A serious church management issue presented itself when I became a pastor in Costa Mesa, Calif. All the financial records were stored in a shoebox in a closet at the treasurer’s house. The record-keeping was not even close to being up-to-date, and the board received no reliable financial reports.
Although it took a while, we got the finances out of the shoebox and into the church office, and we began putting together regular accounting reports.
With bookkeeping in such a mess, the church had never had a budget either. I was no accountant, but I knew any church needs a budget.
We had to have a way to report financials, so I created a simple system using Roman numerals I and II. These represented the church’s two basic areas of expenditure: ministry to our community and ministry to our world.
Community ministry included the three Ps—personnel, physical facilities and programs. Our ministry to our world consisted of the money we gave for missions.
Our budget plan may never have passed a CPA’s scrutiny as an accounting system, but it met our needs. About five years into this, though, a retired steel company executive was elected to our board, and the board selected him as treasurer.
After a few weeks, he asked me, “Pastor, would you mind if I put together a budget that looks more like a budget should? The budget you’re using looks like one of your sermon outlines” (which is exactly what it was). I told him it was the best I could do since I lacked prior financial experience, and I welcomed him to set up more proper financial accounting practices. He whipped that budget into shape, and it became a powerful tool for the board and for me.
Keep money in its place. All Christians are called to serve God, not money, but that’s nowhere more critical than in the pastorate. So the first rightful place for money is to have a healthy perspective that prevents you from being dominated by financial concerns.
To limit unnecessary worries, money should also be kept literally in the right place. Make sure someone has a firm grasp on church finances and keeps you and other leaders well-informed on how the church books are doing.
George O. Wood is general superintendent of the Assemblies of God. For the original article, visit georgeowood.com.
Get Spirit-filled content delivered right to your inbox! Click here to subscribe to our newsletter.
Dr. Mark Rutland's
National Institute of Christian Leadership (NICL)
The NICL is one of the top leadership training programs in the U.S. taught by Dr. Mark Rutland. If you're the type of leader that likes to have total control over every aspect of your ministry and your future success, the NICL is right for you!
FREE NICL MINI-COURSE - Enroll for 3-hours of training from Dr. Rutland's full leadership course. Experience the NICL and decide if this training is right for you and your team.
Do you feel stuck? Do you feel like you’re not growing? Do you need help from an expert in leadership? There is no other leadership training like the NICL. Gain the leadership skills and confidence you need to lead your church, business or ministry. Get ready to accomplish all of your God-given dreams. CLICK HERE for NICL training dates and details.The NICL Online is an option for any leader with time or schedule constraints. It's also for leaders who want to expedite their training to receive advanced standing for Master Level credit hours. Work through Dr. Rutland's full training from the comfort of your home or ministry at your pace. Learn more about NICL Online. Learn more about NICL Online.
