March 8, 2010

By Mark Hrywna

When catastrophes strike, Americans whip out their well-worn credit cards and checkbooks. They give millions of dollars within days -- sometimes hours -- of a tragic event.

The money flies back out the doors of charities to help in recovery efforts. Yet, tens of millions of those compassionate dollars remain unspent and sitting idling in bank accounts designated for that specific cause which might or might not need it anymore.

The rebuilding efforts in Louisiana and Mississippi after Hurricane Katrina in 2005 and in Southeast Asia after the Indian Ocean tsunami in 2004 continue with the help of some of the nation’s largest agencies, such as the American Red Cross and The Salvation Army. Other organizations, such as MAP International, saw relief efforts transform into permanent operations in Asia.

The American Red Cross (ARC) in Washington, D.C., has approximately 10 percent of the $581 million it raised for tsunami relief remaining, with plans to conclude programs this year. Almost $106 million, about 21 percent, went toward emergency response but nearly half went toward “shelter” and “health,” according to ARC’s five-year report on its Tsunami Recovery Program.

In addition to the tens of millions still to be spent in Asia, ARC has more than $12 million remaining in Hurricane Katrina relief funds and even $1.4 million in its Liberty Fund in response to the September 11 terrorist attacks. The relief agency generated $1.1 billion and $2.1 billion, respectively, for those two events. The majority of the cash was raised within the first three months of the events, according to Laura Howe, senior director, disaster public affairs.

Every nonprofit has a relationship with spiritual-based ministries and that everything about money is spiritual, according to John R. Frank, president of The Frank Group.

He told a gathering during the international conference on fundraising sponsored by the Association of Fundraising Professionals (AFP) that there are 10 stewardship trends that must be kept in mind. They are:

•  Changing definitions of stewardship. One size does not fit all.
  
• Lack of stewardship education. Stewardship education should be integrated in development strategies.
  
• Builder, Boomer, Buster, Bridger views of stewardship. You must be able to communicate to all age groups.
  
• Boomer aged pastors are in power. Communicate with pastors by understanding their viewpoint.
  
• The emerging church is gaining influence. Involve emerging leaders as board, Website, advisors, donors.
  
• Relationships are key. Create strategies to listen to and make contact with donors beyond mailings.
  
• Vision is still vital. Clarify your vision for the next five to 10 years.
  
• A strong and clear case is still vital. Create a clear and professional case statement for all development strategies.
  
• The relationship between the church and parachurch continues to be unstable. Create a church strategy that serves the church.
  
• A huge shift in leadership and followership. Start involving Buster Age leaders now.