Money Basics

MONEY BASICS

By Rick McDaniels, Church Planting Coordinator for the NW Region and pastor of the Vineyard at Olympia, Washington [email Mcdanclan@emsn.com -website http://www.vcfolympia.org/ ]

1. The Philosophical side of money

Your issues.

Accountability

Covering

Open handed

Seeing people as money.

Their issues.

What giving says about them?

The non-verbal communication of giving.

The corporate issues.

If you are a corporation, you will have to share your information and those accountable for it.

2. How do I keep track of our money?

Examples: Quick Books, MS Money, Servant Keeper

These programs and others are easy to use and can track giving and your spending. In the first year or two you can keep it simple.

When you start receiving regular offerings of more then $1000.00 a week you will need to have a relationship with someone skilled in church or non profit accounting.

3. How do I make a budget?

First year save a lot spend what you need to. Save at least 40% to 60%
Money spent on relationship building is well spent.
If you grow fast in your first year your budget will need to get more detailed.
A budget hand print.

Throughout the life of your church you will spend somewhere between 45% to 55% of your income on payroll. 30% on Facilities cost. That leaves you 25% to 15% for all other expenses, ministries and giving.

4. How soon is to soon to go full time?

How much do you need?
Does the church have all of the equipment you want now?
Can the church meet it's obligations each month with money left over?
How much do you have in savings?
What are you saving for?
A church that gives $80,000 to $100,000 a year should be able to pay a Pastor at least $30,000 to $40,000 a year.

As soon as you began receiving money you can begin to gradually taking a housing allowance.

You are the churches major asset.

5. Really dumb things to do.

Having no accountability other then your wife or another family member.
Assuming that every one handing money can be trusted or not taking action to protect them from doubt and accusations. (a.) Money must be counted by two people, (b.) Balancing the check book must be done by two people preferably one of them does not do the counting.
Committing the church to a lease for a facility you can not afford with out seeking wise council first.
Budgeting on the strength of one person's giving.
Going into debt before you have an established pattern of growth and giving.
Frustrating your church by making them work with to little or inadequate equipment.
Being too generous
Not being generous at all.