Tuesday Jun 18, 2024

Ep 67 ~ Mid-Year Review for Your Church: Budget, Contributions, & Minister Housing Allowance

Episode Date: June 18, 2024

Episode Summary: It is June and it is HOT! That means the year is halfway over, so now is the perfect time to conduct your mid-year review. In today's episode, we discuss the importance of performing a mid-year review for your church and the three key areas that require your attention: Budget, Contributions, and Minister Housing Allowance. Are you ready? Let’s go!

Quote of the Day: Today's quote comes from John Gordon & Alex Demcazk's book, “The Sale”: “A fool thinks only of how his decisions will impact him in the moment, but someone who has wisdom considers the long-term implications of his decisions.”

Episode Highlights:

1. Budget:

Definition: An estimate of income and expenditures for a set period.
Importance: Budgets are not set in stone and can be adjusted when needed. With major church activities often occurring in the third and fourth quarters, a mid-year review can help prepare for increased expenses.
Action Steps:
- Provide each department leader with a year-to-date copy of their budget and expenses.
- Have leaders review their planning schedules for the remainder of the year to determine if they are on target or if adjustments are needed.
- Follow your church's procedures for budget adjustments as outlined in your Financial Policy and Procedure guide.

2. Contributions:

Mid-Year Contribution Statement: Send a mid-year contribution statement to donors, showing their giving year-to-date along with a Giving Supplement statement highlighting completed ministry projects.
Methods: Contribution statements can be mailed, picked up at the church office, or accessed via an online giving portal.
Communication: Include a sampling of ministry accomplishments in your church bulletin or pre-service slides to show the impact of donations.

3. Minister Housing Allowance:

Understanding the Benefit: Review housing expenses year-to-date. Qualified ministers should take note of any unexpected expenses, such as storm damage or essential repairs.
Key Point: Housing allowance adjustments must be proactive, not retroactive. Ensure the designation is made before paying for the expenses to include them in the housing allowance.

Call to Action:

Take the time now to conduct your mid-year review focusing on your church's budget, contributions, and minister housing allowance.
Share today's episode with other church leaders to help them understand the importance of these mid-year adjustments.