Giving Tuesday is a wonderful reminder of how God calls us to live generously. But what if this day could also inspire a lifestyle of intentional giving all year long? Hi, I'm Rob West. Today we'll talk about how to approach generosity with both heart and wisdom.
So our giving reflects God's purposes, not just the moment. Al Mueller joins the show today to share how to give with impact, evaluate ministries well, and experience the joy of stewardship. And then it's on to your calls at 800-525-7000. That's 800-525-7,000. This is Faith and Finance, biblical wisdom for your financial decisions.
Joining us today is Al Mueller, founder and CEO of Excellence in Giving and a former executive with Morgan Stanley and UBS. Al, great to have you back with us. A pleasure to be here with you, Rob. Al, let's start here. What does Giving Tuesday mean to you, and how can believers approach it with a heart of stewardship rather than simply giving on impulse?
Well, giving Tuesday is a great opportunity to begin acting on generosity, but it's also a moment to pause and align with God's purposes. Stewardship asks not just what we give, but why and where. 2 Corinthians 9:7 reminds us that each one must give as he's decided in his heart. not reluctantly or under compulsion, For God loves a cheerful giver, and it's a chance to be intentional. We can link our gifts to ministries that are both high impact and faithful, and we get a chance to be prayerful and strategic, and generosity then becomes part of our worship.
So it's less about a single day and more about cultivating a lifestyle of generosity. Yeah, thanks for that distinction, giving that's not only spontaneous, but also intentional.
So let's then get practical for a minute. What does that look like in practice?
Well, I think God gave us both a head and a heart. He didn't say pick one.
So we need to look at the different opportunities with both a head and a heart and say, well, what sort of kingdom outcomes do I want to see? And stewardship is really about impact. God is a God of measurement, and he loves seeing the fruit of transformed lives, and so should we.
So, Giving Tuesday can be that starting point for the year-long process. Posture of generosity, and we want to encourage.
Sort of a both and approach to giving, not an either-or approach. And some will be planned and some will be spontaneous. Yeah, I love that head and heart.
Now, Al, you lead Excellence in Giving, which equips families and foundations to give wisely.
So, let's talk about how your team helps donors bring greater excellence and purpose to their generosity. We're essentially serving these families as a foundation staff would, and we want them to have more information so they can give more effectively. We provide research, due diligence and accountability for the ministries that they fund. And our goal is to have clients go from being a reactive giver to more proactive givers. They want to be the spirit-led, but they also want to engage with facts and information.
And ultimately, our mission would be to help the clients experience the joy of generosity. And they get that by making high-impact gifts and get really high-quality reports back that they can use to celebrate. I know you and your team are world class in what you do. We're going to share some ideas today that'll be helpful for anybody. But who is your typical giver client?
What do they look like in terms of a profile? Our clients are in what we'd probably consider ultra high capacity. They have the ability and desire to give away a million dollars or more each year out of a source of income or sale of assets. And they have a huge variety of things that they want to support both domestically and internationally. And the main common denominator they want to give the things that work.
Yeah.
Well, and obviously, you do that with great care. And as you said, you provide really exciting reports for them to celebrate. It's all around intentionality, but you don't have to give at that level to give intentionally, do you, Al? Not at all, not at all, everyone. You know, can do their own homework.
There's a lot of reasons why that there's a lot of resources to look at different ministries, how they perform. You want to ask certain questions, and everyone should do their own homework. I mean, I think that. You know, as a former person, served on Wall Street, served a lot on very high net worth families and organizations. I would have probably been fired if I told him I was getting my.
Information by things that just came to me in the mail. You have to do your homework, and everyone can do some homework. Yeah, that's exactly right.
Well, we're going to continue to talk about giving wisely and intentionally just around the corner with Al Mueller. We'll talk about how do you evaluate ministries. We'll talk about some red flags that might make you think twice before giving. We'll also talk about something called collaborative giving. Al Mueller is with us today.
He's the founder and CEO of Excellence in Giving, and a lot more to come just around the corner. Stay with us. Imagine having biblical financial wisdom delivered to your inbox every week, helping you integrate your faith and financial decisions for the glory of God. At FaithFi.com, you can join a community of over 70,000 people who are already receiving our weekly wisdom email, filled with articles, videos, podcasts, and exclusive offers on resources that will deepen your understanding of biblical stewardship. Start your journey today by creating your FaithFi account at faithfi.com.
