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For The CRG Created For The CRG
Faith and Money

When I was young, I went to worship with my parents and six siblings. My stepfather prepared our offering envelopes the evening before worship. He placed a dollar in each envelope.

At the beginning of worship, he passed the envelopes to each of us. When I received my envelope, I experienced a weekly moment of truth, just as my brothers and sisters did. My stepfather had left each envelope unsealed. It was our choice to add to the offering or to seal the envelope with no additional gift.

The moment of truth
In many different ways, those who worship at your congregation wrestle with a similar moment of truth whether they are conscious of it or not. How much shall I give to the congregation?

Of course, many dynamics influence any single person’s response to the question. A primary influence is the way your congregation talks about faith and money. Is money a taboo subject? Or is money talked about openly and honestly?

Congregations which promote a culture of giving have intentionally chosen to be a primary place where generosity is taught rather than being simply one place among many that asks for money.

Exploring generosity
Purposeful development as a primary place which explores generosity is a variable. Does your congregation support a way of life that celebrates generosity?

Here are some signs that your congregation is just such a community:

Each day, we are figuratively handed unsealed envelopes that serve as requests for us to be generous human beings. Our congregations are meant to teach us the practice of giving. If not us, who are part of communities that hold beautiful stories of generosity, then who?

After all, there is work to be done and decisions to be made.

To learn more, search faith and money on the CRG.

For The CRG Created For The CRG
One Budgeting Idea when Funds are Scarce

Sometimes funds are scarce. God has created the world abundant with water, trees, blue skies and people we love. Though we have what we need, we don’t have everything. In congregations, this lack is sometimes evident regarding budgets.

Budget realities
The finance team would like to increase the budget for youth ministry, but the cost for the new parking lot is an unpleasant surprise. Or, pledges are down because a major employer left town. There is a widening gap between income and expenses.

Sometimes a congregation’s board does have to decrease the budget. Tough decisions are part of leadership in a faith community, just as they are in a business or a family. It is common for leaders to have difficulty deciding where to make budget cuts and for how much. The discussions about budget cuts can be as unpleasant as the cuts themselves.

Shortened budget
Here’s an idea that might be helpful if you face decreasing income. Try creating a budget for a period less than a year. Create a provisional first quarter budget or establish a half-year budget.

By shortening the time frame of your budget, you leave room for positive, unforeseen adaptations. You also feel the pain of shortfalls incrementally. The downside to this is that your congregation could be delaying a painful decision; pushing the inevitable down the path and hoping someone else doesn’t stumble over it later. However, shortening the timeline of your budget in times of scarcity can be a way for your congregation to be more nimble, to adjust more quickly to difficulties or opportunities.

Congregational story
During a recession, one congregation chose to freeze salaries, but only for the first quarter. The board agreed to revisit the decision after four months. When the time arrived for further consideration, giving had increased almost ten percent. This happened, in part, because the congregants knew about the provisional decision and many members boosted their offering because they wanted to support the hard working staff. As a result, each staff member received a two percent raise.

Resources you can use
When it comes to congregational budgeting, sometimes tried and true resources are among the best. Kennon Callahan’s Effective Church Finances is a practical book for clergy and laity alike.

When money is tight, illustrate the budget situation with more than numbers. Some congregations create narrative budgets, a way to represent income and expenses with graphs, illustrations, and even stories. The article Narrative Budgets, prepared by the Anglican Church of Canada, will provide you with more information.

If you have a specific budgeting question, use our chat function or email us to begin a conversation.

We want to help you move from scarcity to possibility.

organization
CapinCrouse, LLP
This company offers consulting on a wide range of accounting, financial, and management topics, including providing financial audits.
web resource
Church Law & Tax
This website offers articles, a legal library, and interactive training that equips congregational leaders to navigate a complex legal landscape.
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Financial Information & Tools
This website provides links and information about finance in congregations.
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Internal Revenue Service (IRS) Tax Information for Churches and Religious Organizations
This website offers useful information for congregations seeking to clarify their nonprofit status, understand legal requirements, and find details about tax information for charitable organizations.
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Tax Guide for Churches and Religious Organizations: Benefits and Responsibilities under the Federal Tax Law
Created by the IRS, this booklet helps congregations ensure their compliance with the current federal tax code.
About the Contributor
Contributor
Beth McKee

Beth is the Center for Congregation's chief financial officer and director of internal operations. Beth is also an elder and deacon in the Presbyterian church.

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