I don’t remember any course in Bible College or in Seminary where I was taught about Church Budgets, yet every year, I have to work with my Board, and then with my Church Members to build a Budget we can agree on for the next year. So I thought I would put out a couple of my thoughts on church Budgets. The points below aren’t in any specific order.
1. Budgets help determine how much money you expect to need for the year
Every church, like every family or business, has certain things that have to be paid every year, like utilities or mortgages. You need to make sure that you know how much it will cost to run your facilities. You need to know how much it will cost to put on your programs or run your ministries.
Along with the things that you have little say on and just have to pay, are the things that you can dream about and wish for. Maybe you want to upgrade facilities. You can budget that over a year or more, but it helps to know how much you need. Maybe you have some specific costs involved with your Children’s ministry as you buy curriculum or even put on a Children’s weekend. You will need to know how much that will cost. You need to know what you expect to do and how much it will cost in every part of your church life. That becomes your budget.
2. Budgets should reflect how much income you expect
Once you have determined how much you have to spend as well as how much you would like to spend, you need to see how this matches up with the reality of your projected income. While there must be an aspect of faith that God will provide what you need, you also need to recognize how much money you can realistically expect to have come in from your offerings. If you have been tracking things, you can check back on last year’s income and make a good projection from that.
Your income must be the same or higher than your budgeted expenses or you will be in trouble. You will have to either reduce your wish list, or increase your income in some way. But these have to match with each other.
3. Budgets help determine where or how money that comes in will be spent
Your budget helps you know how to designate your money. By building the budget you have determined what is needed for every aspect of you church. Now direct the money to those specific things. Don’t just spend it on any whim that you, your board, or your church may have.
4. Budgets are guidelines, not rules
Budgets are “best guesses”. This means you do your work on figuring out what you expect will come in and what you expect will need to go out, along with faith that God will provide for the things he wants to have happen in and through your church. But these cannot be “rules”. If you budget $2000 for utilities but your furnace dies and it costs more than the budgeted amount, you still need to get the furnace. If a certain ministry has $600 in its budget, but it realizes that it may cost $675 to do what they wanted, then there may have to be some leeway on what is needed. It would be wise for the leaders of that ministry to check with the board to see if this will be a problem. Obviously you cannot spend money you don’t have – at least you shouldn’t. But the Leadership Board should have the freedom to adjust the budget a little as you go. You should stick to it as closely as you can, but be open to discuss changes if necessary.
5. Budgets are best put together by the people or ministries or departments directly affected by them
I like to have the leaders of the different ministries work through what finances they expect they will need for the coming year. That way they will know what they have allotted to them and will not just think the Board came up with an arbitrary number out of nowhere. Help the leaders think through what their costs will be. Help them see that some ministries could also have ticket sales or donations that counter some of the costs.
6. Budgets should reflect your vision and goals
Budgets should reflect what you believe is important for your church. If your vision is focused on youth, you probably should have a significant portion of your budget going to youth. If you have certain goals you have set as a church, and these goals include certain costs, that should be clear from the Budget. Your money should go where your dreams and visions and goals are.
Just a few of my thoughts. Enjoy dreaming and then planning with good communication and by faith in God. God will always fund the ministries that He wants to take place in His timing.