Building a Church Budget to Reflect Its Values

Budget doesn’t have to be a struggle, a bad word, or a constraint. We all need a plan.

As a pastor for three decades and a pastor to pastors, I’m sure I’ve used some version of the statement, “If you want to know a person’s priorities, be sure to check his calendar and his checkbook” a hundred times or more.

It’s biblical. Jesus said, “For where your treasure is, there your heart will be also” (Luke 12:32 CSB).

Budgeting can be tremendously challenging for most people. It can seem to crimp our style or force us to admit we’re not really good at managing money.

Fortunately, most churches have people other than the pastor making the budget decisions. According to Lifeway Research, 77% of Protestant pastors say their trustees or a church board lead the way in budgeting. Many churches include different groups, including a treasurer, finance or stewardship committee, or other church staff members.

There is no right way to devise a budget, but having a realistic one is a testimony to your people of what you value. 

Do the pre-work

When I say pre-work, it can sound scary. When I say what I mean, it can sound simple. But it’s a real and necessary component: Start with prayer. This is the Lord’s church, and he has a plan for it. We’re not using the budget to say, “This is what we can do for you, Lord,” we’re using the budget to say, “Lord, what do you want to do through us, and how can we best prepare to be the church you want to use?” 

Involving people from throughout the life of your church with experience in benefits, finance, accounting, and other business backgrounds can help you here, too. “Plans fail when there is no counsel, but with many advisers they succeed” (Proverbs 15:22 CSB).

Get started

Many churches start budget planning a few months before the fiscal year ends. Looking at the pattern of giving to determine if the church should increase its budget, lower it, or hold steady. One smart decision is first to consider if your expenses will go up: Wise congregations will provide their staff with a cost-of-living raise to offset at least some of the effects of inflation. Consider also how insurance costs on your facilities and people may affect your budget. Do you have equipment that is nearing the end of its useful life? Computers, air conditioning systems, security alarms, iPads the worship team uses, and carpet in the nursery will all wear out and need replacing occasionally. It’s better to budget for things you know will happen.

Adding all of those will give you an eye toward what kind of budget you need.

Consider salaries. No one enters vocational Christian service expecting to be rich. Still, your staff will be more financially secure and resilient (and less likely to leave for other opportunities) if they’re well cared for in their pay and benefits. At GuideStone, where I’m privileged to serve, we have an incredible Ministerial Resources Center chock full of videos and articles to help in that vein and helpful worksheets for crafting compensation plans that focus on paying the right wage the right way.

And don’t forget missions, locally, nationally, and internationally! Your people have a seismic opportunity to partner with the Lord in what he’s doing around the world. In my Southern Baptist tradition, our people are deeply invested in the work our International Mission Board and North American Mission Board do to turn back lostness at home and abroad. Your church members want to give to causes they support, so from local homeless shelters to food pantries, clothes closets, and missions around the corner or to the ends of the earth, make the budget reflect your commitments!

Involve the people

A budget shouldn’t just be something you do for the staff or appropriate team to track and manage; it can be a ministry plan that helps inform your people of what the church is doing and how you’re achieving your mission.

I know some churches print slick brochures or use Facebook and Instagram to communicate the budget, not so much in numbers and cents but in heart and soul. While it may be important (and maybe required by your bylaws) to present a printed budget, don’t neglect to take the opportunity to tell a story about what the church is doing to serve the Kingdom. I don’t know that a budget meeting has ever launched a Revival, but I can’t help but think it doesn’t have to squash one, either!

Follow the budget

Keep staff and others accountable to the goals outlined in the budget. That doesn’t mean we can’t pivot: Many budgets approved for 2020 went through a few revisions after March of that historic year. It does mean that people need to keep their spending in check with what the church approved, through whatever avenue your polity requires. 

Communicate where you are regularly. Some churches use the bulletin or church app, quarterly meetings, or other resources to inform their people. Keeping the people informed reminds them of the need for faithful, regular giving and your commitment to being good stewards of their gifts.

When Peter confesses that Jesus is the “Messiah, the Son of the living God” in Matthew 16, Jesus commends him. He talks about the church that Christ will build on that confession and says, “the gates of Hades will not overpower it.” There are a lot of worthy causes out there, but I don’t know another institution that Christ promises Hell itself won’t overcome. The church is vitally important; let’s ensure it’s financially prepared to manage whatever it may face.

©2024 Mark Dance. Used with permission.