Post on 30-Dec-2015
description
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
Time to talk...
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
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
g-2/