Creating an annual church budget can be one of the most stressful events through which a pastor has to lead. If a pastor has a lack of business training, he may feel inadequate to lead the church in the area of budgeting, especially if the budget is tight.
Church members can have a variety of opinions regarding how the church should spend its money. Some congregants want to live frugally to develop a healthy amount of cash reserves. Others believe the church’s funds are given to be used for the Kingdom and any reservation demonstrates a lack of faith in God’s ongoing provision.
When it comes to budgeting, pastors should remember that there are contextual differences that require different approaches to establish a budget. For this reason, there is not a “one-size-fits-all” approach to budgeting. Some churches may have financial or business professionals who are willing to serve within the stewardship of the church while others do not have any members with a financial background.
Though each church’s budgeting process will have key differences in their approach, there are some “do nots” that should be avoided.
First, do not create a church budget without involving the congregation. Whether the church has a plurality of elders or a single elder, whether the congregational business meeting is monthly or yearly, it is the congregation under the lordship of Jesus Christ guided by the Spirit that determines the best utilization of the resources that God has provided.
The budget should be a guide that is used to govern the church’s expenditures throughout the year. A budgeting process that leaves the congregation feeling isolated will eventually create a culture of distrust.
If a pastor or influential member seeks to remove the opportunity for the congregation to speak to the process of establishing the church budget, then they have effectively created a hierarchical structure. This structure leaves a few to determine the priorities of the church rather than the Lord who gifts and guides all believers for service to Him.
Second, do not create a church budget without maximizing the mission of the church. The strategy of the church must lead it toward the fulfillment of its mission. When a church fails to see the budget as a key component of its strategy, then the strategy will be ineffective, and the mission will remain unclear in the minds of the membership.
It has often been preached that if you want to understand a person’s priorities, look at their checkbook. Likewise, if you want to see what a church believes to be its mission, look at its budget. It is not enough for a church to display its mission statement on its website. They need to make sure that the mission statement is driving every decision of the church, including the budget.
Third, do not create a church budget without considering the context of the church. Some churches continue to set an unattainable budget because they fear that it either reflects a lack of faith or that reducing the budget may be perceived as an admission of failure. However, there are times when making budgetary cuts are right and necessary.
Budgeting for growth is not necessarily a step of faith. Some churches may not grow due to a limited population or a challenging season of ministry. These situations require pastoral wisdom as much as seasons of exponential growth.
Pastoral leadership needs to be sensitive to the context to guide the church through a reasonable budgeting process. Through reflective and responsible leadership, the pastor is helping the church to strengthen what may have become weak (Heb 12:12).
One of the ways that a church can examine its context is to study the trends of the church over a lengthy period. It is not enough to compare the church’s budget to the immediately preceding year. They should examine the church’s financial health across three, five, and ten years.
Setting a budget that is unattainable for the church does not demonstrate a greater degree of faith. It reflects a willingness to work with the funds that the Lord has provided. After all, if the Lord desires to bless a church financially, He is not going to limit Himself according to the budget that has been set. He can give exceedingly and abundantly more when He chooses (Eph 3:20-21). We can pray for more, but we must steward what we have.
Finally, do not create a church budget without seeking the Lord. All aspects of the life of the church must begin with prayer. The goal is not merely for a church to be unified, but to be unified around the will of the Lord. When a church earnestly prays together, seeking God’s will, He will guide them to the ministries in which He desires them to participate.
It is very important to the Lord that the church utilize the funds that He has provided in a way that honors His name. Almost half of the parables that Jesus told relate to money and finances in some way. The truths contained in the parables are not merely for the individual, but also for the church. By extension, the pastor should not only preach about individual financial responsibility but should also lead the church to understand properly the church’s approach to finance and budgeting.
It is true that there is not a “one-size-fits-all” when it comes to church budgeting. However, the church should not create the budget without involving the congregation, maximizing the mission, considering the context, or seeking the Lord. Consistently practicing this over a lengthy period will create congregational unity, make the church more efficient in the work of the ministry, and most importantly, honor the Lord.
