After all the changes we have experienced in 2020, the budget your church’s leadership laid out in anticipation for this year is likely not a true representative of the realities and the current needs found in both your church and community.
Many churches finished last year by setting their intentions for 2020 with an updated budget. They looked ahead to how they hoped their church body would grow both spiritually and in community, and then anticipated how this would be seen within the finances. Budgets translate the church’s expectations into a plan for how they will use their financial resources. A budget gives the church staff and leaders an idea of what is planned and how to execute their vision utilizing the churches financial resources.
There are many situations that change the short-term goals of a church and require a second look at their budget. These situations include:
Pastor or key minister retires/leaves
Natural disaster
Growth exceeding the church’s predictions
National or regional crisis
As we sit here today, this blog finds us in the middle of a national and global crisis. For many churches this means taking a second look at their 2020 budget and adjusting. When adjusting your budget, there are two things to keep in mind:
A budget is first and foremost a tool.
The purpose of a budget is to keep the finances in line with the goals for a specific year. This is true whether you are a church, business, or an individual. When the situation your church is facing is very different from what you planned for or anticipated, and your budget no longer represents the reality you are facing, your budget can and should be reworked.
A budget is not static.
As the situation changes, a budget can continue to be changed to reflect the realities being faced with the goal of being a helpful tool in your church’s financial landscape.
If you have not officially changed your church’s budget, this is your call to start the process your church follows and update your budget to reflect the current reality.
For more information on how to adjust your budget take a look at this post, Cash Management in Crisis: Reassess Your Budget which was published at the beginning of this crisis and has helped many churches. Another great resource is Quarterly Budgeting, which approaches the budgeting process as a dynamic experience over the course of the year.
For more questions on budgeting or help with your specific needs, contact us here.
