Our 2020 fiscal year runs from September 2019 through August 2020. Our operating budget for this fiscal year is $453,000.
YTD Budgeted Income: $151,000
YTD Actual Income: $158,300
YTD Difference: $7,300
* Information up-to-date through December 31, 2019 and rounded to the nearest $50. Amounts above do not include designated income or expenses for Benevolence or The Mishpat Project.
HOW IS OUR OPERATING BUDGET DETERMINED?
Typically it is a fairly simple formula that follows a 5-step process:
- Households. We look at our total number of partner households (e.g., married adults count as 1 and single adults count as 1) and compare it to the median household income for our community. At present we have 66 households and the median household income for our area is $68,000. Because our partners covenant to give consistently, generously, and sacrificially to the mission of the church, we begin budget discussions with the following formula: # of households * median household income * 10%. For the 2018-2019 ministry year this came out to be $448,800.
- Health. We look deeper into the source of our income using 2 variables: per capita and distribution spread. Per capita takes our annual income and breaks it down by individual adult givers. This helps us evaluate our income in an apples-to-apples fashion with every other church in America to know where we stand relative to nationwide giving trends. Distribution spread helps us evaluate whether our budget is overly reliant on a few large donors or evenly distributed among the full partnership base.
- Hindsight. We look at our income from the previous 12-months to see how it compares with the figure calculated above. In this particular case, our giving during the previous fiscal year (2017-2018) was $502,000.
- Heed. We give careful attention to any known amounts that have been pledged or committed to us above and beyond normal congregational giving. We equally consider any amounts we know might not be given going forward.
- Huddle. We gather as a plurality to discuss and pray through whether or not we feel God calling us to increase or decrease the budget from the figures arrived at using the first 4 steps. The group that speaks into this decision includes 5 male elders, 1 male deacon, and 3 female deacons.
HOW IS OUR ANNUAL OPERATING BUDGET USED?
We categorize our operating budget into 4 major categories:
- Giving (11%) $51,100
- Personnel (51%) $229,900
- Programming (22%) $99,600
- Facilities (16%) $71,435
The giving category includes church planting, global missions, and community outreach partnerships.
The personnel category includes staff compensation, benefits, training, and resources.
The programming category includes our Sunday services and our ministries such as Connections, Community Groups, Men's, Women's, Youth, Kids, and Worship. It also includes all events, hospitality, set design, audio/visual, administration costs, technology, and communications.
The facilities category includes our leases for the YMCA and The Branch, the truck, trailer, and fuel we use each week to operate a mobile church, insurance (auto and liability policies), utilities, internet, and permanent technology equipment such as LCD screens and furnishings for The Branch.
HOW DO WE DETERMINE OUR ANNUAL OPERATING BUDGET?
Since the church began in 2008 the leadership has followed much of the budgeting advice published in a 2007 book titled Money Matters in the Church by Dr. Aubrey Malphurs and Steve Stroope. The book recommends using target percentages across our 4 major categories as follows:
- Giving 10-15%
- Personnel 45-55%
- Programming 20-25%
- Facilities 20-25%
Our leadership still agrees with this basic outline and feels it has served our local context well over the years. Beyond the percentages we strive to maintain a buffer of at least 3-6 months of operating expenses.
HOW IS THE MONEY WE GIVE AWAY USED?
As an Acts 29 church we are committed to giving at least 10% of our general offerings to church planting. This comes in the form of providing church planters with funds and funding church planting organizations such as networks and associations. When we consider funding foreign missionaries we tend to partner with those who have long-term plans to plant churches.
The giving from our operating budget for 2019 is $51,100 (11%) and will be used in the following ways:
- Domestic Church Planting $44,200 (86% of total giving)
- Global Missions via Overseas Church Planting $6,900 (13.5% of total giving)
ARE THERE ANY OTHER BUDGETS BESIDES THE OPERATING BUDGET?
We track benevolence and special giving projects as separate funds.
In addition to our operating budget for 2019 we have $12,000 allocated for benevolence giving which is used to help people in our congregation who are experiencing financial hardships. We were blessed to have an outside organization donate 100% of this amount for 2019. We are also able to use our savings account to give above and beyond this amount as needs arise.
On January 14, 2018 we announced The Mishpat Project where we hope to raise $40,000 for above-and-beyond community outreach projects. Due to some generous matching donations we will be able to turn $40,000 of raised money into $105,000 of given money. As of December 31, 2018 we have collected $40,000 of the $40,000 pledged.
In January 2019 we announced The Mishpat 2.0 Project where we hope to raise $12,500 for community outreach. This amount will be matched 3:1 by an anonymous donor and become $50,000 to give away. We will give $10,000 to Orlando Children's Church and $40,000 to Samaritan Village. As of March 9, 2019 we have collected $10,425 of the $12,500 pledged.