Christian Church in Orland Park, IL — and 2014 president of North American Christian Convention (NACC) — jokes about needing robots to help him lead his church. But, when it comes to reaching the lost, he’s dead serious.

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de partm ents

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8 Editor’s Notes

Faith-Based Travel 101

By RaeAnn Slaybaugh

To help pastors navigate the decision-making and planning process, CE spoke with Kevin J. Wright, director of growth markets for National Tour Association (NTA).

19 RISK MANAGEMENT

By Eric Spacek, JD, ARM

25 BUSINESS MANAGEMENT

Investigating Insurance: Is Your Church Really Covered?

By Andrew Babyak

34 HUMAN RESOURCES

By RaeAnn Slaybaugh

Don’t just assume your current coverage is adequate; brush up on best practices.

16 20 26

By Joe Bontke

36 Financial Solutions

By Mark Winterworth

SERIES: PASTOR-FRIENDLY A/V

37 MARKETPLACE

Video Projection “fails”

By RaeAnn Slaybaugh

Several church A/V experts weigh in: Under what circumstances can a church’s video projection setup fall short of effective?

“Like” us on ChurchExecutiveMagazine “Follow” us on @ChurchExecutive

SERIES: CONSTRUCTION

Church Executive (Copyright 2013), Volume 12, Issue 6.

Church Executive is published monthly by Power Trade Media LLC, a subsidiary of Friendship Publications Inc., 4742 N. 24th Street, Ste. 340, Phoenix, AZ 85016. ™

To LEED or Not to LEED?

By RaeAnn Slaybaugh

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Reprints: All articles in Church Executive are copyrighted and may not be reproduced in whole or in part without the express written permission of the publisher. For reprints of 100 or more, contact Valerie Valtierra at (602) 265-7600 ext. 203.

Copyright 2013 by Power Trade Media, LLC. No advertisement or description or reference to a product or service will be deemed as an endorsement, and no warranty is made or implied by Power Trade Media, LLC. Information is obtained from sources the editors believe reliable, accurate and timely, but no warranty is made or implied, and Power Trade Media, LLC is not responsible for errors or omissions.

RESPONSIBLE FINANCIAL STEWARDSHIP: Finding the vision — even in a struggling economy

Helping Leaders Become Better Stewards.

By Rez Gopez-Sindac

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4742 North 24th Street, Suite 340 Phoenix, AZ 85016 | 602.265.7600

Publisher/Editor in Chief Steve Kane, ext. 205 steve@churchexecutive.com Editor Rez Gopez-Sindac Phone: 512.337-7988

rgopez-sindac@churchexecutive.com Managing Editor RaeAnn Slaybaugh, ext. 204 rslaybaugh@churchexecutive.com Editor Emeritus Ronald E. Keener Director of Sales Sali Williams, ext. 209 swilliams@churchexecutive.com Account Executive Alexandra Garcia, ext. 219 agarcia@churchexecutive.com Production Director Valerie Valtierra, ext. 203 valerie@churchexecutive.com Senior Art Director Renée Hawkins, ext. 207 rhawkins@churchexecutive.com Editorial Advisory Panel Stephen Briggs

Associate Pastor of Administration First Baptist Church | Hendersonville, NC

Denise Craig

Chief Financial Officer Abba’s House | Hixson, TN

David Kennedy

CEO HDSound.us / San Marcos, CA

Mike Klockenbrink

Chief of Staff Lakeside Church | Folsom, CA

Dan Mikes

Executive Vice President Bank of the West | San Ramon, CA

John C. Mrazek III

Executive Pastor Pathways Church | Denver, CO

Sam S. Rainer III

Senior Pastor First Baptist Church | Murray, KY

Mark Simmons

Business Manager Christ Community Church | Milpitas, CA

Eric Spacek

Senior Manager GuideOne Insurance | West Des Moines, IA

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6 | Church executive | 06-07/2013

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Editor’s notes

Why having a good coach can help clarify what matters

Jordan Ashley Photography

What do star athletes, top CEOs and Zappos employees have in common?

They all have a coach.

A coach is your advocate. You may call them life coaches, mentors or executive coaches, but their job is to challenge you to grow, achieve your goals and finish well.

The corporate world gets it. Businesses understand that an investment in the growth, health and happiness of their executives and employees can have a significant impact on their bottom line.

To understand where pastors stand on the matter of coaching, I sent an email questionnaire to 20 senior pastors of various church sizes and denominations. Six of them responded.

Do you currently work with an executive coach? Only one said “Yes.” Have you worked with a coach before?

Three said “Yes.” If your church isn’t investing in a mentor for you, would you personally hire someone to coach you? Two said “Yes.” Four said “No.” Does your church plan to hire an executive coach soon? All said “No.” Do you need a professional mentor right now? Only one said “Yes.” Is there someone in your life with whom you can have an honest conversation about the pains, pressures and disappointments of life and ministry? All said “Yes.” I also talked to Dr. Nathan Baxter, a professional life/executive coach. He founded Lead Self Lead Others to help pastors “live up to their true potential as leaders of their homes and leaders within their congregations.” Having served the church as a senior pastor and an executive pastor, Nathan knows very well the struggles of many church leaders. He says the

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loneliest time he has ever experienced in his ministry career was when he was a senior pastor. “I felt like no one really understood what I was going through,” he shares. “If anyone ever really knew what I was thinking and working through, I felt like it would invalidate my message. The men in my church did their best to reach out to me, but it was still uncomfortable to be completely honest with them as I felt like it would make me less of a leader in their eyes.”

Nathan says many pastors tell him, “That’s exactly how I feel.”

Sadly, life coaching is still new in the church world. Nathan works with 50 pastors — and none of them has been coached before. One reason, says Nathan, is unlike in the corporate world where there’s enormous pressure on CEOs to generate revenues — causing them to look for anything that’s going to give them an edge — pastors are into the spiritual profits, which are more subjective and difficult to measure.

So, what might compel a pastor to hire a coach?

Nathan says those who come to see him fall into either one of these buckets: (1) They have a high level of pain in their life, or (2) They have the leadership edge and want to stay sharp.

The financial investment, notes Nathan, is reasonable — and the ROI can’t be more astonishing.

“I’ve seen men start going back to having healthy homes. I’ve seen them resign churches that they should have left five years ago. I’ve seen them terminate staff that they should have fired three years ago. I’ve seen reconciliation in marriages. I’ve seen husbands call their wives from my home office, make amends with her and fly her out here. I’ve seen leaders find peace, purpose and a sense of authenticity.”

At the end of the day, aren’t these the things that really matter?

Talk to me: Email: rgopez-sindac@churchexecutive.com Facebook: ChurchExecutiveMagazine Twitter: @churchexecutive

the ce interview

tim harlow

Senior Pastor | Parkview Christian Church | Orland Park, IL

By Rez Gopez-Sindac

Tim Harlow is the senior pastor of Parkview Christian Church in Orland Park, IL. He also is the 2014 president of North American Christian Convention (NACC), a four-day annual gathering of Christian leaders for teaching, worship, fellowship and networking. This year’s convention is scheduled for July 9-12 in Louisville, KY.

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In an interview with Church Executive, Tim Harlow makes light of his skill to coach himself and jokes about needing robots to help him lead his church. But, when it comes to reaching the lost, Harlow is nothing short of dead serious.

What radical decisions have you had to make to ensure the health and growth of Parkview Christian Church?

In the early years, I had to be very intentional about not catering to the people who didn’t get the vision of reaching the lost. I had to be able to accept the fact that they might need to move on to another church. This was very difficult, but it was vital to the health of our church. My primary concern had to be about the lost, who didn’t yet know the Father, and to make this a place where they could find Him. I had one professor who called this the “excretory system.” It sounds harsh, but without it, the body doesn’t function well.

I also had to make sure that my eldership/leadership was in agreement with the vision. Seven years into our ministry, we had to take a church vote to help us relocate. The church voted 56 percent in favor.

[It wasn’t] a magnificent display of unity, but we only needed a majority. And, by this time, our eldership was unanimous in the vision, so we pressed on. After losing a lot of people the next year, we’ve grown by an average of 23 percent a year for the past 15 years, reaching mostly the unchurched.

How can churches and believers effectively connect with those outside the faith?

Stop hanging out with Christians all the time! We all know the stats about how many Christians don’t have any non-Christian friends. You have to be intentional about getting outside of the Christian bubble and being part of their lives, and inviting them into yours. This is very hard for those in ministry because we’re around Christians a lot. That’s why we have to be intentional — find a place where you can go and hang out and have relationships with non-Christians.

As for the church, we have to start by joining the current millennium. Most churches still operate in a 50-year-old structure with 50-year-old methods. We don’t have to be “hip,” but we can’t be “square.” (And don’t bring up Huey Lewis, or you’ve just dated yourself.) This goes way past worship styles and the color of the pews.

The world is actually hungry for true spirituality, a spirituality that involves service and care for the poor and needy — what a concept!

That’s Christianity, so show it. Be involved in the community in ways that people will notice. If your church is known for its building, or its pastor, or its style, you’re not going to get very far. If you’re known for your love and service, outsiders will want to be involved.

