Mikestrathdee’s Blog


Cyclists hit Myanmar for fundraising trip
November 7, 2017, 4:08 pm
Filed under: Charitable Giving, Generosity, Uncategorized

This article appeared in the November, 2017 issue of Faith Today magazine.

http://digital.faithtoday.ca/faithtoday/20171112?pg=13#pg13

Photo is by Steve Sugrim

Laverne Brubacher doesn’t consider himself an avid cyclist.

Before beginning training for this fall’s adventure, the longest bike trip he had ever done was 25 km.

But this month, the 73-year-old St. Jacobs man is one of 17 Canadians and three Americans who are riding 355 km through Myanmar in support of impoverished women farmers, people they have never met, in that South Asian nation.

Sixteen other people, mostly from the U.S., are exploring Myanmar on a bus tour in support of the same fund drive. Each participant has committed to raising at least $5,000. Brubacher set and achieved a goal of raising $10,000.

Overall, the Myanmar On the Move trip, sponsored by Mennonite Economic Development Associates (MEDA) raised $600,000. Waterloo-based MEDA is a Christian international development organization that works to provide business solutions to poverty. It currently has projects in 62 countries, including Myanmar.

Myanmar On the Move is an initiative of MEDA’s Improving Market Opportunities for Women (IMOW) project targeting rural women, providing them with market connections and prospects for employment to help them grow with their country.

That project will help 25,000 women farmers get their products to markets, something Brubacher calls “a pretty compelling thing.”

He is particularly impressed with the fact that all donations to the project are multiplied almost seven-to-one by Global Affairs Canada for a total value of $4 million.

Several of the participants are making the trip a family affair, including spouses or children. Leamington pastor David Dyck is riding with his son Andrew.

The cyclists’ adventure includes one day of trekking and 5 days of biking. Distances for cycling days will be 55km, 70km, 55km, 70km and 105km.

“The only thing that I’m concerned about is the 105 km one day,” Brubacher said of the prospects of visiting a part of the world that has seen a lot of political instability in recent years.

The retired renovator, former owner of the Menno Martin company, is active in leadership in many charities, as well as his home congregation. Fitting for a man whose business card read “chief servant.”Laverne-Brubacher-4

Advertisements


Look to the U.S. for the next big catalyst for charitable giving

A couple of decades ago, some of the largest Canadian charities were suffering. Federal cuts to transfer payments, seen as necessary to balance the national government books, were a body blow to universities, hospitals and others.

Help for the charitable sector came in the form of a policy change in line with what donors enjoy in the U.S.  After considerable lobbying, Ottawa agreed to “temporarily” reduce in 1997, then permanently eliminate in 2006, the capital gains tax on appreciated securities when donors gifted them in kind to charity.

By some estimates, that single change resulted in charities receiving an extra $1 billion in donations almost every year since 2006.

With the Canadian donor pool aging and reportedly shrinking, maybe it is time for the sector to look to the U.S. once again for a big idea to kick start the next wave of giving.

In December 2015, Congress passed a bill making permanent a charitable gifting option that allows donors aged 70.5 and older to withdraw IRA funds – a tax-deferred retirement account analogous to our Canadian RRSPs –  to donate to their favorite charities. Withdrawals of up to $100,000 each year can be made without these distributions registering as taxable income.

Given the billions of dollars of RRIF (Registered Retirement Income Fund) income that Canadian baby boomers have to begin drawing down as they turn 72, there are massive possibilities here. Not only do some people not need all of the income they are forced to begin drawing, many are not looking forward to the accompanying tax hit.

A significant number of Canadians will move into the top tax bracket when they draw their last breaths, if that occurs before they have depleted their RRIFs.  In Ontario, that top bracket current stands at 53.5%. Charitable tax credits have been adjusted to match.

Getting a cash-strapped federal government to consider a break for retirement funds donated to charity will not come easily. Many leaders in the charitable sector will say their top lobbying priority will be convincing Ottawa to reinstate the proposed capital gains exemption for gifts of real estate and private shares that was accepted, but not enacted, by the former Harper government.

(Donald K. Johnson, who led the successful lobby for favorable treatment of donated securities some years back, is also pushing Ottawa to give exemptions for real estate and private share gifts. A Toronto Star story says such a change would result in additional donations to charities of about $200 million a year. The cost to the federal treasury would be between $50 million and $65 million.)

