Leadership and Fiscal Responsibility

For years, the rhetoric has been flying back and forth in local, state, and federal governments about the excessive tax and spending policies being implemented. Not only has the rhetoric included policies involving the size and influence of ‘government,’ but it has included the irresponsible overspending practices that have resulted in government agencies being billions, if not trillions, of dollars in debt; a result of spending far more money than taxes and other revenues can generate.

We who lead organizations understand this overspending practice will end in the collapse of the organization. For individuals, overspending can result in the loss of personal properties, bankruptcy, and even result in homeless and the loss of family. If the failure is serious enough, criminal charges could be filed and we could end up ‘behind bars.’

Our responsibility is to lead our organization (and families) in a way that enables sustainability (and hopefully growth), positively affects its employees, other stakeholders, and the recipients of our goods and services. This requires a clear continual articulation of a compelling vision, holding the organization to its mission, and keeping the organization fiscally responsible.

Fiscal responsibility? Yes, fiscal responsibility IS a critical component of leadership.

So, how could all this affect you and me? How could this affect the organizations we lead? . . . our local churches? . . . other charitable organizations?

In 2008, I led a strategic foresight presentation for a local church congregation. The major change event presented to the leadership group was this: How will the government’s action of eliminating the charitable giving deduction from federal and state tax returns affect this non-profit? The church’s leaders were asked how this could affect contributions, the dedication to the church’s mission and vision, the ability to maintain the facilities, the ability to pay vocational ministers and supporting staff, the ability to meet as they currently meet?

The exercise was intended to heighten awareness of how change events can positively and negatively affect an organization. It is also intended to help the organization leaders consider strategies needed to ensure a preferred future for the organization.

During the exercise, the congregation leaders considered the serious implications of such a ‘change event’ and what strategies would be necessary to keep the congregation working to achieve its mission and vision. They believed this event was possible but that it would not occur for quite some time, possibly decades, far after they were involved in leading the congregation.

Today, I listened to a report that our federal government is seriously considering eliminating the charitable giving tax deduction. The government’s primary concern seemed to be for the potential $34 billion in additional federal tax revenue this action would generate. It did not appear they were adequately considering the negative affect this action could have on thousands of charitable organizations that are the first point of help for millions of Americans, directly or indirectly.

If such a law passes, how will this affect your church congregation? How will it affect other local charitable organizations that provide food, shelter, clothing, medical care, and other life-sustaining goods and services to the millions in our country and around the world who receive those goods and services? How will it affect organizations who use these contributions for medical research and treatment?

Will contributions decline? . . . Will they stop all together?

Will your organization loose its current building/s, properties?

Will your organization cease to exist as it currently does or will it cease to exist all together?

 Will the vision and mission of your organization continue?

I believe many organizations who rely on charitable contributions will close. This will not only negatively affect those who work for these organization but will negatively affect the thousands, if not millions, who received benefit from these organization. This will affect medical research and treatment, support for the poor and disenfranchised. The negative impact this will have on individuals, families, and the American society as a whole, will be incalculable.

However, for us who are ‘the Church,’ the organizational structures and designs we currently embrace will indeed be affected. How we organize, how we gather to worship, and how we work to further the mission and vision of Jesus Christ may look different, but IT WILL GO ON!

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