Budget Process
Church budgets are an extension of strategic ministry priorities, growth plans and the church’s mission and vision. The best budgets are based upon clearly-defined goals and objectives, and a well-conceived total church ministry action plan.
A good budget process builds full ownership and participation among pastors, staff, deacons, leaders and the church body. These sample budget development timelines illustrate how budgets are developed as an outgrowth of strategy planning:
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Ranking Budget Priorities
Consider prioritizing budget requests to help focus event and initiative planning towards high priority and high payoff activities. The Priority Triangle is one such system for classifying activities, ministries, initiatives and budgets into three priority levels. In the annual goal and budget planning process every item falls into one of three categories: Must Do, Should Do, and Nice to Do items.
What do we mean by “Must Do”?
The specific activities, ministries, initiatives and budgets that make up your “Must Do’s” are essential for meeting the church’s and ministry’s mission, vision, objectives and goals. These are required for ministry success and survival.
What do we mean by “Should Do”?
The specific activities, ministries, initiatives and budgets that make up your “Should Do’s” can be undertaken if the “Must Do’s” are under control. These are not essential to achieving your objectives, at least in the short term. These may help you research your objectives but they can be deferred and at any given time may include such things as problem-avoidance activities, self-development, and future planning. These items should take up a smaller proportion of an individual’s time and budget but, in most cases, must eventually move to one’s “Must Do” list.
What do we mean by “Nice to Do”?
The specific activities, ministries, initiatives and budgets that make up your “Nice to Do’s” can be undertaken only if the “Must Do’s” and “Should Do’s” are under control. Typically, there is no significant payoff for these items, though they may have a “warm and fuzzy” factor to them and they may “add value” to what you are doing, such as offering food, refreshments and decorations for an activity. They can be left alone indefinitely because they don’t significantly help you reach your objectives.