An Honest Look at Nonprofit Financials

I know that title might have caused some of you to quit reading already. However, I NEED to write this so that everyone thinks clearly about it.

Your favorite nonprofit organization is feeling the impact of the changing economy just like you are personally. Inflation affects everyone and everything. This might be your favorite charity, ministry, mission, or Church community.

Let me give you one example. Insurance costs might just be the thing that kills the group you love the most. In the Church I lead, costs for insurance have tripled in the last five years, and we had to search to ensure we were getting the best deal. We recognize that there is a high likelihood that costs will increase significantly again next year and potentially every year into the foreseeable future. The rising costs of materials and labor, along with the hurricanes, floods, and fires, are driving prices through the roof. On one of my online minister’s groups, almost weekly, someone asks about insurance because it is killing their Church.

The same applies to utility costs, supply costs, repairs, staff, and other expenses. The rise in living costs also affects the price of ministry. That means the $50 you gave each month in 2020 has about half the impact it did.

For the Church I lead, we are trying to adjust our spending, but we can’t keep up with the rising costs despite having some generous givers. I am aware that other groups and organizations are struggling, and the future appears bleak. As the average Christian, you need to be mindful that this is going on behind the scenes with every Christian group you know.

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