Creating a Narrative Creating a Narrative Budget for your ParishBudget for your Parish

Courtesy of the Stewardship and Financial Courtesy of the Stewardship and Financial Development CommitteeDevelopment Committee

Anglican Diocese of NiagaraAnglican Diocese of NiagaraThe Reverend David M. PontingThe Reverend David M. Ponting

What is Narrative What is Narrative Budgeting? Budgeting?

•It is the sacred story of the ministry of It is the sacred story of the ministry of the congregationthe congregation

•One of the most important ways we One of the most important ways we can effect on-going stewardship can effect on-going stewardship educationeducation

•Narrative Budgeting is an essential Narrative Budgeting is an essential element in educating your congregation element in educating your congregation about how their money is being utilized about how their money is being utilized to support the ministry of the to support the ministry of the congregationcongregation

Sacred story… Sacred story…

Just as individuals have sacred stories of God’s Just as individuals have sacred stories of God’s providential care for them…providential care for them…

……a narrative budget is the sacred story of your a narrative budget is the sacred story of your congregation’s ministry and how your members are congregation’s ministry and how your members are giving through their parish to touch the lives of other giving through their parish to touch the lives of other peoplepeople

A new way of thinkingA new way of thinking

Line item budgets are an Line item budgets are an accountingaccounting tooltool

Narrative budgets are an Narrative budgets are an educationaleducational and and visioningvisioning tool tool

We need both but we must be We need both but we must be intentional in how we use themintentional in how we use them

Line item budgets have Line item budgets have limitationslimitations

They do not show how money is being They do not show how money is being invested in ministryinvested in ministry

They do not show how volunteer time They do not show how volunteer time and talent are impacting parish lifeand talent are impacting parish life

Worst of all – they do not inspire!Worst of all – they do not inspire!

The Narrative BudgetThe Narrative Budget

Clearly shows how money is being Clearly shows how money is being invested in the various components of invested in the various components of

congregational lifecongregational life

Helps us to re-frame what the Helps us to re-frame what the congregation is all aboutcongregation is all about

Inspires and helps us see our gifts are Inspires and helps us see our gifts are really making a differencereally making a difference

Is a proven tool for increasing financial Is a proven tool for increasing financial commitment to the ministry of the commitment to the ministry of the

congregationcongregation

The Narrative BudgetThe Narrative Budget

Recognizes that members are not Recognizes that members are not inspired at the prospect of funding inspired at the prospect of funding

administrative costs, postage, heat, administrative costs, postage, heat, cleaning supplies, photocopying, etc.cleaning supplies, photocopying, etc.

Shows real ministry having a Shows real ministry having a measurable impact.measurable impact.

The Narrative BudgetThe Narrative Budget

So how does Narrative So how does Narrative Budgeting work?Budgeting work?

Each congregation has Each congregation has several key components to several key components to

its ministry…its ministry…

Your congregation’s ministry might easily Your congregation’s ministry might easily be segmented into these six components:be segmented into these six components:• Pastoral CarePastoral Care•Christian EducationChristian Education• WorshipWorship•Evangelism and HospitalityEvangelism and Hospitality•OutreachOutreach•In-reach and FellowshipIn-reach and Fellowship

Experience shows Six Experience shows Six Categories seems to be Categories seems to be

OptimumOptimum

This means you will have to make some This means you will have to make some decisions about what categories are right decisions about what categories are right for your congregation.for your congregation.•Some congregations like a youth Some congregations like a youth ministry category. You might include ministry category. You might include Youth Ministry in the ‘Christian Youth Ministry in the ‘Christian Education’ segment.Education’ segment.•Or, you could put Youth Ministry in Or, you could put Youth Ministry in the ‘Outreach’ or ‘Evangelism’ the ‘Outreach’ or ‘Evangelism’ categories if that makes more sense categories if that makes more sense for your parish.for your parish.

Notice what category is Notice what category is NOT included in a NOT included in a Narrative BudgetNarrative Budget

•Pastoral CarePastoral Care•Christian EducationChristian Education• WorshipWorship•Evangelism and HospitalityEvangelism and Hospitality•OutreachOutreach•In-reach and FellowshipIn-reach and Fellowship

Do you see the Do you see the ADMINISTRATIONADMINISTRATION category on this list??category on this list??

