BUILDING A NARRATIVE BUDGET

Where do we start?

Enlist a small, special committee composed of people from the finance, budget development, and/or stewardship committees, the church staff, and a skilled writer and graphic artist.

1. Review the line item budget and group budget items by ministry areas, such as worship, education, youth and mission.

2. Review the congregation’s mission statement.  Creatively describe the various ministries of the congregation as they fulfill the mission statement.

3. Pro-rate salaries, building operational costs and overhead as well as program funds into specific ministry areas.  For example, the cost of building maintenance and utilities are Worship and Education expenses when the primary use of the building is Sunday morning Worship and Christian Education classes.

4. Write one or two descriptive paragraphs for each ministry area.  Use examples that paint a picture of the ministry.  Enable readers to understand the impact the ministries have in changing lives.  Use stories to illustrate the ministries’ effectiveness during the previous year.  Picture new or expanded ministry needs as the rational for increased funding.

5. Provide a positive, clear explanation of significant funding changes, whether they are proposed increases or decreases.

6. Expand the reader’s horizons by identifying several relevant and exciting additional or future ministries that could be undertaken with funding beyond the budgetary financial projections.

7. Consider a pie chart that uses ministry areas to depict the budget visually.

8. Prepare the narrative budget in an attractive, inviting, readable brochure format.

9. Determine ways to use the narrative budget most effectively to communicate the exciting message of ministry throughout the congregation.

CHURCH FINANCIAL REPORTING

Ineffective reporting:

• Using line-item budget

• Dividing budget by 12 or 52 and reporting monthly or weekly “need”

• Constant reporting of being behind budget

• Trying to analyze giving patterns by weekly or monthly receipts

• Using any form of thermometer

Effective reporting:

• Using narrative budget

• Quarterly “Faith and Finance” report featuring quarterly income and expenses and comparison to same quarter over last three years

• Ministry testimonies

• Giving testimonies

• Reporting and analyzing by households and families instead of "giving units"

The following sample Narrative Budgets are available for you to download in Microsoft Word 2003 format

 

 

Sample Narrative Budget #1 - Brochure Layout

Sample Narrative Budget #2 - Brochure Layout

Sample Narrative Budget #3 - Letter Layout

Sample Narrative Budget #4 - Letter Layout