Checking the Vital Signs of Church Financial Health

I have seen many churches in financial distress. It is a sad situation to witness.

They are worried how they will pay their staff. They are worried how they will pay their bills. The ability to do ministry has dwindled.

And they are not sure how they got to this place.

So what happened? As we hear the stories of churches that find themselves scraping the bottom of their checking account, worried if they will financially survive, you tend to uncover some common themes.

  1. Failed to preach and teach stewardship. Maybe the pastor was afraid he would be considered a church leader that abuses his platform for personal financial gain. Maybe the church leaders were afraid of reducing attendance. Whatever the reason, financial stewardship was not taught.
  1. Took on too much debt. The church overextended itself. They built too much or too quickly. And a huge chunk of tithes and offerings were sucked away by the debt payment.
  1. Was not transparent with finances. They hid their finances from church members. Skepticism grew. And giving declined.
  1. Used very few dollars to reach and minister to the community. They focused on themselves. Little went toward outside efforts.
  1. Did not have multiple options for giving. They dismissed online giving and other nontraditional methods of giving, reducing participation from younger generations.
  1. Did not constantly evaluate how funds were spent. The church was not a good steward of the money they received. There was significant waste, preventing forward movement in the budget.
  1. Never took wise steps of financial faith. Budgets were not based on reasonable mathematical projections, but staff wants. And it was just assumed that the money to pay for these wants would be provided.
  1. The church relied on a few big givers. And when these givers either died or left the church, the church’s financial viability died or left with them.

It’s sad to see a church in financial disarray. It’s sad to see the staff struggle. It’s sad to see the ministry struggle.

Especially, when you know it could have been prevented.


To learn more about preventing financial disarray in your church, connect with an Auxano Navigator.


> Read more from Art.

Download PDF

Tags: , , ,

| What is MyVisionRoom? > | Back to Resourcing >

ABOUT THE AUTHOR

Art Rainer

Art Rainer

Art Rainer serves as the Vice President for Institutional Advancement at Southeastern Baptist Theological Seminary and is a cofounder of Rainer Publishing. He has written three books, Raising Dad , Simple Life, and The Minister's Salary, and lives with his wife, Sarah, and two sons in Wake Forest, NC.

See more articles by >

COMMENTS

What say you? Leave a comment!

Recent Comments
comment_post_ID); ?> Thank you for this information. I'm going to use this article to improve my work with the Lord.
 
— Abel Singbeh
 
comment_post_ID); ?> Thank you Ed for sharing your insights into the Church Growth Movement. I have my reservations with Church Growth models because it has done more damage than good in the Body of Christ. Over the years, western churches are more focused on results, formulas and processes with little or no emphasis on membership and church discipline. Pastors and vocational leaders are burnt out because they're overworked. I do believe that the Church Growth model is a catalyst to two destructive groups: The New Apostolic Reformation and the Emerging Church. Both groups overlap and have a very loose definition. They're both focus on contemporary worship, expansion of church brand (franchising), and mobilizing volunteering members as 'leaders' to grow their ministry. Little focus on biblical study, apologetics and genuine missional work with no agenda besides preaching of the gospel.
 
— Dave
 
comment_post_ID); ?> Thank you for sharing such a good article. It is a great lesson I learned from this article. I am one of the leaders in Emmanuel united church of Ethiopia (A denomination with more-than 780 local churches through out the country). I am preparing a presentation on succession planning for local church leaders. It will help me for preparation If you send me more resources and recommend me books to read on the topic. I hope we may collaborate in advancing leadership capacity of our church. God Bless You and Your Ministry.
 
— Argaw Alemu
 

Clarity Process

Three effective ways to start moving toward clarity right now.