!~900 words - three minute read.
For the last few years, I have spoken at the Xpastor Seminar (except for the snow/ice washout a few years ago). It is one of my few “live” speaking gigs every year. David and Tami Fletcher do a great job planning and hosting the conference in Dallas, Texas.
The audience is usually great with questions and comments and leans into what I am saying. That’s great.
However, I also learned a few things from the various speakers who examined the church from the Executive Pastor's point of view. For someone like me who primarily works with Senior Pastors, that is a helpful corrective.
Three items that gave me some pause this year were from the various speakers, and they all start with the letter “I.”
Mind you, these are from my handwritten notes. I was writing fast and furious, and I may have a few facts wrong here or there. But the direction is correct.
(From DALL-E - a bit creepy to me)
INSURANCE CRISIS COULD BE ON THE WAY
Multiple BILLION DOLLAR loss events over the last few years. While these weather and natural disaster events, the frequency of the losses has magnified in the past few years.
In addition, certain issues, such as roof damage due to hail, have new percentages of value deductibles that are surprising to many of those insured.
Many companies are leaving several states. “In California, many churches are uninsurable” because the companies have pulled out, and no one will write the policy.
In addition, carriers are leaving certain states due to regulatory concerns in those states. (Each state licenses insurance carriers).
As some denominations fragment, the insurance companies that used to write policies for all the churches in that denomination are leaving hundreds without insurance options.
In all of these, insurance rates are rising very fast. Your old policies will probably have changes, such as exclusions, that were not there before. You will have to step up plans, policies, and procedures.
Start talking with your insurance broker and agent now to rethink how to address. DO NOT WAIT for it to happen. Be proactive.
INTEREST RATES
Churches are commercial institutions in banking law. It is much different than a household.
Banks are uneasy because they have to increase their future capital deposits and churches can be risky bets. In general, banks setting higher bars for credit of all types.
You may be able to get great rates on deposits. But interest rates for debt will be hard to stomach when a loan resets.
Many loans, maybe as many as half of large loans to churches, will be reset in the next two or three years. Depending on your agreement, some will go from under 4% to over 9%. The larger the debt, the more monthly it will mean.
(Do the rough calcs in your head if you have debt over $1M now – Can you cover that with current cash flow?)
“When you get right down to it, around 80-95% of a church’s budget is pretty fixed. So these increased interest charges must come from somewhere, most likely staffing.”
Bottom line: Create margin now.
As mentioned before, I don’t do generosity initiatives, but I can help you find someone to help in our company, Generis. It's best to get ahead on this now.
More after this brief announcement from our sponsor:
From a client of the Senior Pastor Smart Succession Process
Seeking a new pastor - Christ Fellowship McKinney, TX
Christ Fellowship has been a client for the past year as they have prepared for their new season.
Find the great profile here: https://cfhome.org/greaterthings/
Download the profile to share with your friends that would fit this great church.
You will also see what God is doing in the current leader’s life and ministry in the future.
And if you are a Senior Pastor in DFW area:
On April 23rd I am hosting a luncheon for Senior Pastors in that region.
Send me an email at Dave.Travis@generis.com for more details. Limited space.
Story continues……
INTEGRITY
It was excruciating to hear from the Ministry Safe leader about the ongoing rise of abuse reports in churches. A new church-based report occurs almost every week with a staff, leader, or peer involved.
Of course, any abuse brings harm to the cause of Christ.
While we tend to worry about “stranger danger,” the abuse is more likely to come from a trusted worker or leader.
Victims trusted their abuser and were groomed.
Around 1 in 3 is peer-to-peer abuse.
In almost every state, any abuse of a sexual nature is a reportable offense to authorities. (Some states don’t, but few.)
Ignorance of this does not stand up to scrutiny either before God, in public, or in the courts.
How do abusers groom victims? First, the gatekeepers are groomed through deception, not violence. They groom the ministry leaders by always being helpful and accessible and explaining poor behaviors.
Organizations tend to put their brand over victim harm. The worry about false allegations is misplaced, perhaps as high as 3%, but no higher.
#1 reason a victim does not tell: “No one will believe me.”
What is needed:
Victim-centric responses.
Transparency.
Legal advice.
Support for victim and family.
Insurance - For court cases of this nature the current average payment is $ 2.5M out of court and $10.3 M jury verdict.
Takeaways – I would be talking with the MinistrySafe people if I were in church leadership in a larger church. They have some reasonable, tiered plans.
Speaking of Integrity - ECFA Leader Care Standard (Evangelical Council on Financial Accountability)
I believe churches should at least hold to the ECFA standards of trust and hopefully become members. Even though “Evangelical” is in the name, I think they are worthy standards for all Christ-centered organizations.
A new draft standard on leader care balances care and accountability for leaders. The standard is now in draft form and will be debated before adoption in a few years.
I will write more about that later but check it out here.