Budgeting For Budgeting For Women’s Women’s MinistriesMinistries

By Linda de Leon and Lisa RasmussenBy Linda de Leon and Lisa Rasmussen

Leadership Certification Course Level 2Leadership Certification Course Level 2Women’s Ministries General ConferenceWomen’s Ministries General Conference

““The silver is mine and The silver is mine and the gold is mine, declares the gold is mine, declares

the LORD Almighty.” the LORD Almighty.” Haggai 2:8 NIVHaggai 2:8 NIV

““Suppose one of you wants to build Suppose one of you wants to build a tower. Will he not first sit down a tower. Will he not first sit down and estimate the cost to see if he and estimate the cost to see if he has enough money to complete it? has enough money to complete it? For if he lays the foundation and is For if he lays the foundation and is not able to finish it, everyone who not able to finish it, everyone who sees it will ridicule him, saying, `This sees it will ridicule him, saying, `This fellow began to build and was not fellow began to build and was not able to finish.’ ” able to finish.’ ” Luke 14:28-30 (NIV) Luke 14:28-30 (NIV)

• To ensure that income will meet To ensure that income will meet needsneeds

• To reflect the mission of your WMTo reflect the mission of your WM

• To anticipate future financial To anticipate future financial problems and make adjustmentsproblems and make adjustments

• As motivation to reach your goalsAs motivation to reach your goals

• To help control spending of financesTo help control spending of finances

Purpose of a BudgetPurpose of a Budget

Steps to Establishing the Steps to Establishing the Size of Your BudgetSize of Your Budget

1.1. List your goalsList your goals

2.2. Meet with the treasurerMeet with the treasurer

3.3. Review past income and expendituresReview past income and expenditures

4.4. List expected income and expensesList expected income and expenses

5.5. Budget for the unexpectedBudget for the unexpected

6.6. Expenses must be less than incomeExpenses must be less than income

7.7. Present your budget for approvalPresent your budget for approval

8.8. At year end evaluate your performanceAt year end evaluate your performance

Pencil or ComputerPencil or Computer

•Start budget planning with pencil and Start budget planning with pencil and paper.paper.

•List ideas and estimate costs.List ideas and estimate costs.

•Helpful to use computer spreadsheet Helpful to use computer spreadsheet program e.g. Excel.program e.g. Excel.

•If computer not possible use a ledger If computer not possible use a ledger and journal.and journal.

Keeping RecordKeeping Record

1.1. Set up your ledger – a separate page for Set up your ledger – a separate page for each projecteach project

2.2. Each page should have name of project, Each page should have name of project, account number (optional), date when account number (optional), date when startedstarted

3.3. Top of row list – date, description, deposits Top of row list – date, description, deposits (credits), and expenditures (debits)(credits), and expenditures (debits)

4.4. Use your journal for day to day entriesUse your journal for day to day entries

5.5. Once or week or month enter journal Once or week or month enter journal entries into your ledgerentries into your ledger

DateDate FundFund DescriptioDescriptionn

CreditCredit DebitDebit

6/7/056/7/05 EncouragemeEncouragementnt Flowers for MaryFlowers for Mary $15.00$15.00

           

           

           

           

           

Your Church NameStreet AddressCity, State ZipDate January 1, 2005

JOURNAL

MonthMonth DescriptionDescription CreditCredit DebitDebit

JuneJune Flowers Flowers $0$0 $105.00$105.00

JuneJune Fundraiser fund transferFundraiser fund transfer $500.00$500.00 $0$0

JuneJune GroceriesGroceries $0$0 $368.00$368.00

        

        

        

JuneJune TotalsTotals $500$500 $473.00$473.00

LedgerYour Church NameStreet AddressCity, State ZipProject Name: EncouragementAcct No.______________Date __________

Spending the MoneySpending the Money

•Church treasurer handles money Church treasurer handles money transactionstransactions

•Keep all receipts Keep all receipts

•Some churches give cash first, others Some churches give cash first, others reimbursereimburse

•For large expenses inform the For large expenses inform the treasurer before you spendtreasurer before you spend

Local Church FinancesLocal Church Finances

• Church budget is based on the size Church budget is based on the size of the church and the benevolence of of the church and the benevolence of membersmembers

• Local church income comes from the Local church income comes from the church budgetchurch budget

• Tithe is not part of the local church Tithe is not part of the local church budgetbudget

FundraisingFundraising

• Sometimes your budget is Sometimes your budget is inadequateinadequate

• Fundraising is an option: dues, Fundraising is an option: dues, selling food or crafts, musical selling food or crafts, musical program, car washing, etc.program, car washing, etc.

Internal ControlsInternal Controls

• Checks and balancesChecks and balances

• Ensure AccountabilityEnsure Accountability

• Allow only a few people to collect or Allow only a few people to collect or spend moneyspend money

• Find accounting errorsFind accounting errors

• Prevent overspendingPrevent overspending

• Prevent misusePrevent misuse

• Make theft difficultMake theft difficult