We have just completed an analysis of giving to ECFA members. It revealed that for ECFA members renewing membership in the last six months there has been a net gain in giving of 2% from 2009 to 2010. Pre-recession giving compared to three years later was $6.18 billion in 2007 and $6.32 billion in 2010, or an increase of 3.3%.

It is very significant that this segment of the giving world was resilient and maintained itself during a difficult economic time. This suggests a strong commitment of givers to the Christian faith and the generosity of God’s people.

The recessionary impact on giving was more significantly felt by smaller charities. Organizations with annual revenue above $10 million reflected an increase in giving for the 2007-10 period of 3.1%. While the organizations under $10 million annual revenue saw a decrease of 3.2%.

Of the 552 member’s data studied, 43% reflected an increase in giving between 2009 and 2010, 44% showed a decrease and the data for 13% was about the same (plus or minus 2%).

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Since many nonprofits have significant travel budgets, taxes that target travelers are understandably concerning.

The study found that a typical business traveler pays $101.27 in taxes on average for hotel, rental car and meals during a three-day, two-night stay in Chicago—more than in any other city. And travelers pay more than $85 in similar taxes during the same length of stay in Seattle, Minneapolis, New York and Boston.

As states and local municipalities continue to struggle to balance budgets, taxes on travelers will undoubtedly continue to rise—impacting nonprofit and other travelers.

Other kinds of kayaks are designed for white-water—those fast moving streams littered with rocks and whirlpools and ledges. White-water kayakers don’t get to chat or rhapsodize about the scenery or shoot pictures of wildlife. They’re too busy figuring out how to remain right side up.

Some churches and other Christ-centered nonprofits are designed for flat-water. Yes, they are open to certain changes and innovations, but these are done at a pace where adjustments may reasonably be made.

In a flat-water environment, revenue and expenses moderately increase each year. Givers consistently and faithfully provide support.

Today, churches and other Christ-centered organizations are in a white-water world. The U.S. recession continues to linger. The U.S. federal government debt load of more than $13 trillion is staggering (www.usdebtclock.org). Our federal government is spending at the rate of $3.6 trillion per year when the revenue is only $2.2 trillion per year.

California, New York and other states show similar signs of debt overload that recently took Greece to the brink—budgets that will not balance and accounting that masks debt.

Harvard professor and financial historian, Niall Ferguson, recently stated that the U.S. is “on the edge of chaos” suggesting that there is an increasing prospect of the American “empire” to collapse suddenly due to the country’s rising debt.

The co-chairmen of the Administration’s debt and deficit commission offered an ominous assessment of the nation’s fiscal future, calling current budgetary trends a cancer “that will destroy the country from within” unless checked by tough action in Washington.

There are increasing challenges to religious freedom: a court case that challenges the housing allowance for many ministers is moving forward and the failure to balance budgets will significantly impact nonprofits and givers who support them in the next few years.

Yes, white-water times are here to stay. Leadership designed for flat water no longer works.

What should we do in white-water times? It’s time to think like Jesus (I borrow George Barna’s wonderful book title). What would Jesus do if He were in our shoes right now? Surely he would tell us to:

• Be prepared. Anticipate white-water times; be prepared for events to turn against you.

• Avoid panic. Continue to do what is right, wise, and consistent with biblical principles.

• Encourage one another. Reaffirm truths. Thank God for His promises.

• Anticipate His coming. Look forward to the day history will be cleansed by the return of the King of Kings.

• Be not afraid. Live not in fear but in confidence in a sovereign God.

• Be absolutely integral and noble in carrying out your call.

And, above all, I believe Jesus would tell us to be steadfast in our focus on the Great Commission. As my friend, Dr. Walt Russell, says: “As in every era of history, we as God’s people have been given a very specific historical task to accomplish. Our historical task is appropriate for the ‘last days’ and the culmination of the ‘fullness of time’ under Jesus the Messiah. Commissioned by King Jesus and implemented by the Apostles in the Book of Acts, our present priority of the Church’s mission is the rapid advancement of the worldwide harvest and the ongoing preservation and ripening of its fruit through the planting of vibrant local churches among every people group.”

Inspired by an article of the same title written by Gordon MacDonald.

While the financial pressures of state and federal governments are the key drivers of the potential incursions on nonprofits, changing attitudes on Capitol Hill towards charities are also a factor.

New proposals impacting nonprofits by state governments are reported in the media on almost a weekly basis. New fees and losses of sales or property tax exemptions are all possibilities.

Are you familiar with the acronym PILOT with respect to property taxes? PILOT means payments in lieu of taxes and it is based on the “soft” contacts some larger charities are receiving. With states beginning to ask for the voluntary payment of property taxes, it may only be a short step from voluntary to required payments.

