Leadership

7 Steps to Budgeting Success

Budgeting is considered a necessary and sometimes frustrating process. Here is a plan to be more effective in creating the guardrails for your ministry.


Deborah Ike  ·  May 31, 2015

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  • Review the trend month-over-month from the prior year.
  • Are monthly income amounts increasing, decreasing, or about the same?
  •   What can you infer from this information to help you estimate monthly income for the upcoming year?

     
    What expenses remain about the same each month (utilities, salaries, etc.) vs. which do you incur during key times of the year (conferences, special events, etc.)?  Account for those variations in your budget for the next year.

    As Bobby Hart notes, “Another key is staying on top of historical receipts to ensure your budget is realistic. We always leave room for the Lord to work, but we base any increases or decreases on what we know. It’s a lot more fun to see God bless a ministry you have planned conservatively for than to pull back ministry plans because funding isn’t available. Finally, we always ask our ministry leaders to dream. Don’t simply repeat the same ministry plan as last year with a slight increase. This stretches them to think creatively about ministry and allows the Finance Committee a glimpse into where ministries are heading, even if we don’t approve all of the ‘dreams’.”

    Step #2: Consider what will be different this year

    Chances are you’re not going to do exactly the same things every year.  Here are a few areas to consider: 

    • Do you have any facility maintenance activities due this year?
    • Does the parking lot need to be repaved?
    • Does your HVAC system need to be replaced?
    • What about your technology?
    • Is your software due for an upgrade?
    • Are your computers outdated and need to be replaced
    • Do you plan to hire any additional staff this year?  If so, in what role(s) and when?  Don’t forget to budget for the hiring process.
    • Have any laws or regulations changed that would impact the budget?  Consider insurance, compensation packages, housing allowances, etc

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    ARTICLE TOPICS

    Leadership · Management · Budget · Finance · Team Development · All Topics

    ABOUT THE AUTHOR

    Deborah Ike
    Deborah Ike (formerly Wipf) is the President & Founder of Velocity Ministry Management; a company dedicated to vision implementation for church leaders. Over the last ten years, Deborah worked in the corporate arena to discover how to leverage business principles for ministry vision. She worked for Deloitte Consulting in their Strategy & Operations group and most recently, for Williams, as a project manager and risk manager. Deborah has a bachelor’s degree in Computer Information Systems along with the Project Management Professional (PMP) credential from the Project Management Institute. She’s the author of The Volunteer Management Toolkit (Church Edition) and you can find her articles on sites such as Pastors.com, XPastor.org, WorshipFacilities.com, and via The Church Network.
    Contact Deborah Ike: deborah@velocityministrymanagement.com ·  View More by Deborah Ike


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