5 Keys to Healthy Church Budgeting Every Year

When putting together a church budget, several mistakes are commonly made that can haunt a church throughout the year and beyond. Here are five keys to a healthy church budget. There are more steps than these, but these are the big five:

1.Don’t drastically overestimate projected offerings. This is a classic for those who love to “step out on faith” or have something they really want to do but can’t afford. The problem here will be a large deficit requiring draconian cuts, pleas from the pulpit, and questioning of the leader’s abilities to project. I know it’s tempting, but don’t do it. Keep your projections optimistic but sane. Here are a couple of principles with some exceptions: If your church is not growing, your offerings will not. Also, if your church is growing, offerings per capita will grow slower in the newcomers than in those attending. To avoid overestimating offerings significantly, it also helps to ask this question: If I’m projecting increased giving, where is that going to come from and what steps are we taking to make that projection a reality. The scariest part is many ministers/elders “step out on faith” without thinking through their part in making that step a reality. As a result, their step becomes a year-long problem that erodes church trust when repeated.

Church Budgeting Myths

The area of church finance is riddled with myths. They have pure motives behind them, but they are myths all the same. If you buy into them, you’ll set yourself up for financial peril down the road. Here are a few with some observations: Churches that spend more money on missions and benevolence are less […]

Making Tough Church Budgeting Decisions

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If you have clear mission and roles for those involved in the budget process, making tough decisions about how to allocate the church’s resources is easier, but it’s still tough. All of the ministry a church is involved in is good. Saying no is difficult no matter what. However, wise churches will learn to say […]