Implementing Narrative Implementing Narrative Budgeting in your ParishBudgeting in your Parish

Stewardship and Financial Development Stewardship and Financial Development CommitteeCommittee

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 parishthe parish

•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 parishto support the ministry of the parish

An important insight is the An important insight is the backbone of Narrative backbone of Narrative

Budgeting… Budgeting…

Donors don’t give their money Donors don’t give their money TOTO the the church… church…

……they give they give THROUGHTHROUGH the church to the church to touch the lives of other peopletouch the lives of other people

Anglicans will give generously when Anglicans will give generously when they feel their money is having an they feel their money is having an

impactimpact

Sacred story… Sacred story…

Much of Scripture is the sacred story of God’s care for Much of Scripture is the sacred story of God’s care for the people of God. ie. Exodus 16 and Manna from the people of God. ie. Exodus 16 and Manna from heaven.heaven.

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 parish’s ministry and how your parishioners are parish’s ministry and how your parishioners are giving through their parish to touch the lives of other giving through their parish to touch the lives of other peoplepeople

We have a theological We have a theological starting point… starting point…

……and that starting point is that we are and that starting point is that we are NOT a secular institution.NOT a secular institution.

Our faith calls us to view the Our faith calls us to view the deployment of money much differently deployment of money much differently

than secular institutionsthan secular institutions

We must overcome years We must overcome years of faulty theologyof faulty theology

……and begin to view money from the and begin to view money from the perspective of a faith community rather perspective of a faith community rather than a secular perspectivethan a secular perspective

This has a serious This has a serious implication…implication…

We need a whole new way We need a whole new way of thinking about the line of thinking about the line item budget in the local item budget in the local

parish!!parish!!

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 more We need both but we must be more intentional in how we use bothintentional in how we use both

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

parish lifeparish life

Helps donors to re-frame what the Helps donors to re-frame what the parish is all aboutparish is all about

Inspires donors and helps them see Inspires donors and helps them see their donations are really making a their donations are really making a

differencedifference

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

parishparish

The Narrative BudgetThe Narrative Budget

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

administrative costs, postage, heat, administrative costs, postage, heat, hydro, cleaning supplies, photocopying, hydro, cleaning supplies, photocopying,

etc.etc.

And helps donors see their investment And helps donors see their investment in the ministry of the parish in a in the ministry of the parish in a

different light.different light.

The Narrative BudgetThe Narrative Budget

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

Each parish has several Each parish has several key components to their key components to their

ministry…ministry…

Your parish’s ministry might easily be Your parish’s ministry might easily be segmented into these six components: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

All Parish Expenditures can All Parish Expenditures can be assigned to one of these be assigned to one of these

six areas!six areas!

•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 parish.for your parish.•Some parishes like a youth ministry Some parishes like a youth ministry category. I have found it easiest to category. I have found it easiest to fit both Youth Ministry and fit both Youth Ministry and Stewardship Education into the Stewardship Education into the ‘Christian Education’ segment‘Christian Education’ segment•However, you could put Youth However, you could put Youth Ministry in the ‘Outreach’ or Ministry in the ‘Outreach’ or ‘Evangelism’ categories if that makes ‘Evangelism’ categories if that makes more sense for your parish.more sense 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??

If you use ADMINISTRATION If you use ADMINISTRATION as a category in your as a category in your

Narrative BudgetNarrative Budget

•You will be defeating the entire You will be defeating the entire purpose of Narrative Budgeting!!!purpose of Narrative Budgeting!!!

•I BEG you. Don’t go there!I BEG you. Don’t go there!

A small team can put A small team can put together your parish’s together your parish’s

Narrative BudgetNarrative Budget•Start by getting your staff to diarize Start by getting your staff to diarize how they spend their time for a how they spend their time for a month. They can also review their month. They can also review their day planners for the previous monthday planners for the previous month•Allocate their time amongst the six Allocate their time amongst the six areas of ministryareas 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 amongst budget should be allocated amongst the six areas of ministrythe 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)

So after a month of diarizing So after a month of diarizing by your staff you will have an by your staff you will have an

allocation formulaallocation formula

• For example the rector might For example the rector 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•We then take this formula and use it We then take this formula and use it as a blueprint for line items that are as a blueprint for line items that are difficult to allocatedifficult to allocate

Don’t get caught in a trapDon’t get caught in a trap• Many parishes implementing Many parishes 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 and caught up on delivering accuracy and don’t give themselves permission to don’t give themselves permission to treat the Narrative Budget as treat the Narrative Budget as directional.directional.

•Its not that we deliberately try to be Its not that we deliberately try to be inaccurate. We try to be as accurate inaccurate. We try to be as accurate as possible but we also recognize as possible but we also recognize that, as an educational tool, helping that, as an educational tool, helping reframe minds and getting donors to reframe minds and getting donors to think about how their donation is think about how their donation is used is more important than used is more important than accuracyaccuracy

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 parish Sample line items in a parish budget…budget…

PROPERTY ActualPUC (Light, 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 WorshipPROPERTYPUC (Light, 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 donors to have is this:donors to have is this:

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

• 34 cents of every dollar I give goes to 34 cents of every dollar I give goes to OutreachOutreach

• etc.etc.

