Topic: BusinessManagement

Last updated: February 20, 2019

CHAPTER TWOLITERATURE EVIEW2.1 IntroductionIn the previous chapter, I introduced this research by providing the reader with an overview of entire study. In so doing, I provided the background, statement of the problem, objectives amongst other things so that the reader can be acquainted with the matter under investigation. In this chapter, I will explore literature related to the issue under investigation.

The chapter will analyze the various financial operational functions or methods used by the Pentecostal churches to raise funds for their capital growth. The methods that I will look at are fundraising, Donations and Contributions. In this chapter, I will look for an existing theory and applicable in the concept of capital growth, the principles stated in the specific theory, the weakness of the theory and also the contributions of such a theory in the research study. 2.2 Fundraising and Capital Growth of the Pentecostal ChurchesHarris (2016), connotes that, in the list Paul provided for Timothy, he wrote that, He (Timothy) must manage his own family well and see that his children obey him with proper respect Paul reiterated that if one did not know how to manage his own family, he could not be able to take care of God’s church. (1 Timothy 3:4-5). Failure in the management of church money especially funds raised through a fundraising, may adversely affect one’s ministry due to many leaders and personnel involved in the arrangements.

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It is important for one to order his or her life according to the teachings of Scripture on the subject of stewardship of the church resources. Minister must avoid bringing reproach on the Name of the Lord through mismanagement of congregational resources.Fundraisings consume a lot of time and are costly to put up with as noted Mason (2009) who reckons that it is very important for the Pastor to establish a strong system of internal control ones funds have been raised. This is because he/she has the responsibility for overall stewardship of the Church and an outline of Internal Controls that will help train new staff, volunteers, finance committee members, and clergy on what is expected of them to maintain the integrity of the organization, and the trust of the supporters is highly commended. Likewise, Cliff (2016), tried to explain a main reason why people give in churches and he says it is because of staff leadership.

He tells that the number one rule in fundraising is that people give to people, and they know that programs and buildings do not change lives, but people do. Besides well-organized fundraisings, contributions or donations by church members, they must feel confident in the leadership to guide the institution in fulfilling the mission. Many churches do defy this reasoning, acting like persons of wealth should not desire a trusting relationship with their leaders. This is one of the major reasons why Kristi (2016) cautions that some people may not see it, but reduced salaries produce worried pastoral families who struggle to make ends meet and not the kind of pastors one may want. This occurs due to insufficient funds or proper management of the same. From this point of reasoning, as a researcher, I would be inquisitive, to disclose it is in order to maintain Pastors in churches through fundraisings, donations and contributions.

A researcher by the name, Tanui et al. (2016) concluded that, Church leaders are entrusted by followers to carry out the responsibility of money management in the at most good faith expectation. Fundraising, donations and contributions yield money. These processes are spiritual issues and can be the cause of pain, lack of contentment, landslide of sin, lance of sadness and wandering from the truth. This is the reason why an insight on resources management be it a fundraising, a donation or a contribution should be well-handled for a sustainable development in the Church. Though the Pentecostal Churches would be looking for funds either means, Wale, (2016), notes that, for any tangible growth to take place in any Christian community, the youth must be significant in that process of growth. This is the more reason why wise nations, countries and organization focus more on the development of youths so that the future of such investments would never be improvised or blind. This is only possible if the churches are involving the young people when looking for the funds.

A worth fund drive could well steered by the youths. They have the energy and the vigor, though may lack experience as the elderly may claim. Besides involving the youth, Men and women play a vital role in church funding, and this is the reason why Wootton (2015) says that there are some important matters to take into account when seeking to raise significant funds through fundraising, donations or contributions. The first one relates to planning of the appeal. Pentecostal Churches need to start thinking about funding as soon as they have a rough idea of how much money they will need.

The best laid plans are of no use if the money is not available to fund the proposed investments. Wootton (2015) explicitly explains that the right funding should be understood right from the start, and that a major church building appeal is a serious undertaking that will require a lot of planning, hard work, prayer and team effort. One of the fund raising recommended route is to follow the classic capital appeal approach: Funding funding feasibility study, development of the appeal strategy and the implementation. This clears the notion that, for a fund raising to succeed, a pastor can wake up in the morning and declare a fundraising ceremony. Proper and well laid strategies need be put in place, and in a book entitled, in essentials of fundraising for Churches by ECCU (2016), a good leader must have certain non-negotiable key bases to effectively raise funds for a church; the vision must be established. A compelling case must be communicated.

