3 Most Important Things to Include in a Church Budget

3 Most Important Things to Include in a Church Budget


A church budget is an essential component of effective financial management for any religious organization. Think of it this way: your budget serves as a roadmap for utilizing available financial resources to support your church’s mission and goals.

Establishing, following, and regularly monitoring a church budget ensures that your finances work for your church, not against it:


  • Maintaining a sufficient cash flow for bills, salaries, and expenses
  • Improving credit score
  • Controlling spending
  • Increasing savings
  • Preparing for emergencies and unplanned expenses


In this blog post, we will discuss the three most important things to include in a church budget to ensure that it is comprehensive, accurate, and effective.


3 Key Church Budget Items & Why They’re Important


#1: Personnel Expenses


Church personnel costs include not only the expenses of hiring and retaining qualified staff members, but also providing them with the necessary benefits to attract and retain the best personnel.

The salaries and benefits of church staff and leaders

account for nearly 50% of most church budgets,

making them the most significant expenses for any church. As such, these expenses should be carefully planned and budgeted as they’re essential for the day-to-day operation of the church.


#2: Building & Maintenance Overhead


The cost of maintaining and operating a church building and grounds can be significant. This includes expenses such as utilities, repairs and maintenance, and insurance.


Facility expenses should be budgeted for and monitored closely to ensure that the church is able to maintain its facility and keep it in good condition. This not only ensures that the church has a suitable environment for its congregants but also preserves the assets of the church.


Another option is to create passive income by diversifying the types of income-generating activities your church engages in. Consider renting out your church facilities for events, offering classes or workshops, or providing services such as counseling or church retreats. Additionally, you could explore opportunities to invest in businesses or real estate that generate revenue.


#3: Outreach & Mission Costs


The outreach and mission of the church are an integral part of its overall mission and purpose. These expenses can include things like community outreach programs, mission trips, and charitable donations. These expenses should be budgeted for and tracked closely to ensure that the church is able to make a positive impact in its community and around the world. This ensures that the church is fulfilling its role as an active participant in the community and promoting its message to a wider audience.


In conclusion, a church budget is a crucial tool for managing the financial resources of a church and ensuring that it is able to meet its mission and goals. By including these key items in the budget, a church can be confident that it is utilizing its resources effectively and efficiently to support the work that it is called to do. Furthermore, it will help the church to be more transparent and accountable to its congregants, stakeholders, and donors.


What’s Your Next Step?


The good news is that you don’t have to manage your church finances alone. Finch helps churches of all sizes across the U.S. to be faithful with their finances, have deeper insights into their budgets, and plan ahead to face difficult times like a recession.

Set up a free meeting today and discover what it’s like to have a financial team of experts in your corner.

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