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Q&A: How Can Our Members Adopt a New Budget When We Can’t Meet?

If your fiscal year begins July 1, budgeting during the pandemic presents unique challenges—but there is a way forward.

Q&A: How Can Our Members Adopt a New Budget When We Can’t Meet?
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We have a fiscal budgeting year that ends on June 30 and starts on July 1. According to our bylaws, our congregation is supposed to meet in June to adopt a new budget. The current economic dynamics created by the pandemic means that we won’t be ready with a new budget in time for the meeting—which we might not even be able to have. Without being able to follow our historical budgeting model, what’s the best way to put something together that can be reviewed for accruable?

You are not alone. Although most churches begin their budgeting year on January 1, it’s estimated that about a third use a non-calendar fiscal year for budgeting purposes. Like yours, many of those churches have a year that starts July 1 and ends June 30. They are no doubt dealing with a situation similar to your own.

You certainly want to be respectful of your governing documents. Your bylaws may ...

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Michael (Mike) E. Batts is a CPA and the managing partner of Batts Morrison Wales & Lee, P.A., an accounting firm dedicated exclusively to serving nonprofit organizations across the United States.

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Posted:
  • June 1, 2020

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