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Learn how at faithfi.com forward slash NCF. It's Giving Tuesday. We're talking about giving wisely and intentionally. To help us do that today is my good friend Al Mueller, founder and CEO of Excellence in Giving. They come alongside high-capacity givers to make sure they're giving strategically and intentionally with some incredible due diligence and reporting after the gift so they can see the real impact.
And Al, even though you all serve high-capacity givers, you know, the principles and ideas we're talking about today really apply at any level of giving. It's really just about being strategic and intentional. And one piece of that is evaluating ministries.
So what key things should listeners consider when deciding where to give? I think the starting point would be to ask the ministries what problem they're trying to solve and what they think the root cause of that problem is. And what their results have been when they've tried to solve that problem. We should look for fruit. And measurable outcomes that would demonstrate, in most cases, life change.
And we want to review their Leadership stability, their donor retention, their staff turnovers, and ministries will provide honest, timely reporting. that helps you build transparency and accountability. They um the ministries really should communicate clearly how the gifts are being used, and uh a strong ministry will welcome that. They'll welcome your questions and they'll want to they see accountability as part of their discipleship and part of their stewardship. Yeah, that's really helpful.
And on the other side, what are some red flags that might make you think twice before giving?
Well, I think that the vagueness or vision without a plan, sometimes we refer to that as a ministry hallucination. It'd be similar to someone walking in and saying, I'd like money to build a house, but I don't have any blueprints or any plans or any cost estimates. I think you'd be pretty reluctant to start having someone build your home without. Blueprints or plans or cost estimates. But I think a ministry that has an overemphasis on emotion or urgency instead of results, they sometimes will lack reporting or they're unwilling to share outcomes.
Sometimes they'll over-spiritualize it and say you really can't measure what God does. There's also a concern sometimes that there'll be an overdependence on a single donor. And that there's a constant appeal for more money usually indicates that they're in financial trouble. Al, would you encourage givers to ask what percent of every dollar gets to the actual cause or issue versus administrative costs? I would.
I think that looking at how much ministry comes out on the other side is probably even more important than how much their costs to do ministry because ministry has different seasons. They might have just hired a new development director and that person at him or her has not had time to start developing or cultivating relationships.
So they may have some sort of peaks and valleys. I think you want to look at it over time, not just any one single year. Yeah, that's helpful.
Now, I know there's a newer trend in giving around collaborative giving, and I know you really like that. How does that work in practice, and why is it so impactful?
Well, I think there is a trend towards that. The collaborative giving pools are putting like-minded donors together for greater impact. I think that ministries can get larger. Strategic grants rather than individual, I would say, piecemeal funding. If a ministry tried to get a million dollars and they were trying to go to large Christian foundations or individual donors, they'd have to ask a lot of different donors if they can go to one single pool of capital that has a similar vision and convince them and lay out their plans and start working together strategically.
Then it avoids duplication and saves the ministry quite a bit of time. And I think also it's a great model of unity in the body of Christ for the donors to work together with a ministry to accomplish something bigger. Yeah, I love that. How do you strike the right balance between trust and accountability? Because I know some donors are concerned about crossing the line into micromanagement, and nobody likes that.
No, I think it goes back a little bit to our President, Ronald Reagan, who said trust but verify. And I think the idea of accountability isn't necessarily a request for control. It's really a request for clarity and information. And I think that donors would like to understand the executable plans and measure results. And that healthy relationships are information given and not control driven.
I've encouraged some ministry leaders to think about reporting and change the word to blessing. I think almost every ministry leader would like to bless his donors, and I think good reporting, good information is really a key way to bless the donors. I love that idea. Al, let's turn our attention to the next generation. There's a lot of studies that have recently been completed or underway right now, just looking at this next generation of givers.
What are you seeing in terms of trends around how younger givers are approaching generosity differently than their parents?
Well, this generation is definitely more international than their parents. They understand things going on around the world almost in real time. They are much more results-oriented. They want to see what happens before the gift and then after the gift. They're experiential.
