John H Armstrong

The Financial Needs of ACT 3 at the End of 2007

Each year the mission of ACT 3 depends on year-end donations to make the difference in meeting our budget and finishing the calendar year without debt. This is no less true in 2007 than in the past. We have improved our situation by adding more regular donors, including many who use our secure Web site donations feature, but our cash short fall is still an issue as we approach December 31st.

Readers of this blog will include some who visit this site to read and enjoy, or even to find new reasons to disagree with me and the opinions I offer on various subjects that relate to Christian faith and culture. I am very glad that you visit this site and welcome you to gain anything from these posts that you can.

Others who read these blogs become more interested in the mission behind the blogs. This means that some of you would like to be informed of our needs in order to be good stewards. If you are inclined at all to support ACT 3 the remainder of this post is for you. This post is thus a year-end financial report and appeal.

First, we had a short-fall of about $19,000 at the end of November. This exists as one bill, on a single bank ministry card. (Growing interest is what we try to avoid by paying this off by December 31.) This bill includes day-to-day items such as office supplies, postage, brochures, travel, auto expense, health, ACT 3 Forums, brochures, telephone, Web site management, etc. The problem we encounter in paying each of these expenses during the year is common to small missions and for us happens every year. And every year we have had anywhere from $25,000 to $65,000 in year-end gifts (total) from about 50-100 people. This total giving amount has always been enough to bring us back and sometimes has even been large enough to help us grow the work a bit more in the year ahead. My hope is to build more regular giving in 2008 so this is less of a problem next year. But given the nature of seasonal giving to a mission like ACT 3 this will likely always be a simple reality. (Summer, for example, is always a down period for regular giving.)

The good news is this---we survived an overall downturn that began about 2001. Recent years (2006 and 2007) have shown new growth in our giving patterns. I believe that our ministry changes, which are embraced by some and intensely disliked by others, have repositioned us for a stronger mission to many more churches and leaders. To the praise of our gracious God we have not been buried in the process. (Some told us we would never survive the changes we made but by God's grace the opposite has been the case.) Our work is uniquely settled now to serve the whole Church, not just a small Reformed part of it. Indeed, I have never personally been more excited about the future of ACT 3. I feel free, totally empowered and very ready to move ahead with some things that can do even greater good for many more people, churches, schools and missions. I want you to know that your part in all of this, if you have supported us, has been very important.

While Anita and I pray about these matters daily we know that many of you will also pray with us and do all that you can, as the Lord leads you, to help us at the end of this year. I wanted to publicly share some of these personal details and assure you who do give of my appreciation for your past help and to let you know that we do need it again in any amount that you can give in the next few weeks. I also hope that many of you who have never given to ACT 3 will consider a one-time gift at our secure site. Some of you might even think of becoming recurring donors when you visit the site. 

I believe that the desire to give to any kingdom work comes from God alone. The amount is determined in the heart. I make no other appeals but that you prayerfully do whatever you "purpose in your heart to do." This is the freedom we all have in Christ and I respect that with all my heart and do not presume anything in writing this public appeal.

Bill Clinton on Giving and the Rise of Volunteerism

Whenever an ex-president releases a new book there is considerable buzz in the media. When Bill Clinton released a new book in Chicago this week the buzz was more than considerable. President Clinton’s new book, Giving: How Each of Us Can Change the World (Knopf 2007), is sure to provoke good and important discussion. My hope is that those who love him, as well as those who despise him for whatever reason, will take a long look at his central argument (even it they refuse to buy his book). The argument he makes is simple and he uses stories to make it—each of us can make an important difference in the world, a much greater difference than we’ve ever imagined.

You can see the Clinton interview with Borders online. It is well worth watching. I found this immensely interesting. President Clinton argues, correctly of course, that there is pile of new wealth that has been made by younger and younger people in our American context. More and more of these new entrepreneurs want to give away more and more of their wealth before they die in order to get involved in how their giving can make a real difference in the world. This trend comes at the same time as the rise of Internet giving and the development of non-governmental organizations that want to help change people’s lives in very poor countries. The result of these three recent trends is “micro-credit.” You can invest $100 in a poor farmer or businessman in an impoverished country and this investment becomes a loan that will likely be paid back in time. (Clinton says 98% of those who get the money pay back the loan when it has been given through well-managed agencies.) The donor can then choose to reinvest his small loan or get the money back. It is a simple procedure that can make a world of difference by reaching one person at a time. Developments like these underscore the power of the Internet revolution.

