2 Absolutes in Church Budgeting

There is a lot of healthy debate out there in what percentage a personnel budget should be in comparison to the overall budget amount. It is a great financial question to ask and probably should be asked more often prior to budget preparation. I have been preparing church budgets for 23 years and have used the same formula from the beginning. I have applied this formula to budgets up to $3 million dollars and it works to keep the church healthy financially. 

The formula is keeping a balance between two key parts of the church budget: debt load and personnel costs. Here is the reason why you should watch and balance these two parts. If you have too much debt load, then you will strap the budget and not have enough dollars to hire the right amount of staff and/or offer competitive compensation packages. If your personnel costs are too high, then you may not have enough dollars to borrow money for church facility growth. Let’s face it! Not enough staff or not enough space will stymie growth. You can fund programs all you like but without space and staff, you may not go very far. 

The formula I have used as a guide is personnel costs should between 40 – 50 % of the overall church budget and debt load should be between 20 – 30 % of the overall church budget. So how do you balance these? Great question. The goal is to not exceed 70 % of the total of both. If debt is a maximum of 30 % then personnel needs to be at 40 %. If personnel is 50 %, then debt should be 20 %. If debt is 25 %, then personnel needs to be 45 %. Likewise, if personnel is 55 %, then that leaves you with only 15 % for debt and that would be a difficult amount to work with for new construction. If debt was 40 %, then that would make it difficult to staff the church for growth.

There are a lot of other factors that play into budget percentages. Factors like the size of the campus, age of buildings, size of budget, age of the congregation, and the vision of the church. If the church is debt free, and many are, then you can use the lower scale of debt load for renovations or operation and the higher scale in personnel. However, if new construction is in the future you don’t want to get personnel too high. It is certainly more difficult to reduce personnel than to increase it. 

Balancing budget percentages is a combination of those 2 absolutes in addition to the factors mentioned above. I have witnessed churches that went above the debt load guide and ended up not having enough staff to grow or to pay competitively and lost staff along the way. I also have witnessed churches that let their personnel cost go over the guideline and when it was time to build, there was no debt load available. 

Comments! Suggestions!

10 Things To Do When Unemployed

Sometimes you know you’re about to be let go and sometimes it comes like a thief in the night. Either way, you are probably not as prepared as you need to be to survive it well. In my 45 years of working, I have been unemployed three times; one voluntarily and the others like a thief in the night. Even in church work, the thief can steal your job without notice, warning, or accusations of any wrong doing of any kind. It’s just that easy and it happens way too often.

Do not overreact. Your tendency will be to focus solely on the job loss and the factors surrounding what happened. Take a step back, take a deep breath, and look at the big picture. Your first step should be to write down your thoughts and feelings to release them from any anxiousness you have.

Plan your day. Without the routine of your job, you will find that your days are empty and unorganized. Try and make your plans for tomorrow in advance of each day. Even if it does not fill your day, give yourself a plan to get something accomplished each day. 

Start your job search. There is no need to stress just yet. Begin getting your resume and other documents you need ready to send out. Start making phone calls and sending emails networking around with other colleagues and friends that you know. Let them know you are searching and ask if they would pass along your resume when possible. Get connected through social media. 

Keep emotions in check. Losing a job can be very emotional with feelings of inadequacy, bitterness, mad at the world, frustrated, and even loneliness and isolation from being at home all day instead of working. Your mind will wonder off and cause you to think only about the negative aspects of the job lose, so fill your mind with positive things as much as possible. There are always good things in every bad situation. 

Do not go it alone. If you are married, then include your spouse in what you are going through. Some temperaments tend to clam up and not communicate about the job lose. Make sure you are open and honest with your spouse and include them in your feelings and emotions. Reach out and find a few friends you would consider mentors to you. Let them know what has happened and keep them updated often for support and encouragement. 

Develop a Quite Time
This is a time you really need to be quite and hear from the Lord. Find your spot and your time and be there every day no matter what. Wherever we live, I have a spot in the house that I sit and read and pray. Find a prayer study and begin a journal of your thoughts  even if you have never done this, its important in a transition time.

Stay connected to your field. Whatever your career field was, stay connected there during this time of not working. Read related articles, research new technology in your field, read books, and get connected on social media related to your field. Do some research and learn new things happening out there.  

