5 Essential Ways To Modernize Your Church’s Giving Programs

Churches are the bedrock of many communities. They’re also among the largest recipients of individual gifts in the United States. However, many faith organizations are falling behind due to various factors, such as economic stresses and decreases in church attendance. Although giving to religious institutions still represents the largest category of individual charitable giving, it’s seeing historic declines according to recent fundraising research.

Individual giving is critical to your church’s sustainability. It funds facility upkeep, programs, and growth needed to attract members and supporters. That’s why many churches are examining their fundraising methods to find improvements.

You may not realize it, but outdated processes, limited giving options, and missed opportunities may be holding you back. To help, we’ll explore some of the essential building blocks of fundraising you may be overlooking.

1. Invest in planned giving.

Planned giving, also called legacy giving, is when people commit to donating to your church through their will or financial plans, allowing them to give a larger gift than they might be able to during their lifetime. It can be a transformative fundraising strategy. Here’s how it can impact your church:

• Long-term financial stability: Planned gifts provide a reliable, ongoing source of funding that extends beyond immediate needs.
• Infusing tithing into life: Planned giving allows members to continue their generosity beyond their lifetimes, making tithing a lasting part of their spiritual journey and legacy.
• Deepening donor relationships: Legacy giving fosters stronger, more meaningful connections between your church and its members.

Decide which planned gifts you’ll accept. FreeWill explores different types of planned gifts, such as:

• Bequests: These are made through a donor’s will or trust, specifying a certain amount or percentage of their estate to be given to the church after their passing.
• Charitable gift annuities: Donors make an irrevocable gift in exchange for a fixed income payment for a set term or life. The remaining amount goes to the church when the donor passes.
• Charitable remainder annuity trusts: Donors place assets into a trust that pays them—or a beneficiary—a fixed income each year for a set period or for life. After the term ends, the remainder of the trust goes to the church.
• Charitable lead trusts: The church receives income from the trust for a set period, after which the remaining assets go to the donor or their heirs.​
• Beneficiary designations: The donor names your church as a beneficiary on their life insurance policy, retirement accounts, or other financial instruments.

Each has its benefits and caters to different financial situations. For example, bequests are the most popular and often lead to the most generous donations since they draw from a total estate rather than liquid assets like cash on hand. Meanwhile, retirement plan beneficiary designations are good for donors with paid-up policies or retirement accounts they won’t fully use.

Launching your planned giving program

Your church can follow these phases to create a thriving planned giving program:

1. Set up your program by picking the types of planned gifts you’ll accept. This phase requires input from your church team. You’ll also want to assign someone to run your planned giving program and create educational resources for donors.
2. Survey church members to determine the current state of your congregation’s interest in planned giving and the specific types of planned gifts they’re interested in making.
3. Practice communicating about planned giving. Determine how you’ll explain it simply to reduce confusion or intimidation. You’ll want to emphasize the long-term benefits and impact for donors and your church.
4. Create a smooth experience for donors by ensuring your program coordinator understands the giving process and adding educational resources to your website or an individual microsite. You might even create a legacy society where legacy donors can interact and build community.
5. Push your planned giving program forward. Pay attention to participation and adjust to make the giving experience seamless.

Support is key when launching your planned giving program. Financial planning can be intimidating, so don’t be pushy. As we’ll explore later, there are dedicated platforms for streamlining planned gifts.

2. Make giving as easy as possible.

Donors expect giving to be quick and easy. Beyond passing around a collection plate or accepting donations when people leave after service, you can take extra steps to modernize the giving process.

Since donors are used to paying bills and making purchases online, offer secure online giving options if you don’t already. Link to your donation form with an eye-catching button in your website’s navigation menu. During service and in your marketing materials, you can also encourage people to give online.

Once you’ve implemented online giving, layer in additional features to enhance the donor experience. Recurring giving is a powerful tool that enables donors to set up automated, repeat donations, making it easier for them to give regularly. Text-to-tithe is another convenient option, allowing donors to give via SMS with a few taps. You can also encourage congregants to tithe by asking their employers about automatic payroll deductions.

As you implement new strategies, walk through your church’s giving processes from a donor’s perspective. Identify any friction points that could deter donations. Simplifying each step can encourage gifts and improve overall donor satisfaction.

