Newly-rich man wants to give money to his church. Better one big gift, or repeated smaller ones?

Today’s story is about Mark, an 37-year-old engineer who just invented a radically innovative widget that will improve cell phone battery life by eleventy-hundred percent. For some entirely aethetic reason this widget is incompatible with the iPhone, but Apple just bought the rights to the tech anyway so nobody would have have it.

But Apple’s jerkwadness is not the point of this story. The point of this story is that Mark just made eleventy jillion dollars and has decided two things. (1), he’s going to take the rest of his career off; and (b) he’s gonna give a ton of money to his Many Waters United Church. That might seem strange to a lot of people, as Mark wavers between being agnosticism and atheism, but to Mark it makes perfect sense. Without Many Waters’ pastor and congregation, he believes that he’d have died about half a decade back. It was five years ago, you see, that Mark was at the lowest point of his life. His wife and children had died in a car accident, you see, and Mark was the one driving. The fact that the police and insurance company decided he wasn’t at fault did nothing to alleviate his guilt, let alone his despair. He was quite liteerally one the verge of suicide – we’re talking standing on a skyscraper roof and about to jump – when he met Anne, MW’s pastor. She talked him down, got him into (secular) counseling, and invited him to her church. When Mark protested that he didn’t believe in God, Anne replied that Many Waters wasn’t going to try to convert him–just help him.

Which they did. The MW congregation was warm and accepting, and moreover were clearly a force for good in their community: feeding the hungry, sheltering the homeless, helping the hopeless. Mark felt loved and accepted by them, and they helped him forgive himself for living when his family had died.

Which brings us back to the present. Mark, as I said, is newly filthy rich, and intends to give a jillion smackers out of his eleventy-jillion dollar fortune to Many Waters. Going to Anne to discuss the best way to do that, he is surprised when she ever-so-slightly discourages him from making such a huge gift all at once. “Of course I don’t want to discourage your giving back,” she says, “and of course we can use the money. But I’m a little worried too. Many Waters’ ability to help comes in large part from being a community. It seems to me that, if you give us that big a gift all at once – it would fund our operating expenses and every charitable ministry for years! – that no one else would feel the need to tithe. And in that case we’d lose the sweat equity. When the congregation has to work together to pay for the food pantry, to contribute to Heifer International – it brings us together in a way your big gift might prevent. I’m not going to tell you how to how to spend your money, but it might be better to spread it among multiple charities, or if you must give it all to Many Waters, to do a fraction of that every year rather than all at once.”

Does Anne have a point, or should Mark go with his original plan?

Anne speaks the truth (Never question a Fair Witness!). Too large a gift all at once would turn the community off not only helping the church, but caring about the church’s good works. “Oh, they have a jillion dollars. Why should we lift a finger?” Then they’d get the resentment for either not helping enough (to some people), or jealousy/envy from those they are helping. Better to spread those gifts out, and diffuse them by giving things rather than cash. Buy the church a new bus or three, build a new community center, refurbish the soup kitchen, pay their utilities and insurance for the next 50 years, stuff like that.

Ann has a point, and a good one. I’ve served on our church’s stewardship committee. Every time we get a large enough gift to catch up, giving drops off until the next crisis point.

And people want to feel like they are contributing in non-monetary ways. I have told the story before, but we worked one night a month at the local food pantry, making tacos. We also contributed money for the other nights.

Then the food pantry said “Thanks, but we don’t need you to work anymore. Just keep sending the money.” So we stopped working there, and the contributions dried up shortly thereafter.

If Mark wants to do the most good with his money, next time Many Waters has some capital project like a new roof or a new organ or something, he should contribute enough to cover the church’s operating expenses while the fund drive is going on. That will overcome the other, unexplained reluctance to donate to cover everyday expenses but to donate for special projects.

An old pastor of mine used to talk about the Grandma Nelson folks. Those were the old people who donated faithfully every week since they joined in 1955.

$5, every time, and they saw no reason to change now. God bless them anyway.

Regards,
Shodan

Big gifts can be burdensome. First you’ve got to come to an agreement on what to spend it on. Should we build another wing to the building? Should we finally upgrade the sound system? What about opening that homeless shelter like we’ve always been talking about? What about buying a couple of shuttle buses to pick up residents at the local senior centers? Everyone’s always got a great idea on how that money can be spent. No one will presume that saving it for a rainy day is what God wants.

But big ideas always end up being a lot of work in the long run. And expensive. So now your utilities bills are higher because you’ve added an additional wing. Now you’ve got to get a security system to protect all that fancy sound equipment. Now you’ve got to hire an administrator for the homeless shelter and constantly worry about fundraising and volunteers. Now you’ve got to deal with the insurance and maintenance costs on the shuttle buses. Now you’ve got to get an additional minister to help handle all the new people who are showing up because of the homeless shelter and the shuttle buses.

It gives me a headache just thinking about it.

