A well-reasoned budget is the key element of any church’s financial planning. It can be a static document that controls spending and tells leaders what they can and cannot do. It can also be purpose-driven, proactive, and tied to vision and mission.

Does your church’s budget align with your ministry’s goals? Consider these questions – maybe together with your leadership and budget committee – to determine whether your budget is healthy or hurting.

1. Is the budget static or dynamic?

A budget can be a “control” document that makes assumptions about limited resources. In some cases, this approach perpetuates past ministry. A healthy budget is dynamic; it evidences program and ministry growth that is driven by the assumption that there is money available to do God’s work.

2. Is the budget money-driven or ministry-driven?

When churches define stewardship from a financial perspective, budgets tend to be money driven. When churches define stewardship from a discipleship perspective, budgets tend to be vision driven. Money follows vision, but rarely precedes it.

3. Does the budget have an outreach or growth component?

If purpose is clear and there is a real commitment to outreach, it tends to appear as a budget item. Healthy churches tend to allocate as much as 15-20% of their budget to outreach. This is at the heart of our purpose as Christians. Being outward requires focused costs and it rarely happens by accident.

4. Does the budget provide for adequate staff?

By almost any formula, most churches are under-staffed, and many church leaders can name positions that they would like to add if they had additional funds. Several factors can affect staffing ratios, including attendance, the size of the operating budget, growth or decline rate, affluence of the community, geographical location, denominational affiliation, and the age of the church.

5. Does the budget show evidence of program growth?

It’s important to budget for outreach growth, but it is equally important to budget for program growth. Has your church has added any new programs in the past five years? If not, you are probably operating with a “maintenance-mode” mentality.

6. Is the budget adequate in terms of funding level?

What is the cost of ministry at your church? In practical terms, what is the cost per attendee per service? The bigger your congregation gets, the more it costs to fund your ministry. Does your budget adequately reflect this number?

Michelle D. Harder is a Senior Consultant with The Goldie Company. She has many years of experience in fundraising and development for churches. Need help bringing your budget to life? Connect with The Goldie Company to learn more.