Dave Says: Church Gets Large Donation of Single Stock

Dear Dave,
Our church just received a very generous donation of $100,000 in a single stock. We’re looking at using this money in about five years to build a new sanctuary. Do you think we should leave the money where it is or invest it elsewhere?
--Fred

Dear Fred,
I’d get the money out of there in a heartbeat. Parking money in a single stock is an ultra-high risk. I’m guessing that the person who made this donation viewed it as a great tax move for them, but it’s a really bad place for a church to leave the money.

The leadership of a church is there to minister to the people, and put together facilities and programs to help the congregation and the community. They are not there to be single-stock speculators and gamblers. All churches have business people in them, and sadly they end up bringing both good and bad business practices from out in the world into God’s house. This isn’t a good idea, either, because you have different motivations and different mission statements at work.

The Bible itself says to “spread your money to seven, yes to eight portions, because you do not know what disaster may come upon the land.”
-- Dave