Sunday 20 January 2013

When Charities Are Run Like A Business



Periodically I hear the comment that churches or mission organizations are run too much like a business. I have never been quite clear as to why that is intrinsically a bad thing. It could be argued that if some businesses were operated with the same lack of strategic and fiscal diligence we give to churches, those businesses would have been out of business a long time ago.

Policy Governance® describes the Ends of an organization as being what (the benefit), for whom (the beneficiaries), and at what cost (cost/value). Charities can do significant work in defining the benefit and the focus of those benefits, but with little or no consideration for the cost/value of those benefits.

Jesus used two different parables (Matthew 25 and Luke 19) to describe the importance of an effective return on investments. (You can look up the parables to see at least 10 differences). But the common theme in these parables is the anger of the master when he finds out that those to whom he has entrusted his resources did not invest them with passion and diligence. The stewards of these resources did nothing wrong: they did not squander the investment nor did they fail to take good care of the investment. Their sin was a failure to use what was entrusted to them in seeking to advance the kingdom of their master.

One of my desires in consulting with mission organizations, Christian schools, Bible camps, and churches is to assist them in the effective use of their resources by not becoming bogged down in the process of governance. Undue amounts of time can be wasted at board meetings and the governance process often fails to provide direction, but rather becomes a distraction. I recently attended the meeting of the board on which I serve where heavy issues were discussed with clarity and focus; with the board being very clear regarding its mandate. It was encouraging to serve with other women and men who were clear about their responsibilities and not distracted by the responsibilities of management.

In my next blog, we will look at some of the differences in the two parables which Jesus told. In the meantime consider how your investment of time, giftedness, energy and resources is being used; with a view toward personal safety or eternal returns?