Share some leadership lessons that you’ve learned in your 23 years of serving Parkview.

1 Leadership is hard. If you expect it to be easy, then you’re in the wrong seat.

People will accuse you of arrogance and attack your Christianity. You’d better know that you’re listening to the Good Shepherd, and then you have to go be one. Sometimes the sheep won’t like it.

2 You’ll never be a good leader if you’re not first a good follower. This is particularly important for talented/gifted young leaders that everyone wants to thrust into a major leadership role. Make sure you’ve spent some time learning to follow first. This was forced on me by the tough times I had early on in my leadership. It was a “Joseph in the pit/slavery/prison” time for me.

3 You must always improve as a leader. If you’re not intentional about developing your strengths and minimizing your weaknesses, then you’ll stagnate as a leader. Everyone has a ceiling of abilities, but it’s usually much higher than people allow it to be because they stop growing. We have to keep reading, learning and paying attention to the way the world works.

4 Coaching is important. Even the top athletes in the world have coaches. No matter how talented you are as a leader, there are times you just can’t objectively assess what your “swing flaw” is. Having an extra set of eyes helps keep you from banging your head against the same wall over and over. I have a group of fellow pastors that help me, and I also hire outside help whenever we need it — at least once a year.

5 Let go. If I try to hold on and micromanage everything, I just get in the way. Sometimes I pull back too far, and that’s just as bad. But, I believe the reason many leaders can’t get to the next level is because they won’t let go of the little stuff.

In managing the business side of your church, what areas of ministry do you consider important to track?

There are a couple of gauges that are important to keep an eye on; however, I would say that the reason they’re important goes beyond just “business.”

Giving — When an individual or family begins to give or grow in their generosity, it tells me that they have a growing sense of ownership and connection with our church family. It also tells me that their priorities are changing and they’re catching the vision of the Kingdom and what God wants to accomplish through our church and through them.

Debt — We keep a close eye on the amount of debt we carry. We want to be good stewards of what God has given us, and we never want to put ourselves in a position where ministry is hindered because of excessive debt.

Attendance — If we’re not attracting new people, then we’ve lost our mission and purpose.

Children’s ministry — I have to watch the gauges on our kid’s ministry to know if we’re still doing what we need to do to attract our target audience.

Engagement/discipleship — If more people are coming to church, but the same number of people is involved in service or groups or missions, then we’re still failing.

What’s your strategy for finding and developing your successor?

We have “key man insurance,” so if a falling meteor hits me, we’ll be OK. There’s nothing that will help us if I screw up — so I can’t. If I decide to become a professional bull rider, they’ll have to just figure it out. But, we haven’t really started to formally look for a successor. I’m 51, and I QUICK FACTS plan on being here for 17 more years. I want to make it to 40 years in one place. However, succession Parkview Christian Church Year established: 1951 is something we routinely talk about with our board Average weekly attendance: 7,510 and with a consultant that works with our church. I for both campuses Campuses: Orland and Lockport guess our strategy right now is to keep the discusAnnual budget: $7.8 million sion on the table until we feel like it’s time to begin Staff: 71 formalizing a plan. >> 06-07/2013| Church executive | 11

the ce interview As the 2014 president of NACC, what do you sense is on the horizon for your denomination?

Our movement — the Independent Christian Churches — is on the cutting edge of ministry in every way in the world. We’re one of the fastest-growing movements in the country. When Rick Warren spoke at the NACC last year, he said, “I have a ton of good friends in this

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movement — how do I get in?” And that’s the beauty of a movement: We’re not a denomination; we work with everyone. The downside of this movement is probably “branding.” Most people don’t know that Jud Wilhite, Dave Ferguson, Dave Stone, Kyle Idleman, Don Wilson, Jon Weece, etc., are all part of the same group. Or, that the Exponential Conference and the International Conference on Missions came

from the same place. And, we do church planting like crazy. There are 6,000 churches that are part of this movement, and they’re some of the most innovative in the world.

The horizon is about so many young leaders who really “get it” and are leading great churches and doing a great job of helping us figure out how to reach this next generation. We’re in good hands.

Are there any leadership views that need to change for your church to impact the community for Christ?

I don’t think there are any major changes. I think it’s more a matter of tweaking and, most importantly, keeping the vision of impacting the community constantly in front of our people.

It’s so easy to become complacent and satisfied. The question for me is: How soon does the prodigal son become the older brother? It’s human nature to want the world or church to revolve around us and what we’re comfortable with. So, I have to keep re-casting the vision, but it’s solid right now. We’re really in a good season of reaching the lost.

What skill or tool would help you lead your church more efficiently?

Robots ...

I’d probably say better time management skills. People just don’t realize how many requests come in. I have an excellent administrative assistant; she runs my life through my calendar, but it’s the only way I can survive. Both of us feel bad saying “no” so often. I know I have to; I get that. I have to say “no” so I can say “yes.” But, it’s not easy.

Where do you think God wants you to lead Parkview from here?

It’s time to pass it on. The next 20 years of my life, and of Parkview’s, must be about helping other churches “ReMission” themselves and refocus on the Great Commission of Jesus. We have millions of people in our immediate ministry area that we need to reach. The U.S. is now the third or fourth largest mission field in the world. The fields are white, and the time is short.

Faith-Based Travel 101

A religious travel group tours Israel. Photo courtesy of NTA, Inc.

Despite the recent recession, religious travel remains a priority among church groups.

According to the Washington Post, pilgrimages, missionary trips and fellowship excursions taken by North American religious tourists comprise an estimated $10 billion of the overall travel industry. World Tourism Organization estimates that as many as 330 million pilgrims visit the world’s key religious sites every year. And, Travel Intermediaries Association reports that 25 percent of travelers say they’re interested in taking a “spiritual vacation.”

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By RaeAnn Slaybaugh

So, the will to take a faith-based trip is intact. What’s not so clear is the way.

To help pastors navigate the decision-making and planning process, Church Executive spoke with Kevin J. Wright, director of growth markets for National Tour Association (NTA) in Lexington, KY. Wright is a well-known authority in the tourism industry — an entrepreneur, published author, speaker, consultant and blogger.

Church Executive: What does the market for faith-based travel look like today?

Kevin Wright: The answer to this question is “diverse.”

Today, it’s quite common to see a church community offering trips ranging from conferences, to getaway ski trips, to missionary work, to overseas pilgrimages, to faith-based cruises. The Great Recession has led to this increase of diverse travel choices and preferences as people of faith seek out experiences that are most conducive to their new financial situations and reorganized priorities.

Additionally, the Great Recession has led to some travelers shortening the duration/length of their trips to save costs.

CE: Are there certain destinations that have gained popularity in the past several years?

Wright: The countries of Israel and Jordan have remained among the most popular international destinations for faith-based travelers. In fact, the Israel Ministry of Tourism has experienced record numbers of visitors in the past three years.

The next most popular faith-based trip and itinerary to emerge in recent years is the trend of travelers choosing to retrace the footsteps of Apostle Paul through Greece and Turkey.

Italy is experiencing a resurgence among Catholic visitors, due in part to the recent papal election.

Germany also continues to grow in popularity, especially in relation to travelers visiting the sites of the Reformation and Martin Luther.

In the United States, people of faith continue to visit Christian attractions in ever greater numbers, such as the biblically based Sight & Sound Theatres in Lancaster, PA and Branson, MO. CE: What are pastors’ most common motivations for — and expectations of — a faith-based group trip?

Wright: The desire to experience one’s faith “in person” is the No. 1 driving motive. Only through travel can someone experience his or her faith from every dimension of the human being: socially, spiritually, intellectually, emotionally and physically. As one pastor who has visited the Holy Land likes to say, “It’s one thing to read about the Sea of Galilee in the Bible; it’s another thing to actually sail across it, as Jesus did.”

Other commonly cited motivations include a desire to learn more about one’s religious heritage, to stand in the presence of a holy site or event, to provide missionary and humanitarian assistance, or simply to experience one’s faith in a more intimate and focused way.

CE: Generally speaking, when should pastors and church groups start fundraising?

Wright: Fundraising should begin at least one year in advance of the trip, if not sooner. However, the first step is for any pastor or group leader is to choose a travel company, an itinerary and a trip price. Once these steps are completed, then fundraising can begin.

Most tour operators and travel agents require a per-person deposit at time of booking to secure space. Full payment is often due 30 to 60 days prior to departure. For this reason, even if fundraising begins a full 12 months before the trip begins, the monies need to be earned in the first 10 months to ensure full on-

time payment to the travel provider. This is why many church groups will begin fundraising efforts even 18 to 24 months prior to the first day of travel. You can almost never begin fundraising too soon.

CE: How can pastors ensure they’re getting the best possible value when choosing a group trip?

Wright: As group tours are complex undertakings, it’s imperative that pastors and group leaders first choose quality travel organizations and professionals

who specialize in such work.

Second, it’s recommended that pastors and group leaders contact a minimum of three travel companies when researching and selecting tour operators or travel agents. As each company has its own unique specialties and pricing structures, this act of “shopping around” will ensure your chances of selecting the right professional for your travel wants, needs and preferences. CE

06-07/2013 | Church executive | 15

Pastor-Friendly

Church Executive asked several church A/V experts to answer one key question: Under what circumstances can a church’s video projection setup fall short of effective?

