By Kristen Padilla
“The economy is suffering for just about everybody but it is very localized,” said Jim Swedenburg, director of the office of Cooperative Program and stewardship development for the Alabama Baptist State Board of Missions (SBOM).
And for churches in places where the economy is suffering more, in turn, leading to a decline in giving, creating a budget for next year can be challenging.
“The first question a church has to answer is what is our mission,” Swedenburg said. “You may have to cut those things that are not critical. There’s nothing in a church budget that’s not important to someone, but in lean years, we have to ask ourselves the question what is important to everyone and, most importantly, what is important to God. That has to be the first priority.”
So how can a church make it through its budget year when facing economic challenges?
Reporting from a variety of sources, Swedenburg suggests:
- Looking at debt. Can a loan be refinanced, or can its term be changed? Because interest rates are currently very low, this may be a good time to refinance a loan or mortgage.
- Conserving utilities. A church can save money on utility bills by holding all church-related meetings on the same night or moving to a four-day workweek.
- Delaying equipment purchases. A church may want to wait for a “fatter” economic year to purchase equipment like computers or a new sound system.
- Cutting back on comforts. If a church buys coffee for Sunday School classes, then it can ask the classes to provide their own coffee. If a church buys breakfast for the youth group on Sunday mornings, then it can ask youth volunteers to take turns providing breakfast.
- Looking at money spent on media and promotion. A church can save money on printing and postage by using e-mail to send special announcements to members. Youth and college ministries can use Facebook as a tool to share announcements instead of mailing printed promotional material.
- Cutting back on events or productions. Instead of funding events like a youth camp or retreat, missions trip or senior citizens trip, the church can ask members to pay for them. In turn, the church can plan events closer to home with less cost. A church also may want to consider not having a Fourth of July fireworks show, an Easter play or a Christmas program for a season until finances get better.
But there are some budget items Swedenburg said a church shouldn’t cut.
- Do not cut back on benevolence ministry. It is during the toughest economic times that people need the most help and will look to the church for it. This is a big part of a church’s mission.
- Do not cut personnel. “I’d never recommend you lay off somebody or cut staff unless there is absolutely no other choice,” he said. Instead consider instituting a hiring freeze and reassigning duties. Some people might be willing to work fewer hours if their family is not dependant on their income. If a church is short a staff member, then enlist volunteers to help. Volunteers are great at answering phones, running errands, folding bulletins, etc.
“These are short-term strategies,” Swedenburg said. “I’m not suggesting that they do these things permanently but maybe until they get back on track.”
While short-term fixes can be helpful in a crunch, a church also must look at the longterm when possible.
That’s the strategy that Ken Munday, a church adviser team leader, and Kent Singletary, a momentum coach, both for Dave Ramsey’s corporation The Lampo Group Inc., say is the most important.
Like Swedenburg, Munday and Singletary said the first thing a church needs to do is look at its mission and reevaluate everything it does according to that.
Munday and Singletary suggest:
- Not ignoring personnel expenses when looking at cuts. Munday and Singletary would not say a church should or should not cut personnel, since each church’s situation is different. However, if a church is having to make some cuts, personnel should be examined along with every other area of the budget.
- Getting out of debt. Munday and Singletary suggest not refinancing since that may cause the length of the loan — amortization — to extend. If a church only has 10 years left on a loan, then it will not want to refinance a loan that will extend it back to 30 years. Instead they suggest selling the church building and renting or joining another congregation if need be or cutting back in other places so that the church can get out of debt sooner.
- Not cutting attraction factors. Singletary suggests asking the question: Do I want to cut one big thing so I don’t have to cut the little things? If a church cuts too many small expenses like providing coffee for its Sunday School classes or providing a free lunch for college students, it may do more damage in the long run of hurting the church’s “attraction” features.
- Not attaching a person’s name to a program. When looking at which programs to cut, Singletary advises not attaching a person’s name to the program. The church may be less likely to cut it, even if it’s a program that does not fit in with the overall mission of the church.
- Dialoguing with others. Munday suggests talking about these issues at a safe place like a weekly, associational meeting with other pastors. By brainstorming with others, a church can have more ideas on how to save in the present but also how to plan for the future.
- Setting up an emergency fund. “Like individuals need emergency funds, churches need emergency funds. Now’s a hard time to build one, but it’s a great time to plan for one,” Singletary said.
Swedenburg noted that while the economy has hit everyone hard, “Alabama Baptists have done a better job of dealing with this because members have been faithful in giving.”
And helping individuals learn to make wise financial decisions contributes to faithful giving, he said.
Munday agreed.
“You help the lay people and eventually that helps the church,” he said. “Stop telling your church to give but teach them how to manage their own personal budgets … then giving happens. It’s a win-win situation.”
Munday and Singletary suggest “Financial Peace” by Dave Ramsey. Swedenburg suggests “It’s A New Day for Financial Freedom” put out by the Southern Baptist Convention and Crown Financial Ministries and Christian Money Management put out by LifeWay Christian Resources, both available through the SBOM.
For help with a church budget, contact Swedenburg at 1-800-264-1225, Ext. 283, or contact The Baptist Foundation of Alabama at 1-334-394-2000.
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Resources on church budgeting available from the Alabama Baptist State Board of Missions
- “Building a Church Budget Bridge for the Kingdom”
- “Building a Church Budget Wall Together for the Kingdom”
- Budget Toolbox for Churches
- Great Challenge Budget: Charting Your Course
Contact the office of Cooperative Program and stewardship development at 1-800-264-1225, Ext. 304, or glacey@alsbom.org.
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For more information about the local edition service of The Alabama Baptist, visit www.thealabamabaptist.org or contact Debbie Campbell at 1-800-803-5201, Ext. 106, or dcampbell@thealabamabaptist.org.
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