![]() The finance committee should monitor the budget every month by reviewing the actual dollars that came in and the actual dollars that went out and analyzing any variances. Budget ReviewĪ budget is simply an itemized allotment of funds and, therefore, requires monitoring. The advantage of this approach is that working managers are more apt to follow their budgets.īecause they participated in the budget process and understood the reasoning behind it – as opposed to a budget handed down to them from above.Ī manager’s involvement in the budget process adds a layer of accountability in that they have no one to blame for failing to meet their budget requirements. The Youth Director will then present a budget based on program needs and strategy. This simple step will result in greater accountability, more accurate reporting, and increased reliability.įor instance, if the church has a strategy to grow its youth ministry, budget dollars would be allocated to the youth department to support those efforts. The individual department managers are responsible for creating their own budget estimates that are based on the church strategy, associated department goals, and resources that are allocated to support department goals.Īllow individual department managers to prepare their budget estimates. The finance committee assists in establishing the global church budget based on revenue projections and allocates dollars to individual departments. Remember to maintain confidentiality through this reporting process.Įrr on the side of caution and base projections on real giving patterns rather than hopeful increases.įor instance, if your church is in the middle of a capital campaign, do not assume weekly giving toward the general fund will increase when members stretch to designate funds for a building project. Then, determine the average monthly giving for those combined households. ![]() ![]() Take a realistic approach to project revenues by analyzing historical giving, attendance patterns, and average member donations.įor instance, run a report from your church management software that shows how many giving households you have. Church Finance Committee Duties And Responsibilities 1. Revenue Projectionsīudgeting is difficult without a realistic idea of how much money will be available. When mismanaged, this group can negatively affect the long-term financial viability of a church – something no one wants to be responsible for. This crucial committee can significantly influence the sustained financial health and growth of church assets. This team of people is responsible for managing and stewardship of church financial resources. However, sustaining a vibrant church requires a diligent approach to managing finances.Ĭhurches elect or assign members to serve on a Finance Committee. Talking money is simply an unpopular topic for ministries.
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