Budgeting for New Congregations The Five Laws of Financial Sanity Wolfgang D. Herz-Lane Mission Director Delaware-Maryland & Metro Washington DC Synods Mission Developer Training Conference, Chicago IL February 14, 2008

1. Have One!! Budgets are guides for developer, treasurer and finance team Budgets are management tools Budgets build leadership and ownership of ministry Caution: People give to mission, not to the budget!

2. Show ALL Income & Expense Always include an income budget Show income from all sources (synod grant, EOCM grant, EOCM salary payments) Anticipate Mission Partners gifts Include Mission Support to Synod (15%+) Budget for local benevolences Include salary reimbursements to EOCM Show reserves and savings to capital fund

3. Keep It Simple! Show major budget categories, not every single expense Use an annualized budget or a program year budget that makes sense Caution: If you use computer software, beware of the TMI Syndrome! Run a separate capital budget

4. Change Is Good! Don’t be afraid to change the budget to incorporate new realities. After all, it’s just a piece of paper. Budget is a tool … sharpen it when needed! Always keep your leadership in the loop

5. Budgeting 2.0: A Programmatic Budget Showing expenses by cost centers Allocating staffing and overhead costs to cost centers Read pp. 73 – 80 in Mission Developer Training Manual, Volume III