Have you ever felt the tension of trying to stretch every dollar to keep your church running smoothly? You’re not alone. Churches face unique financial challenges that other organizations just don’t encounter. You rely almost entirely on the generosity of your congregation. You juggle a delicate balance of spiritual and practical needs—like funding a new ministry while making sure the roof doesn’t leak. And if you’re like many churches, you probably don’t have a full-time financial expert on staff to help navigate these waters.
So, it’s no wonder that sometimes you find yourself worrying about the numbers and wondering if you’re on the right track.
But it’s time to leave the anxiety behind you. Make a regular practice to honestly answer these five questions and take concrete steps to address any gaps you notice, and a new day will be on the horizon.
Is Our Budget Aligned with Our Mission?
Your mission and vision represent the core of what God has called your church to do. If they aren’t reflected in your budget, that’s a problem—a big problem. It’s easy for our budgets to drift throughout the year and even from year to year away from our mission if we aren’t intentional about aligning them.
Look through your current budget. Note expenses unrelated to the mission and establish a plan to decrease them gradually.
Go deeper than just identifying unrelated expenses, though. Most expenses will connect to your mission at least tangentially. Determine whether your current budgeted spending is the most effective way to engage your mission and pursue your church’s vision.
Are We Diversifying Our Income Sources?
This likely sounds like an odd question for churches. Most churches depend heavily on tithes and offerings. Aren’t tithes and offerings the biblical way to fund ministry?
Yes, but it’s not the only biblical way to do so. Depending too heavily on tithes and offerings puts your church at risk during difficult economic times.
More and more churches realize there are other ways to fund at least part of their work. Maybe the easiest way to do this is through renting out facilities that you aren’t using throughout the week. Do a quick assessment of your campus and see if there is office space and classrooms that local nonprofits might pay to use. Renting out your facilities for weddings or off-site meetings for businesses and nonprofits may also bring in some funds.
You might even consider opening mission-aligned businesses on your campus, such as a coffee shop in your building.
As a church, you’ll always have the majority of your income in donations, but the more you diversify, the more recession-proof your finances will become.
Are We Managing Our Expenses Wisely?
A financially healthy church doesn’t just stay under budget. Even in categories where you’re under the budget, you may still be overspending.
How is that possible?
Say you’re budgeting $5,000 a year for office supplies. You might finish the year spending $4,000 on those supplies. That’s $1,000 under budget. A win, right? Not so fast.
Look a little closer and you’ll realize you’ve been paying full price for those supplies because no one has taken the time to negotiate with a bulk supplier who may have sold the same supplies to you for $2,500. That’s an extra $1,500 you could invest in other places.
Take some time looking through your budget with an eye to how you could save money. If you have church members in related fields, they have some ideas on how to help. (For example, in the above scenario, if you have a church member who works in purchasing for a secular company, he or she may have experience negotiating with bulk suppliers.)
Wise expense management helps your church build a buffer that will protect your church during a financial crisis.
Do We Have a Healthy Cash Flow?
Churches often have irregular cash flow. Ask anyone who has overseen church finances for long and he/she will likely be able to tell you the months (and seasons) where giving tends to drag. The problem is that you can’t just go to your service providers and staff and say it has been a slow giving time, we need to pay you a bit less. It simply won’t work.
The issue is cash flow. You need to maintain a healthy cash flow, so you don’t need to dip into savings or reserves even through the lean months.
One great way to get a more consistent cash flow is to promote online giving and its recurring giving features. Most digital giving solutions, like ACS Technologies provides, will enable your congregants to set up consistent online giving that isn’t dependent on whether they’re attending worship services or not.
Are Our Financial Records Accurate and Transparent?
Transparency fosters trust, and right now, trust in institutions—including churches—is at an all-time low. To counter this, it’s essential to put in the effort to demonstrate to your congregation that you’re responsibly managing the resources entrusted to you. In other words, make sure you’re clear and open about how resources are used.
Of course, this means you need clear records, using professional accounting programs built for the church. It also means regularly reporting to your congregation where you are in the budget, whether you do that online or in a quarterly bulletin insert.
Always encourage an open-door policy for financial questions from your congregation. No question should be off the table.
Conclusion: A Regular Financial Assessment Meeting
Regularly reviewing and assessing your church’s finances is crucial to maintaining financial stability. To stay on track, it’s best to go through these important questions with your team every three months. This will allow you to evaluate the financial health of your church and make any necessary adjustments or improvements. By consistently monitoring your finances, you can ensure that your church remains financially secure and able to carry out its mission effectively.
To learn more about budgeting for growth, check out the free guide, Budgeting Today for Tomorrow’s Church Growth.
ACS Technologies
ACS Technologies sets a new standard in church technology, offering a holistic suite of solutions that streamline administrative tasks and empower your staff to excel in their roles and your church to excel in your community.
In the ever-evolving landscape of church engagement and management, ACS Technologies rises above the rest. Our comprehensive church solutions, bespoke digital offerings, streamlined communication tools, comprehensive ministry consulting, and training make us the trusted choice for over fifty thousand churches. Experience the ACS Technologies advantage and elevate your church’s online presence, connectivity, and generosity today. Join us in redefining church technology for the digital age, where your ministry’s success becomes our shared mission.