Smaller gifts are easier to deal with. It’s easy for everyone to agree on spending a $2000 donation on fixing the boiler or buying cushions for the pews or building a wheelchair ramp. Or savings for a rainy day.

It would be better to have one big gift. You never know if the donor will be alive next year and what claims the estate may have upon it. Does the gift have to be public knowledge? It seems easy to me to just buy bonds with the gift and use the interest to supplement existing programs.

I am Jewish – not a Christian.

If he gives all at once he will soon be forgotten. Better give it over decades.

If the church is anything like my synagogue, the budget and balance sheet will be published on a regular basis to the membership (ours is done annually) for review. Someone’s going to notice a huge uptick in the balance sheet.

Your suggestion of bonds amounts to starting a foundation that hands out annual grants from endowment income. He could do that, or give an endowment of restricted funds directly to the church to be used for particular purposes (operating expenses, building repairs, religious school, etc.).

I agree with others that a big slug of unrestricted cash would likely cause free-rider issues.

Who cares about being remembered by anyone but family?

I certainly don’t. If I were Mark I wouldn’t want anyone who didn’t need to know to be aware that I was the church’s benefactor, whether I made the one jillion-dollar gift or twenty annual $0.05 jillion dollar gifts. It might change my relationship with my friends at the church. It would definitely render new friendships suspect. It’ll draw gold-diggers. And those are just the first three that occur to me.

Better yet make them somewhat dependent on your payments. Make donations of different size twice a month.

Oh, hell no.

If I win the Powerball tomorrow (unlikely, as I don’t buy lottery tickets :smiley: ), I will give a big gift to First Congregational Church in Memphis. But I wouldn’t want them dependent on me, because that would change the nature of the gift from being about their good works to being about my ego, and that’s already too big. At most I’d start a scholarship in my deceased son’s name, but otherwise the gifts would be as discreet as possible.

Wait, that sounded non-evil and thus unSkaldian. I better threaten violence against Peter Jackson and what’s-his-name, that last giy who played Batman. Christian Bale. Yeah, I’d totally have them both slathered in honey and staked to an anthill.

My condolences.

I have very little money – if I had any I would want people not to take my gifts for granted.

Here’s what happened when Facebook’s Mark Zuckerberg have 100 million dollars to the City of Camden for their public schools.

Repeated smaller - for many of the reasons given above, and also because Many Waters may lose its way (and not because of the gift) (maybe Ann retires?), and no longer be an organization Mark wants to be associated with.

Anne is right, for all the reasons everyone has so eloquently stated.

This is also why the bible says that when you give, give it in secret.

I would be inclined to set up a charitable trust/foundation.

Cash goes into the trust, to be used to buy investments. The church collects the annual interest/earnings automatically, providing a steady source of general revenue. The church can only access the principal when there is a specific, substantial need (a new building, for example). I’d probably put a cap on how big such a principal withdrawal could be - no more than 10% of the total in a year or something like that.

I would also be inclined to set up the rules to require some kind of matching. Like, if the church wants $1 million for a new building, it has to raise $1 million itself. Or even a matching of sorts for volunteer hours - put in an hour helping the homeless, and the trust puts in $10 of funds to help the homeless. This eliminates the church becoming complacent.

Mark will want to explore the options for how the trust will be governed and who gets to decide when a substantial need justifies tapping the principal. There are some tax issues involved if Mark wants a deduction right away, so his role might have to be limited. In any event, the trust can have a different decision-making board than the church’s leadership. I would do it that way, just to provide a check on the church’s board.

Thanks to the nature of the trust and its governance, Mark could pretty much remain anonymous. Again, that’s how I would do it, for religious reasons if not practical ones. People in the know would probably connect some dots, but at least he’d have some cover to obfuscate what happened.

I also think it would be a mistake for Mark to give too much to any specific charity. Every charity has a slightly different take on who they benefit and how. Spreading the money around seems like the best way to provide the most people with the most benefit.

…and the pastor walked away from the mansion of the rich donor. As time passed, the church did survive… although it was never truly healthy.

On occasion, he wondered aloud about the fate of that wealthy donor. He wondered if that grandmother was still alive, still waiting, and still anticipating
their eventual return to claim the family fortune…

Dole it out, & urge them to spend it wisely.

Anne certainly has a point, however that isn’t the real reason she made it. Secretly, she has been embezzaling from Many Waters for years. And if a huge lump sum came in, it would cause a lot of attention to be put on the books. And then she knows the jig will be up and be sent to federal, pound-me-in-the-ass prison for the rest of her life.

No. No her only hope if Mark decides to dump a jillion of Apple’s jerkwadity on them is to very quickly and quietly funnel it all offshore into her personal account before anyone knows, then flee the ensuing meltdown. Forever exiled on a remote tropical island, she’ll have to change he identity. Remarry a local and start a family. She would miss the Pastor, of course, but she could start again doing God’s work. And this time she could do it right. She would no longer need to embezzle, right? She could leave that secret shame behind.

I would combine both: create a fund. That’s a big gift which becomes many little gifts and which survives its creator.