As Christian leaders, we often hear or read about financial stewardship. But what does it mean? Is it all about money, or is it more than that?
That’s what we will learn in this article by discussing the following:
- Financial stewardship in a modern Christian context
- Ethical wealth creation
- Utilizing resources for the greater good
- Impact investing
Let’s get started!
Understanding Financial Stewardship in a Modern Christian Context
What is financial stewardship?
In a modern Christian perspective aligned with biblical financial principles, financial stewardship is the act of managing all resources.
It also means recognizing that everything belongs to God, and humans are caretakers of His resources. As Psalm 24:1 (NIV) says, “The earth is the Lord’s, and everything in it, the world, and all who live in it.”
True financial stewardship “isn’t just about managing what you have.” It is also “about multiplying your resources in a way that honors God and benefits others.”
This idea involves using money to help with God’s work, like supporting the church, charity, and community.
In this connection, the Bible encourages us to “give an account of ourselves to God” (Romans 14:12, NIV). Specifically, “each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver” (2 Corinthians 9:7, NIV).
Is it all about money?
No. Financial stewardship encompasses more than just money.
It also entails the following:
- Being a financial steward
- Investing in line with Christian values
- Supporting charitable causes
- Earning and spending honestly
- Ensuring long-term benefits
- Building community and prosperity
We will discuss more about the above concepts in the next section.
Key components of modern financial stewardship
1. Budgeting and planning
Modern financial stewardship involves making and following a detailed plan for your money, including income, expenses, savings, and investments.
Here are some of its benefits:
- It helps track where your money is going, preventing overspending and ensuring that all financial obligations are met.
- You can use it to set financial goals. These goals can include saving for a house, retirement, or a trip. You can also make a plan to reach these goals.
- It ensures that you have allocated funds for unexpected expenses, providing financial stability during emergencies.
In short, budgeting and planning ensure disciplined and purposeful financial management.
2. Generosity and giving
Modern financial stewardship also entails giving regular charitable donations and doing acts of kindness.
Doing so:
- Encourages a heart of generosity aligned with biblical teachings on giving.
- Provides financial assistance to those in need and supports community projects and nonprofit organizations.
- Creates a sense of purpose and fulfillment by contributing to causes that positively impact society.
In essence, giving reflects a commitment to help others and support worthy causes. This is an indication of being a good steward of money.
3. Saving and investing
Modern financial stewardship calls for setting aside some of your income for future needs. It also involves investing in assets that grow in value over time.
These are some of its benefits:
- It helps you save for future needs like retirement, education, and emergencies.
- Investing in stocks, bonds, real estate, or other assets helps grow your wealth over time.
- It helps you reach your long-term financial dreams by saving and investing wisely.
Overall, saving and investing ensure financial security and growth.
4. Ethical earning
Modern financial stewardship also implies earning money through honest, fair, and just means.
Doing so:
- Shows that you follow moral and biblical values in what you do.
- Ensures that your work and business help others and don’t hurt them.
- Builds a good reputation for being truthful and fair.
Having said that, ethical earning helps businesses and employment contribute positively to society.
5. Debt management
Modern financial stewardship means strategically managing and repaying your debts.
These are some of its benefits:
- It prevents financial problems and keeps debt manageable.
- It helps access credit in the future by handling debt responsibly.
- It reduces worry about money and makes the future financially safer.
Simply put, debt management helps maintain financial health and avoid excessive interest and financial strain.
6. Sustainability
Modern financial stewardship also involves making financial decisions for a long-term impact on the environment and society.
Doing this:
- Contributes to the protection and preservation of the environment.
- Supports practices and businesses that promote social well-being and equity.
- Considers the well-being of future generations.
Ultimately, it promotes a sustainable and healthy world.
7. Financial education
Finally, modern financial stewardship means constantly learning about financial principles, tools, and strategies.
It benefits you in the following ways:
- It gives you the power to choose well with a clear grasp of money matters.
- It improves your skills in handling money, investing smartly, and reaching financial goals.
- It keeps you updated on markets, tools, and rules so you can adapt your plans as needed.
With this, financial education helps you make informed decisions and improve your financial literacy.
Ethical Wealth Creation: Aligning Profits with Purpose
What is ethical wealth creation?
Ethical wealth creation means making money and building financial resources in an upright and socially responsible way.