At the federal level, there are increasing rumblings about potential changes impacting charities and givers. The notion of capping the charitable deduction for high income givers was floated last year. The proposal was very controversial and it was omitted from the health care bill. However, the Administra­tion included the charitable contribution deduction cap in the budget proposals for 2011, so the concept is not dead. While the impact of a contribution is an imponderable, it certainly would not be an incentive for giving.

On the Hill, there are more frequent references to the cost to the federal Treasury of charitable deductions and tax-exempt status churches and other nonprofits. It is estimated that the charitable deduction costs the Treasury $46 billion annually. Allowing churches and other charities to have tax-exempt status costs the Treasury another $50 billion per year. With these estimates come the not-too-veiled-threats of restoring some of these dollars to the Treasury to fund programs.

In response to these concerns, ECFA is stepping up to the Capitol Hill challenge. We are now devoting more energy to developing key relationships on and around the Hill than at any time in ECFA’s 30-plus years.

In its spring meeting, the ECFA board approved six public policy positions representing fundamental areas of significant interest to our members.

This is an important time for ECFA members to pull together, coalescing around principles of accountability and standing firm behind public policies that are fundamental to our existence. Your organization can do this through your strong support of ECFA, encouraging other Christ-centered ministries to join ECFA, letting your Congressional representatives know about the good work you are doing, and praying for our leaders at the federal and state levels of government.

But the financial upheavals were not restricted to individuals, big corporations, and governmental entities, they also took a toll on nonprofit organizations, both secular and religious, with one segment of the religious community especially hard hit by the alleged Madoff Ponzi scheme.

As the “talking heads” searched for terms to describe what would have saved us from the financial crisis, they dusted off old-fashioned words like “integrity,” “transparency,” and “accountability.” Interestingly, those are the watchwords of the evangelical community—particularly ECFA members. The secular media promoted our fundamental concepts!

Looking forward, the current financial crisis and economic downturn could have a very positive effect on Christian organizations. Yes, this is counterintuitive but very possible.

Prosperity can insulate nonprofits from reality. Innovative changes in nonprofit organizations come when the tension is greatest and resources are the most limited. That’s when nonprofits become more open to rethink the fundamental way they operate.

Innovative thinking may also cause ministries to collaborate in new and significant ways.

The economy should have at least three positive impacts on Christian nonprofit organizations. They are:

1. The focus on staff. While balancing the budget is fundamental, equally important is the proper care and respect of staff—yes, even in times of salary freezes and layoffs.The Bible implores us not to borrow concerns from tomorrow. “So don’t worry about tomorrow, because tomorrow will have its own worries. Each day has enough trouble of its own” (Matt. 6:34). Still, many employees are anxious about their future with your organization.

   Morale doesn’t have to plummet just because times are uncertain. Ensure open communications between ministry leaders and staff and be consistent in the day-to-day treatment of staff. Look for ways employees may contribute to the organization’s efficiency and effectiveness goals. Ask employees for help in developing possible solutions.

   Peter Drucker often said, “People are not a cost. They are a resource. Every organization must assume full responsibility for its impact on employees.”

2. The focus on donors. When money is tight, the historical tendency of charities, even many Christian ministries, has been to “turn up the heat” on donors—use “emergency” language, place a large “URGENT” stamp on the front of appeal envelopes, and increase the frequency of appeals.These techniques are diametrically opposite of the philosophy shared by Wes Willmer and his colleagues in Revolution in Generosity. If there was ever a need to focus on transforming givers’ hearts and lives towards God-focused stewardship, it is now!

   This is a time to minister to donors—many of them have been significantly impacted by the economy. It is a time to clearly communicate accomplishments—to focus on ministry outcomes, not just outputs.

   Donors want to hear how your ministry is doing—in fact, they are curious. But they don’t want to hear how many days you expect to keep your doors open. They want to hear what steps your ministry has taken to live within your budget—what innovative concepts you have adopted to better steward the resources God is providing.

   Like a functioning economy, the evangelical community is held together by a web of trust between donors and the ministries they support. This is a day to enhance that trust factor with your donors.

3. The focus on your mission. Revenue streams may be tightening, expenses may be rising, the clock is ticking, and your board and employees may be getting nervous.The IRS is increasing the pressure for more governance policies and disclosure. Your auditors want you to raise the emphasis on fraud prevention. And, to please the Internet raters, you try to keep your overhead low without threatening sustainability. What a balancing act!

   It is similar to being on the football field when the game is on the line. Executing under pressure equates to making decisions, calling plays, and managing the clock.

   In times like these, it is challenging to keep your focus on your mission—and yet, focus we must! These are days to be crystal clear about what your ministry intends to do, why it intends to do it, and how much progress is being made toward the mission.

Closing. My prayer is that, during this economic crisis, Christians and Christian organizations will powerfully demonstrate to a watching world the importance of seeking God’s goals and abiding in His peace.

