Managing a church’s finances can often feel like a delicate balancing act. Congregational demographics are changing for churches across the country, and many people simply can’t afford to contribute as much to the collection plate as they may have in times past. Implementing effective long-term strategies can help you navigate financial challenges while managing church finances in these changing times.
The Challenge of Shrinking Congregations When Managing Church Finances
For many churches, it’s unfortunate that shrinking congregations are now a challenging reality. Church members relocating is part of the equation, but so is the changing way that many now engage with their faith communities. As church income decreases, it becomes essential to reevaluate all of your church’s financial strategies.
Tithing, the practice of contributing a portion of income to the church, has been the cornerstone of church financing for centuries. Today, with an intimidating economy and ever-rising interest rates, it’s vital for church leaders to recognize that some people can no longer afford to tithe. The 10% biblical benchmark is likely no longer feasible for every member. It’s important for church leadership to understand the financial realities of the members of their congregations.
Creating a Realistic Budget and Diversifying Income
A well-structured and realistic budget is the foundation of sound financial management for any organization, including churches. To create an accurate and adequate budget, you’ll need to honestly evaluate the current economic situation for your church. Include regular contributions, the average collection rate during services, and any other income sources your church may have. Armed with this information, you can create a budget that allows you to cover essential expenses and save for the future.
Church repairs, maintenance, and similar expenses are vital to maintaining a safe, welcoming place to worship. In times of financial challenge, prioritize these expenses by first addressing the most critical needs. Consider creating a property and facilities maintenance schedule to help you plan for more significant costs and allocate your resources as efficiently as possible.
Encouraging stewardship within your congregation is another effective way to address financial challenges head-on. Stewardship programs can educate members about responsible financial management while inspiring them to contribute in ways that are manageable under their own unique circumstances. It’s also wise to consider diversifying income sources for your church. Consider these ways to boost income:
- Hosting fundraisers, like bake sales, car washes, or silent auctions
- Seeking grants from government agencies or private foundations
- Accepting donations from individuals or businesses
- Partnering with other area churches or community organizations to raise money for joint projects
Expert Professional Assistance Managing Church Finances
At Myrick CPA, we specialize in helping churches manage their finances responsibly in a rapidly changing world. We understand the unique challenges churches face today and can work with you to develop customized financial strategies that align with your values and goals.
We conduct all our work electronically and via video conferencing, helping your organization keep financial management as streamlined and efficient as possible.
In these uncertain times, having a trusted partner like Myrick CPA at your side can make all the difference in managing your church’s finances effectively and responsibly. Are you seeking more specific information or answers to your church's financial management questions? Contact Myrick CPA for personalized assistance and guidance.
