Issue 24: This Simple Financial Move Could Allow You To Add To Your Staff
A pastor friend sent me a message yesterday that his church had investigated some investment opportunities for their cash reserves so it would make more money as it sat in the bank. Smart move during these massive inflation times, right?
He said that when his bank got wind of it, they offered his church a product (that the bank always had) that provides a 4.5% return on their money and is FDIC insured. He was told this money can even be in a checking account that is used every day too, with interest paid out daily.
This could be a huge opportunity for many churches. Most churches I know have decent amounts of money put in savings accounts. If that money is only earning 1% in a regular checking account, it isn’t even outpacing inflation.
But if they were taking advantage of financial products like my friend described, they could make some serious dollars each year.
A church with $500,000 would end up with nearly $23,000 of interest in one year. That could pay for a part-time administrator.
A church with $1M dollars in the bank would have nearly $46,000 dollars of interest in one year.
You get the point. If your church has a large amount of financial reserves, simply checking with your financial institution to see if they have a product like this could produce a significant amount of money for your church.
1 Actionable Tip
Ask your finance guy to research if your church’s bank has a product like this.
If your church can make its money work for it, then it could provide extra staffing just from the compound interest.
Opportunities for Next Steps
1. Student Minister Leadership Lab. We are excited about pouring into student ministry leaders with a practical workshop style event. Join us in Nashville August 3-4th for coaching and practical help for leading an effective student ministry. Register here.
2. Personal Coaching. If you are a pastor interested in personal leadership coaching, reach out to firstname.lastname@example.org and he can detail out the process and opportunities.