Senior leadership must be committed to raising the funds. The “science” of fundraising must be done, and the staff and the congregation must be educated while a church should have a plan to teach congregants about biblical stewardship. These are the “Must have” of a fundraising2.3 Contributions and Capital Growth of the Pentecostal ChurchesPentecostal churches contributions by the church members have been enormous as has been told by Ekereuke, (2016) who also discloses that, like most other organizations, churches need financial income to accomplish their work.

This is possible by knowing that God has authorized churches to raise funds by taking up collections from their members. (1 Cor. 16:1, 2); which does not elude Stating, “now about the collection for the Lord’s people: Do what I told the Galatians churches to do. On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.” However, and though situations have continued changing, Ekereuke (2016) adds the reasoning that, throughout biblical times and the history of the church, men have been used by God to play an important part in God’s sovereign eternal plan for His people.

Many times throughout the history of His people, God had been pictured as seeking men to fulfill the roles He has designed for them: The Lord hath sought him a man after his own heart, (1 Sam 13:14). Run ye to and fro through the streets of Jerusalem, and see now, and know, and seek in the broad places thereof, if ye can find a man, if there be any that executed judgment, that seeks the truth; and I will pardon it (Jeremiah 5:1). It is essential to have upright men and women leading Church congregations. This means trustworthy funding especially management of funds contributed by the church members. In addition to this understanding, Tanui et al. (2016), recognized that finances are regarded as a backbone of any organization regardless the nature or size. This is because most of the activities require financial input for them to be successful.

In the Church, finances are needed to run the projects or various activities organized. Almost all the Churches depend on the voluntary giving in order to fulfil their mission. This type of contribution or giving is mainly from the offerings, tithes, projects and own will contributions.

The correct method of funding in the church will mainly depend with the caliber of the church leaders, no wonder, Ekereuke, (2016) says that today’s churches will rise to the standards of their Lord only if they have men who are loving leaders, effective teachers, and godly examples. As this is not sufficient, Wootton (2016) is determined that while some churches hope that the funds they need can be raised externally, it is important for the membership to make an early contribution, for several reasons. Firstly, it binds them to the vision and unites them in their endeavor. Giving to the appeal gives them a sense of ownership of the project and increases commitment. It also demonstrates to external funders that the church is “putting its money where its mouth is” and not just expecting someone else to fund its project. This is especially important if much of the benefit of the project will be internal.

Hence, charity begins at home.2.4 Donations and Capital Growth of the Pentecostal ChurchesFundraising and Church members contributions are not enough means by which a church can solicit funds and this is the reason, Ampofo (1998) agrees that the development and growth of the church and its agenda for action has been influenced by the political, social and cultural and economic circumstances in which local congregations find themselves. More to this, University of Maryland (2010) elaborates that besides direct funding, faith communities support the work of non-profits in many other important ways inclusive of donations in terms of goods to be distributed, used in fundraising, or utilized to defray operating costs (e.g., food, clothing, furniture, computers, raffle prizes, office supplies). Donation of space and/or utilities (free or below market rate).

Donation of own energy and abilities to do or perform a given activity. These could be measured in man-days done the volunteers.Ampofo (1998), agrees with Maryland (2010), that faith-based non-profits organizations, church inclusive, rely on their sponsoring faith community for at least a portion of the resources needed to pay for staff and programmatic activities. In this case, donations are highly regarded and it is worth, and important to note that Faith Based Organizations draw from multiple sources of support, including government funding, donations, secular foundations, corporate giving, endowments, and income from tuition or fees for services. However these donations are not just funding without limits, and this the reason why, Wootton (2016) cautions that trusts and foundations are often a key funding source for church appeals, although there is frequently a temptation to think of them as a panacea, which they are not.

Most of them are quite specific in what they support. Many of the Christian-based ones will not fund appeals for church fabric. So one has to beware of the temptation to rely too heavily on these funders. These donations come about when only the funder is aiming for a return. Thus, donations cannot be over relied over time.Donations by well-wishers include use of vehicles or equipment, volunteers, skilled labor, management and/or technical assistance and such facilitation should be understood from the point of church provision through God’s will and this is why Robertson (2016) finds that when the church is in need of money, it should be understood that it is the Lord Christ and his cause that it is in need. In every call of the heathen, “Come over and help us,” in every cry of the needy saints, for assistance in the appeals of every true object of charity.

