In congregational fundraising, it can be surprising that people may seem to be frugal when it comes to the annual stewardship campaign, yet seem to be more generous when pledging to a capital campaign or in a bequest in their will.
In chapter six his book Not Your Parents’ Offering Plate: A New Vision for Financial Stewardship, Clif Christopher describes his notion of “the three pockets of giving” that help to explain this patten. Here are brief descriptions:
The Earned Income Pocket of Giving
This consists of income from regular paychecks, and is used for the regular household budget. Pledges to our congregations’ annual stewardship campaign tend to come from this “pocket,” and only increase when income is greater than expenses.
The Estate Pocket
This consists of the money and assets that we leave behind when we die and are distributed according to a will or trust. Such gifts are often added to a congregation’s endowment, where the principle remains untouched, but the interest can be used for congregational initiatives.
Congregations can asked to be considered as a beneficiary as part of a congregational Planned Giving or Legacy Program.
The Capital (Discretionary) Pocket of Giving
This pocket of giving usually consists of household savings, “rainy day” funds, investments, inheritances, unneeded IRAs, required minimum distributions from a 401K, or other financial windfalls that are not needed for the household budget. When a congregation launches a campaign for a capital project, this is the pocket that members and friends usually reach into.
The key thing to understand about this pocket is that people give out of it when they feel the money can make a difference. This is the pocket targeted by secular non-profits, but is often overlooked by their beloved faith community.
A Third Fund for the Third Pocket of Giving
Many congregations are struggling with financial issues due to changing demographics, and the financial struggles of the younger generations. You may be recovering after a drop in membership. You may have lost several large donors and have been growing in numbers, but the growth in pledges hasn’t kept up. You may have a non-capital initiative that you hope to fund.
Creating a third fund (such as a Living Our Vision fund) that can make a real difference in the community. It can provide planned “reserves” to draw from during lean budget years. It can help jump-start an initiative. And it can be an opportunity for your members and friends to support the congregation’s current, living ministry without dipping into the pocket of daily living expenses.