CRUCIBLE FINANCIAL MANAGEMENT, PART 2

FINANCIAL SOFTWARE Small Business Packages Peachtree Complete QuickBooks Pro Avanquest Bookkeeper Church Specific Software Shelby ACS Technologies

TALKING ABOUT MONEY… Transparency as our Key Tenant Two exceptions Salary and Compensation Packages Individual Giving Records The Information Cycle Monthly Special Occasions

TALKING ABOUT MONEY… Communication with our Constituents Quarterly Reports & Pledge Updates Tell the story again and again and again! Articulation of the Vision drives giving “Your giving is changing lives!” Never, “We can’t pay the light bill!”

TALKING ABOUT MONEY… The Annual Pledge Campaign The Power of a Transformed Life You get what you ask for! Mail / Contact with prior givers The follow-up process

THINGS I MUST KNOW… First Time Givers The two most powerful words in the English language Quarterly Giving Reports A Canary in the Cage Staff Giving

BUILDING A BUDGET The Revenue Side: we start here I believe God can speak to us through a spreadsheet It is a matter of faith to believe that the first dollar will land in the collection plate! The best predictor of future performance is past performance

BUILDING A BUDGET Understanding the giving history is critical What is the make-up of your giving? Is there a depth and breadth to the giving? Are there high capacity givers within the congregation? Know the timing of the gifts

BUILDING A BUDGET Interpreting the Stewardship Campaign 40% of our pledges on “Pledge Sunday” (moving to 70% within three weeks) Solid projections based on participation and the growth/retraction of the average pledge Moving from the Campaign to the Budget

BUILDING A BUDGET ONLY upon establishment of this top line do we move to project expenditures! Discipline at this point is critical It is what it is…deal with it The temptation is always to overestimate revenues and underestimate expenses

BUILDING A BUDGET The Expense Side of the Budget Department Heads and “Wish Lists” Zero based budgeting…each allocation must be justified Not only amounts, but timing of the expense This process demands intentionality, planning, and focus on the year’s objectives

BUILDING A BUDGET Some General Rules of Thumb Total Allocation for Staff: Less than 50% Total Interest Expense: Less than 15% Fixed Costs will often total 94-95% Our people are our programming! Never turn your back on a musician

BUILDING A BUDGET Bringing it all together Closing out the fourth quarter Current year giving and projections forward Monthly updates to the Finance Committee and the Staff The budget is finalized at the first Finance Committee meeting of the new year

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