- 1). List all expected income from the year. It's generally safe to anticipate contributions to be about the same from year to year. Include any fundraising drives you plan to do and any income you get from a preschool or other activities your church sponsors.
- 2). Ask each committee in your church to create a mini budget that outlines funds needed in the upcoming year, and what the money will be used for. The breakdown will make it easier to cut costs if you do not have enough money to do everything requested. Your committees may include Sunday school, youth group activities, mission funds and senior outreach.
- 3). Add together all expected expenses for the year. Do not forget the costs of building maintenance, salaries for the staff, and dues to your church's state and national organization.
- 4). Break the expenses into 12-month increments for each category so you can put aside money each month for each expense. Add a small amount to a slush fund to cover unexpected expenses or to deal with a shortage of contributions from the congregation.
- 5). Balance the budget. Do not spend more than you bring in. If your anticipated expenses are greater than your expected income, you need to cut spending. Prioritize what is most important to your congregation, then begin budget cuts in the least important categories. Some churches may feel the youth program gets top priority, while others believe the senior outreach is more important.
- 6). Take the planned budget before the church board for approval. Generally a subcommittee will create the budget and then the entire board needs to approve the entire budget. Some churches have the entire congregation vote on the budget.
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