4 Financial Mistakes Churches Make
Church finances can be difficult to manage. Many times, it's a cause of stress, and we think, "If only we had more." Well, let's start by being good stewards of what we have. Churches often make these four financial mistakes.
Not taking up the offering with vision (or at all). With the rise of digital giving, some churches bypass the offering altogether. Please don't do this. This is a chance to teach about giving. Insert a moment for giving every time you take up an offering. Cast vision on why we give and remind people of the great opportunity we have to give to God a portion of what He so generously has given to us.
Not having an engagement plan for givers. There are four types of givers in your church. 1) people who give regularly (tithe). 2) people who give occasionally, 3) people who have given for the first time and 4) people who don't give. Each group should be communicated to regularly, and each needs their own distinct form of communication. Your job is to engage givers continually. You can have regular updates, letters, pastoral chats, and more. Having an intentional plan to engage your givers is a great way to see your giving grow.
Not having a budget. It's true many churches do not have a budget that they are working from. They are guess-estimating at best and have no indicators of how they are doing financially. It's important for churches to have a budget process and work through how much things cost. Every year, you should look at your expenses and ask, "Why are you spending money on that?" You can reconfigure your expenses and lower them as well—a budget forces you to think through how you spend your money.
Not allocating money to the ministry. When things are tight, the first things to get cut are ministry budgets. It's not salary, building or utilities; it's the children's ministry or the outreaches. This really is backwards because ministries actually generate income for the church. If you have to cut and reduce, try doing it with salary and building first. Or, better yet, budget less than 70% into administrative costs. Try and get to a 60/40 model and get as much of the resources for the ministry back into the ministry.
If you're having difficulty managing your church finances and need help, please reach out to coach@abnwt.com, and we can help with a giving strategy today.
Jeremiah works as an Effectiveness Coach with the ABNWT District of the PAOC. He is a passionate and creative leader who believes that the church is the hope of the world. He uses collaboration, innovation, and inspiration to challenge churches and their leadership to engage in the only mission Jesus ever sent his church on: making disciples.