Budgeting: Planning for “Fixed” Costs

After you calculate the bottom line…how much income your church can expect to receive, the next step is to tackle the fixed costs: Personnel, Property, and Denominational Dues. In a typical church, these costs account for 75-85% of the operating budget…so it makes sense to tackle them first.

One thing to keep in mind is that these costs are not necessarily set in stone. As the church’s strategy for ministry changes, this often affects the staffing and property needs. But, for the most part, these are pretty stable from year to year. The most difficult part of this section is the decision on giving raises to church staff. Are they being paid a competitive rate…or even a legal rate? If we can’t afford a large raise, is there anything else that churches can do to tangibly show their appreciation?

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Rebecca Trefz and I did this video some time ago. While a lot of church leaders want to know where apportionments go, this video actually gets at the heart of what apportionment giving is all about. I figure that folks could just watch the budget video or read the budget if they want to know where the money goes. I think there are some more fundamental questions that need to be answered first though. If you want to have a simple video to share with your congregation or leadership, this is for you.

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