Video projection “fails” When looking at getting started with a video projection system, there are some key considerations for pastors to keep in mind.

Line-of-sight. You don’t want to position the screen too high or too low. The bottom of screen should be at least eight feet above the stage.

Additionally, you need to be able to see the screen from a side angle, yet ensure it doesn’t pull people’s attention away from the pastor, speaker or choir. So, projector placement is a big consideration. To get maximum performance from your projector, it needs to stay within the same plane as the screen.

Distance between the projector and the screen is another main consideration when aiming to produce a quality image. Generally, most front-projection models perform optimally when placed 20 feet to 26 feet in front of the screen. If you decide to add a custom extended lens — if the plan is to mount the projector on the balcony or back wall, for example — you’ll lose some lumens. And, if you double that distance, you’ll lose at least 25 percent to 30 percent of the projector’s intensity. In the latter case, a brighter projector is the solution.

Lighting. Generally, you need to make sure you don’t create projection quality issues by aiming lights directly onto your screen.

A second important factor is natural light. If your worship space features stained glass or clear windows, be very careful to note where the sun comes in; placing your screen anywhere close to natural sunlight won’t produce the quality projection results you want. (God — the creator and the owner of Light — will win that battle every time!)

On the up side, you do have options if your worship space has an abundance of natural light. LED and plasma projection will do just fine. In fact, some new screen products on the market are designed to reject light from specified angles — aside from the angle the projector is using.

Wiring. A common, yet often overlooked, video projection problem is installation and wiring.

Electricity and connectivity are critical; when you spend what it takes to produce an amazing video image, you need to make certain you’re actually rewarded by your investment.

“Dirty power,” or poor connections with improper cable, will rob you of your best end result. Not all cable is created equal, and neither are the connectors on the ends of the cable. You can do everything else I’ve recommended above, but still not achieve the full impact of your investment, if you don’t pay attention to this detail.

It’s very important: Get the best cable and connectors your budget will allow. CE Donnie Haulk is president and CEO of Charlotte, NC-based AE Global Media, Inc.

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By Donnie Haulk

Elevation Church — Blakney in Charlotte, NC (Pastor: Steve Furtick)

3 common gaffes

By David Taylor Based on our firm’s experience, there are three common areas where projector/screen mistakes occur.

1) Screen size. In an effort to reduce costs, it’s common for a church to choose a screen that’s too small. To verify it’s large enough, measure the distance from the screen surface to the furthest viewer, and divide by six. The screen height should be no less than that number. The optimal width is based on the aspect ratio you choose. (See below) 2) Projector brightness. Today’s projectors are getting brighter and brighter; however, once spread out over a large area, the image can quickly become insufficient. Many environmental conditions in the space can affect how bright the projector needs to be, including ambient light. The general rule is Evergreen Christian Community in Olympia, WA, to multiply the area of the takes full advantage of the power of projection screen by at least 50, and systems for enhancing the message — and select a projector of that the music.

Expert advice: do’s and don’ts Understand the relationship between lumens and ambient light. In terms of visibility, large projection screens can be a better choice than small screens.

But, without enough projector lumens, the image won’t look bright enough.

Ambient light — created by windows and house lighting — tends to wash out a front-projected image. This eliminates the contrast, or black/dark parts, of the image. Rear-projection systems tend to be better choices in terms of visibility when there’s lots of ambient light to contend with. But, there’s a caveat: A large amount of dark space must be available behind the screen(s), which must be designed into the building itself. On the up side, however, rearprojection equipment is easier to hide.

A third option is high-brightness/highcontrast screens and displays. Comparatively, this is expensive equipment.

Know how to navigate the choice between a 16:9/10 widescreen aspect and a 4:3 aspect ratio. A 16:9 widescreen aspect ratio projection system allows for a possible split screen, image magnification

(I-MAG) and text can share the screen space.

DVDs are typically produced in a 16:9 widescreen format versus the outdated, almost-square 4:3 ratio. A 16:9 screen can be used to create a video backdrop (upstage); again, however, stage lighting tends to wipe out contrast/black tones — especially on the bottom of the screen — in a front-projection setup.

Also, 16:10 is the commercial standard for computer displays. But, this ratio conflicts with camera’s aspect ratio, so the intended uses need to be evaluated.

Don’t mix the type or aspect ratio of screens and/or TVs. Mixed-screen formats in the same view will have noticeably different image quality. Due to space constraints, some churches use a frontprojected 16:9/10 screen upstage, combined with rear-projection screens angled across the room — sometimes with 4:3 aspect-ratio screens on either side of the platform. All systems today should be high-definition, or HD, but we still see pastors trying to save money with standarddefinition (SD) systems.

By David Kennedy

Know how to avoid a poor-quality I-MAG system. To ensure onscreen image quality is as good as the live action going on, several common mistakes must be avoided: improper use of smaller distributed TVs to increase viewability; ambient light problems; inexpensive cameras/lenses; using a PC to play or switch video sources; systems too complicated to use; projector noise and/or poor cabling; wrong screen size and/or gain; stage lighting for live video; camera placement issues; and old and/or dead lamps.

As a projector lamp ages, its light output is reduced — as much as 50 percent.

A clogged filter will shorten its life even more. So, even though replacement costs for lamps can be high, spares need to be on hand.

For the complicated work of performing the calculations necessary to design and install, or upgrade, their projection system properly and safely, pastors should consider hiring a professional. CE David Kennedy is the founder and president of Carlsbad, CA-based David Kennedy Associates.

brightness (ansi lumens) or greater.

3) Screen format. Excluding custom screen sizes, most common projector/ screen solutions are either 16:9 or 16:10 aspect ratios. Almost all video projectors under 7,000 lumens produce a native 16:10 aspect ratio, but most computers and video players are now 16:9.

Factors in choosing which format to use include: Matching existing displays (confidence monitors, signage in lobby and so on) Source output — Some computers are 16:9, and some are 16:10. This can changed in the computer settings.

Architectural requirements and restraints.

If a 16:10 format is selected, and the source is 16:9, viewers will see a small black line above and below a video playback if the projector shows the signal in its native form. CE David Taylor is the house of worship sales coordinator at Ford Audio-Video Systems, LLC, with division offices in Oklahoma City, OK; Dallas; Las Vegas; Austin, TX; Tulsa, OK; Denver, CO; and Houston, TX.

06-07/2013 | Church executive | 17

Proper implementation

pointers

By Duke DeJong

Sagemont Church in Houston, TX, uses Image Magnification (IMAG) to provide even the furthest viewer an up-close and intimate worship experience. (Photo courtesy of Ford AV)

Video projection has become a vital part of communicating the gospel in weekend worship services.

Regardless of how you use projection — whether for Image Magnification (IMAG), or to display worship lyrics, scriptures, images, or all of the above — projection systems can dramatically increase participation and retention, if used correctly. Used incorrectly, however, it can serve as a distraction and regret.

To ensure your church’s projection system serves you well: Know what you’re using it for.

Projecting full-screen backdrops with large lyrics in the middle of a screen is a very different use than live camera shots with lyrics projected over the bottom one-third of the video. Whereas a backdrop with an image and lyrics tends to be more beneficial if it’s centrally located, IMAG can be awkward if it’s positioned “center stage.”

Additionally, if lyrics will be projected on the lower one-third of the screen, you might need to increase the screen size to ensure people in the back of the sanctuary can read them.

Don’t under-power your projector. With video projection setups, few things are more disappointing than getting your screens looking great, only to turn on your stage lights and find your hard work “washed out.” Too often, I see church clients buy smaller projectors to avoid the high cost of getting the right ones. Inevitably, they hate the images produced.

In worship environments, ensuring the projector is brighter than the stage

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lighting means a target of between 40 and 60 lumens per square foot, after allowing for some loss of brightness. (Projector lamps lose brightness every time they’re used; we factor in a 20-percent decrease.) For example, a 7-by-12-foot screen should have a projector in the 4,000- to 6,000-lumen range under average stage lighting conditions. The equation is as follows: 7 x 12 x 1.2 x 40 = 4,032.

Provide adequate ventilation and maintenance. We all believe in good stewardship. However, aesthetics sometimes lead us to jeopardize the longevity of our tools.

Projectors have lamps that get very hot. If you want a projector to last, you must give it adequate ventilation space. To this end, every projector has its own minimum recommended clearance. Find out what your projector needs in terms of space, and resist the urge to hang it against a surface or in an enclosed space.

Also, take care to properly clean the projector and replace its filters. A well-maintained projector can last more than five years without issues.

But, a poorly maintained projector might only deliver a few years of use.

If you’re going to make the investment in a church projection system, be sure you give it every chance to serve you for years to come. CE Duke DeJong is church relations director at CCI Solutions in Olympia, WA.

RISK MANAGEMENT

Education — Educate members on cyber bullying, and how to respond if it occurs.

Response by the victim The following are recommended responses for a victim, should cyber bullying occur: • Print out all instances of cyber bullying.

• Preserve electronic evidence. (Take a screenshot, or store the message in a folder. Electronic information can help law enforcement trace the source.)