It is also the “cornerstone of modern financial stewardship.” As such, it’s “not merely about the accumulation of wealth but also about the positive impact that wealth can create.”
Having said that, it ensures that the process of making money aligns with ethical standards and positively impacts society.
Methods for generating wealth that align with Christian ethics
1. Fair trade
Fair trade ensures that producers and workers get fair pay for their goods and labor. This practice covers the real cost of production and supports a sustainable livelihood.
Doing so promotes safe and ethical working conditions, preventing exploitation and abuse.
It also empowers local communities by giving them market access and fostering economic independence.
2. Socially responsible investing
Socially responsible investing means choosing companies that follow ethical practices, care for the environment, and act responsibly.
It involves picking firms that treat workers well, respect human rights, and avoid corruption.
These companies should use green practices, reduce carbon footprints, and support green technology.
They should also help society by addressing poverty, discrimination, and the lack of access to quality education and healthcare.
3. Ethical business operations
Operating businesses ethically entails being transparent, honest, and fair, and avoiding exploitative practices.
It requires treating all stakeholders, like employees, customers, suppliers, and shareholders, with respect and fairness.
This ensures open and honest communication about business practices, finances, and decisions.
It also promotes integrity by operating with honesty and moral principles, avoiding deceit and fraud.
4. Community support
Community support means offering jobs and support to local communities, especially marginalized groups.
It creates job opportunities, aiding economic growth and stability. It also involves creating programs for education, training, and resources to improve lives.
Doing so requires working with locals to understand their needs and find solutions, promoting growth and well-being.
5. Sustainable practices
Using eco-friendly practices in business helps protect God’s creation. This means using your resources efficiently to cut waste and reduce environmental impact.
It also involves investing in green technology for energy efficiency and renewable energy. This helps protect natural habitats, biodiversity, and the planet’s health.
6. Philanthropy
Philanthropy is giving part of profits to charities that tackle social, economic, and environmental issues.
It involves funding community projects that improve infrastructure, education, healthcare, and social services.
This aligns with Christian values of compassion, generosity, and stewardship. It shows a commitment to serving others and honoring God.
Businesses and individuals who successfully combine profit potential with positive social impact
1. TOMS Shoes
TOMS is a for-profit shoe company headquartered in Los Angeles, California.
Known for its “One for One” model, it donates a pair of shoes to a child in need for every pair sold. With this, the model has provided millions of shoes to children worldwide.
Aside from that, the company also engages in various initiatives. These include providing clean water, safe birth services, and bullying prevention programs.
It also highlights sustainable practices by using eco-friendly materials and manufacturing processes.
2. Patagonia
This is an American outdoor clothing retailer in Ventura, California.
The company focuses on reducing its environmental impact by using recycled materials and supporting fair trade.
It ensures fair wages and safe conditions in its supply chain. It has certification as a B corporation for meeting high social and environmental standards.
The company also dedicates a large part of its profits to environmental causes. These include donating 1% of sales to grassroots groups and funding climate change initiatives.
3. Chick-fil-A
Based in College Park, Georgia, this restaurant actively supports local communities through sponsorships, donations, and volunteering.
Known for its annual “True Inspiration Awards,” it gives grants to non-profit organizations.
It also creates a supportive workplace with scholarships, leadership programs, and strong benefits for staff.
The restaurant supports education, youth programs, and hunger relief through charitable donations.
4. Blake Mycoskie
Blake, the founder of TOMS, works on a vision to blend business with philanthropy.
His “One for One” model, which we discussed earlier, has inspired numerous companies to adopt similar social impact initiatives.
Through his speaking engagements, books, and mentorship, he also promotes the idea of socially responsible business practices.
As such, he has influenced a new generation of businesses committed to social good.
5. Dan Price
Dan Price, CEO of Gravity Payments, made headlines by setting a $70,000 minimum salary for all employees. He did this to address income disparity and boost employee well-being.
But despite higher wages, Gravity Payments thrives, proving that fair pay can drive business success.
Dan also creates a transparent, inclusive workplace with empowered employees, sparking discussions on fair compensation in business.
Christian entrepreneurs who practice ethical wealth creation
1. David Green
David Green founded Hobby Lobby, an arts and crafts store chain, in 1972 with a principle of generosity.
He focuses on giving back, with Hobby Lobby donating to charities such as Christian ministries and education.