For some years I have known people who were associated with Acton Institute, a work I strongly support, who have encouraged this kind of loan and taught Christians about the initiative that it creates in building sound economies and growing businesses. It makes sense if you think about it at all. You become, in effect, a micro-credit banker, working with an international agency to help someone located anywhere in the world. Clinton mentions one such lending agency, Kiva, which I have not had opportunity to investigate carefully. I would love to know more about Kiva if anyone has a response to share based on their experience. Maybe you’ve become a micro-credit banker yourself and have a story to share that would encourage others. I want to know more and I desire to get involved myself.

Clinton argues that volunteerism is on the rise in our society. He rightly argues that such a rise is vital to the health of democracies. He even suggests that volunteerism is the “imprint” of the youngest generation saying that there is more evidence for volunteerism among the young than among any previous group of adults in U.S. history. (I assume he means by this that the percentage of people actually involved is the largest, since the money itself could not have reached that point yet.) It seems that the emerging generation is clearly doing more to serve others than any generation since before the baby-boom generation stormed the scene in the 1960s and beyond.

Finally, a few personal observations. I am not generally a fan of Bill Clinton’s views on some issues. I also remain a political skeptic of sorts, especially when he promotes Hillary as a leading advocate of this kind of volunteerism. It “feels” political to me but then I could be way too cynical at this point. Second, Clinton is advocating something that Christians ought to care about deeply but my baby-boom generation does not, at least not in very large numbers. Third, I think one major reason for the rise of emergent Christian movements parallels what we see in Clinton’s book. This generation is fed up with constant arguments and the church conceived as winners and losers. It wants to get involved in community activities that make a difference in the lives of others. The Internet feeds this and allows it to develop in fresh ways. (The Internet also allows the angry polemicists to have their venue as well. The Internet is a true democracy, at least of ideas, at work.) 

I pray that God will use this movement and in the process build a new kind of Christianity in the West. I am personally fed up with the kind of Christianity that wants to stoke the fires of constant polemics. I embrace theology seriously and believe it is important for ecclesial health. The problem is that some in my generation have made the study of, and their arguments about, theology the whole ballgame. This is, simply put, idolatry. I call it the idolatry of concepts. If it takes Bill Clinton, and a host of others, to help us all rethink our role in the world as servants rather than mere consumers then I welcome it even though I did not vote for him.

How You Can Help Me and ACT 3

In our May 14-16 annual meeting, the board of ACT 3 adopted a ten-year vision plan that grew out of a deep unity God granted to us. We believe that God gave this overall plan and then confirmed it with a strong case for this ministry. This statement can be found on our Web site home page in “The Case for the Mission of ACT 3.”

I humbly ask you who read this blog to carefully read this Case Statement. I am also asking you to help us in a specific way to carry out this mission. It is our hope that in reading this Case Statement you will be moved to participate. I need all of you who read this blog, and find benefit in this ministry, to become regular donors. The ideal way that you can help is by making monthly or quarterly gifts. Our goal is to build a team who will underwrite the support of this ministry. We seek in this way to avoid special appeals and seasonal pleas, and an unhealthy reliance on seeking large gifts. We believe that our future can truly be sustained by the support of faithful donors.

Here is what is specifically needed:

    50 donors who give $250 per month
    50 donors who give $100 per month
    100 donors who give $50 per month
    100 donors who give $25 per month

No gift is too small. We still need many more donors at $25 and $50 as I write this morning. When these goals are met we will be able to hire a full-time Director of Communications, allowing us to produce scores of media interviews while dramatically upgrading our Internet-based outreach, blog spot, and print ministry.

We will continue to “give away” our counsel and many of our content-based resources, as well as our ministry to churches and schools. It is in this way, we believe, that ACT 3 will have a unique opportunity for our strongest contribution yet to the missional renewal of the Church. As you know, many ministries are fee-based, which is not wrong. We have chosen to be donor-based and thus unashamedly encourage you to help us in this manner. 