• Report improper content and use to the associated website or Internet Service Provider (ISP).

• Don’t respond to, or retaliate against, the sender.

This might escalate the situation.

• Don’t pass along cyber bullying messages to others.

• Block the sender. (If a person is a repeat offender, the phone company can be contacted to block his or her number. Websites or ISPs can block specific users or email addresses.)

• Tell a trusted adult — a youth leader, parent, teacher, social worker or law enforcement officer.

• Call the police if you feel you or someone you know is in danger.

Response by the church

How to Handle a Cyber Bully

By Eric Spacek, JD, ARM “Cyber bullying” — defined by National Crime Prevention Council as using the Internet, cell phones or other devices to send or post text or images intended to hurt or embarrass another person — is a growing epidemic in America.

According to National Education Association, cyber bullying affects nearly half of America’s teens, with 160,000 students staying home each day out of fear of attack or intimidation. Bullying was once restricted to areas such as the classroom or the playground; but, with the rise of technology, bullying can now happen 24 hours a day, seven days a week.

Taking action to protect the youth and other members of your congregation is important. Do so by implementing a policy against cyber bullying which promotes: No tolerance — Inform members in writing that your church doesn’t tolerate cyber bullying by members or participants in its activities.

Accessibility — Show members that your church is open, accessible and supportive with regard to cyber bullying, so there’s no hesitation by a victim to report it.

When cyber bullying occurs within your church community, take the following actions, as necessary: • If your church has computers available for members’ use, cyber bullying should be prohibited as a part of your acceptable use policy.

• If cyber bullying is proven to occur, the violator of the policy should be prohibited from further use of the computer facilities.

• If the incident occurs on your website or social media page, such as Facebook, the site administrator should remove the content, but only after it has been saved.

• The appropriate administrator also should be proactive in notifying the parent/guardian of both victim and perpetrator, if they’re known.

Have an open conversation Unfortunately, the instances of cyber bullying affecting youth are only increasing. Spend some time addressing cyber bullying during your youth groups or meetings. Consider inviting experts on cyber bullying from among the community to these events, and invite parents to attend. This way, everyone can be informed on the best ways to handle these situations, and steps to take if an incident were to occur.

Additionally, make sure youth who feel they’ve been bullied are aware of their avenues of support — and reiterate that the church is one of those channels.

Eric Spacek, JD, ARM is senior church risk management & loss control manager at GuideOne Insurance in West Des Moines, IA. 06-07/2013 | Church executive | 19

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TO

LEED

or Not to LEED?

Experts offer advice for deciding how far down the Leadership in Energy and Environmental Design (LEED) certification path to go.

When pastors hear the term “green construction,” they might equate it with LEED (Leadership in Energy and Environmental Design) certification.

The LEED Green Building Rating System is a voluntary, consensus-based national standard for developing highperformance, sustainable buildings. It’s a point-based system that’s becoming the national standard for sustainable design and quality control. LEED certification is available in three levels: silver, gold and platinum.

While other green building certifications exist, LEED — issued by U.S. Green Building Council (USGBC) — is

20 | Church executive | 06-07/2013

By RaeAnn Slaybaugh

the leader. According to Kimberly Lewis, senior vice president of alliances, conferences events for USGBC, 53 U.S. churches are LEED-certified; another 200 are registered.

Lewis says pastors at LEED-certified churches aren’t focusing on environmental stewardship alone. “They’re also keeping in mind congregational health and, perhaps most important, cross-generational engagement,” she explains.

“LEED certification demonstrates a commitment to truly living out the principles of green — something younger generations strongly identify with.

“Many times, these churches are also committed

Full LEED ahead!

windows at Immanuel Baptist Church in Springfield, VA, w-voltage control signal. According to Andrew Hulse, vice merican Sales at Sage Glass, energy costs at the church uch as 20 percent.

ee a lot of activity during the day, being able to manage ximize natural light — is an advantage,” he says. “Also, rst-cost neutral’ to install if the alternative is a combination nd exterior overhangs.”

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to the cost/value of stewardship,” Lewis continues. “Different levels of certification allow churches to look at the rating system and zero in on the areas they’re most passionate about — water reuse or air quality, for example — and align their LEEDlevel targets with those goals.”

To keep project costs commensurate with traditional construction, Lewis urges early implementation.

“The perceived ‘higher-cost’ issues associated with LEED are, at this point, really a result of not planning it early enough in the design process.”

This is true even in design-build projects, Lewis adds. “Sustainability consultants are starting to get involved very early on. So, it doesn’t have to be more complicated than traditional construction.”

John Banting, sustainable construction manager at Hedrick Brothers Construction in West Palm Beach, FL, remembers when “green” was a trendy term no one truly understood.

“Many project owners got burned this way, so green got an undeserved ‘bad rap’ as a result,” he recalls. “But, building green is really about building intelligently — to save energy, water and more. And, the cost differences don’t have to be astronomical if you plan it early in the building process.”

Whereas the cost to pursue LEED certification was 10 percent to 15 percent higher than traditional construction in the early days of LEED, Banting says it’s “fractions of fractions” today. “It all depends on what level of LEED certification a church wants to pursue,” he says.

One architect who agrees with Banting is Timothy Black, AIA, NCARB, LEED AP BD + C, who designed LEEDcertified (silver) First UMC in Orlando, FL. Black contends that the higher initial cost to achieve silver-, gold- or platinum-level LEED certification can be made up quickly, in short payback periods, due to the efficient systems it enables. Over a LEED building’s life, he estimates it saves between 30 percent and 50 percent in operating costs versus traditional buildings.

Breaking the equation down even more, Black references the Building Owners and Managers Association, which estimates the annual operating cost for a commercial building at a nominal $6.50 per square foot.

Utilities (electricity, natural gas, and water), repairs and maintenance account for 58 percent of that figure.

“With strategic planning and design, it’s possible to reduce life cycle costs associated with that 58 percent,” Black says. “For each design choice, a lifecycle cost analysis is used to tabulate the present value of all expected costs. Escalation in energy cost can also be accounted for. Competing choices are then easily compared and ranked.”

Further, Black points out that special loan programs are available for LEED-certified projects, and some government authorities offer tax incentives, grants, and fast-track permitting. “So, sustainable buildings — especially LEED-certified ones — are becoming a marketable trademark of forward-thinking organizations.”

Banting agrees: “To truly differentiate your church, a LEED-certified building is the optimal way of raising the bar. A LEED-certified building verifies that the church did what it said it would do in terms of truly green construction.”

USGBC’s Lewis echoes Banting’s sentiment, and points out that procurement and supply chain risks are eliminated for green-minded churches when they pursue LEED certification.

Doing so ensures all building components — from paint to HVAC systems — adhere to a church’s commitment to being the best possible environmental steward.

Less than LEED LEED certification is certainly an option for church facilities — one that has gained popularity in worship environments in recent years. However, architectural experts agree that lesser degrees of green design can be incorporated, yet still speak to the spirit of environmental stewardship.

CDH Partners’ Timothy Black knows well how design choices can drive sustainable outcomes. He cites building orientation as an example of built-in energy efficiency. “Placement of building fenestration can help to avoid west-facing glass and favor north-facing glass,” he explains. “With less solar heat load to contend with, HVAC construction cost is lowered.

And, improved indoor visual and thermal comfort is a welcome side effect.”

Jim Sherrer, AIA, president at Design Development Architects in Raleigh, NC, agrees with Black. “For instance, a ‘compass’-style building uses more glass on the south side than on the north side, making it Continued on page 23

06-07/2013 | Church executive | 21

Going

solar

Both for theological and practical reasons, more and more churches in America are advocating for green electricity.

By Rez Gopez-Sindac Churches go “green” as an act of obedience to what they believe is God’s call to care for the environment. Thankfully, it’s an effort that can be rewarded with financial benefit, as well. Take solar energy as an example.

Patrick Helsingius, chairperson of the board of trustees at Sudbury United Methodist Church (SUMC) in Sudbury, MA, estimates that with the installation of a 46-kilowatt photovoltaic (PV) solar system on the church’s rooftop, SUMC stands to save about $110,000 in electricity costs over a 20-year period — made possible through a purchase power agreement (PPA).

A typical PPA, says Helsingius, is the best option from the perspective of cash flow and overall risk. Quite simply, SUMC agrees to buy electricity from a solar services provider at a discounted rate, under a long-term contract. “At the end of the term, the system can be removed by the installer, or we can acquire it at the then fair market value, which should be a relatively nominal amount,” says Helsingius.

And the best part? There’s no upfront capital required.

Likewise, to John Geffel, business manager of the 2,400-member Rolling Hills Community Church in Tualatin, OR, the no-cost financial arrangement is a “no-brainer.”

Under the 20-year facility lease agreement with NW Photon Energy (NWPE) — a provider, designer and installer of turnkey PV solar systems in the Pacific Northwest — Rolling Hills didn’t need to make any upfront investment for the installation and operation of its 100-kilowatt solar system, since NWPE owns the system and paid for all the costs.

But, that wasn’t the only financial benefit Rolling Hills got from the lease agreement.

“The approach that we took was to essentially rent our roof space to NWPE,” says Geffel.

