Articles from our E-Update

The belief that Jesus blesses believers with riches is not a new one, but it is proliferating. The prosperity gospel crosses all denominational lines and is preached in three of our nation's 12 largest churches. Spreading exponentially among African American and Latino congregations in the U.S., the theology is also taking off with fervor across Africa. Check out the articles and video below to learn more.

View Video: The Prosperity Gospel, The Global Conversation

Read Article: Did Christianity Cause the Crash?

Read Article: Did Jesus Wear Designer Robes?

With a desire to help Christian-inspired charities weather current economic challenges, eight Canadian faith-based funders recently formed a collaborative granting initiative called Stronger Together 2010. The initiative will not only allow funders to learn from and be strengthened by one another, but will also make things easier for charities who, with one streamlined application, can have their project proposal and funding request reviewed by eight granting partners.

Click to learn more about Stronger Together 2010

Seeds.org, founded by gathering participants John and Jean Kingston, recently launched a new website, SixSeeds.tv. While the goal of SixSeeds.org is to promote service within families, SixSeeds.tv will serve as a real-time, on-line guide promoting good, family fun and providing inspiration through stories from the world around us. Be sure to check out this great new resource!

Click to visit SixSeeds.tv

Click to visit SixSeeds.org

Read a Gathering Interview with the Kingstons

The Risks and Rewards of Start-up Funding

Granted, most investors are more than a bit wary of any type of high-risk investment these days. Yet, as is commonly known, such investments often yield some of the greatest rewards. As stewards of God's money, can donors confidently choose to invest their resources in a start-up non-profit organization or ministry as opposed to a more established one? If so, what should be considered before making such an investment? We recently picked the minds of Jim Beckett and Kurt Keilhacker, two Gathering participants with a great deal of experience in start-up funding, to find out what they've learned in this area over the years.

TG: How do you make decisions about choosing to invest in a start-up non-profit organization or ministry?

Keilhacker: The first thing is to size up the need that is trying to be addressed. As we look out at the world, there are obviously many needs out there. The question is, has the entrepreneur identified something that is a big problem that is within the realm of reality to be addressed, and do they have a particular unique insight into it or unique approach that merits further consideration.

Beckett: I get very excited about prototype things - cutting edge types of things where somebody is doing things that really havn't been done. So, I always ask, "What is the distinctive?" Frankly, the ministry person almost always say that nobody else is doing it, but that's not usually true.

There is no barrier to me offering time or talent to any Christian ministry start-up, and I'll bring in friends with that same mindset. I'm very guarded on the treasure part. The first thing I want to hear is the idea, not the pitch. Then take some time to respond to it, get some other people to help you refine your pitch, or even determine whether or not this is even the right thing for you to do or to do by yourself.

TG: Do you evaluate the leadership ability of the entrepreneur? How important is that?

Keilhacker: Absolutely. In my opinion, the individuals that are driving the start up are 80 percent of the consideration. Ultimately, if I'm a really good venture philanthropist, I'm betting on an individual or a group of individuals. It just so happens that the organized principle uniting those individuals is the need that has been identified that they can use their talents in to collectively go and make a difference.

TG: What types of red flags do you look for that would make you avoid investing in a start-up nonprofit or ministry?

Beckett: Someone can have a good goal and a great heart, but if they don't have a good plan, they're probably going to fail. Sometimes an individual will tell me, "I don't care what you say, I'm going to do this." And so they push ahead, fail, and come back a year later and tell me they wish they'd listened to us.

Too many funders will engage with the person who wants to start the non-profit and in the interest of not hurting their feelings, will not shoot down their idea, but just not write a check. So I usually say to them, "Let's forget about the money right now, and allow us to shoot down your idea in its present form, or tell you that you're not quite ready for prime time." They may have a worthy goal and a great heart, but they may need to collaborate with some other ministry or find a partner to help them execute their vision.

Keilhacker: At the individual level, I'm looking for evidence that supports three important ingredients of individuals. The first one is their attitude, the second is their aptitude and the third one is their work ethic. Without those three components, it doesn't matter how great the idea is or how big the market need is, they most likely will not be the individuals who will be successful in making a difference.

TG: What type of attitude would you be looking for?

Keilhacker: Attitude encompasses a number of elements. First of all, in the spiritual realm, what is their theology of work? What is their belief of how God calls us to a particular calling? Second, would be whether the person looks at the world as a glass that is half empty or half full. If you are an individual that views the world as half empty, than you most likely are not the right individual to actually start a new non-profit. A third element regarding attitude would be that the individual recognizes that nothing regarding their project is going to move forward unless they're the ones sticking their neck out, making the first move. A person can be very optimistic and believe God is still going to build His kingdom despite their works, but they must also realize the project will require an intensity and intentionality on their part that will be a major contributing factor to the success or failure of the project.

TG: How important is it to consult with others as you make decisions regarding the funding of start-ups?

Keilhacker: I think scripture certainly teaches us that using the company of wise counsel is going to be helpful to make good decisions. That's true in many areas of life, but certainly when you're thinking about a new non-profit opportunity. The big thing you're trying to figure out is, is this being done well by someone else right now? It's a big world out there, even within our evangelical sub-culture. There are a lot of things that are happening that we might not be aware of - either on the other side of the country or in the city right next to us. That's one of the great things about The Gathering. It's the kind of community that allows that type of information to be shared.

TG: If a funder makes the decision to be involved in the start-up of a non-profit, should they enter that relationship with an exit strategy?