Build your web presence. I have already mentioned social media but do not underestimate its far-reaching power. Start with a professional business site like LinkedIn. Upgrade to premium if possible and create a professional profile that tells your story. Find other job search sites and up load your resume to each one. Set up email alerts for jobs you would be looking for. Get known on the web as a job seeker and start watching regularly. 

Take the Time Off
You may sense a feeling of urgency and panic. Don't fret just yet and enjoy some of your time off from the job. I'm not saying be lazy and do nothing about your separation. Spend some time visiting family and relatives and just hanging out. Do not feel guilty relaxing. Chances are you have put off vacations and trips due to work load and now is the perfect time to get caught up.


See the big picture. Start looking at the long haul even if you have prospective jobs quickly. Look for ways you can cut expenses to the bone. If you own a home, can you sell quickly and rent for a while. What are the cost differences? What can you sell if you had to? What savings do you have? What emergency funds do you have? What is your budget and your monthly living costs presently? What can be trimmed. Know that a job loss is temporary and you will bounce back. Get through a job loss with as minimal of damage as possible financially. Don’t sell the farm just yet, but be ready.





Comments? What would you add?

Make Team Building Affordable

I am a team builder and I am always looking for new and creative ways to build relationships within the team. While leading a church staff of over 25, I sensed a great need for a way to get us all together in a casual atmosphere, away from the office. I noticed that we were in meetings at the church so much and comments from the team members were they were tired of so many meetings. I also noticed the administrative assistants were frustrated at not being included around the office in staff lunches and impromptu and random gatherings. What we needed was something that would build the team as a whole.


I wanted to create something that everyone could attend, was affordable for everyone, and was casual and not structured. I called it the "All Staff $5 Lunch". We chose the first Tuesday of the month and selected a local restaurant. The whole team was invited via email and all it cost them was $5. Each person paid in $5 and the church covered the rest, within reason. With most lunches costing around $10, the church basically covered the other. It was a hit! The goal was 100% attendance but that was unrealistic. We settled for whoever could make it that month and enjoyed great casual fellowship away from the office.

There were no expectations from the team, just show up when you can and enjoy each other. We chose a new place to each each month and would try and choose a new restaurant when possible. The team loved it since they knew there cost was always going to be just $5 no matter where we ate. We carpooled each month and added that fellowship aspect as well. The event quickly became a staple in our team building strategy and was looked forward to by all. I can assure you this; if I ever forgot to line up a place and send the email, I was quickly reminded a few days before.

The idea mushroomed into more; whenever a new team member joined us or when a team member left, someone called "All Staff Lunch". You just can't go wrong with this team builder.

Comments? Suggestions? Have you tired this before?

How Do You Communicate?

Learning how people communicate at the office can save you a lot of grief and understanding that effective communication is critical to any team. Many times, when things go wrong with a project at work, it can be traced back to a lack of communication. It can also cause you grief in your relationships at the office and at home. Let’s face it, any lack of communication can affect the outcome negatively. Here is a perfect example. Let’s say you are working trying to help someone in your office that was going through some personal issues and you were trying to mentor and encourage them. You emailed several times over the course of a few days but the person never responded to you. You see them in the office at maybe at a meeting but they never acknowledge your emails. Finally, after several email attempts and no response you catch the person in their office and ask why they have not responded to your offer to help them. They apologize and tell you that they do not email much and rarely check their inbox. However, they do inform you that the best way to communicate is by text message. Clearly a communication breakdown simple because of their preferred method. 

Now go back to by opening comment about learning how people communicate. In an office setting where you need to communicate with many to get things done, ask how they best communicate. What is their preferred way that will get you a timely response? Today there is text messaging, email, sticky notes, Facebook, a phone call, or in person face to face. Any of these can work. Had I asked that person ahead of time what their best way to communicate was, I would have been able to better help and get my message across. 

Understand that you may have a preferred way to communicate but that does not mean it’s the best way for everyone you work with. Learn the best method for each person in your office and enhance your communication greatly. Be flexible and as a leader be the one to establish communication methods up front. 

Comments? What is your best communication method?

5 Things You Need to Know About Marriage

I was 22 and she was 18. We met in March, I took her to her high school prom in May, and we were married on December 29, 1976. I wore Wrangler jeans, boots, and a t-shirt every day and she wore fashion clothes. She was Catholic and I was Baptist by upbringing. I lived in a one bedroom apartment and she lived in a five-bedroom house in Country Club. We could not have been more opposite yet we were attracted to each other and it was love at first site. I can assure you that if there was an online dating match service back then, we would not have been remotely close to matching.

