FINANCIAL RESOURCE: BUDGETC. Nicholas Morris

“IF BUDGETING AT ANY LEVEL MYSTIFIES AND FRUSTRATES YOU, YOU’RE IN GOOD COMPANY.” Michael Thomsett

- The Little Black Book of

Project Management

CHALLENGES

Difficult Time Consuming Rigid Controlling Inaccurate Reflection of Spending

ADVANTAGES

Financial Needs Reflected Requires Accountability Reflects Vision, Purpose, and Mission of the

Organization Involves Members Defines Priorities Communicates Need for Support Stewardship Education Tool

AS A CULTURE WE ARE IGNORANT OF WHAT MONEY IS AND HOW TO HANDLE IT. IGNORANCE IS NOT LACK OF INTELLIGENCE; IT IS LACK OF KNOWLEDGE ON A PARTICULAR SUBJECT” Dave Ramsey

- Financial Peace Revisited

DEFINITION

Reflect the mission of the organization Equitable Balanced Attainable Challenging A Guide – not a legal contract Bathed in prayer

“BUDGETING IS THE PROCESS OF ALLOCATING RESOURCES TOWARD GOALS BY EXPRESSING THE CHURCH’S FOCAL DREAM IN DOLLARS” Bruce Powers

- Church Administration Handbook

“THE BUDGET IS THE MINISTRY OF THE CHURCH IN NUMBERS.” Giving In Grace

BIBLICAL PRINCIPLES

Accountability Trust Stewardship Giving Generosity Obedience Leadership

The Parable of the Shrewd Manger

The Parable of the Rich Fool

TYPES OF BUDGET

Zero Based Line Item Ministry Action

TYPES OF BUDGET

Requires Annual Review of Resource Needs

Time Consuming and Personnel Intensive

Expenditure Justification

Needs to be Maintained

Zero Based Line Item

TY

PES

OF B

UD

GET

Recognized by:

Seminaries

Business Training Centers

Ministry Action / Ministry Based

- Uses features of zero based and line item budgeting

- Reduces or eliminates their negative attributes

- Evaluate Ministry or Program line items annually and either sustain, modify, or eliminate the activity

8 STEP PROCESS FOR MINISTRY ACTION

Analyze Ministries Propose Ministry Actions Evaluate Ministry Actions Prepare the Budget Present the Budget Promote the Budget Report on Ministry Progress Review the Budget

PREPARING FOR BUDGETING

Determine Income Streams Evaluate Economic Factors Establish Growth Goals Assess Spending Indicators Select Plan Format Establish Schedule

PRIORITIZING THE BUDGET

Ongoing Budget Items Ministry Action Items Ministry Challenge Items

 Collins, J. (2001). Good to great. New York: HaperCollins Publishers Inc.

Crown Financial Ministries (2008). Determining and funding the church budget.

Retrieved July 24, 2009 from, http://www.crown.org

Fooshee, G. Ten financial principles that are biblical. Retrieved July 23, 2009 from, http:// www.backtothebible.org

Hargrave, V. (2007, June 12). Reflecting ministry through stewardship. Church Business Administration Certification Seminar.

Giving in Grace. Annual review and the annual budget. Retrieved July 19, 2009 from, http://www.givingingrace.org

RESOURCES

Powers, B.P. (2008). Church administration handbook (3rd ed.). Nashville: B&H Publishing Group.

Ramsey, D. (2003). Financial peace revisited. New York: Penguin Group.

Ramsey, D. (1999). More than enough: The ten keys to changing your financial destiny. New York: Penguin Group.

Thomsett, M.C. (2002). The little black book of project management (2nd ed.).

New York: American Management Association.

Trinity Hills Baptist Church. Church budget process: Involving the entire church in decision-making. Benbrook: Baptist General Convention of

TexasRetrieved July 19, 2009 from, http://www.bgct.org/texaspaptists

Welch, R.H. (2005). Church administration: Creating efficiency for effective ministry. Nashville: Broadman & Holman Publishers.