13 Tips For Church Budgets

Helping ministers and churches plan healthy and manageable budgets.

Here are 13 Tips to help your church in its budget process.

(Adapted from CBF Global Resources)

1. Budgets Should Be Realist & Challenging

   Often churches have budgets that are completely out of reach or too limiting. Find a balance that respects your congregational setting, while challenging you to pursue new and exciting adventures.

   
   

2. Budgets Should Be A Collaboration Between Laity & Staff

   Make sure both staff and church members get a chance to talk about the budget. Avoid having only the staff or a small committee make decisions.

3. Calendar VS. Non-Calendar Year Budgets

   There are positives and negatives to both. Understand the strengths and weakness for each approach and decide which is best in your context.

4. 40-60% Of Your Budget Should Be In Salaries & Benefits.

   Bellow this percentage range, you may be underpaying your staff and ministers. Above this percentage range, and you may not have enough resources for other line items. (This percentage may be greater, particularly in smaller churches with a single staff member).

5. Generosity Toward Staff Should Be A Yearly Budget Conversation & Goal.

   Many ministers and staff members may feel uncomfortable asking for raises, but make sure to consider your staff's financial needs, like cost of living changes in your area. Healthy congregations find ways to be generous and caring for their staff.

6. Budgets Should Model Generosity Toward Ministry & Mission Partners

   We think percentage giving is best and churches should have a goal of giving at least 10% of receipts to ministry partners.

   
   

7. Budget Line Items Should Be Treated As Guides, Not Boundaries

   Line items are guides, but you need to show real expenses for each. Avoid moving money around if you are about to overspend in a particular item. The only way to know how much ministries and services cost, is to keep a detailed record. This will help you to budget for years to come.

8. Budgets Should Include A Line Item For Regular Church Audits

   Make sure you have some money set aside for a formal audit. Audits provide financial accountability for the church and protect congregations form mishandling finances. (Internal and soft audit may be options for smaller congregations. Full audits once every few years is also an alternative.)

9. Starting Points - Pledging, Blank Slate, or Projections?

   There are different theories related to starting your budget. We recommend you check out "Generosity, Stewardship and Abundance", by Lovett Weems and Ann Michel for more guidance.

10. Budgets Are Only One Pillar of Church Financial Health

    While budgets success is a major part, it is not the only part of fiscal well-being. Capital reserves, endowments, legacy giving, debt and other factors are also key elements of the overall picture.

11. Understanding Giving & Expenditure Trends

    Understanding nuances like historically high and low months for giving, or when major local employers pay bonuses are important. Knowing these patterns helps with promotion, lessens anxiety, and can lead to dividing the budget into thoughtful monthly allocations.

12. Always Present Budgets Through The Lens Of Missions and Ministry

    Budgets that fully consider ministry dreams, presented in a narrative form, helps communicate the importance of generosity on a different level.

13. Don't Forget To Pray About It

    Give yourself a month or two of intentional prayer sessions with staff and leadership teams. Ask God for guidance and clarity on how to use your church's resources faithfully.

Need more help planning your church's budget?