![]() Here are three common church budget types you can use: Line Item BudgetingĪlso known as incremental budgeting, this is one of the most common budgeting approaches for businesses and churches. Budgeting for a church is closer to budgeting for a business since you’re responsible for the money of dozens or even hundreds of people. Church Budget TypesĬhurch budgeting is very different from home or personal budgeting. Meanwhile, a budget shows how the money will be spent before doing so. A financial report shows how money is spent after the fact. The main difference between the two is their uses. Some churches don’t have a budget because they already have financial reports from the treasurer or bookkeeper. ![]() The Difference Between a Budget and a Financial Report Instead of serving God, a church with a loan might focus on repaying the lender. Poor budgeting often leads to loans that might hurt the church in the long term. As stated in Proverbs 22:7: “The rich rule over the poor, and the borrower is slave to the lender.” If you don’t have a plan before running church programs, they may run out of funding part-way through and not meet its objective.īudgeting also ensures your church spends within its means and doesn’t overextend itself. A budget is a plan – you define how much money each church program gets before actually spending the money. ![]() The passage emphasizes the importance of planning before doing something. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This person began to build and wasn’t able to finish.’” “ Suppose one of you wants to build a tower. You can find a good example in Luke 14:28-30: ![]() The importance of budgeting is outlined in Scripture. Your church budget regulates spending for church programs, making sure all of them are well-funded and can achieve their objectives.įollowing a church budget also keeps your church leadership accountable and focused on its mission to spread God’s word. Why is a Church Budget Important?Ī church budget is important because it defines how your church earns money and where to spend it. Read on to learn more about the importance of church budgets and what you should include in them. A church budget should also include how much you need to spend to complete your church’s mission – and ensure you have the money to do it. A well-made church budget outlines all income and expenses related to your church operations. Church budgeting is essential to managing your church’s finances and even online giving. ![]()
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