I've been asked more than once over the years ... "How much does your church keep in reserve?" My answer? "It depends." I haven’t encountered a “standard” for cash reserves that works for everyone. As church leaders, we know that having a reserve is good, but we’re not in the money-saving business. We’re in the money-spending business (for the good of the Kingdom, of course). We have to spend money to accomplish … [Read more...]
The Sabbatical
An Investment In The Future Of The Church
It's usually around budgeting time each year when the importance of the sabbatical is reconsidered. At first glance, providing a pastor with a sabbatical is not a very good idea. Right? The pastor is gone for an extended period, resulting in needing replacement speakers or meeting the ministry's needs in the pastor's absence. In most cases, the church provides some form of a stipend to allow the pastor to do … [Read more...]
Setting Priorities In The Church
Three Buckets ... A Good Model To Use When Making Resource Allocation Priority Decisions
One of the leader's most important roles in today’s church is determining and setting priorities. What should demand the attention of the staff and volunteers, and what should go on the “back burner?” That is the question. Church leaders must be clear on their priorities with limited staff and even more limited financial resources. What is "top priority," and what can (and should) wait? Early in my tenure as an … [Read more...]
Creating A Chart Of Accounts
Creating The "Backbone" Of The Church's Financial Infrastructure
A fundamental first step in completing a financial plan is creating a Chart Of Accounts. I've had more than a few conversations with church leaders on this topic. In my experience, reporting is the primary thing to consider when creating a Chart Of Accounts. I've run into more than a few financial types who want to break everything down into its category and subcategory to the point of uselessness. Those in the … [Read more...]