Three Forms of Capital

The National Christian Foundation (NCF) serves thousands of families who want their children and grandchildren to be wise stewards of the “capital” they inherit. At NCF, hosted events on the topic of generational wealth transfer is always a standing room only opportunity for us to share our views on “Three Forms of Capital.”

When we hear the word “capital,” we understandably think of money.

Surely, “Financial Capital” is one enormously important element of the wealth transfer that is very much in play right now. What we know, however, is that there are at least two more important types of “Capital.”

The development of “Spiritual Capital” and “Character Capital” in our heirs BEFORE they receive “Financial Capital” radically improves the odds that they will become good stewards of the money they receive and the life they have been given. An inheritance of Financial Capital is like dynamite. If one knows how to utilize it, the blessings can be enormous. If one is not prepared to deal with it, the results can be disastrous.

Schools in “The Collaborative” face a real challenge in raising Financial Capital beyond what families pay for tuition and other direct expenses needed by schools to keep the doors open and learning flowing. When schools limit fundraising efforts to specific needs for Financial Capital, they face a mindset among many families that they have “already given.”

Further thought and planning can be given to an additional fundraising strategy, which schools are well-positioned to promote: the development of spiritual and character capital in schools, thereby training students to be wise stewards in the use and management of Financial Capital in the years ahead. The NCF has people waiting in line to hear about how training in these two areas of family development can help achieve what they pray for as they contemplate the transfer of Financial Capital.

Let me quickly acknowledge and give great thanks for the outstanding work schools are doing in developing Spiritual Capital and Character Capital in their students. My point in this Giving Guide is that there may be a strategic opportunity to connect that work very creatively to a greater release of Financial Capital by helping transform families into becoming greater, more trustworthy stewards of the Lord’s resources.

Spiritual Capital is, of course, about our relationship with Jesus and our knowledge of His Word. Within this, however, is a massive authority on being a responsible steward of Financial Capital. And within that, is the incredible importance of training our students to understand that God owns everything and we are stewards of what is His. This “who is the owner” mindset tops the list of strategic importance for fundraising. Owner mindsets give less. Steward mindsets give more. (Note: This will be the topic of an entire article down the line.)

Character Capital can be defined in one way by capturing Biblical authority on the character of God. We are made in His image, and there is a wonderful opportunity to train up our students to become more like Him.

While readers of these reflections will instantly think of other Bible passages which reveal the nature of God (like 1 Corinthians 13:4-8 and Exodus 34:6-7), just ponder the Character Capital learning opportunities around Isaiah 11:2 and Galatians 5:22:

What if we had generosity lesson plans that focus on the attributes of God, which are available to students as their characters are shaped? What if we sent our students home with a few key points to discuss around the dinner table or in other settings?

Increasing a harvest of Financial Capital can be greatly assisted if schools expand their fundraising focus to offer what they are best equipped to offer: training children to “own” Spiritual and Character Capital, which will determine whether the Financial Capital they are given is used well.