5 TIPS FOR BUDGET SEASON
Plan the Process - Finance and staff leaders need to think through the budgeting process and set key meeting dates and deadlines. Make sure to give your team ample time to plan and adjust to the new budget. Once you've established these key dates and deadlines, we have provided a sample budget process timeline to assist with this (LINK).
Review 2024 Trends - Begin gathering data on 2024 giving and expenses. This information will aid in projecting your 2025 budget. Most churches should have at least nine months' worth of data for 2024. With this data, you can calculate your average monthly giving and expenses, both of which are essential for planning the new budget.
Evaluate Compensation - Your finance team should start evaluating compensation for 2025 and determine how it aligns with the overall projected giving. Consider each layer of employees and the raises that may be necessary. We also recommend conducting a compensation study every three to four years to ensure that your staff salaries are in line with your church's budget.
Insurance Renewals - When projecting costs for the new budget year, consider your new insurance rates. The primary insurance needs for churches include Health, Life, Building (if applicable), and Liability. If you plan to shop around for the best rates, now is the time to do so. Should you need assistance with insurance or retirement plans, feel free to reach out to ChurchBiz HR (LINK).
Communication - Once your budget is finalized, we recommend sharing a high-level summary with your congregation. This can be done at a members' meeting or through email communication. By doing this, you help your church understand the hard work your team has put into budgeting and convey the giving needs for the upcoming year.
If your church needs help with the budget creation process, check out our budget template pack, which you can download here—LINK. We would also encourage you to check out our Finance Team 101 course, which goes in-depth into the budget process.
Summary
As budget season approaches, finance and staff leaders should prepare for 2025 by reviewing giving trends, evaluating compensation, and gathering data from 2024. Don't forget to assess insurance renewals for better rates. After finalizing the budget, it's also important to share a summary with your congregation. For more details, check out the full post!