2 Budget defined………An estimate of income and expenditure for a set period of time; the amount of money needed or available for a purpose. “Oxford Dictionary” A budget is a plan…..before you start spending.
3 The Budgeting ProcessPlanning Identifying priority areas Controlling Implementing what was planned.
4 Sources of Funding…….The Local Church & Larger Organizations receive two main funding sources………….Tithe = 10% - Expresses faithfulness to GodThe Tithe is reserved for a special purpose:Manuscript 82, 1904 – Mrs. EG White"The tithe is to be used for one purpose, to sustain the ministers whom the Lord has appointed to do His work. It is to be used to support those who speak the words of life to the people, and carry the burdens of the flock of God."-MS 82, 1904.
5 God’s PlanThe operation of the local church is important but should not be supported from tithe………..Freewill offering –Deu Each of you must bring a gift in proportion to the way the Lord your God has blessed you.(Give God your best)2 Cor Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. (Give from a Joyful Heart)
6 Offering PlanThe Combined Budget Offering Plan supports all levels of the church by putting total funds collected into one pool. The funds are distributed as follows:60% Local Church20% Mission Offering20% Mission Development
7 Local Church Budgeting Process….. Its November (or earlier) and the Officers for the new year have selected have been selected.Each Department head is asked to submit their plans and projections for the new year.
8 Local Church Budgeting Process The Finance CommitteePastorTreasurerStewardship SecretaryFirst Elder2-3 members
9 Local Church Budgeting Process….. Finance Committee will look at the plans submitted by each department along with historical data from previous years and begin constructing the budget.
10 Church BudgetReceipts: Tithe (100%) 100,000 Ingathering 12,000 Offering (100%) 60,000 – recorded as Combined Budget Interest Income 500 Trust Funds 14,500 - AY, Pathfinder, Building etc Total Receipts 187,000
11 Church BudgetExpenditure: Tithe (100%) - Mission 100,000 Ingathering (100%) - Mission 12,000 Combined Budget (40%) 24,000 Utilities 12,000 Sabbath School 10,000 Personal Ministries 6,000 Youth Department 3,500 Family Life 4,000 Bank Charges 500 Repairs & Maintenance 15,000 Total 187,000
12 Local Church Budgeting Process….. The Budget should be presented to the Church Board for Approval.Once approval has been given by the church Board, the Budget is presented to the Church in Business Meeting for approval.
13 Local Church Budgeting Process….. No monies should be spent without an approved budget……A copy of the Budget and Officers List should be sent to the Mission Office.A quarterly review of the budget should be done to ensure spending is in line with Budgeted figures and also to see if there is need for any adjustments.
14 Reporting reminders…….. A Finance report should be presented at Monthly Church Board Meeting by the Treasurer.What factors can prevent monthly reports:No church BoardTreasurer not up to date with reportsSoftware or Internet challengesLack of succession planningTreasury staffing (not computer savy, unwillingness)
15 Reporting reminders…….. Tithe Reports should reach the Mission Office by the…….10th of each MonthReadiness for Audit. Filing and security of Treasury documents on an ongoing basis.Crusade reports should be submitted 1 month after the crusade ends.
16 Reporting reminders……… Ensure that other Funds collected by the church in Trust for Institutions are remitted with the Tithe Reports…..Second AdventSchoolsTabithaSpecial Offerings
17 In conclusion……………….Jesus is soon to come and there is still much to be done. Managing our church finances well, will place each congregation in position to be able to do more to meet the need of the congregations and ultimately to reach others for Christ.