If you’re reading this post, it’s most likely because you are part of the financial team at your church. And when it comes to building a church budget, there are so many good questions to ask. Questions like what is a healthy percentage to spend on compensation, facilities, outreach, or operations? Churches new to budgeting may be curious about how long it typically takes to build a church budget from start to finish or how to project the income accurately. These are all good questions, and the church must seek the answers, but not before they ask the most important question – how does the budget support the church’s mission? Before trying to answer the question, it’s essential to have a basic understanding of a mission and a budget.
What Is The Mission
Many often confuse the mission statement with the vision. Over the years, I’ve heard many definitions of a mission, but the most succinct way to define an organization’s mission is to state what it does clearly. Since the mission is what we do, that means the vision is what we see. The vision paints a picture of a future state. For many Christian churches, the Great Commission, given by Jesus in Matthew 28, is the basis for their mission. There are a multitude of clever and current ways to say, “18 I am here speaking with all the authority of God, who has commanded Me to give you this commission: 19 Go out and make disciples in all the nations. Ceremonially wash them through baptism in the name of the triune God: Father, Son, and Holy Spirit.” That is what churches do. That’s their mission.
What Is A Budget
John Maxwell said it best when he said a budget is simply a plan telling your money where to go instead of wondering where it went. That concise definition works for personal finances and churches. It’s not a tool used to punish or restrict; it’s a way to plan how to best use each dollar entrusted to your church and the freedom to pursue the mission and spend within the budget.
There are five basic steps to building a church budget:
- Set Goals: Before putting numbers into a spreadsheet or accounting software, the church’s leadership must agree upon the goals for the upcoming fiscal year.
- Estimate Donations (income): Project the donation totals for the upcoming fiscal year based on current attendance and giving data. It’s important not to create an unrealistic projection of donations as this could quickly become a financial crisis.
- Build Budgets: Have each ministry and operational area build its budget based on the goals the church plans to achieve in the upcoming year while still including ongoing costs such as rent/mortgage, utilities, curriculum, etc.
- Compare and Adjust: The budgeted expenses cannot exceed the church’s estimated donations (projected income). During this stage of the budgeting process, conflict may arise, highlighting the importance of clarity on how best to fulfill its mission and goals.
- Share the Results: Once the budget is complete, it’s time to let the church staff, board, committees, volunteers, and church congregation know how the church plans to manage the donations.
Does the Church Budget Support the Mission
Defining the mission and building the budget are tangible tasks. However, answering the important question of whether the church budget supports the mission can get murky. For example, one church may find investing in new and improved equipment to livestream the church service absolutely fulfills the mission because it allows the church to go beyond the physical limits of a facility and allows the church to share the Gospel with people all over the world. At the same time, another church would rather focus its energy and efforts on creating a better on-campus experience instead of investing in technology, allowing a much more personal approach to sharing the Gospel. Since both methods support the mission, one is not better than the other; it comes down to preference and financial resources. Where the online investment example demonstrates a gray area, other budget items falling outside the scope of the mission are more straightforward. For example, when looking for ways to maximize every dollar in the budget (that’s code for budget cuts), ordering expensive disposable coffee cups with the church’s logo when generic, less costly cups are available makes for an easy choice. The mission isn’t to say, “Look at our church;” the mission points people to Jesus.
When building a church budget, asking hard questions about compensation, facilities, outreach, etc., is expected, but they are not the most important questions. The best question is how each line item supports the mission. Discovering the answer brings clarity and confidence to the process.
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