1. How has the crisis affected giving in the short term and long term? In our Dallas Association, the long-term effect is not known at this time. Short term is showing the following: 25% of churches giving has decreased, 20% churches have decreased by more than 30%, 37% giving has remained the same, 17% have noticed an increase in giving.
2. Assuming that the giving to the church has decreased, how can we lead the church to accomplish more with less income? Do not decrease your ministry expense. Ministry needs to continue, especially during this time. Pray and listen to what God is saying.
3. Should we completely revise our current budget or simply adjust our spending targets? If giving has decreased by 20% or more a new budget revision may be necessary. If the decrease is less than 20%, adjust your spending in other areas.
4. How can I involve the staff team and church leaders in developing a financial plan that is cost-effective and lean? Ask staff to help. The more willing you are to make changes the more likely the staff will be open to changes. Keep the staff involved. This is a team effort.
5. How can we right size our budget so that it will communicate that there is a probability of success because of strong support from the congregation and there is a continuing need to give? Most of the time when someone sees a church is 20% or more behind on their budget, they assume that when they give it’s not going to help. If a church is 15% or less behind on their budget, then it encourages a giver to continue to give or even give more to help. The church’s needs should be communicated. People need to see the pastor working on solutions.
6. What amount of undesignated reserves should the church set aside to help in a future crisis? 1-3 months is generally suggested.
7. What items in our budget could we do in a more cost-effective way? Shop around on insurance, supplies and other goods.
8. What items in our budget should we stop doing? Reevaluate the ministries that aren’t making an impact like they used to.
9. Are there other resources available to leverage the church budget for a greater impact?
10. What changes can we make to become more outwardly focused as a church? How much of the church budget is inwardly focused? How much is outward focused? Where are the churches priorities?
11. Are there any changes that are necessary to be made to staff compensation?
• Are there changes that could be made to staff insurance and benefits to manage these costs? Instead of getting rid of insurance, ask the employees to share the cost. If benefits are going to be cut, do not cut long term disability. Benefits should be cut before cutting salaries.
• Should we establish a Compensation Policy? A compensation policy might be added for long term staff members, then change it back to a regular policy when things return to normal. Also, do not give cost of living raises during this time.
12. Are there changes that should be made to the staff structure to accomplish more with the same or less personnel dollars? A church needs to ask what is the best structure for them? Evaluate what is necessary, can you do more ministry with fewer employees? Can any services be outsourced?
13. How well does the structure of our budget communicate the mission and priorities of the church? A church’s budget should be presented in a way that shows what the church’s priorities are. Are you more ministry focused??
14. How can we create a greater transparency concerning the financial status of the church ministry? Communication is the key to keeping everyone informed on the financial status of the church.