The company also supports fair wages and ethical labor practices. For instance, David’s choice to close stores on Sundays accommodates employee rest and worship.
“If you have anything or if I have anything, it’s because it’s been given to us by our Creator,” David shares. “So I have learned to say, ‘Look, this is Yours, God…I’m going to give it back to You.'”
Such a humble entrepreneur!
2. S. Truett Cathy
In 1967, S. Truett Cathy started Chick-fil-A, a popular fast-food chain. He believed in putting people first, not just making money.
He believed in treating employees and customers respectfully for sustained success. This led to a reputation for excellent service and a supportive workplace.
Chick-fil-A helps the community, gives scholarships to employees, and closes on Sundays for rest and religious reasons.
Truett once said, “We’re not in the chicken business; we’re in the people business. We don’t claim to be a Christian business. But as an organization, we can operate on biblical principles.”
3. John Mackey
John Mackey co-founded Whole Foods Market in 1980, introducing conscious capitalism and ethical business practices.
His philosophy emphasizes benefiting employees, customers, suppliers, communities, and the environment, advocating for creating value for all stakeholders.
Whole Foods promotes sustainability, fair labor, and environmental standards, growing under John’s leadership while staying true to ethical principles.
According to him, “the most successful businesses put the customer first and invest in their team members and communities. This is the foundation of conscious capitalism.”
4. Horst Rechelbacher
Horst Rechelbacher founded Aveda in 1978 and later started Intelligent Nutrients. Both companies focus on environmental sustainability, ethical operations, and fair trade.
Horst manufactured his products using organic, sustainable ingredients. This made Aveda a leader in eco-friendly beauty practices.
He also believed that “the environment is everything that sustains us.” As such, “we must sustain it if we want to sustain ourselves.”
5. Jessica Honegger
Jessica Honegger founded Noonday Collection in 2010 as a socially conscious fashion brand.
The company partners with artisans globally. It offers fair wages and sustainable jobs to empower them and expand their access to international markets.
By doing so, Jessica believes that “we can use our purchasing power for good.” And together, “we can make a difference in the world by creating dignified jobs and opportunities.”
Utilizing Resources for the Greater Good
How to use your financial resources to support charitable causes effectively
1. Research charities.
Find and examine charities thoroughly to understand their mission and impact. Use credible sources like their website, independent reviews, and news articles.
Review their annual reports, financial statements, and disclosures about how they utilize donations. Assess their effectiveness through program outcomes and evidence of impact.
2. Select causes based on your values.
Choose projects that align with your personal and biblical values. These values may be poverty relief, education, healthcare, or environmental protection.
Doing so ensures your donations are meaningful and consistent with your beliefs. It fosters a deeper spiritual and emotional connection to your charitable efforts.
3. Diversify your donations.
Diversify your donations across different causes to make a widespread impact and address various needs effectively.
Balance your support among local, national, and international causes to address both community and global challenges.
This method spreads the risk and ensures your donations continue to make an impact. It helps in case one charity encounters challenges.
4. Engage in long-term support.
Support charities consistently. Regular donations offer stability, helping charities plan and implement their programs effectively.
Develop ongoing relationships with the charities you support. Stay connected to understand their needs and collaborate closely.
Long-term support ensures charities can sustain their efforts and create lasting impacts in their communities.
5. Volunteer.
Volunteer along with your financial support to see firsthand how you’re making a difference. Your involvement gives insight into the charity’s mission and enhances your understanding.
Offer your professional skills to assist in areas where you excel. This practice amplifies your impact and supports the charity’s operations.
Also, volunteering strengthens your bond with the charity’s team and those they serve. It creates a more personal and meaningful philanthropic experience.
6. Monitor the impact of your cause.
Regularly check how your donations impact the charity’s goals. Review their updates on program progress and success.
Ask for and read their impact reports or success stories. These documents show how they use your contributions and what impact they make.
Based on this, make the necessary adjustments. If the charity isn’t meeting its goals or using funds effectively, consider supporting more impactful organizations.
Impact Investing: A Tool for Sustainable Change
What is impact investing?
Impact investing means investing to make a positive impact on society and the environment while also earning financial returns.
Unlike traditional investments that prioritize financial profit alone, impact investing tackles important global issues. These include poverty, climate change, and environmental problems.
The basics of impact investing and its relevance to Christian values
Core components of impact investing
1. Purposeful intent
Impact investing aims to create positive social and environmental impacts alongside financial returns.
