Since going into full-time ministry in 2006 as the person primarily charged with the oversight of the finances of our church, it’s been my mission to seek the wisdom found in the Bible to shape and direct how our church stewards (manage) the resources entrusted to us. For me, the Bible is so much more than a compilation of ancient writings containing poetry, history, and prophecy. Although over forty authors wrote the words of the letters and books that make up this holy text, followers of Jesus believe “All Scripture is inspired by God and beneficial for teaching, for rebuke, for correction, for training in righteousness; so that the man or woman of God may be fully capable, equipped for every good work.” (2 Timothy 3:16) It reveals the heart and mind of God. While the word “budget” is not specifically in the Bible, God’s word doesn’t shy away from the topic.
Money Is A Little Thing
In the Gospel of Luke, Jesus wraps up the parable of the unjust servant in chapter 16, verse 10, by saying, “He who is faithful in a very little thing is faithful also in much; and he who is unrighteous in a very little thing is unrighteous also in much.” This verse remains a constant encouragement to me; it’s a reminder that money is a very little thing to God. Over and over, the Bible points out that everything belongs to God (Psalm 24:1, Psalm 50:10, Haggai 2:8); it’s our job to manage the resources in a way that brings glory to God and fulfills the mission. When churches learn to manage money (the “very little thing”) well, there’s a high likelihood they are managing other things of greater importance well.
Churches Need A Plan
Churches can demonstrate their ability to manage money with purpose and transparency by creating and following a budget. A church budget is simply a plan that shows how the church plans to use its financial resources to accomplish its mission. On the surface, it sounds easy. But a well-thought-out budget takes months of planning and vision casting. Slapping some numbers into a spreadsheet and hoping it all works out at the end of the year is not faith – it’s foolish. Although Jesus was talking about the cost of following him, his words ring true when building a church budget: “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish.'” (Luke 14:28-29). Churches need a budget (plan) to manage God’s resources well.
Building A Church Budget
Considering how different we are, it’s fascinating to know that about 99.9% of all humans share the same DNA. The same is true for many churches; while the vast majority have the same basic beliefs, there is still so much that makes us different. While there is no “one-size-fits-all” approach to budgeting, there are five essential elements to creating an effective church budget.
- Cast the Vision: The church’s mission is unlikely to change from year to year, but there is a good chance that the church sets new goals each year to carry out the mission. Before the budget begins, know the goals for the upcoming to determine the financial resources necessary.
- Project the Income: Accurately estimating the amount of income (primarily donations for a church) requires historical data to determine attendance and giving trends. Projecting the income is too vital for a wild guess. Churches estimating income far beyond their capacity may face a financial catastrophe. Estimating too little robs the church of accomplishing its goals.
- List the Expenses: Each operational and ministry budget needs to use historical data to determine the cost of recurring expenses like mortgage/rent, utilities, insurance, curriculum, etc., factoring inflation into the calculation. It helps to know healthy church percentage ranges during this step. For example, churches should know how much of the budget goes to compensation or ministry. In addition, each area must project the cost to accomplish the new initiatives for the upcoming year.
- Compare, Refine, and Finalize: After the operational and ministry teams submit their budgets, it’s time to compare them to the projected income. It’s perfectly normal that the submitted expenses exceed the income projection. The church’s leadership team determines where to cut based on mission, vision, and values. It may take several iterations before the expenses and the income equal.
- Communicate: Finishing the church budget is a big deal – don’t keep it a secret. After finalizing the budget, inform the stakeholders (elders, church staff, and key ministry leaders) and provide them with a copy for their area. Then, announce it to the rest of the church. This step demonstrates the kind of accountability required to build trust within the church.
The budget shows everyone how the church manages God’s resources and keeps leadership accountable for fulfilling the church’s mission and vision. Being faithful with very little is an excellent indicator that the church is faithful in much.
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