With a new year comes, new goals for all business and organizations. However these goals cannot be reached without implementing a proper budget. Although the word budgeting brings some fear to mind, think of as an excellent tool for allocating your financial resources and for planning and controlling their uses.
We have crafted five great church budget tips for your annual budget forecasting:
Tip #1 Determine a Projected Level of Income
In order to determine the annual projected income for your church, you will need to carefully analyze and review balance sheets from previous years. Also, a major factor of calculating the level of income is to review the church’s ‘tithing’ history.
A ‘tithe’ is a one-tenth part of something, paid as a contribution to a religious organization or compulsory tax to government. Has it fluctuated over the past few years by increasing or declining?
Tip #2 Reevaluate Expenditures for the Budget Year
Something every church organization should understand is the largest chunk of expenses comes from compensation, both salaries and benefits.
Tip #3 Accurately Allocate Operational Funds
This is the second largest chunk of expenses which typically relates to facilities throughout the entire Church. For example, utilities, maintenance and repairs, facility mortgage, etc. Make sure you not only consider fixed costs, but more important, your variable costs. For example, monthly bills from utility providers (heating and air conditioning, internet, gas, etc.)
Tip #4 Generate a Game Plan for Increasing Funds
Getting everyone from the community and from the Church organization involved is a wonderful area to drive those available funds in an upward direction. Youth Ministry and Sunday School programs can always develop great fundraisers to assist with the Church’s overall budget.
Tip #5 Leverage All Possible Platforms to Build Reserves
Making sure you take advantage of every possible platform and/or online solution can be an enormous avenue for building those Church reserve funds. Do you have an updated and effective Website presence to drive more Church attendees? Do you have an easy to use online registration software for Youth Ministry programs? Have you set up a seamless online giving solution on the website so your community/attendees can make donations with zero hassle?
In conclusion, when determining the annual budget, you are given the chance to carefully analyze the financials from previous years and be a large portion for the continuous growth of the Church and allow the organization to focus on its mission and vision.