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Economic Equilibrium: Importance of a Church Budget

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    A budget is an action plan for the ministry and therefore a very important part of your church’s overall financial health. A budget is a tool that assists the P. C. C in assessing parish operations and thus helps in sound decision making. The budget making process is a mean to serve as a communication tool and a means to coordinate all activities to achieve the church’s goals and objectives. Budget allows the goal reaching in finances as well as establishment of a solid footing for the parish. A budget shows whether the church is making finances or not.

    This helps the church to keep balance economically. It reveals truth long range goals and indicates where the actual emphasis of the church mission lies. It shows the distribution of massiveness mission funds to be used in all departments in the church and its work. It enables one to work effectively and efficiently. Helps in design a calendar of events for the next 12 months that reflects on the church’s mission statement and the initiatives that the congregation is most passionate about. Allow for only one major event a month, eliminating or amending other activities that may distract.

    Assessing the potential local, global and spiritual impact each event could create. Ensures that there is a clear understanding of how money should be spent and an assurance that money is being spent appropriately A critical part of having realistic expectations and a viable master plan is to have a good financial analysis of the church to determine what the church can afford. Any building project, whether large or small, is a large stretch of faith. There are specialized firms that help churches figure out their financial capabilities.

    The church needs to establish a total project budget that includes not just the building, but also acquisition costs, consultant costs, permitting costs, furniture, move-in costs, and other expenses. A budget prepares us to be good stewards of the money that God has entrusted to the church and part of that responsibility is to meet our financial obligations in a well-timed manner.

    It gives an account of how a certain division of the church was allocated fund and utilized them. It is useful for future reference and smooth running of the church as an organization. It shows the activity that the church is aiming to achieve per the annual year. It controls the cash expenditure and ensuring balance of the church income and debts.


    First, some basic facts, across denominations and faith traditions, the most reported major source of church income is what individuals contribute through their offerings, pledges (tithe) donations. In short, most churches operate on what individuals give. Offerings from members of a congregation at the end of each service. This is the money that the members of the church give for the continual ministry of the Lord work. Free will offering that offering given out of a person’s own free will.

    Freewill offerings go towards God’s ministry. Tithe a tenth percent of a persons net earning. This is also given to the ministry The second most common big financial source is income from investments. Some churches have invested a lot in real estate buying and selling at a profit. Some have rental houses which bring in money monthly. Some churches have build business empires: beach hotels, Liquid petroleum gas(LPG) businesses. Donor funds some organization do support the ministry of God in various departments for instance the HIV/AIDS department wing in the church has received immense support from some donor countries.

    Some churches have build private schools (academies) which boast the churches kitty. The more the children at these schools the more the money church receives. From SACCOS and micro finances some churches have come up with SACCOS and micro finances which have really benefitted the church income. This has been witnessed in some dioceses in the Anglican communion and the roman catholic church Through community Based Health Clinics (CBHC). Which are based at the grass root levels in that they treat people at a charge for a profit. This too has boasted greatly to the church.

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