06 Jun 5 Ways to Manage Church Finances
Every day, we help churches across the country with the opportunity to pray, save and grow, so their parishes can thrive in a changing world. Whether you are a church with a legacy of people who continue to give freely or one that is more conservative in regards to the offertories provided by parishioners, there is a solution to help you manage your finances in any situation. Here are 5 ways to mange church finances in today’s world.
Create a System For Financial Oversight
Accountability happens when people are responsible for getting the job done. Organizing a Budget Review Committee who are responsible for managing spending, creative cost control and debt management is a huge step in the right direction. The team, holding monthly meetings, would be mainly responsible for addressing budget variances and approving unbudgeted expenditures as they arise. This team would also play a pivotal role in in the goal setting process of the church to to ensure the projects for the parish have the needed financial support. For instance, if the church has a goal to develop it youth ministry, the budget review committee will work with leadership to come up a funded budget to meet the goals of that church department.
Develop a Church Budget
Every year, the church should have an annual budget that is monitored monthly. Each ministry department should be responsible for staying on budget and any employees should be also accountable for not overspending.
Determine A Percentage to Save
Just like in your personal life, savings are important. Financially healthy organizations save intentionally because they know that, at any given point, an issue might arise that requires support. Even if it is small, budget a percentage for savings and work towards achieving at least a 10% savings from money’s that come into the parish.
Teach on Giving
One of the most important ways a church can manage their money is by creating and educating their parishioners on the financial needs of the church. Financially strong churches have developed a culture of giving and tithes are second nature to parishioners. This isn’t just because they want to give, but because it is a direct result of specific and targeted teaching on the biblical principles of giving as well as the need that the church has to continue to provide the opportunities to worship together. Once a parishioners get this principle, they are generous with their support for the church.
From when we were young, we were told not to lie. Churches get in trouble when they try to hide spending from parishioners. Being transparent on spending, budgets and the amount of member involvement needed helps make everyone feel involved. When members understand what the real cost is to heat and cool the church or to add an addition to the building, they can relate to the burden of bill paying. That transparency will help them understand and commit to giving.
At the end of the day, churches have a responsibility for managing God’s money. People participate in the offertory ritual because they embrace that biblical principle which speaks to God relying on church leadership to ensure the those tithes are used to further the church. Setting aside some time to develop a team and work toward getting your church to a healthy financial state is invaluable in ensuring your parish will be financially stable for the foreseeable future.