1. Budgeting Principles for Churches of all Sizes
Kelly Williams and Brent Messick

2. 1. Welcome and Introductions
Kelly Williams is the Director of Finance & Accounting at Church of the Resurrection. She was hired in 1995 as the church’s first Business Administrator. Kelly is currently serving as the Chair of the Great Plains Conference Board of Pension and Health Benefits. She also has served on the Investment Committee for the General Council on Finance & Administration. Kelly is a graduate of Kansas State University and a Certified Public Accountant.

3. 1. Welcome and Introductions
Brent Messick is the Managing Executive Director of Operations and Chief Financial Officer at Church of the Resurrection. He oversees the following ministries: Stewardship and Generosity, Finance & Accounting, Facilities, I.T., Worship and Event Technical Production, Human Resources, Catering & Food Services, and the café and bookstore operations. He currently serves on the Great Plains Conference Council on Finance and Administration. Previously, Brent has over 25 years of business experience, with his B.A. and M.B.A.

4. 2. Budget Philosophy Budget plan and timetable
Budget targets pre-established
Maintain ministry, grow, dream
Contingency planning
Income-based vs. expense-based
Balanced budget: op receipts = op exps + cap ex.
10% cash reserve

5. 3. Operating Receipts
Stewardship Campaign Tracking Worksheet (Exhibit A)
Non-pledge receipts
Pledge receipt discount rate
Income Worksheet (Exhibit B)
Operating receipts historical trends
Pledge vs. plate %
Senior pastor summer sabbaticals
4-Sunday vs. 5-Sunday months
Surplus Reserves

6. 4. Operating Expenses Operating Expense Template (Exhibits C1 & C2)
Projected budget targets established
Detailed assumptions documented
Box 2 – grow, dream
Box 3 – contingency planning
Prepared by ministry directors
Staffing – annualize current year adds, raises, new staff, increases in benefits
Iterative process – 2 or 3 drafts
Box 2 prioritization
Ongoing monitoring against stewardship pledges
Building reserves

7. 5. Consolidated Budget (Exhibit D)

8. 6. Budget Review and Approval Process
Bookkeeper, CBA, Treasurer, Financial Secretary
Senior Pastor and Leadership Team
Staff Parish Relations Committee – staffing budget
Finance Committee
Church Council
Church Conference

9. 7. Role of the Finance Committee
Budget review and approval
Changes to the budget during the year
Monthly review – actuals vs. budget

10. 8. Contingency Planning Budget Reforecast
6 months actual and 6 months forecast
Similar process as annual budget
Reforecast becomes new budget
Box 3
10% reductions

11. 9. Monthly Review Summary Operating Statement (Exhibit E)
Balance Sheet – Assets, Liabilities, Net Assets
Cash Flow Projection (Exhibit F)
Ministry directors and campus pastors review monthly financial results
Variances reviewed with financial management
Timing variances
Finance Committee
Key financial statistics posted on church website (Exhibit G)

12. 10. Recommendations Budgeting process for churches of all sizes
Budgeting techniques in good times and difficult times

13. 11. Resources
Propel by Rev. Dr. Clayton Smith

14. 12. Evaluations

15. 13. Questions and Answers