The IRS requires churches and other non-profits to send contribution statements once a year — in January — reporting gifts from the previous year. However, I recommend sending giving statements twice a year minimally, and once a quarter if possible.
Here’s why:
- It’s another opportunity to thank your givers. Every other non-profit organization on the planet falls all over themselves to thank their donors, and often. If someone makes a donation to any charity, they will quickly receive an acknowledgement of the gift as well as information on how to give again. A church recognizing givers only once a year with a giving statement is missing a major opportunity to thank and encourage their donors.
- Some of your givers have forgotten or overlooked their giving. Years ago we had a major giver whose credit card was stolen and used for online purchases. This individual had to cancel his credit card and have his bank issue him a replacement. After going through this frustrating and time consuming ordeal, he forgot to update his credit card information for the monthly automating giving to our church. After a couple of months, our financial administrator came to me and said, “Did you know that so-and-so has stopped giving?” I reached out to this individual, hoping and praying that this was simply an oversight on his part. Thankfully, it was. He immediately went to our online giving platform to give his updated credit card information.
- Sometimes we make mistakes. There are occasions when a member receives a contribution statement and it is incorrect. Something wasn’t recorded correctly. Or a husband and wife want separate statements and we have them combined in our system. Or a major stock gift wasn’t included. Rather than all the corrections happening in January and overwhelming our financial administrator, a July statement gives a chance to correct mid-year and lessen the workload in the new year.
- It’s an opportunity to remind your church of the vision. Send a letter with the giving statement highlighting the ways their financial gifts are being used to make a difference in your community. Gone are the days when people give simply because they are supposed to give. The generation that tithes because it’s Biblical is dying off. People do not want to give to an organization; they want to give to a vision. Remind them of why your church exists and how their dollars are being used to realize this vision.
- It’s another chance to teach on stewardship. I recommend sending giving statements not only to your givers, but all of your members. If they’ve not given a dime but they are a member, send them a statement with a big “0” at the bottom. Send the same letter you send to your givers, highlighting the vision and the importance of faithful stewardship. You may just have a few of your non-givers feel a sense of conviction and begin to financially support the ministry.
- It’s a way to inform your congregation of options in their giving. For decades, the vast majority of contributions for the church came on Sunday mornings by cash or check. This was certainly the case when I began in my current ministry in 2007. If a family was out of town or missed church because of a sick child, they might forget to “make up” their offering when they returned the next Sunday. Today, however, nearly 70% of our contributions come in online. Most of these happen through reoccurring giving. While our active members are attending less often (as is the case in almost every church), their giving has become more consistent through online giving.
I recommend including a one-sheet informational document explaining how to give online. Moving your givers to a digital giving platform will not only increase your overall offerings, it’ll allow your monthly giving to be more consistent.
