Financial Update

I thought this was worth sharing!  This economic climate has thrown everyone for a loop, and yet there are glimmers of hope and much for us as a church to be thankful for.  Here are a few:

• From a cash flow perspective, we’ve been close, if not better than expected since July
• In October, our General Fund contributions were up 38% over October last year – this isn’t as amazing as it seems because September was not nearly as good, but it is, nonetheless, amazing
• Our Students in grades 6-12 have committed over $40,000 to the NotWithouYou campaign over the next three years.  Unbelievable!
• We received approval from the city of Blaine to construct and occupy our fourth campus there this fall.  In fact, they welcomed us to the city and shook our hands!
• www.notwithoutyou.org – check it out!

On the other side of the coin, we’ve got about six positions that we desperately need to fill that are awaiting my signature to move forward.  If we can see some consistency to our contributions, I am hopeful to move on these hires in 2010

 

Negative Impacts

Much like what happens in businesses big and small all over the country, Eagle Brook has had to roll with the punches in a number of areas, and there doesn’t seem to be an end in sight.  The great news is that the church continues to grow numerically and financially.  It’s just harder now than it was before – welcome to the real world.  Here’s a few things we’ve seen recently:

1. Giving levels are inconsistent.  From a yearly standpoint (Jan-Sept), 2007 was our best year and 2008 was our worst.  2009 is up slightly from a giving per giver standpoint – a trend we’d like to see continue.  From a week-to-week standpoint, it’s all over the board.  August of this years was quite promising, and September was quite disappointing, for example.
2. The ratios are holding.  Over the last three years, the top ten percent of givers have contributed 53%-54% of the money we receive, and that hasn’t changed.  This seems to indicate that our core remains committed to the mission of Eagle Brook.  On the flip side, the bottom 10% is consistent as well, providing just 1.8%.
3. Hard to believe, but if a giver gives more than just $650 in a year they are int he top 50% of givers at Eagle Brook – meaning we have lots of capacity still out there still!
4. The economy isn’t the only impact.  We’re think we’re seeing a drop-off in attendance of young families as a result of concerns over the swine flu, and believe it or not, the Viking effect is back in full swing, much like it was years ago when they were doing better.  11am services are noticeably lighter compared to 9am, and some are just skipping church altogether.   I hate to wish them to lose, but come on…

None of this changes our mission, our strategies, or our outlook for the future.  It just makes it more interesting!

Economics and the church

The church as a whole has taken some serious hits over the last year in the USA, and Eagle Brook has not been without its challenges in this area either.  With the weak economy and the cascading effects of job losses or cuts in pay for many, it inevitably trickles down to churches and other non-profit organizations. 

Like most, Eagle Brook has made cuts to budgets and changes to staffing and personnel levels in order to be responsive to the realities of our situation.  The good news is that we have been able to avoid direct layoffs and we continue to see an increase in giving compared to a year ago, largely due to continued attendance growth.  The challenge is that with a growing attendance base comes the need for more staff to enable effective ministry to a larger crowd.  If I have to choose problems, this is the one I choose – but I’d rather not choose!

Our level of giving per household has remained surprisingly consistent, losing an average of just 4% over the last year, and has seemingly leveled off for the time being.  We are blessed to have a very committed base of givers at Eagle Brook who hold their financial contributions as a very high priority.  I’ve also noticed an uptick in giving from some demographics – I think as a response to the thankfulness they feel over being relatively unscathed this far. 

As we look at the horizon, we continue to feel optimistic about our future and maintain a strong commitment to further growth and expansion – reaching people as never before.  Now, more than ever, people are searching for answers, and we’re not about to walk away from the opportunity simply because it will be hard.

GAC Update

Many are just receiving the “Eagle Brook Investor” newsletter in the mail this week — it represents an update on all of the amazing things that this church has completed int he last three years through this dynamic fund.  When we launched the God’s Amazing Church (GAC) campaign in November of 2006, it was with a heart of gratitude to God for the miracle of Lino Lakes and the things we had seen since moving there. 

Consultants had discouraged us from doing what seemed to be such a disjointed plan with so many facets.  Typically, a campaign with one focus gets the best results – which, by the way, I agree with.  But this time just felt different, and we chose to listen to what we felt God saying to us.  Maybe we could have raised more money – but I don’t believe we could have accomplished more.  Honestly, as I look back on what we dreamed of doing, the whole thing takes on a truly spiritual dimension that frankly gives me the goosebumps!  Here’s why…

In 2006, with our attendance between 8,000 and 9,000 bewteen Lino Lakes and White Bear Lake, we placed a chart on the first page of the GAC brochure that represneted the ‘dream’ of future growth and the ‘problem’ of a lack of seats to reach the dream.  I know this sounds hokey – I really do – but the dream, right there in a full-color graph, shows that we had enough confidence in God and the people of Eagle Brook Church to be a church of 12,000 in 2009. 

Goosebump moment #1: The last five weeks we’ve been just under 13,000 in weekend attendance.