They want to do site visits. They want to have direct engagement. They give from conviction, not just obligation. And it's exciting to see the young donors develop their own version of their financial discipleship and stewardship. They have a passion for transparency and impact, and I think they're going to reshape the future of Christian philanthropy.
Yeah.
What about just the actual dollars given? Is there any indication that we're going to see an uptick in giving as this new generation begins to be the the drivers? I don't know if that I think it might be a little too early to tell on that, Rob. I think that they are more willing to give. I don't know what the dollars will look like.
I think there's going to be a big wealth transfer from parents to the children. And I would hope that a lot of that transfer will become in the form of philanthropic capital, or at least capital that could be used for kingdom purposes.
So I think there'll be inheritors that will have an opportunity to do that, put significant dollars to work.
Well, I love that they want to attach meaning to money, and I think that is going to result in some significant giving. But I think the trends you've highlighted here are really significant. Al, you've said that there's an important distinction between being generous and being a steward. Unpack that for us.
Well, the stewardship, if you went back to the first century, the steward was someone who was in charge of the family, the finances, and the fields. And they were very carefully selected. I mean, if a noble person was going to hire somebody to be a steward, there was a lot of responsibility that went along with that. And the steward had to know what was in the heart and mind of the master and execute accordingly.
So I think a steward is someone who has to do their homework and they have to give with discernment. And I think that's just a higher calling than someone who is generous. I think the steward has to know the master and what the master wants done. And if we believe that all the resources we have in our control are really ultimately belong to the master, belong to the Lord, then we have to find out from the Lord what he wants done with his resources. And that will be the goal or the finish line for us to hear that well done, good and faithful servant.
I love that.
Now we're just about out of time. Where can folks go to learn more about excellence in giving? Our website is www.excellence ingiving.com, and we have lots of examples and research summaries. And we also have a monthly e-newsletter that comes out and has a lot of interesting topics in philanthropy. Be happy to see some snapshots of the ministries, some stories of the way our clients have given.
Some results from those gifts, and it'll be a great opportunity to start a discussion.
So, excellenceandgiving.com would be where you'll find most of our material. Al, thanks for joining us today. It's been a pleasure. Thank you, Rob. Enjoyed it.
That's Al Mueller, founder and CEO of Excellence in Giving. By the way, speaking of giving, if you'd like to partner with us here at Faith Phi, you can consider becoming a FaithPhi partner when you go to faithfi.com/slash partner. All right, your calls are next. The number 800-525-7000. That's 800-525-7000.
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We want to help you manage it wisely and faithfully over your lifetime. You can call today with your questions, your very specific financial questions at 800-525-7000. We've got some lines open today and we'd love to hear from you. Call right now, 800-525-7000. We're going to go to Ohio.
Jennifer, go ahead. Hi, Rob. I was wondering what your thoughts were about annuities for people getting close to 70 years old. Yeah.
You know, it really depends like anything, Jennifer, on your goals, your income needs, and your risk tolerance. But let me give you kind of a way to think about it, and then we'll talk about your situation.
So, for somebody around 70, annuities can serve a valuable role because they convert savings. into guaranteed income for life. And so the people that buy them are looking for peace of mind and protection against outliving their money.
So let's break that down: lifetime income. You see, you could buy what's called an immediate income annuity. And you would get monthly payments starting right away in exchange for that lump sum you put in. Or you could do a deferred annuity where it grows for a period of time. You know, if it's a fixed annuity at a fixed rate of return, and then you could convert it to an income stream down the road.
And that provides the predictability because the fixed annuities offer stable bond-like returns without market volatility. And most of the time people buy these, they're looking to transfer the risk away from themselves when they're invested in the market and place that risk on the insurance company. And it helps with what's called longevity risk. Even if you live well past your life expectancy, which can be reassuring for retirees.
Well, why didn't everybody do this? And why isn't it my default recommendation?
Well, there are, of course, trade-offs, like with anything.
So, the first one is liquidity. Meaning, once you purchase most annuities, your money's locked in. And early withdrawals can mean surrender charges or penalties, especially if you go beyond a certain amount, which often they'll give you per year. Second is inflation risk, meaning payments from fixed annuities don't rise with inflation.