Doing so allowed Rolling Hills to derive a steady rental income stream — $300 per month for 20 years, for a total of $72,000. The agreement also gave the church the option to purchase the system at a depreciated cost in the future.

If Rolling Hills had decided to own the system outright instead of leasing its roof space to NWPE, it would have cost them roughly $30,000, says Kirk Cameron, NWPE president. Cameron’s company operates in three states (Oregon, California and New Mexico) that provide solar payment options that can be applied to nonprofits, he says.

Without these favorable programs, investing in solar energy is less attractive — and likely impossible or not worthwhile — for churches, according to Geffel. Had the leasing option not been available to Rolling Hills, Geffel says the church wouldn’t have had a win-win opportunity and a means “to generate clean, renewable energy back into the grid.”

Grants can help offset the cost For six Indiana congregations, a financial investment in energy conservation reflects a more intentional demonstration of their commitment to environmental stewardship. And, with a little help from the state grant, these churches are on their way to becoming, literally, sources of light and power in their communities.

One of the churches — St. Thomas Evangelical Lutheran Church in Bloomington, IN — shelled out $41,000 for the installation of its solar system, which was completed in April this year, says Dr. Lyle McKee, senior pastor. An additional $25,000 came from a grant through the Indiana Office of Energy Development, or OED. All six Indiana churches submitted one application last fall through a nonprofit called Hoosier Interfaith Power and Light (H_IPL).

“They applied for the maximum award amount of $150,000, and they agreed to split the funds evenly at $25,000 per church,” says Megan Ottesen, Indiana OED program manager. And, because each church brought funds to the table, “we were able to use the state grant to leverage even more funds,” Ottesen adds. “These leveraged funds helped maximize the impact of state funds and truly demonstrated the congregations’ commitment to this project.”

As for his church, McKee says it expects the solar panels to pay for themselves in 10 to 12

22 | Church executive | 06-07/2013

Rolling Hills Community Church in Tualatin, OR, makes a step toward energy stewardship with the installation of 400 photovoltaic solar modules on its rooftop.

years (not counting the grant money).

“The panels will generate between two-thirds and three-quarters of the electricity we use on an annual basis, cutting our bills by a projected $4,000 per year,” he explains.

McKee notes that the move toward energy reduction is just one of many steps his church has taken in response to a long-term commitment to “caring for God’s good creation.” It started in the 1980s with the banning of Styrofoam use (members brought their own mugs for coffee hour) and recycling. From there, the effort grew to include “green” expansion projects, such as better insulation, well-sealed doorways and double-pane windows.

In October 2012, the church replaced 15,800 watts of incandescent lighting with 838 watts of LED lighting — tripling illumination for 1/19th of electrical use, says McKee. Now that the churches have been awarded the grant funds, they’re expected to submit invoices to the Indiana OED and reports on their energy and cost savings. Over the next year, they will conduct 20 workshops statewide about the benefits, economics and importance of reducing carbon footprints — potentially reaching hundreds of congregations and thousands of households, says McKee. But, whether or not grants are available, McKee says the real driving force to environmental stewardship is the belief that “God calls us to care well for the world that God made and told us to tend.” It’s an issue of good stewardship, he maintains, “and about a legacy of faith and life for this and all coming generations.” CE

Continued from page 21

particularly energy-efficient.”

When deciding how far down the LEED path to go, architectural experts agree many building codes are already green these days.

Although all states have their own building codes, Sherrer says most use International Code Council (ICC) as a baseline. “ICC has an energy code that’s going into effect that includes specifications for extra insulation, as well as for energyefficient lighting and ventilation,” he explains. “This energy code is probably 50 percent green.”

Jerry L. Halcomb, FAIA NCARB, consultant and architect at Dallasbased Studio H Consultants, PLLC, cites a few additional examples: the efficiency of the building envelope, daylight harvesting and rainwater recovery.

According to Hedrick Brothers’ Banting, some of these “baked-in” green code requirements include mechanical systems and building performance. “In other words, a building needs to perform above a certain baseline in terms of energy efficiency.”

Yet, in pursuit of environmental and financial stewardship, many pastors opt to implement aboveand-beyond-code green (but shortof-LEED) elements into their new facilities. In Sherrer’s experience, these often take the form of day lighting — especially in lobbies and children’s areas — as well as LED lighting. While he acknowledges LED systems are more expensive upfront, “they pay for themselves, over time, in energy savings.”

As with the pursuit of full LEED certification, Banting emphasizes the fact that environmentally friendly design elements — even if they’re not LEED-focused — are implemented most successfully early on.

“For example, [choosing] a lightcolored, highly reflective roof and more energy-efficient insulation, or ‘low-E’ glazing/glass, means you can install smaller-scale mechanical >>

Designed by CDH Partners’ Timothy Black, First United Methodist Church in Orlando, FL, recently achieved LEED Silver Certification.

(Photo credit: jacquephoto.com)

06-07/2013| Church executive | 23

According to Jim Sherrer, AIA, president at Design Development Architects in Raleigh, NC, green-minded churches — like this one — are opting for all-LED lighting. “It’s more expensive upfront, but it pays for itself over time in energy savings,” he says.

equipment,” he says. “That keeps upfront construction costs in the same range as what a church was planning to spend anyway.”

For his part, Design Development Architects’ Jim Sherrer points out that a LEED building must be commissioned. “In other words, it has to be verified that the building does what the church said it would do,” he says.

According to Sherrer, LEED commissioning costs about $.75 per square foot. “But, it isn’t going to give you any more square footage,” he points out. “So, it’s an ROI issue for many churches.”

True to form, Sherrer’s firm has completed 145 church projects in 26 years, none of them LEED-certified.

“We’ve gone down the LEED checklist [with some clients], but none have pursued it fully,” he says. “The commissioning element has made it too expensive.”

Halcomb has his own estimate for LEED commissioning based on total project cost. “I’m sure it varies from project to project, and would be hard to judge without having two identical projects to compare,” he says.

“But, I’d say the cost to [LEED] commission ranges between 1 percent to 5 percent of the total budget.”

Unlike Sherrer, Halcomb’s team has designed a LEED-certified church.

Even so, he contends that most pastors he’s worked with over the years don’t automatically equate “green construction” with LEED certification.

“But, I do think they assume that ‘green’ products or methods were used in that project, such as recycled materials,” Halcomb says. CE 24 | Church executive | 06-07/2013

BUSINESS MANAGEMENT

Groupthink refers to the increase of conformity within a group that leads to the acceptance of the prevailing viewpoint without critical consideration. For example, nine months prior to the attack on Pearl Harbor, a military report concluded that a dawn attack by Japanese airplanes could achieve complete surprise. But, senior levels of American command didn’t believe that it was feasible because they believed the Japanese would never take such a chance. Many of the false assumptions resulted from the American military’s decisionmaking group falling prey to groupthink, which resulted in a failure to respond to clear warnings. The failure led to the American involvement in World War II. Some of the attributes of groupthink are: • People are friendly and desire complete agreement on every important issue.

• People avoid sharing harsh judgments of leaders’ ideas.

• People avoid conflict and criticism with others.

groupthink often have illusions of invulnerability, which create unwarranted optimism, causing leaders to take extraordinary risks because they’re blind to clear warning signs.

Several years ago, I attended a national meeting for a large denomination in the U.S. When the national budget was brought to the floor, many pastors stood and gave passionate speeches urging a 5 percent increase in the coming year as an act of faith, even though the budget wasn’t met that fiscal year. Every single person who spoke to the issue was in favor of the increase. As one might expect, the following fiscal year resulted in many problems for the denomination, and significant cuts began shortly thereafter.

One year earlier, some pastors and workers had shared quietly in the hallways that they were worried about the new budget, but they lacked the confidence to express their viewpoints in the main sessions because of their fear of speaking against the leaders and the majority.

This example epitomizes the problem of groupthink.

Excessive optimism and fear of creating conflict blinded the denomination to clear warning signs — and they suffered for it.

Churches are tempted to believe that because they’re led

by God, every decision they make will be correct and result in blessings. Countless churches have embarked upon building projects only to find that they decline, or that their senior pastors become casualties, because the negative consequences of building expansion weren’t adequately evaluated.

Groups experiencing groupthink often stereotype those who oppose the group as weak, ignorant or not spiritual enough. Church board members who feel they’re not wellreceived for raising different ideas usually quit or are asked to resign because their views are perceived as threatening.

If the dissenting viewpoints are expressed in love and in an effort to really contribute to solutions, churches must find ways to encourage such people because it will prevent the church from making serious mistakes. This person might become a critical evaluator or a natural devil’s advocate that the group embraces.

Another key in avoiding groupthink is for pastors to avoid expressing their personal opinions when leading discussions.

This allows group members to feel the freedom to express their true feelings without worrying that they’re disagreeing with the pastor. It might also be helpful to assign two independent groups to study the same issue before making important decisions. This might mean that the governing board and a special ad-hoc committee consider the same question without initially consulting one another. After discussion, the two groups can come together and work toward a solution, having more assurance that all alternatives have been examined.

Churches might encounter serious problems if they don’t consider all viewpoints. May we lead our churches and denominations with the faith of Abraham and the wisdom of Solomon.