What sends the shivers up and down is the fact that we had no idea how we could accomplish such a feat, except another dream – to add a campus.  We weren’t sure how, where, or when it would happen, but “Plant a Third Eagle Brook Campus” is right there in black and white.  I think one of the wonders of Eagle Brook is that we have people who love the mission, and a level of trust in getting it accomplished such that even with a vague idea and a loosely developed budget, people join in and make it happen.  And then it ‘pops’ – out of nowhere, through a series of divinely appointed conversations and within the impossible time-frame of six short weeks to renovate and staff a completely new EBC site, it becomes a reality.

Goosebump moment #2: In the last five weeks at Spring Lake Park, it has qualified as a bona-fide megachurch in its own right, with over 2,000 in weekend attendance.  I’m embarrassed to say my original goals were to grow it to 600 by this fall.

Re-looking thorugh the Investor newsletter, I see there’s more of a back-story to each of the stories we were able to tell as we get ready to launch into another three-year period of growth for our church.  In future posts, I’ll share more of those.

For now, I want to challenge you to not miss out on the utter joy of being part of something extraordinary.  Before we’re done with this campaign, we have plans to finish the parking lots at both Lino Lakes and Spring Lake Park this summer as well as finish out a few ther loose ends – but we need your help to do it. 

Let’s finish strong – we always do!

Moving forward in uncertain times

As we finish the third quarter of our fiscal year and head into the final stretch, I have to admit I don’t know what to think about our financial status!  God’s blessing and provision are evident as we track to our budgets in both the General Fund and the God’s Amazing Church fund through the end of March.  In both funds we are slightly above what we had budgeted, even as we have made efforts to cut costs where possible.  What does it all mean??

I’m not sure.  On the one hand, it could be a clear indication that we should move ahead full steam, confident that the funds we need to for continued ministry and expansion will be available.  On the other hand, it could be that we should save up for even more challenging days ahead.  In fact, I tend to currently think that it is a little bit of both.  We’re using this time to take stock of our assets and make changes that will allow us to be better prepared for the future. 

We’re re-looking at how we view long-term debt, core programming, and staffing levels at our campuses and at the office.  We’re looking at refinancing options that could save us money, and we’re looking forward to new and creative ways to expand without significant financial impact to the church.  We’ve set aside a larger pool of resources in an effort to be prepared for whatever may come our way. 

We remain, however, fully committed to the overarching mission of Eagle Brook Church – to reach people who are far from God and help them develop in their faith journey.  We may have to change in reaction to new realities, but we’ll never change who we are and what we do!

Who would have dreamed this…

You’re probably like me and never thought in a million years that our financial world would come crashing down in such a short period of time.  We’ve been on alert since November of 2007 around here at Eagle Brook, when we noticed a slight downturn in contribtions.  Back then, we took steps that have turned out to have been valuable in keeping us healthy and moving forward in ministry today.  And I mean today – who knows what could still happen?!

We remain humbled by the level of trust and commitment that this great congregation shares with us, but we’re also all the more cognisant of the fact that each dollar is given with an expectation – that we maximize it’s kingdom potential and reach as many people as we can possibly reach.  What I know for sure is that we’re doing everything possible to balance effectively the need for staff and programs with the realities of available resources to fund them. 

We’re also gearing up for a new wave of growth that is in part the result of all of the crazy financial stuff out there.  With people’s hearts being pried away from their precious ’stuff’ (like investments, retirements, fancy cars, boats, you name it), we’re seeing an opening to introduce them to something that truly satisfies.  Who would have thought that the church would be provided an opportunity like this at a time like this?

Not me!

This is Church!

All the world is seemingly crumbling around us, with financial markets in a downward spiral, unemployment going up, and world markets for goods drying up.  I’m always amazed at how fickle we are as people!  I heard a statistic that in the USA we drove something like 1 billion less miles in August this year compared to last year.  A BILLION miles less?  That’s pretty amazing to me, and I have to say that my family has drives less, too, even though we haven’t been significantly impacted…yet.  Throw in a very lively presidential campaign and It promises to be one of the most unique final months of a year in history. 

I’ve also noted something else in all of this uproar.  I’m not worried; I’m not fearful.  Maybe I really am making some progress in becoming less focused on my stuff, my money, my investments.  As I’ve learned to let go of more of my income than we ever have in the past, I’ve seen and experienced God’s provision in every way.  So, when calamity seems just around the corner and my retirement fund loses 30%, I am reminded of God’s provision, and I am at peace…most of the time!

Eagle Brook Church, as an organization which employs hundreds and manages and maitains over 250,000 square feet of facialites in four cities, must repsond to the real economic impact that takes place, and we’ve made numerous changes to our plans in order to stay on top of ministry without sacrificing our fianncial stability.  It’s not been easy, but we find ourselves in a better financial position that we planned so far this year. 

That’s worth celebrating!  Thanks to the generosity of thousands of people who invest here, we’re still making a difference, still seeing people turn to Christ, and each person has a personal stake in every little piece of it.  We’ve got much to be thankful for!