And the good news is we have And the good news is we have made the whole process very made the whole process very simple to do:simple to do:• By accessing the Diocese of Niagara By accessing the Diocese of Niagara

web-site you can download all the Excel web-site you can download all the Excel software already programmed so that all software already programmed so that all you have to do is fill in your own figures you have to do is fill in your own figures and pie charts will be generated for your and pie charts will be generated for your parishparish

• You can access it through the “Financial You can access it through the “Financial Development” link at Development” link at www.niagara.anglican.cawww.niagara.anglican.ca

Time and Talent WorksheetTime and Talent Worksheet

You can also find a template for You can also find a template for calculating and reporting volunteer calculating and reporting volunteer hours against the six categories of hours against the six categories of ministry at the same web address ministry at the same web address and link and link www.niagara.anglican.cawww.niagara.anglican.ca

We tell the story of the We tell the story of the individual slices of the parish individual slices of the parish

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.

•We funnel the story from the macro We 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 parishioners hospitals to care for parishioners 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•care of McMaster students in crisis care of McMaster students in crisis due to stress-related pressures of due to stress-related pressures of schoolschool•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

storiesstoriesKristen is a first year student in Kristen is a first year student in Biology at McMaster. Its her first Biology at McMaster. Its her first time away from home and her family time away from home and her family is in Lumsden, Saskatchewan. She is in Lumsden, Saskatchewan. She has been having a difficult time with has been having a difficult time with her classes and her marks have her classes and her marks have slipped dramatically since high slipped dramatically since high school. Her mother was badly hurt in school. Her mother was badly hurt in a car accident last month and Kristen a car accident last month and Kristen is not coping well. She walked in off is not coping well. She walked in off the street last Wednesday morning the street last Wednesday morning and all her pain came gushing out in and all her pain came gushing out in the rector’s office. She and the the rector’s office. She and the rector connected and she has rector connected and she has showed up in church the last few showed up in church the last few Sundays feeling like she has found a Sundays feeling like she has found a “family” to care for her“family” to care for her

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•Donors begin to get a better sense Donors begin to get a better sense of the impact the ministry of the of the impact the ministry of the parish is having on peoples’ livesparish is having on peoples’ 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 parishthe parish

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

•Vestry reportsVestry reports•Parish newsletterParish newsletter•Bulletin insertsBulletin inserts•Parish websiteParish website

•Fall Stewardship mailingsFall Stewardship 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•Parishioners get a sense of how Parishioners get a sense of how vital and vibrant the local parish is vital and vibrant the local parish is when looked at in the context of when looked at in the context of volunteer timevolunteer time

Let’s look at one aspect of Let’s look at one aspect of Volunteer timeVolunteer time

Sunday Morning WorshipSunday Morning Worship

•Altar guild – two people X 2 hours= Altar guild – two people X 2 hours= 4 hours4 hours•Choir – ten member X 2 hours of Choir – ten member X 2 hours of worship and two hours of practice worship and two hours of practice time = 40 hourstime = 40 hours•Readers, chalice bearers, server, Readers, chalice bearers, server, crucifer, counters, sides-people, crucifer, counters, sides-people, litanist, 10 X 1.5 hours = 15 hourslitanist, 10 X 1.5 hours = 15 hours•Almost 70 hours of volunteer time Almost 70 hours of volunteer time in one week X 44 weeks =3,080 in one week X 44 weeks =3,080 hours of volunteer time in Sunday hours of volunteer time in Sunday morning worship alone morning worship alone

In an average size parishIn an average size parish

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 talentand talent•It improves with each cycleIt improves with each cycle•People will begin to think of the People will begin to think of the funding of the ministry of the parish funding of the ministry of the parish in a new wayin a new way

A Word about Vestry A Word about Vestry MeetingsMeetings

We must change how we view money We must change how we view money and ministryand ministry

Long before vestry you will have Long before vestry you will have begun a job of education and begun a job of education and

awareness around the Narrative awareness around the Narrative BudgetBudget

The diocesan Stewardship The diocesan Stewardship office strongly recommends…office strongly recommends…

……that you leave the line item budget that you leave the line item budget in the parish office at your annual in the parish office at your annual vestry meeting.vestry meeting.

Take only the Narrative Budget to Take only the Narrative Budget to your annual vestry meetingyour annual vestry meeting

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 parish that there are five in the parish that there are five copies of the completed line item copies of the completed line item budget available in the parish office budget available in the parish office to be signed out by anyone to be signed out by anyone interested. You are not interested. You are not compromising transparency.compromising 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.

Make a leadership decision to leave Make a leadership decision to leave the line item budget out of your next the line item budget out of your next

VestryVestry

……Then have the parish council affirm Then have the parish council affirm the leaders’ decision.the leaders’ decision.

That way you can tell the vestry the That way you can tell the vestry the parish council voted in favour of parish council voted in favour of talking only about the Narrative talking only about the Narrative Budget at vestry and the leaders Budget at vestry and the leaders aren’t standing alone in making this aren’t standing alone in making this decisiondecision

Maybe in your parish…Maybe in your parish…

……Vestry will no longer be viewed as Vestry will no longer be viewed as the annual BUSINESS meeting of the the annual BUSINESS meeting of the parish, but will becomeparish, but will become

THE ANNUAL MISSION AND MINISTRY THE ANNUAL MISSION AND MINISTRY MEETINGMEETING

You may actually find…You may actually find…

……members get excited and start members get excited and start looking forward to your annual Vestry looking forward to your annual Vestry meeting!!meeting!!

As donors are engaged by As donors are engaged by the efforts we make to show the efforts we make to show

them…them…

……their money is having an their money is having an impact on the lives of people in impact on the lives of people in

needneed