unSeminary Podcast

5 Leadership Hedges Against Inflation for Your Church

02.01.2022 - By Rich BirchPlay

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Just when you thought the word “unprecedented” couldn’t possibly be used any more, we continue to climb into levels of inflation that haven’t been seen in over four decades.

In fact, the last time we saw inflation this high, the world was a completely different place.

* Bread had soared to the cost of 50 cents a loaf.

* Late-night TV was ruled by Johnny Carson.

* A newfangled invention called the modem was just released for personal computers (which had barely taken off).

* Ted Turner had just launched a TV station that broadcasted news 24 hours a day called the Cable News Network (“that’ll never work!”).

We find ourselves leading in an environment of increasing inflation. Although in the local church world, we may not see its impact right away, it is going to affect your church and mine.

Small business owners in your church are no doubt trying to puzzle out how to increase the fees that they charge for the services or goods they provide to combat inflation as it continues to rise. In a recent study by the US Labor Department, inflation had peaked at 7%, which is something that you and I need to take note of as leaders in this environment. [ref]

What difference does inflation make to our churches in this season?

Put most simply, inflation erodes an entire country’s spending power. As inflation continues to rise, the cost of goods continues to increase, and salaries try to match those levels. The entire country has a more and more difficult time purchasing goods with existing resources.

This was one of those financial earmarks that we were watching carefully at the end of 2021. In fact, most economists were advising waiting while we got through the Christmas season to see what would happen in the new year. But alas, inflation is continuing to rise. Our churches need to think carefully about how we react to this as we plan for our ministry for the rest of this year and beyond.

Here are a few articles to dig deeper into understanding inflation:

* Investment Executive: Fed to signal rate hike as it launches risky inflation fight.

* The Washington Post: Prices are rising all over the world, and leaders see no quick fix

* The Wall Street Journal: Inflation, Supply Chain, Omicron Expected to Take a Bigger Toll on Global Growth

In 2007, I had the opportunity to travel to Zimbabwe, which just happened to be in the midst of a rapid inflation increase. It was a heartbreaking time to be in the country because during the two weeks we were there, the cost of everything doubled. One of the key church leaders we had met with was converting donation dollars into building bricks. He was literally buying bricks to warehouse for future church building projects down the road that were yet to be authorized because although the Zimbabwean dollar was worth less and less with every passing day, he at least could have a giant pile of bricks under lock and guard that could be used in the future.

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