How to Create a Realistic Budget

Every time I talk with a church or faith-based organization, the first question that usually comes up is budget. What is the budget? How much should we plan on spending? There are several approaches to answering this question.

First, look at the basic principles of budgeting in a godly way, recognizing that we are only stewards of God's money and that we need to be good stewards (the parable of the bags of gold Matt 25:14-30).

Every organization must approach the idea of budgeting based on their specific needs, considering the size of the church they're trying to build or serve. It's not just a financial budget; it's also a "people budget". Financial budgets are easy to understand; they are dollars and common sense. Questions range from "How much are we going to spend on equipment?", "What is the cost over time for the maintenance of that equipment?" to "Is the cost affordable for the church in the short and long term?". There are no quick answers to budgeting for any organization. It requires a comprehensive analysis of the organization's needs and goals and a clear vision from leadership.

Once these questions are answered, you can determine the most cost-effective pathway to reach your goals and visions. Generally, a good starting point for building operations is 10% of the current budget. If you are considering a new building project, 10 to 25% of the total building budget should be allocated to purchase the necessary technology to operate effectively now and in the future. These are super general strategies for a basic budget, but one should include team leaders and technology professionals in the discussion before purchasing any equipment.

Lastly, the people who will be operating the "new" equipment are critical to budget considerations. If your team will require training and time on the equipment, one needs to include that in any budget assessed for upgrades and improvements. One should also seek professional advice on equipment purchases unfamiliar to you or your team. There may be a cost associated with experienced professional consultants, but most manufacturers offer free, helpful product resources that you can find online. Do your homework, research, and find out as much as you can about any potential purchases BEFORE making your final budget decisions.

If you are still trying to figure out where to start, RightCross Ministries is prepared to assist in team and equipment assessments. We are available to help in all stages of budget planning and implementation of new technology.