3. Understand today’s donors.

Today, donors have a variety of giving vehicles at their disposal. To maximize your church’s fundraising potential, stay informed about these options and be open to accepting new forms of giving. Some of the most popular options include:

• Donor-advised funds (DAFs): DAFs allow donors to contribute funds to a tax-exempt account, from which they can distribute donations to chosen organizations, including churches.
• Cryptocurrency: As digital currencies gain traction, accepting crypto donations can help you tap into a younger, tech-savvy donor base who sees crypto as a viable asset for giving.
• Qualified charitable distributions (QCDs): Donors older than 70½ can make tax-free charitable donations directly from their IRAs through QCDs. This option is especially advantageous for people looking to reduce taxable income while supporting worthwhile causes.
• Stock donations: Donors with investment portfolios may prefer to give appreciated stocks or bonds to reduce their tax obligation.
• Matching gifts: Employees are increasingly seeking out companies with strong corporate social responsibility (CSR) programs like volunteer grants and matching donations. With matching gifts, companies will match their employees’ donations, doubling the contribution. Double the Donation explains that some businesses won’t match donations to churches, but it’s still worthwhile to encourage donors to check.

By accepting modern donation options, your church can cater to a broader range of donors, extending beyond traditional giving methods. Once these tools are in place, it’s time to start promoting these giving options in your outreach. For example, you might send messages to older members about QCDs or reach out to younger donors about donating cryptocurrency.

4. Promote fundraising efforts intentionally.

After modernizing your donation opportunities, elevate your marketing efforts to match. This brings visibility to your daily fundraising efforts. Here’s how to refresh your marketing strategy:

• Craft compelling messaging. Highlight specific projects and goals donors can support, such as raising money to host a summer vacation Bible school for your children’s ministry. Storytelling can also demonstrate the impact of giving, such as a testimonial from a legacy giver who found it rewarding to set up a planned gift.
• Feature a ‘Ways to Give’ page on your church’s website. Providing a clear overview of all available giving options tells donors exactly how they can contribute, whether through online donations, planned gifts, or other methods.
• Encourage congregational involvement. Offer ambassador roles, encourage peer-to-peer fundraisers, host volunteer-driven community events, and run social media challenges to make members feel integral to your church’s fundraising success.

Above all, keep your congregation informed about giving opportunities and needs. Update them regularly through newsletters, social media, and church announcements. Consistent communication ensures that donors remain aware of where their contributions make the biggest impact.

5. Ensure your technology can keep up.

Your church’s technology infrastructure is the backbone that supports and sustains your fundraising efforts, ensuring that you meet your goals efficiently and effectively. Make sure you’re prepared to run your giving programs with these modern tools:

• Donor management software: A reliable donor management system helps you track donations, manage donor relationships, and run reports to analyze giving trends.
• Online giving platforms: A secure, easy-to-use online giving platform allows supporters to make one-time or recurring donations using their preferred payment method (credit cards, ACH, PayPal, etc.).
• Planned giving tools: Specialized planned giving platforms allow members to set up bequests, trusts, and other estate gifts. Beyond simplifying legacy giving for donors, they allow your church to stay organized, keep track of commitments, and follow up with individuals who have made planned giving pledges.
• Text-to-tithe technology: Many churches see success with tools that allow donors to give via SMS, an easy option for both regular and spontaneous donations.
• Mobile apps: A custom church mobile app can streamline the giving experience and encourage congregation members to explore upcoming events and church content on the go.
• Cryptocurrency and stock donation platforms: If your church is ready to embrace newer giving methods, use these platforms to accept crypto and stock donations.
• Data analytics tools: These platforms help track donor behavior, identify trends, and evaluate campaign effectiveness. You’ll have insights into who is giving, how often they give, and the impact of specific campaigns.

While these platforms are fundamental, they’re easy to overlook when you’re already stretched thin on resources. An intentional push to improve your fundraising should include investing in the right tools, helping your fundraising efforts remain impactful and sustainable.

Modernizing your church’s giving programs is vital for engaging today’s donors and ensuring long-term financial health. Your next step is to examine your current giving options and technology closely and identify areas to improve.

Whether promoting planned gifts, providing volunteer opportunities for fundraising, or upgrading your technology, intentional changes will cultivate a more generous and engaged community.