A small team can put A small team can put together your together your

congregation’s congregation’s Narrative BudgetNarrative Budget

•Start by getting your full time staff Start by getting your full time staff to track their time for a month. They to track their time for a month. They can also review their day planners for can also review their day planners for the previous month.the previous month.•Allocate their time among the six Allocate their time among the six areas of ministry.areas of ministry.•Treat that as directional for how Treat that as directional for how other expenditures in the line item other expenditures in the line item budget should be allocated among budget should be allocated among the six areas of ministry.the six areas of ministry.•Some line items in your budget will Some line items in your budget will be easy to allocate (Sunday school be easy to allocate (Sunday school supplies to Christian education for supplies to Christian education for example)example)

After a month of “diarizing” After a month of “diarizing” by the full time staff you will by the full time staff you will have an allocation formulahave an allocation formula

• For example the pastors(s) might For example the pastors(s) might spend 15% of his/her time on spend 15% of his/her time on Christian Education; 10% on Christian Education; 10% on Outreach; 30% on Worship and Outreach; 30% on Worship and Worship preparation; 10% on In-Worship preparation; 10% on In-reach and Fellowship; and 15% on reach and Fellowship; and 15% on Evangelism and Hospitality and the Evangelism and Hospitality and the remaining 20% on Pastoral Careremaining 20% on Pastoral Care•Take this formula and use it as a Take this formula and use it as a blueprint for line items that are blueprint for line items that are difficult to allocate.difficult to allocate.

Don’t get caught in a trapDon’t get caught in a trap

• Many congregations implementing Many congregations implementing Narrative Budgeting for the first time Narrative Budgeting for the first time miss a big point – they get too miss a big point – they get too caught up on delivering accuracy caught up on delivering accuracy and don’t give themselves and don’t give themselves permission to treat the Narrative permission to treat the Narrative Budget as directional.Budget as directional.

Here’s what you will have Here’s what you will have when you are done your first when you are done your first

Narrative Budget…Narrative Budget…

Sample line items in a Sample line items in a congregational budget…congregational budget…

PROPERTY ActualUtilities (Electric, Heat & Water) 7,983.00$ Telephone 821.00$ Insurance 1,620.00$ Maintenance & Supplies 6,854.00$

……are allocated via the six are allocated via the six categories of ministrycategories of ministry

Actual Outreach WorshipPROPERTYUtilities(Electric, Heat, & Water) 7,983$ 2,794$ 798$ Telephone 821$ 164$ 164$ Insurance 1,620$ 567$ 162$ Maintenance & Supplies 6,854$ 2,399$ 685$

These calculations are fed into a These calculations are fed into a software spreadsheet to produce the software spreadsheet to produce the following pie chart:following pie chart:

St. Paul's Investment in Ministries in 2004

$47,673

$18,415$21,078

$19,506

$11,869

$23,412Outreach

Christian Educ.

Music & Worship

Pastoral Care

Evangelism

Parish Life

The software also permits the budget to be The software also permits the budget to be expressed in percentages:expressed in percentages:

St. Paul's Investment in Ministries in 2004

Outreach34%

Christian Educ.13%

Music & Worship

15%

Pastoral Care14%

Evangelism8%

Parish Life16%Outreach

Christian Educ.

Music & Worship

Pastoral Care

Evangelism

Parish Life

Or the software lets you look at Or the software lets you look at individual slices of the pie…individual slices of the pie…

Our Investment in Outreach in 2004

Outreach34%

Other Ministries

66%

The net takeaway we want The net takeaway we want people to have is this:people to have is this:

• 14 cents of every dollar I give goes 14 cents of every dollar I give goes to Pastoral Careto Pastoral Care

• 34 cents of every dollar I give goes 34 cents of every dollar I give goes to Outreachto Outreach

• etc.etc.

Tell the story of individual Tell the story of individual slices of the congregational slices of the congregational

ministry pieministry pie

• There is a narrative for Outreach, a There is a narrative for Outreach, a narrative for Evangelism, a narrative narrative for Evangelism, a narrative for Pastoral Care, etc.for Pastoral Care, etc.