Many pastors might not be able to see that their churches are experiencing groupthink. Churches affected by

Andrew Babyak is assistant professor of management at Chowan University in Murfreesboro, NC.

Groupthink in church

By Andrew Babyak

06-07/2013 | Church executive | 25

responsible financial S tewardship

Funding the vision — even in a struggling economy

Essentials for running a successful capital campaign, regardless of the economic climate.

When it comes to raising substantial funds for ministry expansion, church leaders and stewardship specialists agree: Vision is king.

People give toward a vision that they can understand and embrace, according to Paul Clark, pastor of ministry environments at Fairhaven Church in Centerville, OH. Clark helps lead a three-year, $10-million fundraising initiative driven by a vision plan that includes building a preschool wing, buying medical equipment for a hospital in West Africa, and launching more multisites.

“We did much study and research on the fundraising potential of our congregation and the metrics that would be

26 | Church executive | 06-07/2013

By Rez Gopez-Sindac

needed to arrive at $10 million,” shares Clark. “We believed it would be attainable, with God’s help.”

But, what if the economy’s in bad shape or the timing isn’t right?

“Good vision trumps bad economies” “Timing is certainly important, but what’s more important is having a clear and compelling vision,” declares Mark Brooks, president of The Charis Group, a stewardship consulting firm based in Suwanee, GA. “Good vision trumps bad economies,” says Brooks. “If your vision doesn’t connect with your congregation, no season will be right. If it’s

compelling and connects with the hearts of your donors, there’s almost no season that’s wrong.”

While there’s a tendency for organizations to put off projects during tough times because of the assumption they couldn’t raise funds, Brooks says it hasn’t been the case for his church clients. “Churches can and did raise funds during the past recession,” he claims.

One of Brooks’ clients, Christ Church in Fairview Heights, IL — which has had three capital campaigns in the past 15 years — launched a major campaign at the height of the recession in 2008. The dollar goal was $2.5 million.

“We came in with pledges equal to $2.3 million, and at the end of three years, we had brought in more than 97.5 percent of the pledges,” says Christ Church executive director Alan Prass. Considering the economic situation at the time, and the fact that the congregation was much smaller back then, Prass says the 2008-2011 capital funding with The Charis Group was the “most successful” the church has seen in total and percentage giving.

Blair Commons, operations manager at Seven Rivers Presbyterian Church in Lecanto, FL, echoes a similar experience. Commons has led four of the eight backto-back capital campaigns Seven Rivers has held in the past 20 years.

During the 2008 economic meltdown, Seven Rivers embarked on a funding project that raised in excess of $2.5 million. “The economy did affect it,” Commons admits. “But, when the economy is bad, that’s when we need to talk about money and where we really put our trust.”

Early this year, Seven Rivers launched a new three-year capital campaign amid yet another economic uncertainty — and, as the leadership sees, an opportunity to demonstrate trust in God. Florida’s Crystal River nuclear plant — the main employer in the county where Seven Rivers is located — had shut down, affecting as many as 600 families in the community. Understandably, some people questioned whether the timing to raise $3.5 million (the highest of three goals) was right. Nevertheless, with a united leadership, the church moved ahead with the project.

“The kingdom of God isn’t built on the power company’s schedule,” says Commons. “God is still in control.”

With the help of Brentwood, TN-based Impact Stewardship Resources, Commons says $3.6 million had been pledged to the campaign. And when the campaign ends in March 2016, Common predicts Seven Rivers will launch another one.

“There are a lot of things that always need to be built — if a church is alive,” he says.

The value of capital campaigns Large churches recognize the value of a capital stewardship campaign because they engage in projects that require substantial financing, says Chuck Klein, president of Impact Stewardship Resources. These churches have expansive ministries, large overhead, numerous staff and strong mission components — all funded from their general budget. Thus, a capital campaign can relieve pressure from a church’s budget and free up dollars that can be used to support its core missions and ministries, explains Klein.

But, for many churches, a compelling reason for raising capital funds is to reduce or eliminate outstanding debts so they can move forward with their expansion plans. “Banks have been reluctant to loan for new projects without debt being reduced,” he points out.

Joe Sangl, president and CEO of Injoy Stewardship Solutions, based in Anderson, SC, discloses that nearly 80 percent of the church capital campaigns Injoy leads have a “debt retirement” component. But, as the economy continues to improve, Sangl says he expects to see increased activity among large and small churches relating to major capital initiatives, with a focus on building family life centers and >>

06-07/2013 | Church executive | 27

responsible financial Stewardship

launching campuses. “Optimism among leaders we’re speaking with is the highest since pre-2008,” he says.

One example is Believers Church in Chesapeake, VA. The 1,100-member congregation launched a two-year capital campaign in fall 2012 as a step toward relocation. Overall, there’s excitement among church members “because everyone can see that this is a real need that we have,” declares senior pastor Jamey Stuart.

“Our current facilities don’t meet our needs anymore,” Stuart says. He adds that “doing satellites” is the next phase for the church; right now, however, it’s important to get the church ready to relocate and “build a bigger base.”

But, while most churches have concrete, detailed cam-

paign plans that they present to their supporters, Believers Church has only an “idea” — to create a better ministry space for the community.

“We just knew we couldn’t accomplish what we wanted to do where we are,” says Stuart. “We don’t have drawings of what our building is going to look like; we had a specific goal, but how it’s going to be accomplished is pretty wide open.”

Believers Church didn’t even have a dollar goal more specific than “as much as possible” — until Injoy Stewardship stepped in and proposed three targets: $800,000, $1.2 million and $1.7 million. “We did get the $1.7 million commitment,” Stuart points out.

Big Mo* is back!

By Paul Gage

The Revival of Capital Campaigns

Today, more churches are thriving and growing, and are passionate about impacting their communities for Christ.

Church planting and compassion ministries are on fire, displaying God’s glory and goodness to the world. Churches are more optimistic about their futures and are demonstrating renewed vision for growth and expansion. The need for new worship facilities, children’s buildings and multisite expansions are coming online at an accelerated pace.

To illustrate, our firm has consulted with four churches in Southern California this year. All are experiencing record capital campaigns, with more than $50 million committed, collectively, for new building projects.

These are the kinds of campaigns that have been in a holding pattern the last five years. This renewed momentum is beginning to surface everywhere, and it’s refreshing to see.

But, what about the economy?

There is no doubt the recession has troubled thousands of churches and local communities. However, during this time of financial adversity, churches have been praying, taking inventory and diligently retiring debts.

Everywhere, churches are more receptive to teaching generosity and biblical stewardship to increase budget giving. Introducing programs such as Financial Peace University, The Blessed Life and Financial Freedom classes, and using technology to attract new donors, are at an all-time high.

This challenge to raise money for God’s work is a constant reality. Therefore, raising additional funds for future building projects can be an overwhelming decision for church leaders. Churches are seeking the best options to raise funds, and the overwhelming majority has concluded that a capital campaign is the most effective approach to reach their spiritual and financial goals. For the last 50 years, God has blessed thousands of churches, raising billions of dollars for ministry, building programs and Kingdom purposes.

Churches considering a campaign often ask two key questions: What are the next steps? and When is the best time to initiate a capital campaign?

In my 20 years of experience, I’ve noticed the churches that are strategically positioned for success have properly aligned three essentials.

1) PURPOSE — Having a clear purpose and vision is a

28 | Church executive | 06-07/2013

crucial first step. It allows your church to properly address the “what” and “why” for its future financial challenge.

Most churches that have defined their purpose (such as a new worship facility, a multisite campus, or debt reduction) are better positioned to communicate a compelling vision for growth and expansion. This process will continue to provide more information about the project cost, timing for construction, and the future impact to transform lives and communities for Christ.

Defining your purpose and project about three months to a year before a capital campaign is key to success. Your church will be more confident and engaged leading up to the capital campaign.

2) PREPARTION — We often hear that “timing is everything.” The most important factor must be God’s timing for your church. The planning and preparation phase for a capital campaign is about three to six months before the public phase of the campaign is officially launched. Most of the preparation work is done behind the scenes, with church staff and lay leaders.

I often suggest conducting a study to identify a four- to six-week window when the church is experiencing maximum attendance, the giving is healthy, and the presence of God is alive. This is the sweet spot we look for to execute the fourweek public phase of a capital campaign.

3) PARTICIPATION — The key to a successful campaign is the maximum participation of people praying, finding a place to be involved, and giving generously to God’s work. A capital campaign can be a rich spiritual experience for every person involved, from the senior pastor to first-time visitors.

The real purpose of every campaign is for God to build spiritual values into your people’s lives and to create an atmosphere of hope and excitement for the future.

Are you ready to take the next step and experience all God has in store for your church? I pray that you are. Come join the capital campaign revival. CE en.wikipedia.org/wiki/The_Big_Mo

*

Paul Gage is founder and president of The Gage Group. [www.thegagegroup.com]

“Church members are very supportive to pay down debt to make room for expanded and new ministries,” says Chuck Klein, president of Impact Stewardship Resources.

“Churches need to carefully weigh the return on investment of going it [capital fundraising] alone,” advises Mark Brooks, president of The Charis Group.

Should your church hire a specialist?