We had a Catholic / Baptist wedding held in a Catholic church in front of a priest. The reception had live music and open bar for our friends and family. The Catholics danced the evening away while the Baptists ate. We were married on a Wednesday night right between Christmas and New Year. Who does that? I loved my apartment with all its amenities but she wanted to buy a house. She had a cat before we were married that she brought into the marriage and I was highly allergic to cat dander. I loved her long brunette hair and on our first real date, she showed up with short hair. Why did we get married you may be asking? What did we have in common? How did two opposites ever meet and fall in love?

  

Over the next couple of years, the arguments grew bigger and louder and more noticeable to others. There were blow outs that when I would come home after work, she would be gone. She moved out and left me a letter about how this was not working. We got back together each time and continued to try, but it was difficult. Marriage is work! Finally, we had a blow out and she moved out again, this time for good. Why could we not be like other couples that argued with the husband sleeping on the couch? This time she started the process for filing for divorce. Yes, the “D” word. It had popped up its ugly head a few times before but we always managed to overcome the situation. This time was different!

I moved to an apartment and struggled getting through each day. I just could not accept the marriage was done. Fortunately for us, a friend of hers suggested we get counseling. I was open to anything that could help, even seeing a priest. He was different that I had imagined. He was a young guy. I don’t remember all that he told us that evening and I am sure he used religious talk but all I heard was if we still loved each other, then the “D” word should never come up. He also taught us how to argue. If you are married and you never argue, there may be something wrong. When you get two people living together, you are going to argue. He gave us rules to argue with that we committed to try. She moved in the apartment with me and we began once again. 

Things improved over the next couple years. We built our first custom home together and did well choosing and picking out colors and lighting. We were even expecting out first child. I thought we had everything we needed. A new home, good jobs, nice cars in the driveway, a sailboat, and a pool table in the den. Our friends all commented that we had it all and were doing very well. Or were we!

 She brought a cat into the marriage, which she got rid of for me, and I brought alcoholism into our marriage. I was a heavy drinker before we married and it carried over into the marriage. Drinking was a regular part of my daily routine and more on the weekends. Now that we were faced with being parents to our first child, we had to make some changes in our lives but I did not know what that looked like. She did! Her and a friend down the street started visiting churches on Sundays and when they found one they liked they drug the husbands to the church the following Sunday. It was not fun  for me! I had no interest in this at all. The last church we visited was just OK for me. I mean I didn’t hate it! The following week a knock came on the door and guess who? It was the pastor and his wife. We invited them in and started our visit. Before we knew it, they were asking us if when we died, would we go to heaven for sure! The next thing I knew, they were praying with us and we gave our lives to Jesus that night; at the same time. Over the next several months, I poured out every bottle / case of beer I had in in the house and never drank a beer again. I was at church every time the doors were open. I could not get enough of Jesus.  And I discovered we didn’t have everything we needed after all. 

Here are 5 things about marriage that everyone needs to know. Whether you are married now or getting married soon, learn from our experience. 1) Don’t believe the myth that marriage is 50-50. It is by far 100-100 that makes it work. Each of you must give 100 % to the marriage relationship 100% of the time. 2) Know that opposites are attracted to each other and that is not a bad thing. We offset each other with our differences. All these dating sites today are matching people up by likes and dislikes, but that is not fool proof. It does not guarantee a perfect union. 3) Learn how to fight the right way. Learn the rules and make arguing healthy and productive for the marriage. 4) Remove the word divorce from your vocabulary and never bring it up. Don’t use it as a crutch or an easy way out. There is no easy way out! Stay with it. 5) Make Jesus the center of your marriage and he will see you through the good times and bad times, in sickness and in health, until death do us part. 

My wife and I just celebrated 40 years of marriage after all that we have been through. How did we do it? We made Jesus the center of all that we do together. We read his book on marriage and we followed HIS plan. How did Jesus do it? He blessed us with 3 incredible children, a loving family, and hundreds of dear friends that hold us up and support us. I am not a marriage specialist or counselor but Jesus is. If you don’t think God can work in your marriage, try reading this scripture every day. “Now to him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us” Ephesians 3.20-21

 Comments? Suggestions? Testimonies?