The Senate Finance Committee has oversight of charitable laws for the Senate while the Ways and Means Committee has a similar role in the House. Measures must ultimately be reconciled and approved by both Houses of Congress and then signed by the President before any laws are changed. So it’s a long process which is why, in part, no sweeping changes have been made in charity law in nearly forty years. But the climate is clearly different now as lawmakers see what has long been considered a lightly regulated “industry” in need of an overhaul.

Nearly five years ago the Senate Finance Committee set off alarm bells throughout the charity world with a “discussion draft” that envisioned new regulations that would have seriously imposed intrusive and costly requirements on charities, including most ECFA members. Finance Committee hearings were held, and an advisory Panel was convened by Independent Sector at Committee Chairman Senator Charles Grassley’s (R-IA) encouragement. The Panel, which included ECFA representation, issued a series of reports on suggested changes to the law and a long list of best practices that many charities have adopted voluntarily as a way of preempting the need for new legislation. Only minor changes were made to the law as a result of the initiative.

But the issue has not gone away. Some nonprofits continue to make the news by pushing the law or ignoring best practices regarding raising and spending money that is subsidized by the government in the form of tax deductions for contributors and property and income tax exemption for nonprofits. This keeps lawmakers stirred which leads to new proposals to change the law.

The latest edition of proposals, this time from a member of the House Ways and Means Committee, is perhaps more striking than any in memory. With Federal deficits mounting and budget battles increasing, Congress is looking for more revenue—and that was before the $700 billion bail-out was conceived! The charitable deduction is being viewed by some as a source of income and this is a concept which could get traction. One of the steps for Congress to raise more revenue would be to redefine a charity or a church, providing less tax-exemption shelters for organizations that now enjoy this benefit.

Some have suggested a greater incentive for gifts to help the poor and a lower or no deduction for gifts to arts or education. The faith based initiative could be revised to require all ministry recipients of federal funds to fall under EEOC hiring guidelines in order to qualify.

None of this is imminent, in fact it is probably a long shot, but come Spring 2009 we could begin to see if any of these ideas have traction in a new Congress or Administration. Realistically, the more likely early targets could be nonprofit hospitals—which some believe look and operate too similar to for profit hospitals—or colleges and universities, which are often mentioned because many continue to grow enormous endowments even as tuitions go through the roof.

In any of this, ECFA will give voice to its membership. We will continue to provide the latest information in these pages, on its website and in its regional seminars and other conference venues.

Meanwhile, pursue your mission with passion and excellence. Implement best practices intentionally. Trust the Lord to supply all your need now and in the future—come what may!

As consumer confidence drops, how far behind can be donor withdrawal? I pray it will not be so. But now is the time to revisit mission strategies and prepare for operating in an environment we haven’t seen for quite awhile.

There is no scriptural promise that is conditioned on the economy. God’s Word never changes and it declares Christ is the same yesterday, today and forever. Christian leaders and donors who lived during the Great Depression probably understood that better than today’s generation.

All through history, whether in good times or bad, the Church of Jesus Christ has endured every hardship as God placed His hand on men and women who partnered together to meet the needs of their day and proclaim the “good news” of the Gospel.

Think of this: Today’s ministries have tools at their disposal that no previous generation has had. The ability to communicate quickly and efficiently, to analyze and plan and to put creative ideas into action has never been better. But they all must be carried out in the framework of time tested biblical principles.

A common tendency in addressing income shortfall is to simply increase fund-raising activity. It’s one thing to make donors aware of a need or situation—it is something else to engage in manipulative, guilt-trip or “gimmicky” tactics. God does not need that kind of help. The recent published book, Revolution in Generosity, edited by Dr. Wes Willmer (available from ECFA or your local Christian bookstore), underscores the promise that there is no shortage with God.

If you haven’t reviewed your operational costs lately, now is a good time. Strong income covers operating inefficiencies and mistakes while weak income exposes them.

For most churches and charities, many dollars spent have been donated. Be sure that certain costs such as travel and other visible spending don’t convey a poor image to your donors or the public. Revisit expansion plans; it is not unspiritual to delay or change direction when conditions indicate an unwise risk to the basic mission of the ministry.

Ask board members to join together in prayer with and support of the CEO and staff. Scripturally, there is protection in the wise counsel of many. Times of challenge are an opportunity for a team to pull together!

Today’s environment suggests a possible cycle that has occurred before—a tighter economy resulting in lower contributions at the very time that charitable needs increase. This is an election year with change in the air for 2009 and beyond regardless of who is elected to federal, state and local offices. New tax laws, tightened charity regulation and cultural changes could all impact your ministry. Plan now for various possibilities, including building partnerships, to reach your goals.

Most of all, acknowledge one more time that the ministry to which God has called you exists for His glory. Avoid turning your faith into presumption. At the same time, don’t be afraid to exercise your faith by stepping out of the box and taking prudent risks to accomplish some extraordinary things for God and His Kingdom. As has been said, “You cannot discover new oceans unless you have the courage to lose sight of the shore.”