Stewardship (July 2011)

Budget Tips

It is budget time for the nonprofit I work for and for my church. (sigh) Why is it when you mention preparing the budget everyone suddenly disappears?

Maybe it is because preparing the budget is so time consuming and in this economy...estimating income and expenses can be very challenging.

So...here are some budget tips that might make this tedious task a little easier and keep your co-workers from disappearing:-)

Tip 1: Consider breaking your budget up. You can prepare some general goals for the year, but then concentrate on preparing a more specific budget every month or two.

Donations can be unpredictable at times and monthly budgets can be easier to project. Also, expenses that are due once a year, would be reflected in that month's budget, rather than divided into twelve equal parts throughout the year.

Check your budget regularly. Examine your cash flow and make sure you have sufficient funds to meet all of your liabilities. If your donations are not matching up with what you projected, trim back your expenses accordingly. However, if your donations are higher than excepted, it might be time to invest in some better equipment or building a comfortable cash cushion.

Tip 4: Consult an expert.

Ask a CPA, financial adviser, or banker to help you set up a budgeting system that will work best for your church or nonprofit.

Once you have your budget completed, do not stick in a desk drawer or file never to see the light of day---until you have to dig it out to create next year's budget.

Keep it where you can get to it and review it often. Create those mini monthly budgets. They can provide you with wonderful financial management tools. You can anticipate peak periods of giving and save up for the slow periods.

Review more budget tips for your church and nonprofit.

Free Budget Spreadsheet

Some of you probably already have this template, but those of you that do not have it...I found a useful budget template for you that a stewardship team for the Texas Baptist Convention put together.

Budget Template

Hope it helps you in your budget planning and make your preparation a little easier :-)

Top 10 Documents for Church Treasurers

Richard Hammar, an attorney, CPA, and author specializing in legal and tax issues for churches and clergy, wrote a great article outlining some documents that every church treasurer should be familiar with and able to identify: Top 10 Documents for Church Treasurers

The next section is for subscribers residing in the United States:

IRS Mileage Rate Increase

Medical and moving went up from 19 cents to 23.5 cents per mile.

The mileage rate for charity-related driving, however, remains at 14 cents per mile.

2Q Payroll Taxes Due:

Till Next Time,

Vickey

See Past Issues

Visit Free Church Accounting's Home page