But it’s also time to start asking whether the lowest-hanging fruit for growing charitable donations could lie with the ever-increasing wave of RRSP savings that need to be converted to RRIFS and withdrawn.

Lots of good causes sure could use the help.



Why should I give to your church?

Published in Canadian Mennonite, March 2015

Helping people give money away over the past 15 years has been a tremendously rewarding part of my work at Mennonite Foundation of Canada.

Many of these generous people are from the “builder generation” (born in or before 1945). The builders I’ve spoken with give generously, value church institutions and trust the people who run them.

Being told there is a need opens their wallets or cheque books. As these people age, become infirm and pass away, I miss their generous spirits. Increasingly, many churches, church agencies and related institutions are starting to feel the same sense of loss. That loss will intensify from dull ache to stabbing pain in coming years for those who don’t overhaul their approach and communication with donors.

Many in my generation and most in younger cohorts don’t see things the same way as their church-attending parents and grandparents did. This is true even of the much smaller fraction of boomers and millennials who still attend church more frequently than Christmas and Easter.

Given this clear dichotomy in how different generations respond, it is sad to see people making appeals based on guilt and obligation near the end of a church’s financial year. That doesn’t work anymore. It reminds me of the father recounting to his young daughter how his family had purchased their first colour TV when he was 10 years old. After some reflection, the daughter replied: “Daddy, was the whole world black and white then?”

Leave it to Beaver-era appeals don’t work in the digital age. Loyalty to church institutions is a foreign concept to a sizeable group of church attenders. Without new, compelling and repeated calls to commitment, the idea of supporting a congregation’s ministry is easily overlooked or dismissed.

J. Clif Christopher, in his book Rich Church, Poor Church, says he finds “far too many church leaders who are working on the answer to the question, ‘Why should I give?’ and not on the right question for today, which is, ‘Why should I give to you?’”

Younger donors who are asking the latter question don’t want to hear about commitments made at a budget meeting they didn’t attend. They want to give to vision, to relationships. They want to hear about outcomes and changed lives.

As the number of charities competing for donor attention continues to multiply—and Sunday morning once in a while is the extent of many people’s exposure to church—a congregation that wants to succeed in growing givers’ hearts needs to have a compelling answer to Christopher’s question: “Is my church the best place for me to invest to make a difference and change lives?”

Getting positive responses to that question will require leaders willing to move beyond traditional approaches. As Christopher says, “Being taught to give is as integral to the mature Christian life as learning how to read is to the adult life.”

Do we care enough about church to use proven stewardship best practices, even if they make us uncomfortable?



On the topic of impact – are you a fire hose or drip irrigation donor?
June 26, 2014, 2:25 pm
Filed under: Charitable Giving, Estate Planning, Financial Management, Generosity

