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Setting and using the Parish Budget as a Ministry Tool

Setting and using the Parish Budget as a Ministry Tool. Peter Atkins, Diocese of Llandaff, Diocesan Secretary Jan Boyce , Diocese of Llandaff, Accountant Richard Jones, Diocese of Llandaff, Parish Resources Adviser. Aims of the Presentation. What is a budget? Why budgets are important

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Setting and using the Parish Budget as a Ministry Tool

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  1. Setting and using the Parish Budget as a Ministry Tool Peter Atkins, Diocese of Llandaff, Diocesan Secretary Jan Boyce , Diocese of Llandaff, Accountant Richard Jones, Diocese of Llandaff, Parish Resources Adviser

  2. Aims of the Presentation • What is a budget? • Why budgets are important • Budget models – Your options • Process of budget setting • Importance of budget communication • Yourquestions

  3. Budget Qu: Why bother?

  4. Time to talk...

  5. Budget Answer: Why bother?

  6. A Budget – What is it? 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. Your budget is your road map

  7. Time to talk... Do you currently set an annual church budget If so, how do you go about this? What models do you use? Who is involved? What’s the process? What benefits do you find to budgeting in this way? What are the problems you find with budgeting?

  8. Why prepare a budget? • 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.

  9. Who prepares the budget?

  10. 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.

  11. The Budget Period • 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

  12. 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?

  13. Budget Assumptions • Economic • Compliance • Strategic

  14. Types of Budgets • Many and varied • We will briefly explore four models • Followed by a more detailed look at one of these...

  15. Types of Budgets • Incremental budgeting • Baptising the status quo

  16. Types of Budgets • Zero-based budgeting • Useful every five years to ensure a fresh look at all church activities

  17. Types of Budgets • Program budgeting • All activities are evaluated, based on their current funding level and on their potential

  18. 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?

  19. Time to talk...

  20. Types of Budgets • 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?

  21. Mission Budgeting • 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

  22. Mission Budgeting – An idea! • How about linking your Mission Budget with your Mission Development Plan using Seven Sacred Spaces

  23. Mission Budgeting – An idea! • Cell - Pray • Cloister - Meet • Chapter - Decide • Chapel - Worship • Garden - Work • Refectory - Share • Library - Study

  24. Mission Budgeting – 7SS

  25. Mission Budgeting – example • 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.

  26. Mission Budgeting – expense example

  27. Presentation and Approval • 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

  28. Communication • 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?

  29. Why Budgets Matter Proverbs 24 v 3-4

  30. Why Budgets Matter • So is a budget!

  31. Links to resources • 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

  32. 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

  33. To take away... • 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!

  34. Diocese of Llandaff Any Questions?

  35. Diocese of Llandaff For help and support in Finance and Stewardship, contact Janette Boyce janetteboyce@churchinwales.org.uk 01656 868866 Richard Jones richardjones@churchinwales.org.uk 01656868860 ResourcesLlandaff @DioceseLlandaff http://llandaff.churchinwales.org.uk/mission/giving-2/

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