Church Budgeting Solutions
We believe the best approach to church budgeting frames the budget around your church’s unique ministry vision, includes a long-term perspective, considers industry standards of similar-sized churches, and then makes adjustments to fit your church’s unique attributes.
The starting point for budget development is the church’s God-given vision. Whatever is the heartbeat of your church, let that be the driving force behind the overall design of your church’s budget, and let that vision inform your staffing and ministry plans.
One concept we have seen have great success is when budgets are designed from a long-term perspective rather than focusing on short-term needs. This could be a long-term commitment to reaching your community for Christ or a long-term commitment to church planting. Pastors can easily be tempted to reduce the church’s allocation to missions during the budgeting process to fund church programs, but this is not a biblical solution. The church is the church as it engages in the Great Commission, which includes a long-term commitment to “go and make disciples of all nations.” As Southern Baptists, that includes financially supporting the Cooperative Program as it funds various missionary and ministry programs.
“Whatever is the heartbeat of your church, let that be the driving force behind the overall design of your church’s budget, and let that vision inform your staffing and ministry plans. ”
Another key element to church budgeting is looking at industry standards. There are several great resources and studies available to provide churches with industry standards concerning how churches of different sizes typically allocate their budget resources. For $9.95, you can download the Church Budget Priorities Study by Church Law & Tax.
The major sections of a church budget include staff compensation and benefits, ministries, missions, facilities, operations, and cash reserves. The percentages of each of these areas differ based on church size. Staff compensation and benefits receive the largest allocation of church budget resources. Getting this section of the budget right is critical to the church’s forward progress and the proper care of our pastors and staff. Lifeway offers a FREE online Compensation Tool that provides churches with industry standards for compensation and benefits.
When preparing your next church budget, start with your church’s unique God-given vision, focus on long-term priorities, consider industry standards, and make whatever adjustments are needed to reflect your church’s unique mission.
If your church would benefit from a budget review, please reach out to the Foundation at 844-351-8804.
Terry Jeffries, SBTF Director of Consulting and Investments