Published in the June, 2014 issue of Gift Planning in Canada
On the topic of impact
Mike Strathdee
Helping donors understand the impact of how they support their favorite causes can take some explaining.
The people I have the privilege of working with generally
make giving decisions informed
by their faith. Unlike churchgoers
of earlier generations, the place where
they worship is often not the primary
or sole beneficiary of their giving.
In fact, it is common for me to meet
with folks who receive charitable
receipts from 20, 30 or more different
charities every year.
Without a doubt, deciding whether
to make large gifts to a few causes
or smaller donations to a greater array
of charities is a highly personal
decision. Getting people to recognize
that one-time gifts under $100
are costly for charities is sometimes
the first discussion point.
Once donors have narrowed down
who will be on their list, asking whether
they want their end-of-life gift to have
short, or longer-term impact can result
in blank stares. I am often asked,
“Isn’t it all the same?”
Water metaphors can be a useful
way of helping donors see the value
of different approaches. The metaphor
I have found most helpful is fire hose
versus drip irrigation.
A fire hose provides quick, intense
bursts of water – great for extinguishing
a blaze, with as much pressure as
possible, or responding to a large,
immediate need. If a person wants
to grow flowers or vegetables, however,
the amount of water that comes out
of a fire hose quickly may be
overwhelming. When growing fragile
crops, drip irrigation, with smaller
amounts of water released over a longer
period of time, is more helpful.
The fire hose approach to end-of-life
giving may be unhelpful, particularly if
the gift is to a smaller charity (or
a larger one that doesn’t have good
policies on how bequests will be used).
I once met with a couple who wanted
to leave a $180,000 gift to their church
– a small rural congregation – that had
no bequest policy. When they told me
that the church’s annual budget was
only $150,000, we were able to have a
good conversation about whether this
gift would be helpful or harmful.
They eventually decided to have the
gift to their church flow through the
Mennonite Foundation of Canada over
a 10-year period.
Sometimes, for donors with
significant charitable intent, there
is often an opportunity to combine fire
hose and drip irrigation gifts. There
are a number of reasons that people
will choose to support an endowed,
or drip irrigation approach to giving,
including ensuring that their support
will continue after they are gone
– incorporating both legacy and
sustainability elements. For example,
In a recent meeting with a couple that
had spent a fair bit of their career
working in the charitable sector,
I was happy to hear that they wanted
to give gifts to organizations that had
endowments. They knew that many
donors dislike supporting the
important work that goes on behind
the scenes, unnoticed or appreciated
and so decided to give support to the
administration of charitable work.
Other donors want to create (or
support) new possibilities for mission,
if a charity’s use of its long-term fund
is broad enough. Contributing to a
medium or longer-term fund to support
the cause(s) they care about fits well
with the giving wishes of more donors
than you might think. But they may
need to ponder different sorts of water
pressure to understand why.
Mike Strathdee, MA, CFP is a Stewardship
Consultant with Mennonite Foundation
of Canada, a national, faith-based public
charitable foundation. Based in Kitchener,
Mike works with individuals, families and
congregations throughout Eastern Canada
in the areas of charitable gift and estate
planning and financial literacy. Prior to
joining MFC in 1999, Mike had a 15 year
journalism career, including 13 years as a
business writer at the Kitchener-Waterloo
Record newspaper.



Tending the Body – Generosity Across the Generations

Published in the Summer 2014 edition of Leader Magazine
When I was a boy, finding ways to earn money was easy. By age 10 I was selling greeting cards and TV Guides, then delivering the morning paper. In my teen years, even for a smaller-than-average kid, there were no end of opportunities – mowing lawns, scooping ice cream and stacking shelves at our small town store.
I had to work my way through university, helped by several part-time jobs and small student loans that were repaid within a couple of years. Debt wasn’t a huge issue, as I mostly just spent what I could afford.
Decades later, the world that my daughters face is considerably different. Jobs are scarcer. Education costs have soared at a rate many times the increases in what can be earned from part-time and summer jobs.
Credit is easy to get, but the debts that accompany its use are harder to repay. Being in debt is the norm. Our children and young people are overwhelmed with choices and opportunities to spend far beyond what we or our parents ever had. Unless a person chooses early on to make giving a part of their life pattern, there will always be excuses why not.
We dare not allow our churches to be silent on the connection between our use of material things and our spiritual walk. A giving God created us to reflect and pass on God’s generosity. That’s a tough sell in our culture.
Author Nathan Dungan says many youth will encounter as many as 5,000 advertising images in a day encouraging them to spend (ignoring two other important purposes God intends for material possessions– sharing and saving).
Irregular and incomplete messages about money are too often the norm in church settings. In many congregations, there are year-end bulletin appeals. There are pleas from the front of the sanctuary to give more to close the gap between church income and what is needed to meet the budget.
Where are the other messages we all need to hear about money, regardless of our age? We all need examples of how to live contentedly, within our means. We need to hear warnings about the cost of debt, spiritual and otherwise, and the trade-offs we need to make.
The question of how to provide counter-cultural opportunities, to help to form and grow the generosity impulse in children and young people, is a major issue for the long-term health of the church and the spiritual growth of future generations.
We need to wrestle with what the gaps are in helping young people to gain a holistic appreciation of dealing with money. Then we need to reflect on how we fill those gaps.
Some congregations do a good job of involving young children in the offering. Having a separate box or other container into which children can bring coins is a helpful practice, as is designating a special project for that offering.
What happens when children graduate to junior youth and beyond? Where are the forums for conversation, for modeling giving as spiritual protection against consumerism? When are our young people invited to regularly give, to view the offering as a spiritual act?
Mennonite Foundation of Canada has had considerable success in starting conversations about holistic use of money with a Timbit Economics/ Lifestyle Choices game. This game allows people to have fun contemplating choices around food, clothing, lodging, transportation, leisure, charitable giving and taxes, using donut holes as a form of proxy currency that can be eaten at the end of the exercise. You can get details about how to play the game at this web link:
http://www.mennofoundation.ca/downloads/timbit-economics.pdf
The game is most often done with high school or young adult groups, but works well as an intergenerational activity. It is best suited for groups of between 20 and 50 people, to allow for mixing people up into imaginary households of 5 to 7 people.
If you are seeking multi-week curriculum, Mennonite Foundation has adapted Everence’s Money Matters for Youth publication for the Canadian context. This seven lesson resource, intended for 45-minute Sunday school classes, includes sessions on biblical perspectives on money, budgeting, debt, saving and giving. It includes suggestions for accompanying print, video and music resources.
You can download the PDF file at this address: http://www.mennofoundation.ca/downloads/money-matters-for-youth.pdf
The original Everence version of this study, plus two other studies: Stewardship for Kids and Three Key Questions and Money: What’s God Got To Do With It? (for youth groups) can be found at this link: http://www.everence.com/showitem.aspx?id=12617



