Setting and using the Parish Budget as a

Ministry ToolPeter Atkins, Diocese of Llandaff, Diocesan Secretary

Jan Boyce , Diocese of Llandaff, AccountantRichard Jones, Diocese of Llandaff, Parish Resources Adviser

•What is a budget?•Why budgets are important•Budget models – Your options•Process of budget setting•Importance of budget communication•Your questions

Aims of the Presentation

Qu: Why bother?

Budget

Time to talk...

Answer:Why bother?

Budget

A plan drawn up by the PCC which sets out the planned income and expenditure for a financial period.

The budget estimates the amount and source of future income, and the amount and nature of planned expenditure.

A Budget – What is it?

Your budget is your road map

Time to talk...

1.Do you currently set an annual church budget

2.If so, how do you go about this? What models do you use? Who is involved? What’s the process?

3.What benefits do you find to budgeting in this way?

4.What are the problems you find with budgeting?

• Finances are put in proper perspective as most plans need money.

• Carefully administered budgets will help achieve plans.

• Allows identification of necessary spend and those items which reflect a positive move to extend mission of the church.

Why prepare a budget?

Who prepares the budget?

• Every officer should be involved in setting the plans for the church with assistance from the Treasurer in quantifying the financial details.

Who prepares the budget?

• Most organisations set budgets annually and review spend against those budgets on a monthly / quarterly basis

• Beware – don’t just look at the short term!

• A real parish example of a budget monitored on a monthly basis is included within your packs

The Budget Period

Budget Assumptions• So you’re sitting down to prepare your parish budget for the 1st time...

What factors might you consider & might you try to plan for?

•Economic•Compliance•Strategic

Budget Assumptions

Many and varied We will briefly explore four models Followed by a more detailed look at one of

these...

Types of Budgets

Incremental budgeting◦ Baptising the status quo

Types of Budgets

Zero-based budgeting◦ Useful every five years to ensure a fresh look at

all church activities

Types of Budgets

Program budgeting◦ All activities are evaluated, based on their current

funding level and on their potential

Types of Budgets

Mission Budgeting◦Letting your mission action plan

drive your budgeting How are things now? How would we like them to be? How do we get there? What resources do we need to

generate & expend to do it?

Types of Budgets

Time to talk...

Incremental budgeting◦ Baptising the status quo

Zero-based budgeting◦ Useful every five years to ensure a fresh look at all

church activities Program budgeting

◦ All activities are evaluated, based on their current funding level and on their potential

Mission Budgeting◦ Letting your mission action plan drive your budgeting

How are things now? How would we like them to be? How do we get there? What resources do we need to generate & expend to do it?

Types of Budgets

• Focuses on “what you do”• Tells the story of the mission areas of your

parish• Assist understanding of the parish in

relation to how they are progressing the vision for the parish

• Operating expenses to be apportioned across the areas of mission

Mission Budgeting

◦ How about linking your Mission Budget with your Mission Development Plan using

Seven Sacred Spaces

Mission Budgeting – An idea!

Cell - Pray Cloister - Meet Chapter - Decide Chapel - Worship Garden - Work Refectory - Share Library - Study

Mission Budgeting – An idea!

Mission Budgeting – 7SS

TELL: We will tell our community about the Good News of Christ and welcome them to join us in worship that is creative and musical and inclusive. We offer 2 services each Sunday and 3 other services during the week.

TEACH: We teach our community about faith, discipleship, prayer, caring, giving and other Christian values

TEND: We tend to the needs of others who need our help in our neighbourhoods and afar.

TRANSFORM: We seek to transform unjust structures and situations in our communities, our country and across the globe.

TREASURE: We treasure all God’s gifts to us and we strive to protect the environment and minimize our environmental footprint as a parish community and as individuals. This item includes maintenance of their building envelope.

Mission Budgeting – example

Mission Budgeting – expense example

TELL TEACH TEND TRANSFORM TREASURE TOTALS

Parish share

40,000 15,000 5,000 10,000 5,000 75,000

Youth Worker

1,500 5,000 2,000 1,500 10,000

Staff Support

3,000 500 500 1,000 1,000 6,000

Musicians 5,000 1,000 6,000Operating 10,000 2,000 25,000 37,000Outward Giving

5,000 2,000 2,000 9,000

Repairs 3,000 3,000 6,000Miscellany 1,000 500 1,000 500 750 3,750

TOTALS 63,500 24,000 13,500 15,000 36,750 152,750

• Presentation is down to the PCC (although Church in Wales Standard format maybe considered appropriate) Examples are in your packs.

• Should be accompanied by a written summary of the assumptions the budget is based on.

• Draft Budget should be circulated to PCC well in advance of meeting to approve

• Approval should be before the commencement of the budget period

• Actuals should be monitored against budget throughout the year

Presentation and Approval

Setting the budget◦ PCC◦ Congregation

Does your budget communicate your church’s priorities?

Does it communicate its budget in creative & interesting ways?

Do you say thank you to people for their contribution towards meeting the budget?

Communication

Proverbs 24 v 3-4

Why Budgets Matter

Why Budgets Matter

So is a budget!

http://www.charitycommission.gov.uk/running-a-charity/money-and-accounts/handling-money-safely/Guidance on setting a budget from the Charity Commission

http://www.toronto.anglican.ca/parish-life/stewardship-development/education/narrative-budget/Narrative / Mission budgeting from the Anglican Church of Canada

Links to resources

http://canny.org.uk/on-line-resources/free-canny-templates/free-annual-budget-template/

Budget templates from the Community Accounting Network

http://knowhownonprofit.org/organisation/operations/financial-management/budgets

From KnowHow NonProfit (NCVO)

http://www.financialmanagementdevelopment.com/Slides/handouts/704.pdf

From Financial Management Development

Links to resources

Presentation & notes Budget examples Funding God’s Mission leaflet 7SS Stewardship leaflet 7SS Time, Treasure, Talents

from Caerphilly parish 7SS Parish Development

leaflet from The Graig, Rhydfelin & Glyntaff

Follow us on Twitter!

To take away...

Diocese of Llandaff

Any Questions?

Diocese of Llandaff

For help and support in Finance and Stewardship, contact

Janette Boycejanetteboyce@churchinwales.org.uk01656 868866

Richard Jonesrichardjones@churchinwales.org.uk01656 868860

ResourcesLlandaff

@DioceseLlandaffhttp://llandaff.churchinwales.org.uk/mission/givin

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