Stages of Church Life
Churches are living organisms, and as such, follow a life cycle that is remarkably similar to humans.
As a new baby Mission Group is formed, there is a focus on enthusiasm, fellowship and dreams for the future, while a parent church often handles their finances for them. And just as a baby's needs are simple, a new Mission Group usually starts out with just donations to Local Church Budget and maybe a Building Fund.
When the Mission Group is ready to care for its own finances, a treasurer is appointed, a church-owned treasury computer and printer is obtained, a bank account is opened, the parent church writes them a check for the offerings given so far, and a new stage of life begins.
A teenaged church still has simple finances. There is still a lot of enthusiasm and fellowship, but the need for structure continues to grow as various church ministries and outreach require the use of a growing list of local funds. Paying rent and purchasing office supplies adds to the list as well. (Do you remember renting your first real house and how many things you suddenly realized you needed but didn't have?)
At some point during this life cycle, the need to know how much has been spent and how much needs to be saved for the future becomes a topic of board discussion. Sometimes it is a new pastor who says "We need to set up a budget!" Having never had one, questions are asked, recommendations are made, assistance is given, and the resulting basic budget allocations make the treasurer's job easier and the Financial Summary has fewer negative balances at the end of each month.
The day arrives when having "our own church," whether a construction project or a building purchase, is front and center. Money flies in and out, and when all is said and done, the Local Fund's list now includes "Mortgage Expense," as well as lines for things like electricity, internet, pest control and cleaning supplies. Welcome to adulthood!
A mature church has lots of programs and ministries that require money to function. The board guides the Church Budget offerings where they need to go and deals with emergency needs and unusual requests. The treasurer carries out the board's votes and keeps an eye out for things the board might not notice. Often at this stage, the church faces having more money than volunteers, and paying to clean the church and mow the yard becomes commonplace.
Yes, churches can decline, just as humans do. Demographics change, children grow up and move away and members age. And a church that is older has to change their budget just like a senior citizen does. There are usually fewer programs requiring infusions of Church Budget offerings, which is good because there are fewer Church Budget Offerings. The focus of much of the church board discussion and of the incoming funds becomes the maintenance and upkeep of the facility that was once their dream.
It is hard for the local church to adjust their expectations at this stage. "The way it used to be" is hard to let go of, but the board must face "the way things are" just like a senior citizen on a fixed income must make hard choices. Questions like "Can we still afford to pay someone to clean or mow?" must be asked, as well as "What is the best use of the funds we have?"
As you can see, there is no one "Church Budget" process or protocol that works for every church at every stage. Budgets for Different Stages illustrates some of the various ways that budgeting is accomplished, or not. Whatever stage your church finds itself, it is always good to take a look at the way money is being allocated, and adjust if needed.