How to Craft and Implement a Healthy Church Budget Process

by Matthew Soper

Most congregations have a budget process for formulating the next year’s planned income and expenses. At the least, they add an inflation percentage and essentially recreate the present budget. At the most, they “tear down to the studs” and do a zero-based budget, which involves critically examining all ministry spending. A general rule of thumb is the more work you do in preparing the budget, the more it will reflect the congregation’s present values, ministry priorities, and vision.

1. The average church member does not care about the details of the budget. Making a granular budget presentation in place of or in addition to a sermon is seldom effectual and often annoying.
2. At the same time, it’s helpful and desirable to make a general leadership announcement about the new budget and any significant changes you have made to it.  Always communicate that copies can be made available through the church office. A few people will be curious. Most will just want to know that it is available and not top-secret. 
3.  Ministry staff and people in charge of ministry departments care very much about budget decisions. Hopefully, they were involved in arriving at their department’s budget figure. People with responsibility need to feel included and not just recipients of a top-down budget figure.
4.  If congregational giving exceeds the budgeted figure, celebrate this! Thank the congregation. This will not squelch giving; it will encourage it. People want to be part of a bountiful organization. If the excess continues, fold it into the following year’s budget. 

Link: ChurchTrac Blog | How To Create A Church Budget: The Complete Guide | ChurchTrac Blog