Budgets Tell Stories
Dear Pastors
During my 25 years as a Pastor I always regarded the annual budget…….and I hesitate to say it…..the second most important document in circulation1. Then in my consultancy work with local churches and other not-for-profits, there are two documents I ask to see before all else—last year’s financial statements and this year’s budget. Stating the obvious, last year’s financial statements will tell me how the money was spent and how much is in the bank, especially in investments. The budget, on the other hand, will tell me how the money is going to be spent in the current year. I will study these documents before the church’s mission, vision and goal statements before engaging the pastor in a conversation.
Why? Because the financial documents say a lot more about that particular organisation’s priorities than almost anything else. A Church or Christian Organisation can have the a real gung-ho Vision Statement (where you want to go) but when all is said and done the budget will be the final determinant as to whether you can in fact go there.
And here is an interesting observation: Many times I have discovered that the budget is not in alignment with the vision statement or the aspirations of the senior pastor and his or her team.
Note: Generally speaking, 80-90% of a church’s budget is for meeting fairly predictable operational expenses—only 10-20% is available for new innovations and initiatives. Given that, I would like to share with you three line items that I would propose are non-negotiables these days in all church budgets as part of the routine operational expenses.
1. Volunteer Expenses. We all know that recruiting and holding onto volunteers takes intentionality and time. It will cost money if done well. A church that is serious about its volunteers is a church who allocates some budget to that function. Things like coffees, meals, out-of-pocket expenses, mileage, appreciation events, training, etc. Think of it like this: Key volunteers are actually part of your staff team, and therefore, I propose, should be provided for as such (unless the volunteer chooses not to accept . . . pray for this kind).
2. Guest Services. This item tells me how committed a church is to making the first-time guest (newcomer) experience ‘something to write home about’. Things like signage, reading materials, guest lounge, guest (newcomer) events, hospitality, training for team members, etc. All evangelical churches want to reach new people, especially unchurched people, yet so few spend some of their money doing so.
3. Discipleship (Spiritual Formation). Here are words that I hardly ever hear any more during or at the end of a Sunday Service: “If you are here today to check out the Christian faith, I would love to meet you and give you a copy of this fabulous booklet (holding it up and a picture of it comes up on the screen) that introduces you to the Christian faith in a bit more detail and to answer any questions you might have. I am heading straight to the guest lounge after the service so please just drop by for a coffee and chat” OR words to that effect.
Secondly, under discipleship: We all lament the low levels of biblical literacy these days and rightly so. Yet when you have a close look at what churches are doing in this space, there is often a dearth of good quality discipleship cum bible study materials and occasions readily available, let alone some kind of Christian education programme for all ages and stages.
So, in conclusion, budgets tell stories. Does your budget reflect your church’s story, Pastor?
Blessings
Alan
1 I still regard the Vision of a church the most important document, simply because if it has been prayerfully and carefully constructed it has the ability to attract resources (money, material resources and people) to achieve that Vision and in so doing do amazing things for God.
Let Justice Roll Down
A one day symposium convened by LeadershipWorx and Te Whānau Pūtahi to learn and discuss how we can address some of the issues of injustice. How to build a fence at the top of the cliff and reduce the ambulance work at the bottom.
Amos 5:21-24 (NKJV and NLT)
21 The Lord says: “I hate all your show and pretense - the hypocrisy of your religious festivals and solemn assemblies.
22 I will not accept your burnt offerings and grain offerings.
I won’t even notice all your choice peace offerings.
23 Away with your noisy hymns of praise! I will not listen to the music of your harps.
24 Instead, let justice roll down like water, and righteousness like a mighty stream”
Tickets now available.
