A Comprehensive Guide to Creating a Church Budget

A linear trendline on a logarithmic graph would curve left at the lower end of the scale. The power curve we observe instead indicates that, on average, PPG decreases as churches grow. The smallest congregations (or church plants) are often powered by outside funding and/or extremely committed families. The average size of contributions from each new family decreases significantly until churches reach the second complexity hurdle. Churches span a wide range of size and budgets—anywhere from 20 to 20,000 people and $50,000 to $50 million.

Expense

In most cases, churches treat this as guaranteed income to cover essential bills. A sound, realistic and well-made church budget and effective ongoing church budgeting are vital parts of planning for the future. If a church can’t afford to pay a full-time pastor’s salary and benefits, they may consider some creative options. These options are less than ideal and may affect the church’s ability to fulfill its mission. They require making some hard choices and asking the pastor to make serious sacrifices.

Steps for Effective Budget Reviews for Church Expenses

You can always adjustmidway in the year if income drops dramatically. It is merely a forecast of what you hope to bring into the church. Generosity is a multifaceted concept with varying definitions across generations, encompassing financial giving, familial support, social engagement, and other acts of kindness. Discover practical, biblical strategies to inspire generous year-end giving to help build a thriving ministry. Tithely provides the tools you need to engage with your church online, stay connected, increase generosity, and simplify the lives of how to create a church budget your staff.

Ways to Manage Tithes and Offerings

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. Some churches don’t have a budget because they already have financial reports from the treasurer or bookkeeper. Secondly, it helps in managing church crisis brought about by unexpected scenarios such as extensive building repairs, emergencies, or economic recession. I recommend churches aim to spend 40 % – 50% of their regular how is sales tax calculated income on salaries.

• Your church budget should include all your expenses for the year and keep an eye on future projects.
• Whether you own a building that needs to be maintained or are saving up to buy a building, you will need to save a lot of money over many years to be ready.
• While churches have many things in common, no one church is like another.
• As of January 2025, assistant pastors in the U.S. typically earn annual salaries ranging from about $52,000 to $75,000, with most falling between $46,000 and $90,000.

When you begin to determine where your money should go, create a set of priority categories that your church expenses need to cover. In most church settings, a church allocates budget for personnel compensation, and facility and equipment maintenance, outreach programs, church ministries, church expansion, and even debt. Classifying your prime expenses budget helps you see the bigger picture https://www.bookstime.com/ when you fill your church budget spreadsheet.

Get weekly updates on church tech, happenings at Tithe.ly, free resources for your church and more. You receive sponsorships and donations from them while they are able to create a good image and brand value through such relationships. Churches need to do our best to anticipate annual increases in costs we can’t control. Other additions, like traveling expenses, marketing, and continuing education, occasionally show up, too. Discover podcasts, blogs, and more to help you build your best team yet. Learn more tips for managing your church by enrolling in our Fundamentals of Church Administration Course.

Church Operations and Maintenance

After 1,000 people giving levels will still decrease but at a much slower rate. An excellent way to quantify this relationship is by tracking per person or per capita giving—total annual operating budget divided by active average attendance (including children). Your staff is no doubt good at what they do, but don’tassume that they all know how to design and manage a budget.