I started my career in the mid-1980s as an accounting clerk at a large restaurant chain’s corporate office. As part of the month-end process, I would get out the ledger sheets and a ruler and run two tapes from the 10-key to verify my work before using red and black ink pens to fill in the account information on the ledger sheet to reconcile. It was a tedious process, and it took several days to complete since I had about 25 restaurants – and I was just one of many accounting clerks. Then one day, I saw a PC running DOS with Supercalc installed. (For those who have no idea what I just said, before Microsoft unleashed Windows 3.1 in 1992, most PCs ran on DOS, and Supercalc was a very early version of spreadsheet software.) I used my free time to put everyone’s ledger sheets into Supercalc. What happened next was eye-opening and transformational in my thinking. What used to take four people several days could now be accomplished in a fraction of the time by eliminating the 10-key, the ruler, and the colored ink pens. Supercalc on DOS gave me a glimpse at the future’s possibilities, but there is no way I could have imagined the prominence of technology in every area of our lives today.
Churches Use Technology
Today I’m an Executive Pastor, and I still see how technology can improve processes, security, communication, and outreach. And I’m not alone. According to the 2021 State of Church Technology report, 93% of churches surveyed believe technology is essential in achieving their church’s mission. In a post-pandemic world, many churches now provide online-streaming options in addition to their in-person gatherings. When families arrive on campus, there is a check-in system, usually a touchscreen device, where the family enters their ID, and it prints labels for the kids. All of this is possible because a router on campus provides internet access via WiFi or ethernet. This same access to the internet allows communication through email or Voice Over IP phone systems, not to mention the Church Management System (ChMS) and other cloud services. Technology runs all the audio-visual components of the worship services we enjoy each week. A church website is no longer an “insider” tool that shares upcoming events and allows people to donate online – it’s an outreach tool. Something as vital as technology must be a significant player in church budgeting.
Budgeting IT
John Maxwell said it best, “A budget is telling your money where to go instead of wondering where it went,” and that’s just as true for church budgets as it is in personal finance. Building a church budget takes time, a team, accurate data, and it should focus on accomplishing its mission. Budgeting for IT is not much different than budgeting for any other aspect of the church budget – it starts with understanding the mission, vision, and the church’s particular focus for the upcoming year. For example, suppose the focus for the upcoming fiscal year is to partner with the local community to serve the under-resourced. In that case, the IT budget strategy is different than if the focus is to improve slow and ineffective processes, like checking in children. Then the budget should reflect those IT hardware and software needs.
When putting together the IT budget, here are a few considerations to help the process:
- Analyze Data. Use the prior year’s spending against the budget and project the costs for the upcoming fiscal year—factor in changes in pricing on services like ISP, ChMS, data storage, software subscriptions, etc.
- Plan for Growth. Does the budget include plans for new staff or facility renovations or additions? Price out the cost of new (or refurbished) desktops or laptops for the new staff. Get quotes on running cables, adding WiFi access points, or expanding related equipment.
- Partner with other Areas. Often ministry areas plan new and exciting ways to accomplish the mission but aren’t always thinking about the hardware, software, or infrastructure needs. Collaborate with others in the early stages of the budget process to understand their dreams and needs.
- Develop a Hardware Replacement Strategy. From an accounting perspective, IT equipment typically depreciates in 3-5 years. But the reality is different depending upon the type of equipment (desktop, laptop, printer, server, access point, router, etc.), the quality of the equipment, and how well the equipment is maintained. To avoid burdensome and expensive capital expenses by replacing all the equipment at once, build a plan around the existing equipment to replace some hardware every year.
Operating a church has changed considerably over the last few decades. Bookkeepers and accounting clerks no longer use ledger paper and a 10-key to perform their functions; they use Excel or Numbers and print the reports on laser printers over the WiFi. Churches no longer check in kids using a highlighter and a wristband; they use touchscreen devices that print name tags alerting teachers about allergies. Funding IT is no longer an area to ignore or cut when budgeting; it is an integrated part of accomplishing the church’s mission and must reflect its importance in the church budget.
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