Operations 103 Finances: Class 4

1. Operations 103Finances: Class 4

2. Operations 103—Finances • Cash & Fungible Assets • Income • Expenses • Budgets • Reporting • Audits & Financial Reviews • Financial Health • Tax & Legal • Insurance for Employees • Insurance for the church

3. Today’s Topic Whether in a new church, a mega-church or a multi-site, there is going to be a budget.  What are the great practices in creating a budget, and then, how is it decided upon?  How is the budget evaluated and with what criteria?  In the recession, many churches had to cut their budgets, so what are appropriate mechanisms for doing that?  How do you enforce budgets with staff and church leaders, and what about rogue spenders?  This class will deal with cutting budgets, enforcement of budgets, and dealing with overages.

4. Mike Buster Mike Buster joined the staff at Prestonwood Baptist Church in 1989, and has served as the Executive Pastor since 1992.  He serves as chief operating officer, overseeing a staff of more than 700, developing and maintaining long-range plans for the church, and overseeing the ministries and programs of the church.  He has also served as an adjunct professor at several seminaries, and he serves on the board of trustees for GuideStoneFunds.

5. Purpose Driven Budgeting

6. 85% of Pastors feel unequipped and uncomfortable dealing with financial matters

7. The Bible contains 40 verses on baptism, 275 on prayer, 350 on faith, 650 on love—but there are 2,350 verses that relate specifically to finances and material possessions.

8. And yet … 95% of Christian Educational Institutions (colleges, universities, seminaries and Bible Colleges) offer nopersonal or ministry financial curriculum.

9. Philosophies of Budgeting… • Conservative or under Budgeting • Faith or Stretch Budgeting • Projected Budgeting

10. When budgeting… • Budget According to Mission Statement • Budget According to Priorities.

11. Purpose Or Mission Driven Budgets and Management… Our mission at Prestonwood Baptist Church is to glorify God by introducing Jesus Christ as Lord to as many people as possible and to develop them in Christian living using the most effective means to impact the world, marking a positive difference in this generation.

12. Budgeting for Results … • What gets measured, gets done. • If you don’t measure results, you cannot tell success from failure. • It you cannot see success, you can’t reward it. • If you can’t reward success, you are probably rewarding failure. • If you can’t see success, you cannot learn from it. • If you can’t recognize failure, you can’t correct it. • If you can demonstrate results, you can win public support!

13. Finance Committee Responsibilities • Study records of giving and potential giving of church • Evaluate budget requirements • Direct annual budget preparation • Present budget to the church for adoption • Held accountable for stewardship of resources

14. Benefits of Finance Committee • Allows More People to Share in the Ministry • Provides Expert Counsel • Saves Time in Business Sessions • Gives Opportunity for Christian Growth • Produces Leaders • Allows for Delegation

15. Continued • Keeps People Connected • Builds Trust With People • Increases Giving • Protects Pastor and Executive Pastor

16. Measurement Implementation • Define the product • Identify the correct statistics to measure the product • Develop a system for tracking those statistics • Graph those numbers weekly, monthly, or yearly • Develop a written strategy to improve those measurements • Work with your staff and lay leaders to implement the strategies • Reward your staff and lay leaders for their accomplishments

17. Common features ofStandards of Excellence • Establish a set of standards which embrace individual commitment, motivation, self-esteem and performance. • Individual performance is the best method for sustaining standards of excellence. • Successful teams never become satisfied with how well they’ve done. • Internal support and recognition. • External support and recognition.

18. Capital Campaign • Captures those who would normally sit it out • Enlarge people’s personal vision for giving • Increases giving • Three year campaigns = 2-3 times annual budget

19. Commit your works to the Lord, and your plans will be established. Proverbs 16:3

20. Rare indeed is a manwith a pastor’s heart, a servant’s hands,and an administrator’s head.

21. “The eyes of the Lord move to and fro throughout the earth that He may strongly support those whose heart is completely His.” 2 Chronicles 16:9

22. Q & A Send Questions via Chat to Tami

23. Malphurs& Stroope. Money Matters in Church From Chapter 7 & 8 • What dollar limits do you have for check writing? • Do you use dual signatures and when? • What internal audit review process do you have and how often? • Confidential question-can your SP or XP see what people give?

24. Malphurs& Stroope. Money Matters in Church From Chapter 7 & 8 • Does your church have a % of your general fund designated for mortgage debt or do you have a specific fund for building projects?  If no % is designated do you require a congregational vote to use general fund $ for Buiding? • BuidingFund policy. Can it be used for vehicle purchase?  Do people give directly to it?