So many churches have great people on financial committees and teams, but they often lack expertise in church finances. I believe that EVERY church should have access to a Chief Financial Officer! Why? How many classes did you take on running a non-profit? Okay, point made

Unless your organization is just massive, you should have an outsourced CFO that you can access when you need it.

Three processes a CFO can help you with:

1. Forecasting

It is very rare for a church leader to be skilled in forecasting financials. I would utilize an outsourced CFO to help project the budget the next year.

2. Process Management

Who is developing healthy financial processes for your church? Who wakes up in the morning thinking about the thousands of dollars that flow in and out of your organization? Most churches that grow fast act like a church of twice its size financially. It is imperative to have someone thinking about this stuff!

3. Decision Making

Who helps you think through the ramifications of moving into a new facility? Who asks the tough questions about the building you want to renovate or the land you want to buy? Who understands banking issues and shopping loans? Only a trained CFO!

We are rolling out a super low cost option for your church. Even a church plant should have access to a CFO! Fill out this form if you are interested!

You might think I have lost it after reading this post because this financial issue in churches makes me angry (the good kind of angry).

Most churches operate off of a spending system that is unhealthy. We are on a mission to change this. Here are three ways to overspend your church budget.

1. General church credit cards

Why should you not do this? One word: ownership! You should make each person have complete ownership of their OWN card. Their name should be on it with the church name and you should set a spending limit. I personally would use credit cards and pay them off each month. The general card is so general that people have NO concept of what the budget is and they don’t know why you say, “NO” all the time! When you give them a card that they can spend on with a limit it also generates trust among the team.

2. Reimburse unapproved expenses

I see a lot of churches that have volunteers and staff that just spend money and the church pays them back. You MUST have an approval process for any spending. I would create a form that they have to fill out before they spend and make sure it is approved. Email rweber@thechangegroup.tv for an example of this form.

3. Don’t have a clear budget

Without a clear budget you will 100% spend more than you should. Read this article on a church budget from a previous post.

What are some ways you have seen a budget over spent?

We get asked by a lot of churches to help them “create” a church budget.  After going through the budgeting process with different church over the past few years, I have learned something that has been shocking to me.

A budget that isn’t birthed is easily ditched.

I can create a budget for your church; that task is not hard.  I can’t, however, create the will power for your staff to live off the budget.

Here are three characteristics of a budget that people actually stick with.

1.  Multiple drafts

Whether you are a church start up or an established church, you should take many stabs at creating a budget.  Just writing one down and going with the first draft doesn’t work.  For instance, church planters tell me, “I don’t know how much my power bill is going to be.”  That is not a good answer.  Get on the phone and call around and find similar sized places and see what they pay.  It is an excuse to say, “I just don’t know”.  Your first draft may be a good guess but after researching you can change it.  Don’t be lazy; the extra effort will pay off!

2.  Collaborative effort

A budget should be worked on with a team of people.  A budget conceived alone will not be “owned” by the team.  Bring your team into the mix in the budgeting process.  Let everyone have their input heard.  NON-FINANCIAL PEOPLE NEED THIS!  They need to know that God calls them to be good stewards even if they aren’t the financial people on the team.

3.  Clear Process

YOU SHOULD HAVE A WRITTEN PROCESS TO TRAIN YOUR STAFF ON HOW TO LIVE INSIDE YOUR BUDGET.  We are working with all of our clients to get them to send every receipt, deposit, and transaction daily so we can keep the books up to date.  So many churches have one church credit card that everyone spends off of!  I would never do this!  Why? It shows lack of trust and does not make people responsible for their spending.  I will write a post tomorrow the details a spending system you can implement.

What are some other principles that make a budget stick?

I talk with so many pastors that are concerned with “systems”.  It is a huge buzz word in our culture right now.  People think systems will grow a churches generosity!  I have never seen a system catalyze a person’s heart to give.

Bottom Line: People catalyze people.

I realize that God works through people to help other people make bold spiritual moves.  This is very clearly seen in the area of generosity.  God uses spiritual leaders to ask people to give.  Please quit skirting the responsibility.  No, everyone isn’t going to leave your church.  Yes, systems can help but they don’t have life on life appeal.  Get fired up and ask your people to fund your God given vision.

YOU ARE NOT A FUNDRAISER! YOU ARE A CHURCH LEADER!  Take joy in your “ask” being more for the Kingdom than your personal gain or project!  Be bold! Move! Shake! Fast! Pray! Bring it this weekend!

BTW: Systems are important but I wouldn’t lead with systems. I would lead with God ordained boldness.

One great thing about my life is the people God has given me the opportunity to meet.  Here are 3 people you should know and why you should know them.

1. Mark Clement from Big Picture Media Group

Mark’s company did all of our branding and website.  He adds more value than he receives in payment.  Top reason you should know Mark is that he just 100% gets YOUR culture.  They start from scratch and I like that.

2. David Putman

David has just launched out from my home church Mountain Lake Church and is helping pastors with ministry coaching.  If you are looking to staff for growth, shape strategic direction or finance your vision, comment on the blog and I will hook you up with David.

3.  Jim Sheppard and Generis

Jim is one of the leaders of thought in the area generosity.  Want to accelerate generosity? Jim and his team can help.

Who should I know, follow on twitter or read their blog? What is your blog about? Let me know!

I was privileged to hang out with Rick Warren for two days during the www.churchplanters.com conference.  We picked Rick and his assistant Steve up at the airport at 12:45 AM.  We wanted to get Rick and Steve back to their hotel as quick as possible.  As we were headed to the hotel they wanted to get something to eat.  We tried some fast food joints but they were closed so we ended up going to Waffle House.

Here are the highlights of our time at Waffle House:

1. Don’t take yourself to seriously

I see so many pastors that try to protect themselves from people.  Rick WANTED to go to Waffle House and hang out with us.  He asked us all about our lives and cared about us!  Too many pastors are too cool for this type of activity.

2. Have Fun

Rick Warren prank called my wife at 2:30 AM.  Enough said!

3. Treat people the same

Steve told us that they treat taxi cab drivers and Presidents the same way.  They totally have integrity in this.  I have had multiple conversations with Steve after they left, and he is sending me a present in the mail!

4.  Eat Hot Sauce

Rick Warren eats a spoonful of hot sauce on every bite! NO, I AM NOT KIDDING OR EXAGGERATING!

5.  Care about the cook

Rick built a relationship with the cook and server at Waffle House.  He added value to their lives through hearing their story and then signed a copy of purpose driven life for them!

I went to bed at 3:55 AM that night.  It was one of the best nights of my life.