Ask any church leader about church management and one topic always comes up – infrastructure! From building maintenance, boilers, roofs, sidewalks, and parking lots – this is a top-of-mind issue when it comes to financial planning.

Here is the good news – the church capital assets budget is a proactive way to analyze the present and plan for the future. Defined as the spending plan for updating, repairing, maintaining, or purchasing capital assets, this budget can save you time and money today, tomorrow, and forever.

Capital assets are simply those items that the parish owns that have value extending beyond a year. For example, the church building and rectory are capital assets because the value of these assets continues over multiple years. Other examples might include the parking lot, computers or any major equipment owned.

By creating a church capital assets budget, church leaders can reduce their fear of dreaded leaks, breakdowns, cracks, and potholes!

Interestingly, even though these assets are critical to accomplishing the mission of the parish, many parishes do not have a capital budget. For example, if a church building is unusable due to maintenance issues or the high costs to operate the facility, how does the parish accomplish its critical mission?

A strategy to get started with effectively managing capital assets is to catalog all assets owned by the church and document the relative age of the assets. By recording this information, the parish can project when assets may decline or will need replacement.

The other benefit of this type of documentation is succession planning. When a new pastor arrives at the parish, the catalog can be extremely helpful to know what assets exist at the church.

By developing a capital assets budget, the parish is prioritizing the critical infrastructure that is necessary for meeting mission goals.

In tomorrow’s post, I’ll discuss how to go about cataloging church assets to get this plan created.

Read More – 30 Tips in 30 Days

Church budget freedom may sound like an oxymoron, but it is not! Read on.

Money discussions are not always the most positive of conversations. When talking about finances, have you ever heard a married couple talking about a budget and say with enthusiasm, “Guess what, we have $100 more dollars in our budget this month spend!!! YAY.”

More often is the case, what happens? There is a fight.

• “We have spent too much this month!”
• “How could you put that on the credit card?”
• “We are never going to catch up.”
• “We can’t afford this!”
• “Even though we budgeted $100, we can’t really spend it!”

Although this may sound counterintuitive, budgets are actually about offering people and organizations freedom to make financial decisions. Yes, budgeting is about making limits clear, but it is also about enabling the church to allocate resources to the highest priority areas and accomplish pastoral goals.

Let’s use the example of expenses. Budget freedom comes from knowing how much you have available to spend on a specific category (liturgical supplies, CCD books, vacation bible school), and then knowing that the money is, in fact, available to be spent.

Here is the key point – When a budget is created with the truth in mind – meaning being honest with how much you estimate that you really, truly have available to spend and being realistic about how much you really, truly expect to receive – the budget becomes a tool and not a penalty stick.

Why put together a budget if you really don’t want to spend the amount you have budgeted?

Some then argue, “BUT, what about saving money?” Great question!

If you want to save money, no need to always worry about it!  Instead of hoping that the money you have budgeted for a given category is not actually spent – budget a new expense line item called – Transfer to Savings. This way, you have specified an amount of money for each month, that you have budgeted AND where you can feel great about spending the full amount.

Budget development cannot be about wishful thinking or hopeless estimating – it must be about the truth.  Then, and only then, does the budget become a management tool, instead of a painful, anxiety-producing process and plan used to manage finances.

Free your mind and heart – change the conversation from constraint to freedom!

Read more about church budget freedom in our book: Parish Finance: Best Practices in Church Management.

Tip 1 is brought to you by the Church Finance 30/30 Series – Check back to the blog as I reveal my thirty favorite quick tips on the topics ministers struggle with most. We’ll discuss budgeting, financial decision-making, safeguarding assets, and facilities management.