Free Download 20+ Easy Use Church Budget Templates
We know that a place for worship also insures many expenses every year. Unfortunately, most people who are responsible for handling the organization’s financial fail to arrange the church budget. It is because they don’t have a well budget plan which results in unnecessary expense. We should admit that it is always easy to overburden the congregation with a lot of demands. If you are active in your local church organization, it is wise to develop well financial management so this will not raise everyone’s eyebrows for having to spend more money. Check also our tips below on how to budgeting.
How To Set Church Budget
Keep in mind that the budget is obtained from the people who might not be stable. With fluctuating income, of course, this will be a burden for the organization as we don’t know how much will spend and how much the fund left after purchasing or paying certain items.
Determine The Fixed Income
This must be easy to see where mostly the income comes from. How? Now have the accounting person to provide the recent three years transaction histories. If you don’t have it, you can go to the account deposits. After that, evaluate and analyze where the money comes from and see the average number of the fund the church obtained. Also, look at the trend for certain events whether your church also gets some income or not. Usually, there is a charity event that can be utilized for getting more fund.
Determine The Expenses
List all of the annual expenses that your church always spend. This includes salaries, mortgage payments, utilities, insurance, van payments, benevolence, maintenance, van payments and many more. Estimate all the expense carefully and then check your income to see whether you have sufficient fund or not to run certain activities and buy some stuff you need annually.
Never Set Expenses More Than The Incomes
So, this is the rules. If you find out that the expenses are greater than the income, it is time to subtract. Consider more things that are not in an emergency. It is not highly suggested to ask more fund to the congregation so often because this indicates that your organization is not well-managed. On certain events or a regular thing, this is OK as long as they don’t feel it is a burden. Even though it is more like a charity, keep in mind that not all of them can donate some money, so we have to be more realistic.
Compare The Expense Monthly
The next is we have to compare the expense each month so we can easily adjust which categories need to be edited. Sometimes we include certain categories that are not very urgent and we can delay it for some reasons. If you find it, it is better to remove it and use the available allocation for another important thing.
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