Those working in ministry must learn how to work through adversity to survive. It’s part of the calling. Proverbs 24:10 says, “If thou faint in the day of adversity, Thy strength is small.” Adversity is a strange and wonderful way to refine and reveal character, resolve, and priorities. Admittedly, I’ve probably had more than my fair share of difficult transitions during my tenure as an Executive Pastor. When I began my vocational journey on the church staff, the church was experiencing a major upheaval about our ministry philosophy (how we do Sunday service). It was so contentious that about half the congregation decided to leave. It was heartbreaking that suddenly, friends were no longer worshipping together. However, as the pastor overseeing the church’s operations, the issue was not just emotional or relational; it became financial. It was clear significant adjustments to the budget were necessary. The financial adversity refined the church’s priorities and revealed our strength.
Experience Is The Best Teacher
Thankfully, the experience gained during this adversity provided the insight and strength to navigate a few other difficult situations, including the pandemic, that impacted the church’s finances. I became very good at budgeting when finances were tight. Using established best practices and relying on reports to determine healthy church budgeting percentages, we became quite adept at identifying strategic budget line items to reduce. But the truth is, I’ve never been fully comfortable increasing the budget when all indicators show growth. There are so many worthy initiatives that it’s hard to know where to begin. If your church is in that sweet spot of growth after a few years of ratching things back to ensure financial health, here are a few areas to consider.
- Compensation: When churches face financial adversities, compensation is often a targeted area since it typically makes up between 45% and 55% of the entire church budget for healthy churches. However, the percentage of compensation to the total budget only provides part of the picture; churches also need to review the congregation-to-staff ratio. Strategic cuts to compensation are often necessary when churches find their compensation exceeds healthy parameters during financial adversity. Cuts to compensation can take many forms, like reduced salary, reduced benefits, and even eliminated positions. Once the crisis is over and the church is ready to expand the budget, it’s time to evaluate increases in compensation. Think strategically and ask questions like, is the position eliminated during the crisis creating a barrier to further growth in the church? Is a one-time bonus for high-achieving staff members a better long-term option than committing to pay increases? Or is wage stagnation keeping the church from retaining top-tier employees? Asking hard questions and understanding the long-term viability of the budget increase provide clarity on the next best step when applying an increase to the compensation budget.
- Facilities: Deferred maintenance can quickly become a neglected facility during financial adversity. While a church (or any facility) should never compromise safety for dollars, it may not look as inviting or ready for guests as it used to. An increased budget provides the perfect opportunity to improve the facility’s look, like fresh paint or refreshed landscaping. It’s time to evaluate the cost of embarking on projects that could have long-term savings, such as switching to LED lights or programmable thermostats. The needs of a facility are limitless and require the church to set priorities based on cost and need.
- Ministry: Times of financial adversity force churches to lean heavily on volunteers, and this is an excellent model to follow when moving into times of financial increase. In other words, avoid the temptation to hire more people to “do” ministry. Instead, focus on how to improve ministry through volunteers. What resources do they need to be more effective—training, equipment, encouragement, etc.?
Experiencing financial adversities became a proving ground for our church and me, revealing our character, resolve, and commitment to the mission. The Apostle Paul wrote to the church Philippi, saying, “I know how to survive in tight situations, and I know how to enjoy having plenty. In fact, I have learned how to face any circumstances: fed or hungry, with or without. I can be content in any and every situation through the Anointed One who is my power and strength.” Philippians 4:12-13 (The Voice). Ministry does that to us. It puts us in tough spots and teaches us to trust God in all situations.
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