5 Tips For Managing Your Church’s Finances

Source: https://townnews.com

Whether you love it or loathe it, your church must manage money. Keeping track of expenses and donations can be challenging, especially if you don’t have the right training or experience at hand. Before you get too overwhelmed, here are five tips that can help when it comes to managing your church’s finances.

Understand the Basics of Budgeting

When it comes to understanding your church’s finances, your first port of call should be to create a budget. There are various factors to consider, such as how big your church is, and what your total annual donations are. If you don’t have a dedicated staff member who is in charge of managing finances, the thought of doing it yourself can be overwhelming, however, no one is saying you have to be an accountant to get to grips with the basics of budgeting. 

Keep Track of Expenses and Donations

It’s important that you keep checking on how many donations you receive (revenue), as well as how much cash your church spends (expenses). There are various expenses that you will need to take into account, such as your gas and electricity. To save money on your energy bills, you may want to consider visiting Utility Bidder who can provide you with more information on energy providers for your place of worship. Once you’ve fully outlined your annual donations and expenses, you will be able to work out your overall running costs.

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Protect Your Church’s Integrity

In the society we live in, stealing is a problem that occurs both inside and outside the church. It’s essential that your church has several safeguards in place to not only protect the integrity of your leadership but the church too. Limiting access to bank information, encouraging volunteer rotation, as well as requiring dual signatures are just a few steps that you can take when it comes to protecting your church’s integrity. 

Save for a Rainy Day

As a church, it’s always best to have a financial cushion in place should you ever go through a rough patch. As you know, your place of worship will have unexpected expenses, or you may notice a decrease in giving. Although there have been debates on whether a church should have financial reserves in place, it’s best to build up a reserve of cash in case of emergencies. 

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Consider Drastic Options

If you are having issues financing your church, you may need to resort to drastic options to cover the costs. Whether it’s by downsizing, relocating, or reaching out for donations to get you back on your feet, doing all that you can to keep the church going is crucial. Things such as bonuses, ministry budgets, and pay increases should also be cut. Making a list of priorities and reducing costs will be enormously helpful, regardless of how small it may seem.

Getting to grips with the basics of budgeting, keeping track of expenses and donations, protecting your church’s integrity, as well as having a financial cushion in place are just a few key tips when it comes to managing your church’s finances.

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