Narrative Budget
An interchurch stewardship study looked at church budgeting and realized that the mission of the church was getting lost in the numbers. Church budgets did not engage church members. In their report they made some powerful points that speak to churches of every denomination and size:
A budget should tell a story.
A budget should reflect your church Vision and Mission Statement.
When people feel that their involvement is vital to the success of the church, they will actively support it.
What then is a narrative budget?
A way of presenting a budget in descriptive terms, not just numbers.
A way of presenting the financial needs of the church while demonstrating how the mission is being supported.
A way of helping people relate their time and talent to the ongoing mission of the church.
Narrative budgeting doesn't replace the numbers; it supports them. The normal "line item budget" is broken down by committee or functional area, which is necessary for financial reporting. Now try recasting that budget in terms of goals. Support the goals budget with a narrative describing how everyone's contributions add up to achieving those goals.
A narrative budget shows the church's financial "line item budget" in simple, east-to-read descriptive terms. It transforms a line item of money and expenses into an exciting and enlivening picture of ministries and mission expressions of the congregation.
A narrative budget appeals to those church members who give to specific programs or projects. The narrative budget presents the church's finances in a way that allows members to see what is currently being funded and what could be funded if giving to the church is increased.
Research studies indicate churches often fail to communicate the value of the ministries they provide and the changes occurring in personal lives through ministries. Contributors, therefore, have a limited understanding of the use of their gifts or relationship with those receiving ministry benefits.
A "line item budget" is an effective tool for the Finance Committee to manage income and expenses. It is not an effective means for interpreting the ministries of the church or their impact. On the other hand, the narrative budget helps members of the congregation understand what the church is doing in ministry, evangelism, discipleship training, benevolences and missions, and how their contributions support the work of the local church. A narrative budget is a connecting link between the contributor and the church’s ministries. A well-composed narrative budget educates and inspires everyone.
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