Last month we touched on how our church makes decisions and how the eldership works through that process. This month we will look at how the church develops and works the budget.
First, each of us have a responsibility to be wise managers of what the Lord has given. We learn this from the creation account where Adam is given authority to 'subdue' and 'rule' over 'the fish of the sea and over the birds of the sky and over every living thing that moves on the earth' (Genesis 1:28). Jehovah owns all creation and He has given the sons of Adam the role of stewards or managers of His creation.
Because of the Fall, and the subsequent curse, this stewardship role has been made more difficult. History has shown that mankind does a poor job of managing creation. Nevertheless, the curse and man's depravity does not relieve us of our responsibility. Our obedience may include many things from caring for our animals to not trashing the environment. But when we consider the church budget the clear application is that we not waste or misappropriate the resources that the Lord has given to us as a church.
When Trinity was first constituted I worked on developing the first budget. Three principles guided our task. First priority was our desire to manage giving wisely. Second, a concern that every member would know where the money was going, and thirdly, to make the budget process easy to understand and easy to audit.
Managing our funds wisely means that there is a certain priority to where we expend our funds. The church has a primary purpose for existence. Therefore our priority for the budget ought to support the local churches’ number one reason for being! We recognize that there are other things that compete for those funds but we should not forget the main reason and purpose of the local church.
So the first question that must be answered is, ‘what is the purpose of the church?’1 We can go to the words of Christ where he told the disciples to go into all the world, make disciples, baptize, and teach. The 1689 Baptist Confession says in Chapter 26 that believers are to join local churches for 'mutual edification' and 'public worship' (preaching/teaching). Evangelism certainly finds an important place in purpose of the local church.
Managing wisely means we needed to develop a budget that would be helpful in making sure that our funds are going toward things that will likely achieve those goals. Since our main purpose is evangelism, preaching, and teaching we can prioritize other spending. Are we spending a lot of money on things that are not helpful? Then it may be time to prune. A good budget will reveal where the money is going.
The flip side of the budget is the giving part. Before establishing a budget the deacons need some sort of idea of what we may receive for the following year. So it is a bit of a guessing game based on present giving. From this years' estimated giving the treasurer/deacon makes a judgment call about what he thinks will happen for the following year. So he may take what has been received at the end of June and multiply it by two in order to estimate what will be given for 2015. In the past, from experience, we try and cull out what we think non-members have given from the total estimated giving for 2015. Total estimated giving for 2015 minus estimated non-member giving gives us a basic number for the 2016 budget. We typically subtract visitor giving because they have not made a covenantal agreement to support the local church. Not because of any concern on our part that our regular visitors might be unfaithful but merely because we have a high view of membership and the responsibilities of membership.
From that 2016 budget estimate we subtract fixed expenses. Obviously, we have certain financial obligations that take priority. For example, we have insurance, utilities and salary obligations that must be paid. After these items are allocated we may address additional expenses in the order of previously established priorities. The preaching and teaching ministry of the Word is, in fact, of greater importance than those 'fixed' obligations but as long as we have a building it is necessary to pay insurance premiums and utilities bills. I suppose as long as we have preaching and teaching of the Word we will have a solid church - but I am not sure how many would be able and willing to sit in the dirt under a tree for public worship.
So the budget process starts with those expenses that are fixed then adds staff salaries. After those items are taken care of the process takes into account all the other 'incidental' things that our church wants or plans on doing the following year. We do give to missions and church planting efforts as best we are able. We do spend funds on Bible study materials and books. We set aside funds for music and hymnbooks. We have a copy machine and its associated expenses. We have fellowship meals and so require occasional food purchases and paper goods. We have bathrooms which require certain items as well. All such things are subject to increases or decreases according to the funds available. The budget process goes down the list until reaching the budget limit and then adjustments are made to not exceed that limit. If there is money left over it is sent to savings.
A word about savings. There are occasionally extraordinary expenses that arise. For example, the church has several air conditioning units. They are fairly expensive to replace. I believe the present units are nearing ten years old. Therefore it seems reasonable to have enough savings to take care of replacement units in case that is required. Savings may also be accumulated for a specific purpose such as an additional building or a better piano, etc. Savings for the sake of accumulating money is unnecessary but savings for a specific purpose or in order to meet unexpected repairs is prudent.
So the treasurer and other deacons work through this process and eventually present their 'next year' budget proposal a few weeks before the end-year members meeting. Church members are given at least two weeks to come to the deacons with questions or concerns about the budget. At the end-year members meeting those attending approve the following year budget.
During the year, the treasurer is given lots of leeway in how the funds are allocated since things do not often go as planned. For example, the 2015 budget line item 601A allocates $1,000 for a summer intern. If there is no opportunity for a summer intern perhaps that money might go to support a church planter or even perhaps be used to enhance our benevolence fund.
Once per year we have a audit team assist the treasurer as they go through and account for the previous years budget. Money that may get diverted from one line item to another is accounted for at that time. Their report is presented to the membership at the mid-year members meeting for questions or concerns and approval.
Any major change to the budget or any need to increase the budget during the year requires at least two weeks for the membership to consider the changes and a members meeting to discuss and vote to approve the change.
Robin
1footnote: When we think about putting our funds toward the main mission of the church I think there is a danger of getting unbalanced. There is the danger of placing emphasis on evangelism to the detriment of the other purposes of the church. An unbalanced church may put nearly all of their funds toward missions and neglect preaching or teaching responsibilities within the local church. The danger here is that without solid preaching or teaching the local body may wither and never reach the spiritual maturity necessary to establishing a solid Christian witness in their local area. I have to wonder if helping establish a church in a foreign land is more important than establishing a solid church in our own land? Would it not be preferable to establish and preserve a solid church in Jackson, Georgia first, and then to go out into the world and plant churches?
The opposite danger is a church that spends all its funds on itself and never looks out to the surrounding world. If we find ourselves spending the bulk of our funds on fellowship meals and/or parties we should be concerned. There is something wonderfully invigorating for a church who is looking outside of itself to the surrounding world (including pagan America) with an eye to planting solid churches. There is the exciting prospect of expanding the Kingdom but also providing an outlet for the men within to develop in the gospel ministry.