Investors actively seek opportunities that reflect their values and benefit society.
2. Financial gain
Impact investments strive for competitive, risk-adjusted financial returns.
While emphasizing impact, investors expect sustainable economic benefits from their investments.
3. Impact assessment
This process measures and discloses the social and environmental effects of investments.
It ensures transparency and accountability in achieving goals like poverty mitigation, environmental stewardship, and community enhancement.
Its relevance to Christian values
1. It is inspired by the principle of stewardship.
Impact investing aligns with the Christian principle of stewardship, which emphasizes responsible management and employment of God’s resources.
It ensures that you use financial resources to glorify God through positive contributions to society and the environment.
2. It promotes social justice.
Impact investments prioritize projects that mitigate discrimination, support marginalized communities, and promote fairness in economic opportunities.
This reflects the biblical call to advocate for justice and uplift the oppressed.
3. It nurtures compassion.
Investing in impact initiatives demonstrates Christ’s love and care for the vulnerable and disadvantaged.
It directs resources towards projects that improve the quality of life, empower individuals, and foster human dignity.
4. It advocates care for God’s creation.
Impact investing supports eco-friendly practices that follow the biblical command to protect the environment and conserve natural resources.
It promotes initiatives that conserve biodiversity, reduce pollution, and mitigate climate change impacts.
5. It encourages giving.
By investing in impact projects, Christians embody the spirit of generosity.
Doing so directs financial resources toward initiatives that benefit others and contribute to the common good.
6. It fosters community building.
Impact investments strengthen communities by supporting local enterprises, creating jobs, and fostering economic and social development.
These promote collaboration, mutual support, and collective well-being within communities.
How does impact investing fit into the framework of financial stewardship?
1. It aligns with Christian values.
Impact investing reflects Christian values like stewardship, justice, compassion, and caring for creation.
This is evident in supporting projects that benefit society and the environment. Doing so aligns with God’s call to care for others and the Earth.
2. It promotes financial management.
Impact investing integrates ethical considerations into financial decisions. This aims to achieve social and environmental impact along with traditional financial goals.
This approach helps align financial resources with God’s work on Earth.
3. It provides long-term benefits.
Impact investments lead to sustainable growth and resilience, contributing to long-term economic stability.
They also foster community development by creating jobs and strengthening social infrastructure.
4. It advocates selective investment.
Impact investing involves carefully choosing investments that align with ethical values and impact goals.
This selective approach ensures that you utilize your financial resources for initiatives that reflect Christian principles.
5. It encourages continuous evaluation.
Impact investing calls for regular evaluation of investments to ensure they meet both social and financial targets.
Continuous evaluation allows for adjustments to optimize impact and maintain alignment with your values.
6. It fosters active engagement.
Impact investing compels you to actively engage with the companies or organizations you invest in to influence positive outcomes.
This involvement enhances the impact of your investments and ensures an ongoing contribution to societal and environmental well-being.
The long-term benefits of impact investments for the community and the investor
1. Community development
Impact investments support local economies by creating jobs and addressing critical social issues like poverty and unfairness.
This leads to stronger, more resilient communities with improved quality of life for their residents.
2. Environmental sustainability
Impact investments promote environmentally sustainable practices that protect and preserve natural resources for future generations.
These investments help mitigate climate change and ensure a healthier planet.
3. Financial returns
Impact investments offer competitive financial returns, proving that it is possible to achieve profitability while making a positive difference.
This ensures that investors can meet their financial goals while contributing to social and environmental causes.
4. Reputation and legacy
Investing in impactful projects enhances an investor’s reputation for social responsibility and ethical practices.
It leaves a positive legacy by demonstrating a commitment to making the world a better place for future generations.
Appeal and Invitation
“Every dollar we steward can act as a seed for change. It’s not just an opportunity to grow our assets but also a chance to sow into God’s kingdom in meaningful ways.”
As faithful stewards of God-given resources, “our challenge is to transform our financial practices from mere transactions to acts of transformational giving.”
So, dear Beacon, are you ready to make a difference? Would you use your financial resources to support causes that reflect your faith and values?
Book a discovery call with me now and let’s work together to unlock your full potential. Through this, I hope you can also be part of a movement that shapes and empowers Christian leaders for God’s service.
Yours in Christian leadership success,
Tamara Jackson
