Most observers of congregational life agree — a person can tell a lot about a church by looking at its budget. But exactly what conclusions can be drawn about a church's priorities remain an open question.
“It's a question I've raised with students in my classes for years,” said Bill Tillman, who holds the T.B. Maston Chair of Christian Ethics at Hardin-Simmons University's Logsdon Seminary.
“The whole matter of economic and financial stewardship is such a vital part of the practice of the Christian life, whether for an individual, a family or a congregation.”
A church's budget reflects its priorities, he noted. How much a church spends on ministries inside its walls and how much it devotes to ministries beyond itself offers one measure, but Tillman warns against rushing to judgment.
“What happens always has to be held in tension and viewed in context,” he urged. “For instance, we can't say a church never should build a new facility. A new building may be what is needed in a particular community.”
At the same time, a church should ask whether its financial decisions are shaped more by biblical teachings or by cultural values, he stressed.
“The larger culture says we should spend money to make things comfortable for us,” Tillman said.
Churches should ask what lessons are being taught to families as they look at the congregation's budget, he said. And church leaders should not shy away from talking about money.
“That conversation is difficult,” Tillman acknowledged. “One of my basic assumptions is that the world of money is one of the last points where conversion and redemption happen.”
Each church not only needs to keep in mind the legitimate needs of its own members, but also extend its vision to include God's work in the world at large, he urged.
“It all should be qualified by the question of whether what we are doing is kingdom work,” Tillman said.
Members of Cross Lanes Baptist Church, near Charleston, W. Va., decided five years ago the best way they could be involved in “kingdom work” was by devoting a larger percentage of undesignated offerings to missions causes.
When Seth Polk arrived as pastor, the church gave 7 percent of undesignated receipts to the Cooperative Program unified budget and 3 percent to associational missions. Polk challenged the church to increase its missions giving incrementally each year.
Now, Cross Lanes Baptist Church gives one-fourth of its undesignated receipts to missions — 11 percent to the Cooperative Program, 4 percent to associational missions and 10 percent to other missions causes. Those causes range from local benevolence ministries and church-starting initiatives to global initiatives such as Children's Emergency Relief International's work in Transnistria and Moldova. Children's Emergency Relief International is the global arm of Baptist Child & Family Services.
“We believe that as a church becomes more outwardly focused, God will bless that church at home,” Polk said.
At the same time the church increased the percentage of budget offerings it devotes to missions and increased giving to seasonal missions offerings and world hunger relief, it also entered a $3.5 million building campaign.
Cross Lanes — which leads the West Virginia Convention of Southern Baptists in total missions giving — doubled in worship attendance and undesignated giving over the last five years.
“We want to focus on what really matters to God,” Polk said.
Eddie Stratton, treasurer of the Baptist General Association of Virginia, and Walter Harrow, assistant to the treasurer each stress the need for church members to sense ownership of the budget and the budget process.
“It can't be the pastor's budget or even the stewardship committee's budget. It must reflect the values, commitments and devotion of the congregation. The church members need to sense ownership. The budget is the price tag on the ministries it feels called of God to accomplish,” said Stratton.
Continuing the thought, Harrow emphasized, “A church must ask what it wants to accomplish to advance Christ's kingdom. The budget needs to reflect the priorities and the purposes of the church. Every church is different; and their budgets will reflect their differences.”
Although it has been commonplace to apply set percentages to certain budget categories, they caution against adhering to old ways. Still, some churches have found this rules of thumb to be helpful: 50 percent for personnel, 35 percent for debt service and 25 percent for administration. The trouble with these figures is they total 110 percent, observes Roger Hall, retired chief financial officer and treasurer for the Baptist General Convention of Texas.
“That's why a church or any other organization has to face reality about what its capabilities are. We adhere to reality-based budgeting in the BGAV and we have for several years now,” volunteered Harrow. Stratton continued, “We have turned a huge perceptual corner in presenting budgets that reflect the values of Virginia Baptists. They are buying into Kingdom Advance.”
Once a church is clear about its purpose and has established its ministry priorities, only then it is ready to begin the budget process. A review of historical records to track past expenditures and trends in giving may be helpful, but they have to be considered against other factors. Anticipated growth (or in some cases decline) and economic changes will likely have an effect on giving.
Stratton, however, points to another factor which he regards as even more important. He says that the heart of the church, its core-level commitments, also have to be factored in. “You have to look to God for direction. The largest percentage of per capita giving in 2006 in our state came from a church in Henry County — statistically one of the most economically depressed regions in our state. This church values missions and its members give out of commitment to missions despite their circumstances.” Totals for 2007 have yet to be announced.
When church members believe that the entire budget process has been transparent, thoughtful and prayerful; and when they believe the budget appropriately devotes the greatest resources to the greatest needs they have a sense of “rightness” about it. “And if they feel like [the budget] is a good plan … they are more likely to support it with their tithes and offerings” adds Hall.