As a regular contributor to ACT 3 you will be critical to the health of this ministry.  I see my donors as part of a special team, and intend to keep in close contact with you, via mail and email, personal gatherings and individual conversations. I will also keep you informed by sending our audio updates and other new resources, as an expression of our gratitude.

Since I seek to build significant relationships and share crucial ideas that can shape the hearts of Christian leaders for the future this philosophy is what works for us. We believe that our real capital is the principles that God gives to us, which in turn will be “seeded” into the church as our gift. Please help me do this if you can. The largest gift you can possibly make to ACT 3 will be a huge blessing to our mission. Your response will also help us as we consider our budget and look forward to adding a Director of Communications.

You can make a gift now through our very user-friendly donor feature at www.act3online.com. You can also sign up there to be a recurring donor, which is the optimal way to help us.

And thanks to all who are deeply concerned about this ministry. We are a 501c3 charity thus you will receive a proper receipt for any gifts you give to ACT 3 if you live in the United States.

Americans Giving at Record Numbers

Charitable giving in America has risen for the third consecutive year. The picture behind this recent report is rather interesting. Due to the absence of natural disasters, both nationally and internationally, large giving to major relief projects declined. Giving to human services also fell. The giving of corporate America rose only 1.5%. But in a shift from previous years giving to the arts and to cultural and humanities organizations grew rather significantly. The lion's share of giving is still done by individuals, not by foundations, bequests and corporations. In fact, individual giving was about four times the amount given by all of these other sources combined, demonstrating once again that when individuals have the freedom to gain wealth they are enabled to share. But, as always, the largest percentage of giving was not among the rich. (This comment is not one meant to oppose affluence since there are several reasons why this remains true, and not all of these reasons suggest that the rich are universally uncharitable in the least. There is not a simple pattern here to explain this fact.)

Philanthropy in general, and especially religious philanthropy, remains about the same as in previous years. The single biggest category of charitable giving in the United States also remains the same, year-in-and-year-out. Donations to religious congregations and missions was 32.8% of the total, which reflects a rise of 4.5% to $96.82 billion. Giving to education, and a great deal of this is private religious education, was the second largest category, rising 9.8% to $40.98 billion. Probably most of the readers of this blog gave to both categories heavily in 2006.

The rise in the stock market also seems to have had a positive impact on giving as more and more private foundations gave larger amounts in 2006. Foundations give grants and these are often larger if the market prospers. This accounted for 14.2% of the total charitable giving in 2006 and again a great deal of this, I am quite sure, went to religiously based charities.

Charitable bequests are actually declining as more and more people are urged to give larger sums before they die. By this means they can keep a closer eye on what happens to their money and how it is actually spent. They also get the satisfaction of seeing how their money really helped others. Of course, pride can lurk nearby but this is a matter of the heart that must be left to God alone in terms of dealing with the sin.

Charitable giving made up 2.2% of the nation's gross domestic product in 2006. Warren Buffett got the headlines last year for giving away $1.9 billion of his personal fortune. (I have real doubts about the long-term good of what he is investing this money in but I commend him for giving it, whatever the reason.) The chairman of the Giving USA Foundation cautioned that we realize one again that small gifts are just as important to the health of the non-profit sector as out-sized ones. The simple reason is that there are far more of them. To illustrate this point he noted that 65% of individual giving comes from homes with less than $100,000 in annual income, adding, "That's an important nuance." Importance nuance for sure!

It is the last paragraph that interested me the most since I direct a non-profit ministry that depends on the generous gifts of people who earn less than $100,000. (I would make an educated guess that less than 10% of the donors to ACT earn more than this figure annually.) I wish that I could convince more people that many people giving smaller amounts---$25, $50 and $100 a month---can make all the difference in the world to an organization like ACT 3. 

I welcome you comments and your gifts. Both are needed. If you would like to help us you can go to our Web site at www.act3online.com. We have a new, easy-to-navigate, donation feature on our home page that will allow both one-time gifts and regularly scheduled gifts. I am immensely grateful for readers who help us in whatever way that they can. Our need is not huge but our heart is genuinely filled with gratitude for all our friends.

