In late 2023, Barna Research, a trusted source for Christian insights, shared posts from their ‘The State of Generosity’ series. These posts, while primarily focused on non-profit generosity and stewardship, offer valuable, generational insights that are relevant to the Christian church. Even if you aren’t directly involved with church finances, the insights provided in the reports are thought-provoking. One post in particular, summarizing where young people place their trust, was eye-opening. As a Christian, the report read as a sobering commentary on how the younger generations (Gen X, Millennials, and Gen Z) view religious institutions, especially Christian churches. As a pastor in full-time vocational ministry, it’s a wake-up call to do better – much better.
The Hard Truth
Most employees have a certain level of dread when they hear it’s time for their performance evaluations or annual reviews. Employees prefer to hear praise about their successes and how their accomplishments made an impact on the organization. On the flip side, employees can be defensive when learning about areas that require improvements and may even poke at their insecurities. Barna’s “The State of Generosity” series feels much more like the latter, revealing areas where churches must improve. In short, the report shows that all generations have a fair amount of trust in financially supporting non-profits, with only 3%-7% showing they don’t trust non-profits at all. However, this key indicator changes dramatically when asked about religious institutions, showing that between 12%-18% do not trust religious institutions – the highest (18%) belong to both the Gen Z and Millennials generations. But for Christians, it gets worse. Although the report did not specifically identify Christina churches in the term religious institution, the follow-up question reveals that Gen Z and Millennials are more guarded when it comes to giving financial support. The report shows that 31% (Gen Z) and 33% (Millennials) are less interested in financially supporting non-profits that specifically uphold Christian values. If this were a performance evaluation, this surely falls into the “needs improvement” area. The truth may hurt, but it is an opportunity to grow.
The Opportunity
When younger generations scrutinize the church’s beliefs and teachings, leadership failures, unkind words, and unloving actions have become the prevailing messages all too often. The last thing the church needs is to pile on a heaping helping of financial misconduct to confirm the suspicions that churches, specifically Christian churches, are not worthy of trust. Fortunately, there is a simple way to establish and retain financial trust – the church budget. Remember, simple doesn’t mean easy; a church budget is so much more than a spreadsheet that only a limited number of church insiders see. It’s a thoughtful expression of applying every dollar donated to the church to accomplish the mission. It shows planning, dedication, and accountability through transparent communication. But really, what does that mean?
What Is A Church Budget?
A church budget is a plan developed by the church staff, board, and financial committee before the upcoming fiscal year to allocate every dollar to a category so that the church can accomplish its mission. The church budget is a living document shared with the church, monitored monthly through reports, and adjusted based on quarterly trends if necessary. Here are the essential steps to create an effective church budget:
- Define the goals for the upcoming fiscal year based on the church’s mission and vision.
- Create an accurate income projection (donations) based on attendance and giving trends for the upcoming fiscal year.
- Determine costs for the upcoming fiscal year based on new initiatives and known recurring expenses.
- Compare the income to the costs and adjust as necessary. The difference between the two must equal zero. Do not arbitrarily inflate the income to match spending. Conversely, do not leave income unassigned; assign every dollar to a category.
- Communicate the budget to the church. Countless hours and hard work went into creating the budget. It’s a road map to guide the church through the fiscal year. Sharing this important information demonstrates transparency, accountability, and trustworthiness.
While all the steps listed are necessary to create the church budget, the final step, communicating the budget, provides the best opportunity to grow trust – especially with the younger (Gen Z and Millennial) generations. While Boomers and Gen X may be satisfied with paper copies handed out at an all-church business meeting, the digitally native younger generations prefer electronic versions. Regardless of the method of providing the information, openly sharing how the church plans to spend its donations instantly builds buy-in, demonstrates accountability, and ultimately builds trust.
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