Tuesday, October 7, 2008

Another Exciting Budgeting Post

We have used several budgeting methods over the years. All of them are better than not having a budget, some some methods require a lot of work for the small benefit received. The past several years when we were going through some transition in both attendance and giving, we went very basic in our budgeting. We established a payroll budget based on the paid positions we planned to maintain, and then we established what the average general and administrative budget was. In other words, we determined what it cost to keep the church open and staffed and figured out that amount on a weekly basis. The various ministries were instructed to operate with the income that they produced with no help from the "general fund." That way when we tallied the weekly offering, we were able to determine if we met the basic operational needs that week. Whatever was received over the basic operating budget amount was available to be used for departmental ministries, or for capital improvements. It was simple, and it gave us latitude to make the decisions necessary to take care of priorities. On weeks that the offering didn't cover the basic budget, we didn't do anything extra, and if we could delay or reduce an expense, we did. On weeks that the offering exceeded the basic budget, we could do a repair or purchase a ministry item.

The disadvantage of this method is that it is so short-term focused that it is difficult to think long-term. And now that we are in a period of growth it is important to think long-term. It is over that long haul that ministry excellence is enhanced. And it is counter productive to ask that ministries be self-sufficient on a long-term basis. What happens is that there are a great number of fund-raisers sponsored by the various ministries and these can eventually wear out the congregation.

Next time I'll talk about another philosophy of budgeting.

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