And remember, a free-market society, rooted in altruism, is still a major part of what makes America a great nation. Give thanks for all charitable giving, which exceeds that of any nation in history, and thank God for the prosperity that we all enjoy. Even if you are among the lower class economically in America you still live much better than 97% of the rest of the world. And if you have more money than most this should not produce guilt in you, which serves no charitable purpose in the end. Be filled with gratitude and learn to be a better steward. Out of this gratitude give abundantly and cheerfully. God is honored. Affluence can do great good. Use it wisely!

A Sobering Fact About Generosity

I study the issue of generosity a good bit. Since my own ministry depends upon the generosity of Christians I need to understand how to respond to issues that relate to charitable giving. Thus, I confess that I was a bit surprised when I learned a few weeks ago that the year-end IRS statistics about giving in America reveal that the poorest in our society are in fact the most generous givers.

Each year IRS compiles statistics about household giving. The most recent figures, for 2003, show the following:

1. Households with adjusted gross incomes of $10,000 to $15,000 gave 11.6 percent to charity.
2. Households with incomes of $50,000 to $55,000 gave 4 percent.
3. Households with incomes of $200,000 to $500,000 gave only 2.5 percent.

Regardless of what you how you break down giving among other income levels what is most surprising is that the families in the lowest income levels are the ones that gave a tithe or more, on average.

The second amazing thing I noted in this data was that there is an inverse relationship between charity and wealth. When adjusted gross income reaches the $100,000 level personal giving remains at only 2.5 percent. And this percentage holds all the way up to incomes of $10 million or more!

Since tax rates on the rich are less than they were a few years ago this is even more surprising. And because the wealthy have dividend and capital gains income tax breaks you might expect their giving to actually rise. Not so.

A clear benefit of giving, besides the promised ones in the Scriptures to Christians, is the discipline that charity brings to your spending habits. I for one intend to encourage wealthy Christians to give more since the discipline required for them to take this action will do them, and others, great good. I also believe wealthy Christians have no basis for hoarding their incredible wealth and must be shown how to plan and to give intelligently and much more sacrificially. John Wesley’s advice is still good: “Make all you can. Save all you can. Give all you can.” A virtual revival in ministry would take place if well-to-do Christians learned this principle and put it into practice like the poorest people in America. 

Year End Giving and Donor Issues

Almost every North American mission I know plans for December to be their major month for donations in the entire year. In fact, the last ten days of December typically supply as much as 40% of our needed giving for the year. For this reason I annually write a December letter asking old friends and new friends to help us finish the year strong. My current letter will be mailed early next week to those in our database but that letter is also currently available on our Web site home page at www.reformationrevival.com. Even if you are not a donor, or do not intend to be a donor to our ministry anytime soon, you will enjoy reading the letter since some very important news about our future is provided this year. I hope you will take time to read it.

I also thought about this matter of year-end giving for another reason. Many have told me that their work has faced what has been termed "Katrina fatigue" since September. So much has been designated to relief efforts that other charitable causes have suffered. There has clearly been a noticeable drop-off in giving to scores of good ministries that I know personally. I have personally tried to give more this month to help these friends. 

At the same time I am reminded that many non-profit agencies do not tell their donors the whole truth about what they do and why they do it. Even though an agency belongs to a watchdog group that monitors their fianancial practices and holds them to certain standards of accountability it is still no guarantee of complete integrity. The always interesting and controversial Ralph Winter has given an entire issue of Mission Frontiers to this very concern by asking the question: "Do Some Agencies Mislead Donors?" His answer is a hard-hitting, helpful piece that should make us all take stock of what we tell people about a ministry.

The simple facts are these:

1. You do not know for sure what happens to your gift money but you can have a very good idea if you know the person and the ministry you donate to.

2. You can follow a ministry carefully, read its materials, ask hard questions and make good decisions if you pay attention and retain solid stewardship practices.

3. The IRS provides important records that are open to the public. Overpaid executives who have huge salaries are public record.

4. Ask good questions about the practices used to raise funds. How does this group appeal for my money and what do they tell me, or not tell me? What is this ministry doing and why?

Get to know those ministries you support and pray for them. Read carefully what they say and watch what they really do. Share generously if you believe in their work.