The MeetingHouse – profile from April issue of The Marketplace
April 2, 2012, 6:16 pm
Filed under: Charitable Giving, Generosity, Uncategorized

See my profile of The MeetingHouse, one of Canada’s fastest growing Anabaptist churches, in the March-April issue of MEDA Marketplace, PP 8-10

http://www.meda.org/images/stories/Marketplace/2012-2-Mar-Apr-TheMarketplace.pdf



Full-time pastors on the decrease – What can congregations do to reduce turnover and attract strong leaders? -published in Sept. 2011 Christian Week Ontario
September 26, 2011, 2:29 pm
Filed under: Charitable Giving, Communication, Financial Management, Generosity, Investing, Work

Several media outlets had a field day this summer after learning that top staff at some Canadian charities earned six-figure salaries last year.

No effort was made to provide context in terms of the responsibilities and workloads of those people, nor how they compare with private sector counterparts.

They also focused on a small minority. The vast majority of registered charities in Canada operate with budgets equal to or less than the salaries paid to CEOS, presidents and fundraisers at the few large institutions whose Canada Revenue Agency filings formed the basis of the stories.
Reading the story, my thoughts went in a completely different direction than worrying about what the movers and shakers are earning.

I started wondering about part-time pastors.

Our church recently said goodbye to a talented young man who was a part-time associate pastor for an all-too-brief four years. I can’t blame him, as a recently married 20-something, for looking to focus on one job. He has already started a new full-time role with a relief and development charity that he was working for part-time alongside his pastoral work. Their gain is our loss.

His predecessors served a single term in the same position at our church. That says more about the demands of the job than any of the people involved.

Over lunch, Darren reflected on the challenges of juggling a couple jobs, and told me that churches need to offer as close to full-time as possible to minimize turnover and avoid burning out staff.

Unfortunately, the trend is in the opposite direction. Research by Rick Hiemstra of the Evangelical Fellowship of Canada found that between 2003 and 2009, Canadian evangelical churches, both urban and rural:

  • tended to reduce their full-time staffing complements.
  • tended to add part-time staff.
  • converted some full-time positions to part-time ones.

Hiemstra studied tax filings by more than 5,400 congregations. He found that 50 per cent more congregations had no full-time staff in 2009 than was the case in 2003, even though congregational income generally rose over that time period.

“It is conceivable, if current trends continue, that a decade from now half of rural congregations will be without full-time staff, and most will be reduced to just one,” Hiemstra wrote.

Some of the change can be explained by churches moving from hiring full-time generalists to hiring part-time specialists, recognizing that it is a rare individual who has all of the gifts that a congregation is seeking. But Hiemstra also notes that “rural congregations appear to be having trouble attracting and retaining staff.”

As a father of adolescent children, I’m gradually cluing in to the primary importance of lasting relationships in faith formation. When I asked Darren what it might take to improve the chances that his successor will stick around longer, he suggested churches may have to stop looking to “20-somethings” to fill youth and young adult pastoral positions. The average university grad will change jobs a couple times before turning 30, so churches should be seeking out older candidates, he said.

But that would involve paying more, a tough sell in today’s climate.