Is Your Fiscal Year and Ministry Year in Alignment?

Ministry Planning for churches that are focused on future generations (kids, students) typically revolve around the school year. That’s when new Sunday School classes or Small Groups start along with a host of other ministry initiatives.

But according to a survey on Church Law and Tax Report, most (71%) churches operate on a calendar year for budget purposes. (not surprising)

I don’t know what percentage of ‘generation focused’ churches are on a calendar year budget, but one can assume a large portion of these churches are.

The reasons why are not nearly as important as the question “Why is the finance year and the ministry year not the same?

4 Advantages in Making Them the Same:

1. Ministry Plans and Ministry Budgets are aligned
2. There’s no redundant effort. Plans can be done at same time
3. Easier to link Vision with Strategy and ministry priorities
4. If the Budget truly funds the Ministry Plan, it just makes sense the time frame of both should be the same

If your Pastor and Ministry Team’s new year for Ministry Planning is the start of the new school year – say August, then your budget year should start in August.

For churches on a calendar year basis, November/December is a horrible time to put the budget together. People (staff and lay leaders) and ministries are focused on the Holidays – spending time with family and possibly preparing for a big church-wide Christmas event.

If you want to align the ministry plan and your budget year, you’ll have one short finance year. For example, if your budget year ends in December and you want to change it to July, you’ll have a one-time 7 month year – January to July.

Just be sure to record the approval from your Board and/or appropriate committee in your meeting minutes.

What are you waiting for?

Leave a Reply

Your email address will not be published. Required fields are marked *