Does your church struggle to meet budget? Do you spend too much time having “can we afford this?” conversations? Do you desperately need to add new team members, but you can’t hire them? Is your church prospering or struggling?
If you answered “yes” to any of these questions, here are five steps you can take to address these serious challenges:
5 Financial Steps Pastors Can Use To Position Their Church To Prosper
- Prepare a realistic budget (and follow it!) Most churches prepare a budget. However, studies have shown that most of these budgets are not met. This is because most churches spend 99% of their time focused on the “OUTGO” side of the budget and 1% establishing the “INCOME” side. The process usually goes this way: (a) Look at last year’s giving and (b) Increase or decrease it a certain amount for this year’s budget. In order to prepare a more realistic budget, it is important to spend time developing the plan to actually receive the income! That leads us to Step #2.
- Prepare a “Giving Plan” What are you going to do – specifically – to help ensure giving actually meets or exceeds the budgeted amount? How many times are you going to teach on giving this year? How many ROI (return on investment) updates will be shared with the church this year? Will you issue a Giving Challenge? Do you plan to meet with your financial leaders this year? Will you issue an “annual report” for the results achieved through your church over the past year? Will you implement or expand online digital giving? Will you offer studies to help your congregation win with their money?
- Offer a financial study Your congregation spends a lot of each day focused on money. Spending decisions. Working to produce income. Investing decisions. Saving decisions. But mostly, they are making spending decisions. As a result, studies continually reveal that 70% of people are completely broke. Giving decisions rarely enter their mind – not because they don’t want to be generous, but because they are broke! I’ve written and taught a six-week personal finance group study called “I Was Broke. Now I’m Not.” Click HERE for more information. It is biblically based, and it will help your church view money differently and spark generosity.
- Save money. Create margin for your church. Nothing robs vision more swiftly than continually operating “in the red.” It is awful. Too many leaders have taken their “non-profit” tax status literally – they spend every available dime, and it leads to endless financial emergencies. Proverbs 21:20 shares “The wise store up choice food and olive oil, but fools gulp theirs down.” Eliminate stress and expand vision by purposely putting “saving” in the budget. And defend it in the same way that Nehemiah protected the wall. The church’s savings provides a financial “wall” so you can remain focused on the mission – even when faced with financial emergencies like recessions or natural disasters.
- Invite financial leaders to help. Financial leaders have exceptional skill sets that can greatly assist a pastor in conducting the financial affairs of a ministry. Most financial leaders are making financial decisions multiple time each and every day of the week. Invite them to be a part of your planning team. Ask them to provide wisdom. Proverbs 15:22 shares “Plans fail for lack of counsel, but with many advisers they succeed.”
The I Was Broke. Now I’m Not. team has helped hundreds of churches increase their giving, and we are ready to assist you. Whether it is through one of our Group Study Resources (Click HERE for more info) or a complete on-site full partnership, start the conversation by completing this IWBNIN Contact Form.
This was a guest post by Joseph Sangl. Joseph is the founder of I Was Broke. Now I’m Not., a financial organization dedicated to equipping people to accomplish far more than they ever thought possible with their money. He is the author of several books including I Was Broke. Now I’m Not., Oxen: The Key to an Abundant Harvest, and What Everyone Should Know About Money Before They Enter The Real World.