Darrell Mims, executive pastor of World Victory Church in Duluth, Georgia, has a simple rule for making decisions about money and staffing: if the money isn't in the budget, then just say no.
Overspending is obviously the last thing any financial manger wants to do. But how do financial managers help balance the need to build a ministry and keep the costs down? How do financial managers help leadership teams make staffing decisions that follow sound policies and keep the budget out of the red?
Church Finance Today asked financial managers at small and large churches and experts in church finance. They shared a number of helpful insights.
Calculate and evaluate staff costs
Most churches should evaluate staff costs at least once a year at budget time, said Dan Busby, president of the Evangelical Council for Financial Accountability. Churches generally spend between 35 and 60 percent of their budgets on staffing. Church size, local cost of living, and ministry philosophy all play a role in determining the right percentage.