Keilhacker: Absolutely. And there has to be several gradations of an exit strategy. For instance, there needs to be an individual exit strategy. When I'm interviewing or coaching CEOs in the for-profit or non-profit sector, I want to know what their individual exit plan is. I want to know what their professional development plans are in their heads. How do they conceive of their career? The fact is, the vast majority of individuals who come into organizations, even struggling organizations, won't be there ten years later. So, let's accept that as premise in terms of going in and understand that people are able to contribute to an organization during the specific period of time when their talents are most likely to be leveraged. The second gradation would be the organization's exit strategy. I think that's one where a good team of board members really needs to help them develop that. Does the exit involve becoming part of a larger organization? Would the exit mean aggregating several different organizations under a larger umbrella? Or would it mean passing the organization onto the next generation? These are all great exit strategies with each defining a different course of action from another.

Beckett: The exit strategy I talk about with the ministry person, that they probably don't want to hear is, "What happens if you don't make it? How modular in scale is this idea? If you're budget is $200,000 a year or $2 million, what if you only get half of it? Can you do nothing or can you do half of what you would have been able to do?"

Often times, the ministry person is looking for someone to invest in them in such a way as to make sure they won't fail. The problem is, some of them should fail. So that's the exit strategy. It's not bad that a ministry would be one generational or for a season, where it really meets a need and then for whatever reason, it doesn't. That needs to be okay.

TG: Beyond funding, how engaged should someone get with a start-up organization?

Beckett: There is an option between not being involved at all and being a board member. The problem is, if you're a prominent person, they will want you to be a board member. What I've tried to do is create a space where I can be a "board member for a day," without any expectation that I'm going to give big bucks, but that I just have a heart for that mission and a heart for that person. Then I can track with them for awhile, kind of give them some encouragement, and help to introduce them to others who may be interested in what they're doing. The more seasoned donor can often become like a mentor to the ministry person.

Keilhacker: If you're involved with the founding of a new non-profit as a major funder and board member, one of your first responsibilities is to help shape the make-up of the board. A second responsibility would be to help the non-profit's CEO bring in a team of high caliber individuals who will be able to compliment the skill sets of that individual. Financial capital is the easy part, human capital is where things get difficult.

TG: What similiarites and differences do you find between company start-ups and non-profit start-ups?

Beckett: Donors can get uncomfortable, I know I did, with these winsome, passionate, start-up people because you bond and connect. You hear their heart and think, "Gosh, I'd like to be involved, but their plan is terrible!" You think, "Maybe I should invest because they're trying to do something wonderful and maybe it will work out." Well that donor would never have that mindset in business. In business, they would look at 100 business plans and reject 90. That's because with a business plan, there's no emotional connection. So what I do is put one ministry person in a room with 20 to 30 business people who are going to serve as a sounding board for that person with the clear expectation that not all of them, and maybe none of them, are going to invest financially, but many of them will make other types of encouragement investments.

TG: Some people might think it would be safer and "better stewardship" to fund a proven nonprofit than take risks with God's money. What are your thoughts on that?

Beckett: Well it's not true. It's not true in the same way that on Wall Street there are hedge funds and venture capitalists. The risk tolerance may be such that people don't want to do that. You can easily lose all your money - the investment could be a waste. But people should still consider it, according to their risk profile, as to whether or not that ought to be a part of their eternal investment portfolio. If all a donor wants to give is treasure, and they don't want to give their time or talents, maybe they should stay with a proven ministry. The ones that are unproven are going to have a lot of twists and turns and they're going to need you to engage strategically with them. My guess is if somebody did a little bit of start-up investing, they'd wind up doing more. They'd see that, yea, I'm going to lose on a few of them, but boy, the successes are so exciting!

Keilhacker: I feel very strongly that we are to be stewards of the opportunity. That means that, when we think about it, what's going to be eternal? Is the organization going to be eternal? No. Are the individuals that come along through its path and are working in it and will be impacted by it eternal? You bet. That's where you bet your money.

Jim Beckett is CEO of Beckett Interests Inc. in Dallas, Texas. He was formerly the founder and CEO of Beckett Publications Inc., the world's largest sports and entertainment collectibles publisher from 1984 until its sale in January 2005. After earning his Ph.D. in Statistics from Southern Methodist University in 1975, he was a tenured Associate Professor of Statistics at Bowling Green State University until 1980. He is presently very active with numerous ministries and non-profits on a pro-bono basis both personally as well as through an informal SHINE network founded in 1996.

Kurt Keilhacker is Managing Partner of TechFund Capital, a Silicon Valley venture capital fund with offices in California and France. He currently focuses on emerging clean energy, networking, and new media technologies. Kurt is also active in a number of non-profit organizations. He presently serves as Chairman of the Board at Gordon College, The Veritas Forum, and Global Fast. Kurt is a graduate of Wheaton and earned an M.B.A. from the University of Chicago, an M.L.A. from Stanford, and an M.T.S. from Harvard.

Shane Claiborne, co-founder of a ministry to the poor in Philadelphia called The Simple Way, was recently chosen by Esquire Magazine as one of 2009's Top 23 Radicals and Rebels Who Are Changing the World. Impressed with his take on Christianity, Esquire asked him to write a letter to those who don't believe. Here's what he had to say...

Click to read Shane's letter

Click to visit the Simple Way website

Books by Shane Claiborne

Some of the biggest U.S. charities say they are budgeting for a disappointing Christmas. In light of the economic downturn, a new study reveals that fewer Americans are likely to give a charitable gift as a holiday present this year. This will make things doubly tough on nonprofits whose need for services generally increases at this time of year.

Click to read article