In addition to this view, Bruce (2007) reckons that increasing financial stewardship in the Church of Christ is based upon godly leaders emphasizing a mission and vision for the church. Stewardship requires one to give account of the blessings God has bestowed upon His children. Bruce (2007), findings are very essential since Christians should view money as a tool to bring glory and honor to God and this approach to one’s wealth should radically different from the secular, worldly views. Those who live by the standards of the world equate money as power, success, and happiness this is why people will give huge donations in their Church in view of the power they exert in the congregations.

In line with this argument, Free (2016), recalls that international donors forced structural adjustment onto African governments, and they also changed their way of offering development aid. There is a drastic reduction in foreign aid given directly to African governments as bilateral assistance, and a concomitant increase in the amount channeled through international and domestic Non-Governmental Organizations. Majorly, this was used to inculcate a colonialism culture though Africans got the concept too late when the capture had succeeded. In interpreting this situation, Bruce (2007), cautions that a donation is not just a means to raise funds, but could have an agenda which the Christian leadership should understand before engaging.

Robertson (2016,) pp.83) explains that Christians should recognize the voice of their crucified Lord and Saviour. They should respond with their best gifts, giving unto him direct knowing that he will receive and acknowledge, and reward it unto him; for at that last great day when everyone, “shall be judged according to the deeds done in the body”. Then shall the King say unto those on his right hand, “Come ye blessed of my father, inherit the Kingdom prepared for you from the foundation of the world; for I was hungry and ye gave me meat, I was thirsty and ye gave me drink” (Matthew 25:34-45). Kay (2013) poses that Pentecostal Churches have been having a very fast Capital Growth.

They have accumulated assets at a high rate. These churches have been constructing Church Halls within a very short period from the time of initiation. They have been acquiring pieces of land, vehicles, and other assets through exorbitant prices. 2.4 Theoretical reviewframework 2.4.1 A Theory of Church GrowthAccording Vangoethem (2016), many people are very excited today about how they can cause their churches to grow. However, one theological point one needs to make right away is that only God causes the church to grow.

God’s Word says: I planted, Apollos watered, but God gave the growth. So neither he who plants nor he who waters is anything, but only God who gives the growth. (Corinthians 3:6-7). Vangoethem (2016) further says that, from the theory one can deduce that, AllLL church growth stems from God’s sovereign grace, in calling to Himself lost souls, whom He saves by His great mercies through the preaching of the gospel. Our job is just to preach the gospel, everywhere and anywhere to as many people as possible-always planting and watering.

Church growth occurs when (and only when) a lost soul is brought into the kingdom and then into the local church through baptism, having become an authentic follower of the Lord Jesus. Therefore church growth, from a biblical point of view, has NOT not occurred when a baptized church member moves from one church to another church. That is church transfer not church growth. Vangoethem (2016) developed the theory which shows that, it is only God that makes a church to grow. It is therefore right to say that, the promoters of a give church may have funds for further developments.

However, if God has not purposed for the growth of that church, then, whatever the strategy to be used for growth, no success would be achieved. The theory contributes to this study due to the fact that money and capital developments are not possible without God. Likewise, the theory hold as well in this study to ensure that whatever growth is put in place and whatever has been achieved is due to God’s will and not by men’s will.2.

4.2 Capital Growth TheoryHakasson and Ziemba (1995) in his handbooks operations and management science, say that casual observation could strongly suggest that capital growth is not just a catch-phrase but one strives to achieve. It is therefore rather surprisingly that capital growth theory is relatively obscure subject. The great bulk of today’s leaners have had little or no exposure to the subject, having had their attention focused almost exclusively on the single – period mean-variance model of portfolio choice. This theory was developed by Hakasson and Ziemba in 1995. This theory proposes the principle that growth is not a catch – up phrase, rather it is something one is achieving by struggle and so the churches. It has a strength in that, to achieve capital growth in churches, a lot of struggle must be made.

Effective ways and means must be used in order to acquire necessary funds for the necessary capital and capital growth. The theory contributes to this study by cautioning the researcher to be aware that to have capital growth, it takes times and it is not just an easy ride.


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