BUDGETING FOR 2021: SOME NEW CONSIDERATIONS Bo Bowden, President ( - - PowerPoint PPT Presentation

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BUDGETING FOR 2021: SOME NEW CONSIDERATIONS Bo Bowden, President ( - - PowerPoint PPT Presentation

The ea The earth i h is the the L ORD s s an and all all that at is is in in it it, the wor orld, and d thos those who ho live ve in it; t; Psalm 24:1 (NRSV) BUDGETING FOR 2021: SOME NEW CONSIDERATIONS Bo Bowden, President (


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SLIDE 1

BUDGETING FOR 2021: SOME NEW CONSIDERATIONS

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The ea The earth i h is the the LORD’s s an and all all that at is is in in it it, the wor

  • rld, and

d thos those who ho live ve in it; t; Psalm 24:1 (NRSV)

Bo Bowden, President (BoBowden@VAUMC.org) Tommy Herndon, VP Stewardship & Development (TommyHerndon@VAUMC.org) Brad Duty, Wesley Seminary Intern

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SLIDE 2
  • Current Environment
  • Budget Impacts
  • Budget Methods
  • Narrative Budget
  • Communicating the

Budget

  • Resources

AGENDA

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Good

  • od pl

planning and d ha hard d wor

  • rk lea

ead to to pr pros

  • sperity, but

t ha hasty ty shor hortcuts lea ead to to pove

  • poverty. Proverbs 21:5 (NLT)
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SLIDE 3
  • Ways of giving changed?
  • Missions changed?

CURRENT ENVIRONMENT

3

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SLIDE 4
  • Offerings/income changed?
  • Pledges accelerated or added?
  • Special grants or loans?

CURRENT ENVIRONMENT Cont’d

4

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SLIDE 5
  • Big ticket items deferred?
  • Big IT adjustments needed?

BUDGET IMPACTS

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“But d

don’

  • n’t b

t begin n unti ntil you

  • u cou

count th nt the cos cost.

  • t. For

For who

  • wou
  • uld begin

n cons constr truction

  • n
  • f

f a buil uilding wit without firs first calcu culati ting g th the cos cost to s t to see i if th there is s enou nough mone

  • ney to

to fini nish i it? ? Luke 14:28 (NLT)

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SLIDE 6
  • PPP forgiveness?
  • Payroll saved set aside?
  • Staff/payroll changes?
  • Resigned, Retired, Laid off?

BUDGET IMPACTS Cont’d

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SLIDE 7
  • Separate Dedicated Capital Budget
  • Improvements/Major Repairs
  • Mix of fixed/invested
  • Emergency Fund
  • 2 - 3 months expenses
  • Liquid, NOT invested

BUDGET METHODS

Mission drives budget!

(Not the other way around)

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SLIDE 8
  • 52-week comparative income

(2 years back & current year, week by week)

  • Improves tracking accuracy
  • Create detailed list of all income

sources

  • Distinguish btwn

recurring/pledged and one-time gifts

BUDGET METHODS Cont’d

Mission drives budget!

(Not the other way around)

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Wk Yr

2019 2018 2017 1 $5000 $5100 $4900 2 $3500 $3400 $3300 *16 $2400 $12,000 $2300 **17 $13,000 $7200 $6900 27 $1800 $1900 $1800 49 $8000 $7800 $7900 51 $21,000 $20,000 $22,000 * Easter 2018; **Easter 2019

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SLIDE 9
  • Determine an accurate picture of where

you are and where you need to go*

  • In what missions can you excel?
  • Are any missions past their prime?

NARRATIVE BUDGET Prep

Do Mission & Vision sync with budget?

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* Consider Purposeful Abandonment

First step in growth is not to decide where and how to grow… It is to decide what to abandon

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SLIDE 10
  • Build a Narrative Budget to tell your story

NARRATIVE BUDGET

Show how Mission & Vision drive your budget

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“Our Food Pantry mission provides food to 60 families a week at a cost of $1500 per month. For an extra $500/month, and $2500 for an additional large refrigerator, we could feed approximately 75 -80 families.”

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SLIDE 11
  • The narrative is imperative!

NARRATIVE BUDGET cont’d

Show how Mission & Vision drive your budget

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“Worship Committee would like to count

  • n $750 next year for worship supplies.

We would also like to add several more Biblically-inspired wall hangings for the

  • Sanctuary. For an extra $500 for the

fabric, we can make them ourselves.”

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SLIDE 12
  • Narrative Budget
  • How to get started
  • Prioritize!
  • Supplements, not replaces

spreadsheet

  • Some things best as line items

 Start with Mission Needs; Total All

Requests; & Share with Congregation

NARRATIVE BUDGET cont’d

What will our Missions be in 2021?

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SLIDE 13
  • How do you provide financial transparency?
  • From the pulpit? (not recommended)
  • In classes or a monthly newsletter?
  • At town halls or special meetings?
  • Why does it matter?

COMMUNICATING THE BUDGET

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Wh Whoever is fait is faithful in in a v a very lit little is is fait faithfu ful also also in in muc uch; an and d wh whoever is is dish ishonest in in a a very lit little is is dish dishonest also also in in mu much. ch.

Luke 16:10 (NRSV)

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SLIDE 14
  • Prepare PPP forgiveness documentation; but don’t assume it
  • Note staffing changes, and plan for resuming full staff
  • Consider a capital and emergency fund
  • Utilize week-to-week budget instead of straight-line
  • Actively seek “purposeful abandonment”
  • Produce a Narrative Budget
  • Communicate your budget in a transparent way

LET’S SUMMARIZE

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  • Assess your current financial situation. What specific

income and expenses have changed?

  • Make note of necessary or deferred capital expenses
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SLIDE 15
  • Talk with your church team
  • Foundation@VAUMC.org
  • Share resources via email with Survey

and Link to:

  • Websites
  • This slide presentation
  • Customizable spreadsheets
  • Examples and checklists

HOW CAN WE HELP?

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SLIDE 16

THANKS FOR JOINING US

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