Your Top 3 Budgeting Questions Answered

We are in the middle of Q4, and you likely have your budget on the brain. Knowing that here are the answers to the top three budgeting questions we are getting this quarter. 

Should Our Church Do a Flat or Weighted Budget Month to Month?

We would say it depends. 

When it comes to income:

• Do a Flat Budget Month to Month if your congregation looks at your numbers frequently because they'll be following along - budget vs. actual. If that's the case, then they can see everything building up to December and they can play a much larger role in that.
• If you do not look at your budget vs. actual very often, we suggest using a Weighted Budget so the leadership isn't feeling 'behind' for much of the year 

When it comes to expenses, we suggest using a Flat Budget in most cases. It can be difficult for Ministry Leaders to manage their budget effectively.

How Can We Trim Fat from the Budget?

1. Use our free Staff-to-Attendee Ratio Calculator to make sure you have adequate staff for your church. If you have too many staff members, we suggest that as you naturally see turnover, consider if you need to replace that role exactly, if you can get created with a hybrid role, or if you can outsource that work.
2. As you grow, it can become unrealistic to cover benefits for staff and their families. We suggest grandfathering current or existing staff into whatever your policy includes at this time but putting together a different benefits package for new hires.

How Can We Shift Away from Restricted Accounts?

If you would budget for it, don't allow people to give to it from a restricted giving standpoint. 

Missions is a great example.

Churches often have this as a restricted account, but the church would typically include Missions in the budget anyway. If this is the case, encourage people to give to your general operating fund, a portion of which will go to Missions anyway.

If you have restricted accounts that aren't part of your normal operations and budget planning:

• Eliminate the option for new gifts to be made to those designated accounts.
• Spend the funds in designated accounts to clear them out.
• Top Tip: If you haven't already, you can remove every option on your generic giving page besides what goes to your general fund. The more choices you give, the more choices people will take and the less will go towards your operating budget.

Other Budgeting Questions

What other budgeting questions are on your mind? Comment below or reach out to us!