{"id":31748,"date":"2022-09-10T15:42:32","date_gmt":"2022-09-10T20:42:32","guid":{"rendered":"https:\/\/www.biblia.work\/sermons\/5-tips-for-managing-a-church-budget-shortfall\/"},"modified":"2022-09-10T15:42:32","modified_gmt":"2022-09-10T20:42:32","slug":"5-tips-for-managing-a-church-budget-shortfall","status":"publish","type":"post","link":"https:\/\/www.biblia.work\/sermons\/5-tips-for-managing-a-church-budget-shortfall\/","title":{"rendered":"5 Tips for Managing a Church Budget Shortfall"},"content":{"rendered":"
Pixabay photo – Pexels <\/p>\n

By Joy Allmond<\/em><\/p>\n

Although a budget isn\u2019t considered by many to be a spiritual topic\u2014much less an exciting ministry conversation to have\u2014every church faces financial issues.<\/p>\n

And every church, at some point or another, will face a budget shortfall.<\/p>\n

Josh King and Sam Rainer discussed what a budget shortfall can look like for churches, and offered tips for managing those times of scarcity during a recent Est. Church podcast, part of the Lifeway Leadership Podcast network.<\/p>\n

There are two kinds of shortfalls that come to mind for Rainer.<\/p>\n

The first kind, he says, is when a church simply doesn\u2019t meet its budget through giving. The other is when a church has spent more than they\u2019ve brought in.<\/p>\n

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\u201cI\u2019ve seen churches get overzealous,\u201d says Rainer. \u201cThey get so happy that giving was over budget and then went out and spent too much. When giving is good, sometimes the spending is out of whack.\u201d<\/p>\n

Here are some ways King and Rainer say churches can manage financially during tough times and be proactive before a financial crisis hits.<\/p>\n

1. Project revenues first.<\/strong><\/h3>\n

One mistake churches make, King says, is when churches look at expenses first.<\/p>\n

\u201cLook at the last several years,\u201d he says. \u201cHow much did you bring in? And why<\/em> did you bring that money in? Try your best to project your revenues first. Don\u2019t do expenses first and say, \u2018I hope I can bring in this much.\u2019<\/p>\n

\u201cI\u2019m amazed at how many churches grow to accept they don\u2019t meet budget. That\u2019s not a healthy way of doing things.\u201d<\/p>\n

King says the bigger the church, the more complicated it becomes. But even still, a church budget should be managed as a family budget would be managed\u2014based on what is expected to come in, not what is hoped for.<\/p>\n

And different churches, he adds, can have varied healthy models. Some work from 100% of their project revenue.<\/p>\n

Others, out of precaution, tend to work a little under 100%.<\/p>\n

\u201cWe look at the last few years,\u201d Rainer said of the church he pastors in Florida. \u201cThis year, we budgeted 5% under what our receipts (actual giving) were. This year\u2019s budget is lower than last year\u2019s, because we want to streamline our budget.\u201d<\/p>\n

Rainer says when a church is projecting a budget the weight of the previous year\u2019s income should certainly be considered, but most of the projection should be based on the previous five years.<\/p>\n

\u201cDon\u2019t set a budget off a random bump,\u201d adds King. \u201cIf you have $125,000 come in one year when you\u2019re used to $100,000, don\u2019t raise your budget. It might have been a case where a church member died and left part of an estate to the church. And that\u2019s not going to happen every year.\u201d<\/p>\n

2. Budget your surplus for extras; don\u2019t build it into the operational budget. <\/strong><\/h3>\n

If a church finds itself with a surplus, Rainer says it\u2019s wise to add another budget line for it, rather than build it into the operational expenses.<\/p>\n

\u201cThat\u2019s how we have things that don\u2019t normally go into the budget that cost money\u2014like an A\/C unit that needs to be replaced or an elevator that needs to be repaired,\u201d he explains. \u201cA budgeted surplus can go toward things like this to handle deferred maintenance.\u201d<\/p>\n

3. Communicate openly with your congregation. <\/strong><\/h3>\n

Will people stop giving when numbers are up? Will visitors think the church is a sinking ship if they hear about numbers being down?<\/p>\n

The answer to both of these questions for King is \u201cno.\u201d<\/p>\n

\u201cI\u2019ve seen in the two churches I\u2019ve pastored that when there\u2019s a surplus, people actually give more,\u201d he says. \u201cIn times of deficit, people tend to hold back on giving. People want to be a part of winning.\u201d<\/p>\n

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So what and how often should church leaders share when it comes to budget information?<\/p>\n

