1. Peter Atkins, Diocese of Llandaff, Diocesan Secretary Jan Boyce, Diocese of Llandaff, Accountant Richard Jones, Diocese of Llandaff, Parish Resources Adviser

2. What is a budget? Why budgets are important Budget models – Your options Process of budget setting Importance of budget communication Your questions

3. Qu: Why bother?

5. Answer: Why bother?

6. A plan drawn up by the PCC which sets out the planned income and expenditure for a financial period. The budget estimates the amount and source of future income, and the amount and nature of planned expenditure. Your budget is your road map

7. 1.Do you currently set an annual church budget 2.If so, how do you go about this? What models do you use? Who is involved? What’s the process? 3.What benefits do you find to budgeting in this way? 4.What are the problems you find with budgeting?

8. Finances are put in proper perspective as most plans need money. Carefully administered budgets will help achieve plans. Allows identification of necessary spend and those items which reflect a positive move to extend mission of the church.

10. Every officer should be involved in setting the plans for the church with assistance from the Treasurer in quantifying the financial details.

11. Most organisations set budgets annually and review spend against those budgets on a monthly / quarterly basis Beware – don’t just look at the short term! A real parish example of a budget monitored on a monthly basis is included within your packs

12. So you’re sitting down to prepare your parish budget for the 1 st time... What factors might you consider & might you try to plan for?

13. Economic Compliance Strategic

14.  Many and varied  We will briefly explore four models  Followed by a more detailed look at one of these...

15.  Incremental budgeting ◦ Baptising the status quo

16.  Zero-based budgeting ◦ Useful every five years to ensure a fresh look at all church activities

17.  Program budgeting ◦ All activities are evaluated, based on their current funding level and on their potential

18.  Mission Budgeting ◦ Letting your mission action plan drive your budgeting  How are things now?  How would we like them to be?  How do we get there?  What resources do we need to generate & expend to do it?

20.  Incremental budgeting ◦ Baptising the status quo  Zero-based budgeting ◦ Useful every five years to ensure a fresh look at all church activities  Program budgeting ◦ All activities are evaluated, based on their current funding level and on their potential  Mission Budgeting ◦ Letting your mission action plan drive your budgeting  How are things now?  How would we like them to be?  How do we get there?  What resources do we need to generate & expend to do it?

21. Focuses on “what you do” Tells the story of the mission areas of your parish Assist understanding of the parish in relation to how they are progressing the vision for the parish Operating expenses to be apportioned across the areas of mission

22. ◦ How about linking your Mission Budget with your Mission Development Plan using Seven Sacred Spaces

23.  Cell - Pray  Cloister - Meet  Chapter - Decide  Chapel - Worship  Garden - Work  Refectory - Share  Library - Study

25.  TELL: We will tell our community about the Good News of Christ and welcome them to join us in worship that is creative and musical and inclusive. We offer 2 services each Sunday and 3 other services during the week.  TEACH: We teach our community about faith, discipleship, prayer, caring, giving and other Christian values  TEND: We tend to the needs of others who need our help in our neighbourhoods and afar.  TRANSFORM: We seek to transform unjust structures and situations in our communities, our country and across the globe.  TREASURE: We treasure all God’s gifts to us and we strive to protect the environment and minimize our environmental footprint as a parish community and as individuals. This item includes maintenance of their building envelope.

26. TELLTEACHTEND TRANSFORMTREASURE TOTALS Parish share 40,00015,0005,00010,0005,00075,000 Youth Worker 1,5005,0002,0001,50010,000 Staff Support 3,000500 1,000 6,000 Musicians5,0001,0006,000 Operating10,0002,00025,00037,000 Outward Giving 5,0002,000 9,000 Repairs3,000 6,000 Miscellany 1,0005001,0005007503,750 TOTALS63,50024,00013,50015,00036,750152,750

27. Presentation is down to the PCC (although Church in Wales Standard format maybe considered appropriate) Examples are in your packs. Should be accompanied by a written summary of the assumptions the budget is based on. Draft Budget should be circulated to PCC well in advance of meeting to approve Approval should be before the commencement of the budget period Actuals should be monitored against budget throughout the year

28.  Setting the budget ◦ PCC ◦ Congregation  Does your budget communicate your church’s priorities?  Does it communicate its budget in creative & interesting ways?  Do you say thank you to people for their contribution towards meeting the budget?

29. Proverbs 24 v 3-4

30.  So is a budget!

31.  http://www.charitycommission.gov.uk/running- a-charity/money-and-accounts/handling- money-safely/ http://www.charitycommission.gov.uk/running- a-charity/money-and-accounts/handling- money-safely/ Guidance on setting a budget from the Charity Commission  http://www.toronto.anglican.ca/parish- life/stewardship- development/education/narrative-budget/ http://www.toronto.anglican.ca/parish- life/stewardship- development/education/narrative-budget/ Narrative / Mission budgeting from the Anglican Church of Canada

32.  http://canny.org.uk/on-line-resources/free- canny-templates/free-annual-budget-template/ http://canny.org.uk/on-line-resources/free- canny-templates/free-annual-budget-template/ Budget templates from the Community Accounting Network  http://knowhownonprofit.org/organisation/oper ations/financial-management/budgets http://knowhownonprofit.org/organisation/oper ations/financial-management/budgets From KnowHow NonProfit (NCVO)  http://www.financialmanagementdevelopment.co m/Slides/handouts/704.pdf http://www.financialmanagementdevelopment.co m/Slides/handouts/704.pdf From Financial Management Development

33.  Presentation & notes  Budget examples  Funding God’s Mission leaflet  7SS Stewardship leaflet  7SS Time, Treasure, Talents from Caerphilly parish  7SS Parish Development leaflet from The Graig, Rhydfelin & Glyntaff  Follow us on Twitter!

34. Any Questions?

35. For help and support in Finance and Stewardship, contact Janette Boyce janetteboyce@churchinwales.org.uk 01656 868866 Richard Jones richardjones@churchinwales.org.uk 01656 868860 ResourcesLlandaff @DioceseLlandaff http://llandaff.churchinwales.org.uk/mission/giving-2/