Believers Church has had only two capital campaigns since its inception in 1978. “It’s a pretty monumental task for any local church,” Stuart says of raising major funds — and that’s why to him it’s important to engage the expertise of stewardship consultants.

For Believers Church, Injoy has been the consultant of choice for both campaigns. Stuart says that’s because of Injoy’s thorough follow-up process and the “trust relationship” between his church and Injoy’s Joe Sangl. “We’re familiar with Joe; we didn’t even look for anything else,” says Stuart.

Similarly, Morrison Heights Baptist Church in Clinton, MS, has worked with only one consultant — Impact Stewardship — since 2003. Richard Collum, associate pastor of finance and administration, says Impact Stewardship has a strategy for engaging church members who have a capacity for giving large gifts, which — according to an analysis of Morrison Heights’ first three campaigns — was the church’s primary weakness.

Collum says his church’s most successful fundraising experience with Impact Stewardship was the May 2006 capital campaign, which resulted in pledges totaling $8.2 million, funding construction of a 20,000-square-foot youth and college ministry building.

It’s the proven ability of outside consultants to raise larger amounts of money that makes them valuable to the majority of churches planning a capital campaign, claims Chuck Klein, president of Impact Stewardship.

“Numerous examples exist of churches that decided ‘we can do this on our own’ and raised 1x; whereas use of a specialist would have likely doubled it,” says Klein. “Spending a consulting fee on the magnitude of $20,000 to $50,000 to raise an additional campaign total upwards of $1 million is a wise decision.”

It all boils down to “experience,” according to Jim Sheppard, CEO and principal of Generis in Atlanta. “We do this [stewardship] all the time, and it’s the only thing we do.” In addition, Sheppard says campaign specialists provide an objective voice — to ask the hard questions and challenge the church leadership on key issues that might affect the outcome of a giving initiative.

But, for Fairhaven Church, going it alone makes more sense to its leadership — at least at this time. Instead of hiring

“Specialists bring new ideas, fresh perspective, new technology, and help lighten the load off of church leadership,” says Joe Sangl, president and CEO of Injoy Stewardship Solutions.

Jim Sheppard, CEO and principal of Generis, has this sage advice: “Cast a clear vision for the project, and get a strong buy-in from the congregation.”

a capital campaign company, Clark says the church “followed a similar template for this current campaign.” He estimates the church saved $100,000.

Still, Fairhaven is going to pay a personal coach who will help its lead pastor craft and cast the vision.

In the end, Clark says, regardless of the economy (or whether a campaign consultant is involved), churches need to respond to opportunities to grow, launch satellite churches, plant churches, and impact the world for Christ. “So, I think a capital campaign is always relevant, no matter what the context might look like.” CE

06-07/2013 | Church executive | 29

Investigating Insurance:

Is Your Church Really Covered?

Don’t just assume your current coverage is adequate; brush up on best practices from in-the-trenches church insurance experts.

With all that’s required of a large-church pastor every day, it’s easy to get complacent about insurance coverage.

But, if church leaders did take the time to really consider what’s at risk with inadequate coverage, a few top-of-mind questions would no doubt emerge: • How can I make sure my church is 100% covered? (Is that even possible?)

• When should I revaluate our existing policy? Is waiting until renewal time good enough?

• How can I ensure our liability limits are high enough?

• Are there gaps in our current policy that could prove catastrophic to our ministry?

30 | Church executive | 06-07/2013

By RaeAnn Slaybaugh

To answer all these questions, Church Executive interviewed a handful of church insurance specialists: Melany Stonewall, corporate communications manager at GuideOne Insurance in West Des Moines, IA; Scott Figgins, vice president — underwriting at Brotherhood Mutual Insurance in Fort Wayne, IN; and Patrick Moreland, CPCU, vice president — marketing at Church Mutual Insurance Company in Merrill, WI.

No such thing as “100% coverage” Despite a pastor’s best efforts, Moreland, Figgins and Stonewall all agree on one thing: There will always be risks that are unforeseeable and/or uninsurable.

To this end, Figgins cites four categories of risk that even churchspecific insurance policies won’t cover. The first is moral hazard. “In other words, you can’t buy insurance to cover a criminal act [such as a person who commits a sexual assault],” he says. The second is morale hazard. “For example, a property policy would cover water damage, but not to replace a roof that, due to lack of care and maintenance, now needs to be replaced,” Figgins explains.

Additionally, he points out, coverage isn’t available for non-compensatory (such as punitive) damages, which some states wouldn’t allow insurance to cover — as a result of using inherently dangerous products, for example — or for uninsurable risks that are so infrequent that there’s no way to collect enough premiums to cover the damage. War and nuclear explosions are a few examples of the latter.

Stonewall concurs with Figgins’ assessment. “Policies generally don’t cover claims from pollution, war and intentional injury/neglect,” she says.

“All insurance contracts/policies have exclusionary wording, limits and sublimits. The insurance committee or person handling insurance should meet with their agent to have a clear understanding of insurance options.”

have enough coverage for accumulated audiovisual equipment, for example.” Figgins also suggests that pastors keep up with building values and inflation, and adjust their coverage accordingly.

In Stonewall’s experience, large churches are more proactive than their smaller counterparts in reevaluating their policies outside of renewal time. “[They typically have] staff dedicated to managing the administrative side of church business — a business administrator or executive pastor,” she explains. “Additionally, many church bylaws state that items such as property/casualty insurance must be reviewed and quoted every three years. And, boards normally have new members every two years. This sometimes causes the insurance to be reviewed.”

An extra layer of protection is available Beyond property, liability, automobile and workmen’s compensation

policies is an extra “layer of protection” for churches: an umbrella, or excess, policy.

An umbrella policy does more than just “fill in the gaps” of these other primary coverage areas, as Stonewall explains. “It should be seen as an extra layer of coverage to help protect the church’s assets once their underlying coverage limits have been exhausted,” she says. “Umbrella coverage levels begin at $1 million and can run up to $25 million and beyond.”

Moreland agrees, and cites a catastrophic potential lawsuit as an example of why such coverage is important to consider. “Imagine if the church vehicle crashes into a van full of children or a highly paid medical specialist or corporate executive driving with his or her family,” he says.

“In an event like that, no agent can ever tell you what liability limit is enough; the sky is the limit. The best advice is to buy the highest limit you can afford.”

For his part, Figgins says >>

Revaluate your coverage (before you need to) Moreland recommends taking a close look at the church’s insurance policy every three years. “However, it’s also important to notify your agent whenever there are significant changes, such as a new building, or if a vehicle is purchased or sold, or a new ministry is added,” he says.

Figgins agrees that the additions of “new buildings, new vehicles, new equipment, new ministries and new activities” are critical times to reevaluate insurance coverage.

Overall, he recommends that large churches revisit their policies at least every few years, if not annually. “And when they do, they should factor in the accumulation of personal property, he emphasizes. “In the event of a total loss, churches don’t often 06-07/2013| Church executive | 31

“excess” policies in the range of $1 million to $5 million are common among his large church clients. However, he’s seen church leaders opt for up to $25 million in excess coverage.

Familiarize yourself with lesser-known policies Several lesser-known, but crucial, insurance coverage areas exist for churches. As Figgins points out, foreign liability coverage (for mission trips) is a vital, but often overlooked, policy. Whereas traditional liability coverage/policies are intend-

ed for the U.S., Canada and Puerto Rico, it can cost between $50,000 and $100,000 to evacuate a volunteer or staff member from a foreign country. As another example, if a mission volunteer travels to the Middle East and is sued, such a policy would cover that scenario.

Stonewall agrees that foreign liability coverage is very important; but, another area of concern, for her, is how many churches are underinsured in relation to the full replacement cost of their property. “We often find that a church hasn’t had

a true replacement cost valuation of their buildings and contents in quite a while,” she says. “This results in their insurance coverage being too low in the event that they have a major claim.”

To this end, Stonewall says it’s very important to have a church insurance specialist agent evaluate the replacement cost of the church properties before providing an insurance proposal. “A pastor today should ask his or her agent when the last time the church’s buildings and contents were evaluated for a true replace-

Risk Management Resources (Just a Mouse-Click Away!)

For church leaders, ensuring adequate insurance coverage and practicing proactive risk management go hand-in-hand. Fortunately, they don’t have to “go it alone” when navigating the complicated, yet critical, realm of risk management.

Plenty of downloadable resources are available from Glatfelter Religious Practice (A Division of Glatfelter Insurance Group) and Arthur J. Gallagher Risk Management Services, which specializes in religious institutions.

For the following resources, visit the Arthur J. Gallagher Risk Management Services website at www.ajgrms.com.

Select “Religious” in the “Select Industry” pull-down menu, followed by “Knowledge Center.”

• Fine Arts — Realizing Hidden Assets • Case Study — Religious Institution 403(b) Plan Alternatives • Gallagher Employee Benefits Expertise for Religious Entities • Risk Control Services for Religious Entities For copies of these two items, contact Peter Persuitti — Gallagher’s managing director, religious practice — at peter_persuitti@ajg.com.

