operations 103 finances: class 4

Operations 103Finances: Class 4

Operations 103—Finances1. Cash & Fungible

Assets2. Income3. Expenses4. Budgets5. Reporting

6. Audits & Financial Reviews

7. Financial Health8. Tax & Legal9. Insurance for

Employees10.Insurance for the

church

Today’s TopicWhether in a new church, a mega-church or a multi-site, there is going to be a budget.  What are the great practices in creating a budget, and then, how is it decided upon?  How is the budget evaluated and with what criteria?  In the recession, many churches had to cut their budgets, so what are appropriate mechanisms for doing that?  How do you enforce budgets with staff and church leaders, and what about rogue spenders?  This class will deal with cutting budgets, enforcement of budgets, and dealing with overages.

Mike Buster

Mike Buster joined the staff at Prestonwood Baptist Church in 1989, and has served as the Executive Pastor since 1992.  He serves as chief operating officer, overseeing a staff of more than 700, developing and maintaining long-range plans for the church, and overseeing the ministries and programs of the church.  He has also served as an adjunct professor at several seminaries, and he serves on the board of trustees for GuideStone Funds.

Purpose Driven Budgeting

85% of Pastors feel unequipped and uncomfortable dealing with financial matters

The Bible contains 40 verses on baptism, 275 on prayer, 350 on faith, 650 on love—but there are 2,350 verses that relate specifically to finances and material possessions.

And yet … 95% of Christian Educational Institutions (colleges, universities, seminaries and Bible Colleges) offer no personal or ministry financial curriculum.

Philosophies of Budgeting…Conservative or under Budgeting

Faith or Stretch Budgeting

Projected Budgeting

When budgeting…Budget According to Mission Statement

Budget According to Priorities.

Purpose Or Mission Driven Budgets and Management…

Our mission at Prestonwood Baptist Church is to glorify God by introducing Jesus Christ as Lord to as many people as possible and to develop them in Christian living using the most effective means to impact the world, marking a positive difference in this generation.

Budgeting for Results …What gets measured, gets done.If you don’t measure results, you cannot tell success from

failure.It you cannot see success, you can’t reward it.If you can’t reward success, you are probably rewarding

failure.If you can’t see success, you cannot learn from it.If you can’t recognize failure, you can’t correct it.If you can demonstrate results, you can win public support!

Finance Committee ResponsibilitiesStudy records of giving and potential giving of

churchEvaluate budget requirementsDirect annual budget preparationPresent budget to the church for adoptionHeld accountable for stewardship of resources

Benefits of Finance CommitteeAllows More People to Share in the MinistryProvides Expert CounselSaves Time in Business SessionsGives Opportunity for Christian GrowthProduces LeadersAllows for Delegation

Continued

Keeps People ConnectedBuilds Trust With PeopleIncreases GivingProtects Pastor and Executive Pastor

Measurement ImplementationDefine the productIdentify the correct statistics to measure the productDevelop a system for tracking those statisticsGraph those numbers weekly, monthly, or yearlyDevelop a written strategy to improve those measurementsWork with your staff and lay leaders to implement the

strategiesReward your staff and lay leaders for their accomplishments

Common features ofStandards of ExcellenceEstablish a set of standards which embrace individual

commitment, motivation, self-esteem and performance.Individual performance is the best method for sustaining

standards of excellence.Successful teams never become satisfied with how well

they’ve done.Internal support and recognition.External support and recognition.

Capital CampaignCaptures those who would normally sit it outEnlarge people’s personal vision for givingIncreases givingThree year campaigns = 2-3 times annual

budget

Commit your works to the Lord, and your plans will be established.

Proverbs 16:3

Rare indeed is a manwith a pastor’s heart,

a servant’s hands,and an administrator’s head.

“The eyes of the Lord move to and fro throughout the earth that He may strongly support those whose heart is completely His.”

2 Chronicles 16:9

Q & ASend Questions via Chat to

Tami

Malphurs & Stroope. Money Matters in Church

From Chapter 7 & 8

What dollar limits do you have for check writing?

Do you use dual signatures and when?

What internal audit review process do you have and how often?

Confidential question-can your SP or XP see what people give?

Malphurs & Stroope. Money Matters in Church

From Chapter 7 & 8

Does your church have a % of your general fund designated for

mortgage debt or do you have a specific fund for building

projects? If no % is designated do you require a congregational

vote to use general fund $ for Buiding?

Buiding Fund policy. Can it be used for vehicle purchase? Do

people give directly to it?