Measuring The Profit Margin Of Your Church

Over the years, I've been blessed to know a bunch of older, wiser church leaders, and to count them as close friends. Maybe it's my rather unique collection of friends that makes me have so much fun doing executive search.

Last week, I read a great post from my friend Tony last week that called one of my long time friends to mind. I'll never forget what my great Houston colleague Ed Young told me about measuring the effectiveness of programs.

Over a long lunch in his office, Ed said, "William, never forget that the church is a non-profit but it has a profit margin. Our profit margin is life change."

"William, never forget that the church is a non-profit but it has a profit margin. Our profit margin islife change." - Ed Young

Now that's money.

Ever since hearing that wisdom, I've insisted that every line item in the church budget be measured against that metric. I think it translates in any church, no matter your vision statement or particular strategy.

Measure programs for their life change, and you'll never wonder what is worth funding and what needs to be cut.

Show your people the profit margin of the church. Show them how much the church is changing lives, and they will never wonder why we are here. You won't have to worry about raising money. You won't have to worry about being off purpose.

What would change in your church if every line item were measured against the question, "How is this ministry changing lives?" What would the overall effectiveness of your church look like?

How's your profit margin?

I'd love to hear your thoughts.