• Nonprofits — Section 403(b) Final Regulations and Overview and Action Plan • Top Ten Safety and Security Questions

32 | Church executive | 06-07/2013

Dozens of whitepapers (from administrative, to liability, to vehicles) are available on the Glatfelter Religious Practice website at www.glatfelterreligiouspractice.com. Select the “Risk Control” tab. They include:

• Emergency Action Plan Outline • Harassment and Discrimination Prevention Training • Exit Interview Procedures • Cooking — Fire Prevention and Protection • Slip-and-Fall Prevention • 15-Passenger Van Safety

ment-cost analysis,” she advises.

Moreland also encounters churches with inadequate limits on buildings. To remedy this, he suggests having an insurance agent measure all the buildings, ascertain construction quality and type, and develop a reasonable estimate of the cost to replace each building.

Additionally, churches with low limits of liability are an area of concern for Moreland. “Budgets are tight in tough economic times, and it can be tempting to scale back on insurance,” he concedes. “However, churches need to consider that tight economic times don’t reduce the likelihood of a fire, tornado, hurricane, theft, vandalism or injury-causing lawsuit.”

Other often underinsured areas of risk for churches include: Employment practices.

According to Stonewall, this is an area of coverage where many churches are lacking. Even more troubling, most

haven’t undergone the necessary training to avoid these types of claims, nor do they have the typical HR staff to handle these types of employment issues.

“Churches are no longer immune to being sued by their employees for employment practices,” Stonewall points out. “Hiring and termination practices, discrimination and sexual harassment exposures are concerns today.”

Cyber liability. A new area of concern in today’s fast-paced, technology-driven society, churches are far from immune to cyber liability risk. “Some churches collect personal data on their members, and many take donations and fees over the internet and have bank account and credit card data from their members,” Stonewall points out. In the event such sensitive data is compromised and stolen, the church has a large cyber liability exposure. “In this case,

a church without the right insurance protection would bear the cost of providing credit protection services and potentially any stolen money for the victimized members,” she adds. “This can become very costly.”

Sexual misconduct. While insurance coverage for these types of claims is widely available for churches, the risk management and training to help them avoid them altogether is even more critical.

“Insurance is good at paying money, but it won’t protect your church’s reputation,” Figgins points out. “Having enough insurance doesn’t equal doing the right thing.” CE

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HUMAN RESOURCES

Can I Google applicants?

By Joe Bontke

Social media has become the major form of communication for a large portion of the population. An even larger percent of people are “dabbling” in it.

Look around your church office today. Your youth minister is Tweeting. The clerical staff are on Facebook. Pastoral leaders are online checking out what other churches are doing. We’re a plugged-in, online, smartphone society, with unlimited information at our fingertips.

Although I work on employment discrimination issues as a profession, I offer only my personal opinion in this article, as well as a few words of caution about the “electronic footprints” we’re all leaving behind every time we post something online.

Proceed with caution Have you ever thought, What were we thinking when we hired him (or her)? If so, the Internet might seem to

34 | Church executive | 06-07/2013

be a great way to learn more about an applicant’s likes, experience, activities, writing — and so much more than you could ever learn during a 10-question interview. A simple Internet search might also show personal details that could indicate a lack of professionalism or maturity — use of inappropriate or discriminatory language on a social network page, for instance.

However tempting it might sound, there are some big problems with turning to the Internet for information in an open-ended fashion. The first is accuracy — or the lack thereof. If the applicant has an uncommon name (like I do), an Internet search will probably identify the person correctly, unless he or she has a “mystery double” somewhere. However, it’s still possible that false information could be posted about me for some reason.

My wife of 29 years, Joyce Smith, would have another problem if you searched her name on the Internet. You’d have a hard time identifying the same, wonderful Joyce Smith I married. Instead, you’re likely to find information on several other women by this name and, as an employer, you might not be certain which person is your applicant. If another Joyce Smith posted photos of herself drunk at a party, you might screen her out and then miss a fabulous employee: my wife (and possibly even the other Joyce Smith, if the photo is outdated, was posted as a prank, or didn’t actually show the other Joyce Smith, either).

In short: An Internet search of applicants might be more trouble than it’s worth.

Beware knee-jerk reactions Another risk of a quick Internet search is that it’s easy to react too quickly or superficially to information you find — especially photographs — in ways the Equal Employment Opportunity, or EEO, laws tell us not to.

As employees or applicants, we’re told not to put our photos on our résumés, for obvious reasons. “He looks too old.” “She appears to be foreign-born.” “We’ve never had one of ‘those people’ working here.” “She uses a wheelchair, so she’ll be unreliable.” All are examples of the thoughts or comments we might not want to have or to generate, but that still might be elicited by an unguarded reaction to an online photograph. Deciding not to employ someone for any of these reasons would violate federal nondiscrimination laws.

The proverbial “poster child” on the perils of conducting an Internet search on an applicant is the case of Stacy Snyder. While she was a teacher-in-training at a Pennsylvania high school, Snyder posted a photo on her social media page that showed her at a party wearing a pirate hat and drinking from a plastic cup, with the caption

“Drunken Pirate.” Her supervisor at the high school told her the photo was “unprofessional,” and the dean of the college where Stacy was enrolled said she was promoting drinking to her underage students. Days before Snyder was scheduled to graduate, the university denied her a teaching degree. She sued, arguing that the university had violated her First Amendment rights by penalizing her for her legal after-hours behavior. A federal district judge rejected the claim, saying that because Snyder was a public employee whose photo didn’t relate to matters of public concern, her “Drunken Pirate” post was not protected speech.

as references, interviews and applications. Evaluate the information from all credible sources, and talk to the applicant about an issue if you need clarification. Involve more than one person in the hiring decision, and help each other avoid unintentional assumptions that might lead to discriminatory conduct. In the end, make an informed business decision based on the job requirements.

To applicants, I offer a simple message in the form of this “Twoosh” — a word invented to describe Twitter messages that contain exactly 140 characters. My Twitter policy for employees is this: “Be professional, kind, discreet, authentic. Represent us well. Remember that you can’t control it once you hit ‘tweet.’”

Best practices — for employers and applicants The best advice I can offer to employers is to use an Internet search as only one of the tools in your tool kit when considering a job applicant. The Web can be a valuable hiring tool, if you use it wisely. Collect information from all your sources, including traditional ones — such

Joe Bontke is the outreach manager and ombudsman at the Houston district office of the U.S. Equal Employment Opportunity Commission.

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FINANCIAL SOLUTIONS how managing such a large expense is overlooked when cash gets tight. Paying an unnecessary mortgage expense can quickly erode even the best-planned budget.

First, we need to debunk the myths: • “We can’t refinance until our loan matures.”

• “We have a prepayment penalty.”

• “We already have a good rate.”

The truth is this: On the surface, it might appear unwise to pay a penalty or even refinance a decent rate; but, there might be a larger picture to consider.

Suppose a church has mortgage debt of $5 million at 5.25 percent, a prepayment penalty of $30,000, and two years until expiration. By taking advantage of today’s current rates in the 3.75-percent range, the borrower could save nearly $75,000 in annual interest expense — just within the first year alone. That’s almost $375,000 over a five-year period! (Note that all savings are based on a hypothetical example, and that actual savings might vary depending on the loan amount, interest rate and other applicable fees.)

Based on this example, the church actually frees up additional ministry dollars and improves cash flow — all without asking its members for even one extra dollar.

Electronic donations

Cash flow concerns?

By Mark Winterroth A few years ago, I encountered an all-too-familiar problem with a church client: It was using cash reserves to supplement decreasing tithes and offerings. Although the church’s payments to its lender were “timely,” it was simply borrowing from itself.

When processing a loan request or conducting a review of an existing loan, banks evaluate an organization’s ability to service debt from normal operating activities. Unfortunately for some churches, this isn’t a point of focus — but it should be. Each bank might differ in its formula, but the bottom line remains the same: Is there sufficient operating cash flow available to service debt?

Before touching its capital reserves, a church should carefully examine its current financial condition and explore areas that could yield considerable benefits.

It’s time to dust off the loan file.

Refinance existing debt In speaking with administrators, I’m often amazed at 36 | Church executive | 06-07/2013

Automated Clearing House (ACH) transactions can provide a valuable solution during low attendance or cyclical giving periods. Upon securing authorization from the donor, ministries can execute an ACH directly from their desktop and process transactions as a “one-time” gift or as recurring donations. ACH giving is safe, secure and typically less expensive than processing a physical check.

Also, as the clearing process for a check may take three days or more, ACH transactions can greatly reduce float time. As giving patterns fluctuate during slower months, churches that encourage ACH giving can see greater and more consistent giving levels.

Purchasing cards Unlike a credit card, a purchasing card is typically interest-free if the balance is paid monthly. Cards can be issued to administrators and staff members, with customized spending limits for each individual. By using a card for basic items such as office expenses, supplies, travel and even utilities, a church can retain cash balances longer — often, up to 55 days. The resulting higher average deposit account balances and increased earnings credits can be used to reduce or even eliminate account fees. As an added bonus, many cards also offer rewards and/or rebate programs.

As mindful stewards, church administrators should explore every opportunity to maximize funds for their ministry.

Mark Winterroth is vice president and relationship manager in the Religious Institution Division at San Francisco-based Bank of the West.

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