The challenge

We talk a lot around our office and in our meetings about how it’s up to us to set the examples for the rest of the people who work for us, but also for the church at large.  We take this stuff pretty seriously, not only because we answer to the people of Eagle Brook, but we also answer to God. 

That’s why our senior level staff are among the most generous financial supporters of Eagle Brook, even though most of our salaries would not indicate it.  That’s why we have high expectations about how we treat our families, lead our staffs, manage our money, etc… we’re far from perfect, and we make just as many mistakes as anyone else, but we’re all in.  And by the way, we’re lovin’ it!  Our staff are some of the happiest, most joy-filled people I know!

And we need our people to be ‘all-in’ too.  This weekend, we will once again have the Adopt-a-Pledge cards out for people to consider.  I picked up where someone left off this time, in part, because there was a campaign in the past where I didn’t finish my pledge.  I remember it well.  We committed $40/month for the expansion project that added the kids wing onto the White Bear Lake campus.  We made the commitment, were excited about the project, gave the first two months, and then life got in the way. 

Knowing what I know now, if we had cut back even to just $5/month, we would have still been part of the plan and given far more than we thought we could.  Being ‘in’ is far more than amount, especially when people first start.  After all, giving away money is hardly a natural response to just about anything!  We give far more of our money away now (as a percentage of our income) than we did ten years ago, but we started somewhere.

If you’re reading this and have yet to establish a consistent habit of financial giving, this weekend is your chance.  You can start a process of personal transformation by simply making a commitment of as little as $20 per month, set it up to be automatically deducted from your account, and on your way.  From our end, I’ll commit that we will do our best to manage what is provided to get the largest impact in all the areas identified in the GAC fund.

Boy, this ended up being a rambling bit of confusion…sorry about that!

Norway

A question submitted via the web that I thought would be informative…

I received the EagleBrookiInvestor and it indicated that Eagle Brook donates $9,000 per month to Norway through the GAC. At Sunday Service, I believe Bob indicated that Eagle Brook donated another $200,000 to Norway when the mission was started. I was just wondering why Eagle Brook is financially supporting the church in Norway when Norway is one of the richest countries in the world (I believe 4th per capita).
Thank you and I do believe Eagle Brook does a tremendous job of supporting the missions

Answer:

Though Norway is among the richest countries in the world on a per-capita basis, the church in Norway is among the least resourced, poorest attended, and lacking severely in leadership.  You probably know that that there is an ‘official’ church in Norway which is Lutheran, however, nobody attends it.  That’s the bad news.

 

The good news is that other churches across the country with different backgrounds have begun sprouting up, and many of them have the makings to become effective outreach churches but they don’t know how.  Then, since their church culture has been one of entitlement, people who attend these new churches have no concept for how they are funded.  Their tax money funds the Lutheran church, so offerings and tithes are foreign concepts.  Having been to Norway last year with our team that went to host the Leadership Summit, I can attest to the fact that these are people who desire to reach lost people, and they are desperate for help, but they just don’t know how to do it.

 

That’s where we are coming in.  Through the GAC fund, we committed about $9,000 per month to work with the Willow Creek Association toward the goal of re-establishing the growing, thriving church that once existed in Norway.  We chose Norway because of the unique heritage that many Minnesotans have to the country.

 

It’s true that these folks are not poor!  But it’s also true that they don’t live anything like what we do in the USA.  A team of thirty came to Eagle Brook a few months ago completely at their own cost, simply to learn from us, and now we are going back in October with a team of fifteen (most of whom raise the majority of their own support) to further establish the relationship that brings with it credibility and influence.  Then, with that influence, we plan to challenge them and cheer them on as they become effective.

 

Be they rich or poor, we know that the people in Norway are lost and far from God.  I admit it sounds weird to be investing dollars in a country that is perceived to be rich, but if we have a unique opportunity to help churches transform their country, we feel we should grab it for all its worth!  Who knows, maybe someday they’ll return the favor!

 

Hope this helps – please feel free to respond, as we are always reviewing how our resources are invested for Kingdom value.

Adpot-A-Pledge

If you were in church this weekend you heard about our challenge regarding the GAC fund.  With all the amazing things that are taking place through this campaign, the truth is that our level of giving to the fund is down 11% from last year.  That doesn’t sound like a ton, probably, but it is putting us in the unenviable position of having to make adjustments.  We made commitments based on the commitments that were made to the GAC initiatives, so we have a short time to see if we can build that level up from where it currently sits.

This past weekend we had tables in all sites where people could ‘adopt’ a pledge that had been droped for some reason.  I’m excited to say that we had a wonderful response!  I’m always overwhelmed by the repsonses people show, with many people adding onto their already existing pledges, among other things.  I’d estimate that we’re already half-way to where we need to be to finish the campaign next November with all of our commitments held strong!

We’ve decided to keep the tables for one more week because we had a lot of people ask if we planned on it.  You still have a chance to help us get there!