So your purchasing power declines over time. And then finally, they're just complex and expensive. You know, there's just a lot of fine print. A lot of people struggle to kind of understand what they're buying. And, you know, they do have lots of fees built in.
And so for most people, I would prefer they just take that same lump sum, keep it invested, perhaps with a certified kingdom advisor managing it. Yes, they're bearing the risk, but you can mitigate that risk through a properly diversified portfolio. You keep full access to the money and you're not limited on the upside. If the market does really well, like it's done the last several years and Even the decades before that, you know, you'll get that full upside for that portion that's in stocks, and you could do a little bit better than you might do in an annuity. And that might help you, you know, keep up with inflation if you live for the next 30 years, let's say.
But anyway, I've thrown a lot at you.
So give me your thoughts on that.
So what I hear you saying is that if I'm not a risk taker, Um then it's better to keep it in the stock market.
Well, if you're not a risk taker, meaning you want peace of mind and you want predictability, I would say that's where an annuity can work. Because people who are looking for predictable income And where they're looking for bond-like returns without having to ever think about the stock market, that's what an annuity offers. And so that's where these do shine. But with that, you have to accept the loss of liquidity because you're locking up the money. You have to accept the fact that you're kind of locking into a lower rate of return than you might get.
With a portfolio that has at least some exposure to stocks, which gives you longevity risk. And, you know, but as long as you're okay with that, you say, no, I've run the numbers. If I can get, you know, locked in somewhere around 6%, you know, or 5.5% for the next. You know, 20 years, and I could convert that to an income stream down the road. I'm happy with that, and I don't even have to worry about what this market's doing.
Well, that's where these can be effective.
Okay, so I I understood it separate.
Now I get it, or backwards. I mean, now I understand what you're saying.
Okay, yeah. I think that then an annuity. I just heard somebody give a speech about it, and you know how they can make it sound really good.
Well, they do, and usually there's a meal involved. And most of the time, you're sold an annuity. Very few people go out looking to buy an annuity. Most often, they're sold one by somebody who's selling them, which I think just underscores. That's why I think for the vast majority of people, I would rather they keep full access to their money, invest it in the market, deal with the risk through the diversified investments, and having plenty of exposure to things that are more stable, like bonds.
But if your priority is predictability, income, and you don't want that market risk, well, then an annuity can be a great way to go. But I would get multiple recommendations from at least three different people. Thanks for your call. Let's head to Tennessee. Hi, Philip.
How can we help you? Hey, Rob. Thank you for taking my call and for what you do. My wife and I, we're senior citizens. We're sixty eight, sixty nine.
I'm still working, and we recently have gained custody of our ten year old granddaughter, Her father passed away and her mother is not in her life and We're just wanting some direction and understanding as it relates to setting up a trust Yes. For her for later in life. And so we're obviously brand new at parenting again. And so any advice you have would be appreciated.
Well, first of all, Philip, I'm delighted you called. Secondly, God bless you for stepping in and providing this needed caretaking role in this little one's life. And man, that's on the heart of God. I know that's making the Lord smile.
So kudos to you guys. Two things immediately come to mind. One is to make sure you update your will because that's how you're going to name a guardian in the event you and your wife were to both pass away. You want that guardian named as to who would be the next guardian after you, and that comes through just your basic will. Beyond that, you're right on.
I would be putting a revocable trust in place. That's going to basically dictate how you will pass along assets according to your wishes when you die. And in whatever timeframe you set, it's also going to allow you to place. Conditions on that.
So the money may be distributed over time. It may happen at certain triggering events, you know, specifically for college and at certain intervals throughout her life. Plus, you'd also name a successor trustee to execute your wishes once you've gone to home to be with the Lord and be that trusted person to oversee the trust and distribute the assets accordingly.
So I think your next step is to visit with your estate attorney. If you don't have one, I'd head to our website at faithby.com and any one of those CKs could refer you. But you want to update your will with the Guardian and you want to get that revocable trust set up. God bless you, Philip. I'm sorry I didn't have more time, but thanks for being on the program.
A big thanks to my team today. Taylor Stanrich, Devin Patrick. We're also grateful for Pat Montague and Adam Suddeth as well. And we'll see you tomorrow. Bye-bye.
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