•Funnel the story from the macro Funnel the story from the macro story to the micro storystory to the micro story

The Pastoral Care narrative might The Pastoral Care narrative might look something like this:look something like this:

The ministry of Pastoral Care at St. The ministry of Pastoral Care at St. Paul’s involves the following Paul’s involves the following services:services:

•taking of home communion to three taking of home communion to three local nursing homes each month local nursing homes each month • on call at two local funeral homes on call at two local funeral homes and follow up with the mourners from and follow up with the mourners from 30 funerals in 200330 funerals in 2003•frequent visiting at three local frequent visiting at three local hospitals to care for members hospitals to care for members recovering from illness or surgeryrecovering from illness or surgery

More pastoral care ministriesMore pastoral care ministries

•counselling services to couples and counselling services to couples and individuals in marital crisisindividuals in marital crisis•self help group set up to care for self help group set up to care for unemployed in the areaunemployed in the area•bereaved families support groupbereaved families support group•etc.etc.

Then we get even more specific Then we get even more specific and tell the ministry sacred and tell the ministry sacred

storiesstories

Give a specific example or story of Give a specific example or story of the impact of your ministry on an the impact of your ministry on an individual or group.individual or group.

We tell the stories of the real We tell the stories of the real people touched by our people touched by our

ministryministry

•Tell a few stories for each category Tell a few stories for each category of ministryof ministry•Members begin to get a better Members begin to get a better sense of the impact the ministry of sense of the impact the ministry of the congregation is having on the congregation is having on peoples’ livespeoples’ lives•Experience shows they become Experience shows they become inspired and take a much greater inspired and take a much greater ownership of the many ministries of ownership of the many ministries of the congregationthe congregation

There are many ways we can There are many ways we can use to get the story outuse to get the story out

•Session reportsSession reports•Church newsletterChurch newsletter

•Bulletin insertsBulletin inserts•Church websiteChurch website

•Stewardship mailingsStewardship mailings•Narrative Budgeting bookletsNarrative Budgeting booklets

•Personal contactPersonal contact•Include in intercessory prayersInclude in intercessory prayers

Use Sunday worship to tell Use Sunday worship to tell the sacred storiesthe sacred stories

•Put a bulletin insert out each week Put a bulletin insert out each week for six weeks highlighting a different for six weeks highlighting a different category of ministrycategory of ministry•Pray for that ministryPray for that ministry•Tell a specific story of a person Tell a specific story of a person being touched by that ministry being touched by that ministry

Adding Time and TalentAdding Time and Talent

•You can do special charts that You can do special charts that illustrate volunteer hours against the illustrate volunteer hours against the six categories of ministrysix categories of ministry•Members get a sense of how vital Members get a sense of how vital and vibrant the congregation is and vibrant the congregation is when looked at in the context of when looked at in the context of volunteer timevolunteer time

In an average size In an average size congregationcongregation

When you factor in all ministries, we When you factor in all ministries, we estimate that 10,000 – 15,000 estimate that 10,000 – 15,000 volunteer hours per year are volunteer hours per year are

accumulatedaccumulated

That’s a significant That’s a significant impact on any local impact on any local

community!!community!!

Narrative Budgeting is an Narrative Budgeting is an Evolving ProcessEvolving Process

•Each year you will get better at it as Each year you will get better at it as you add stories and volunteer time you add stories and volunteer time and talent.and talent.•Remember Remember you are on a journey!you are on a journey!•People will begin to think of the People will begin to think of the funding of the ministry of the funding of the ministry of the congregation in a new waycongregation in a new way

You can still make the line You can still make the line item budget availableitem budget available

……tell the left brain accountant types tell the left brain accountant types in the congregation that there are in the congregation that there are copies of the completed line item copies of the completed line item budget available in the church office. budget available in the church office. You are not compromising You are not compromising transparency.transparency.

As a faith-based organization be As a faith-based organization be determined in your desire to talk determined in your desire to talk about money and ministry in a new about money and ministry in a new way. Don’t vacillate and fall back on way. Don’t vacillate and fall back on the line item budget for decision-the line item budget for decision-making.making.

Slightly adapted – WITH APPRECIATION -- from:Slightly adapted – WITH APPRECIATION -- from:The Stewardship and Financial Development The Stewardship and Financial Development

CommitteeCommitteeAnglican Diocese of NiagaraAnglican Diocese of Niagara

The Reverend David M. PontingThe Reverend David M. Ponting