\u201cWe share financial updates weekly,\u201d says Rainer. \u201cWe\u2019re in the middle of a capital campaign, so we give updates on that as well as giving regular updates and comparing the numbers with the budget.\u201d<\/p>\n

King adds his that his church in Arkansas shares the budget updates with members through a monthly newsletter that covers other church-related topics.<\/p>\n

An important way to communicate, Rainer adds, is through preaching.<\/p>\n

\u201cPreach on giving, but do it in a way that doesn\u2019t guilt people into giving,\u201d he says. \u201cThat works for about one week.\u201d<\/p>\n

Kings says it\u2019s also crucial and considerate for church leaders to be forthright with staff about budget issues, especially if is affects salaries or could incite layoffs.<\/p>\n

\u201cBehind the scenes, we should be having conversations with staff about this,\u201d he says.<\/p>\n

\u201cEspecially if layoffs could occur. This gives them time to start looking before the time is up. I once had to have conversations like this with my staff, and thankfully, giving came through and it didn\u2019t happen. But don\u2019t wait until it get close.\u201d<\/p>\n

4. Cast the vision in a way that inspires people to give. <\/strong><\/h3>\n

And since, Rainer says, people can\u2019t \u2013and shouldn\u2019t\u2014be guilted through a budget shortfall, there needs to be some fresh vision that gets people excited about giving again.<\/p>\n

Tell people about your mission partners. Find a way to show them tangibly how their contributions are making a difference.<\/p>\n

King attempts to do a form of this each Sunday.<\/p>\n

\u201cI try to make a point of saying thank you for giving,\u201d he says. \u201cSomething like, \u2018That happened because you gave sacrificially in the plates that are about to be passed.\u2019 We\u2019ve seen a significant uptick in giving since we started doing that.<\/p>\n

\u201cWe thank people for volunteering, and we also need to be intentional about thanking people for giving.\u201d<\/p>\n

5. Employ strategies to raise revenue.  <\/strong><\/h3>\n

Simply put, churches can offer more options to give.<\/p>\n

\u201cA lot of churches don\u2019t realize this, but the more options people have for giving, the more revenue a church will bring in,\u201d says Rainer. \u201cWe just started online giving in 2015, and our budget went up significantly. And it was exactly the online giving amount.\u201d<\/p>\n

Another strategy for maximizing revenue, says King, is to examine where the money is going; you may discover unnecessary expenditures.<\/p>\n

\u201cOne of the very first things I\u2019ve done when I\u2019ve come onboard as a pastor is look through every line item of a budget,\u201d he says.<\/p>\n

\u201cAsk questions like: Could we renegotiate our photocopier contract? Where are we buying paper? Reevaluate things like that. You can probably cut cost without cutting ministry.\u201d<\/p>\n

Kings adds that it\u2019s crucial for church leaders to implement a specific strategy rather than generically asking for more money. This makes it more digestible and actionable for church members to participate financially.<\/p>\n

\u201cIt\u2019s hard for people to wrap their minds around a $20,000 shortfall,\u201d he cautions. \u201cBut if you communicate that if everyone who isn\u2019t giving anything now would give, say, $10 week, that would help. Or, if everyone who is already giving could give $10 extra a week, we could do such-and-such.\u201d<\/p>\n

No matter how you approach a shortfall with your congregation, King says a church \u201cmust create a strategy its people can really get behind.\u201d<\/p>\n

JOY ALLMOND (@joyallmond)<\/strong> is managing editor for<\/em> Facts & Trends.<\/p>\n

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Dig Deeper at Lifeway.com<\/div>\n
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Leading a Generous Church: Making Disciples without Chasing Money<\/h2>\n

Todd McMichen<\/p>\n

FIND OUT MORE <\/p><\/div>\n<\/p><\/div>\n<\/div>\n

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Pixabay photo – Pexels By Joy Allmond Although a budget isn\u2019t considered by many to be a spiritual topic\u2014much less an exciting ministry conversation to have\u2014every church faces financial issues. And every church, at some point or another, will face a budget shortfall. Josh King and Sam Rainer discussed what a budget shortfall can look … Continue reading “5 Tips for Managing a Church Budget Shortfall”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31748","post","type-post","status-publish","format-standard","hentry","category-sermons"],"_links":{"self":[{"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/posts\/31748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/comments?post=31748"}],"version-history":[{"count":0,"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/posts\/31748\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/media?parent=31748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/categories?post=31748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biblia.work\/sermons\/wp-json\/wp\/v2\/tags?post=31748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}