Commentary on Nonprofits

With the growth of nonprofits setting a breakneck pace we are barraged with a never-ending stream of mail, infomercials, and appeals to give. All too often donors to nonprofits or parachurch organizations do not consider fiscal responsibility or accountability of the organization when writing their checks. Donors respond to needs or to perceptions of need without much thought for their giving being an investment in the Kingdom of God – as Scripture directs.

Fundraisers know all too well how to craft messages to move people to give. Often the elderly will be moved to give due to a tug on their heartstrings as they see infomercials showing needy children or critical needs in the world. Marketing groups study giving patterns in order to more directly focus on your giving patterns – just as shopping club cards enable grocery stores to market to your specific shopping trends. In recent years we have also seen giving increase dramatically in response to tsunamis, earthquakes or other natural disasters – often to the financial detriment of local ministries.

But the questions we should be asking are: is the nonprofit ministry really serving a need; are they well run; do they provide proper due diligence and exercise fiduciary responsibility with donor funds? A more important issue is: in what ways do Christians consider their giving as a stewardship of God’s treasure that is entrusted to them? If they do, then they may well need to heed signs of a nonprofit’s wellbeing and stability when considering their giving.

In this column I will share some basics for giving, whether to Christian ministries or local community nonprofits; issues that should guide our giving as we seek to be stewards of God’s time, talent, and treasure.

To start, one should recognize whether the organization claims to serve as a Christian ministry or a secular nonprofit. If as a Christian ministry, we need to begin by asking if that organization is truly Christian in their foundation and operations – are they acting or serving in my place as a believer. Most faith-based organizations will have a Statement of Faith (SOF). If they are members of the Evangelical Council for Financial Accountability (ECFA) they must subscribe to a clearly evangelical SOF. This seven element statement covers the essentials of the Christian faith (here is a summary):
1. Belief in the Bible as the inspired, infallible, authoritative Word of God
2. Belief in the eternally existent persons in the Trinity
3. Belief in the deity of Christ, His virgin birth, sinless life, miracles, atoning death through His shed blood, bodily resurrection and ascension, and His personal return
4. Belief in the need for salvation of the lost and absolute need for regeneration by the Holy Spirit
5. Belief in the present work of the Holy Spirit who enables a godly life
6. Belief in the resurrection of the saved and lost – unto eternal life or damnation
7. Belief in the spiritual unity of all believers, with equality across racial, gender and class

There are two primary reasons why any such a requirement exists in a Christian organization: one relates to why it exists in the first place – its purpose; is it truly serving as an extension of the Church. The other relates to the preservation and continuity of that purpose; is the leadership continuing the original Christian purpose of its founder. For those desiring a more in-depth look at the purpose of a Statement of Faith I will provide a summary paper upon request.

This column should start us thinking about the organizations we support and question if they are truly representative of the Church, and us, as they serve the helpless and hurting in our place as Good Samaritans. Further columns will focus on board leadership, financial statements and audits, allocation of funds, conflicts of interest, and critical issues within fundraising. With the ever-encroaching oversight and regulations of the IRS in our churches and nonprofits, we need to be much better stewards of our resources. I hope these columns will be a help to you in that process.