Peter Atkins, Diocese of Llandaff, Diocesan Secretary
Jan Boyce , Diocese of Llandaff, Accountant
Richard Jones, Diocese of Llandaff, Parish Resources Adviser
•What
is a budget?
•Why budgets are important
•Budget models – Your options
•Process of budget setting
•Importance of budget communication
•Your questions
Qu: Why bother?
Answer:
Why bother?
A plan drawn up by the
PCC which sets out the
planned income and
expenditure for a
financial period.
The budget estimates
the amount and source
of future income, and
the amount and nature
of planned expenditure.
Your budget is your road map
1.Do you currently set an
annual church budget
2.If so, how do you go about
this? What models do you
use? Who is involved?
What’s the process?
3.What benefits do you find
to budgeting in this way?
4.What are the problems you
find with budgeting?
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Finances are put in proper perspective as
most plans need money.
Carefully administered budgets will help
achieve plans.
Allows identification of necessary spend and
those items which reflect a positive move to
extend mission of the church.
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Every officer should be involved in
setting the plans for the church with
assistance from the Treasurer in
quantifying the financial details.
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Most organisations set budgets
annually and review spend
against those budgets on a
monthly / quarterly basis
Beware – don’t just look at the
short term!
A real parish example of a
budget monitored on a monthly
basis is included within your
packs
•
So you’re sitting
down to prepare
your parish budget
for the 1st time...
What factors might
you consider &
might you try to
plan for?
• Economic
• Compliance
• Strategic
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Many and varied
We will briefly explore four models
Followed by a more detailed look at one of
these...
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Incremental budgeting
◦ Baptising the status quo

Zero-based budgeting
◦ Useful every five years to ensure a fresh look at all
church activities

Program budgeting
◦ All activities are evaluated, based on their current
funding level and on their potential

Mission Budgeting
◦ Letting your mission action plan
drive your budgeting
 How are things now?
 How would we like them to be?
 How do we get there?
 What resources do we need to
generate & expend to do it?
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Incremental budgeting
◦ Baptising the status quo

Zero-based budgeting
◦ Useful every five years to ensure a fresh look at all
church activities

Program budgeting
◦ All activities are evaluated, based on their current
funding level and on their potential

Mission Budgeting
◦ Letting your mission action plan drive your budgeting
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How are things now?
How would we like them to be?
How do we get there?
What resources do we need to generate & expend to do it?
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Focuses on “what you do”
Tells the story of the mission areas of your
parish
Assist understanding of the parish in relation
to how they are progressing the vision for the
parish
Operating expenses to be apportioned across
the areas of mission
◦ How about linking
your Mission Budget
with your Mission
Development Plan
using
Seven Sacred
Spaces
Cell - Pray
 Cloister - Meet
 Chapter - Decide
 Chapel - Worship
 Garden - Work
 Refectory - Share
 Library - Study
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TELL: We will tell our community about the Good News of
Christ and welcome them to join us in worship that is
creative and musical and inclusive. We offer 2 services
each Sunday and 3 other services during the week.
TEACH: We teach our community about faith, discipleship,
prayer, caring, giving and other Christian values
TEND: We tend to the needs of others who need our help
in our neighbourhoods and afar.
TRANSFORM: We seek to transform unjust structures and
situations in our communities, our country and across the
globe.
TREASURE: We treasure all God’s gifts to us and we strive
to protect the environment and minimize our
environmental footprint as a parish community and as
individuals. This item includes maintenance of their
building envelope.
TELL
Parish
share
Youth
Worker
Staff
Support
Musicians
Operating
Outward
Giving
Repairs
Miscellany
TOTALS
TEACH TEND
TRANSFORM
40,000
15,000
5,000
10,000
1,500
5,000
2,000
1,500
3,000
500
500
1,000
5,000
10,000
1,000
2,000
5,000
TREASURE
5,000
TOTALS
75,000
10,000
1,000
6,000
2,000
25,000
2,000
6,000
37,000
9,000
3,000
750
6,000
3,750
3,000
1,000
500
1,000
500
63,500
24,000
13,500
15,000
36,750 152,750
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Presentation is down to the PCC (although
Church in Wales Standard format maybe
considered appropriate) Examples are in your
packs.
Should be accompanied by a written summary of
the assumptions the budget is based on.
Draft Budget should be circulated to PCC well in
advance of meeting to approve
Approval should be before the commencement of
the budget period
Actuals should be monitored against budget
throughout the year

Setting the budget
◦ PCC
◦ Congregation
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Does your budget communicate your
church’s priorities?
Does it communicate its budget in creative &
interesting ways?
Do you say thank you to people for their
contribution towards meeting the budget?
Proverbs 24 v 3-4
 So
is a budget!
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
http://www.charitycommission.gov.uk/runninga-charity/money-and-accounts/handlingmoney-safely/
Guidance on setting a budget from the Charity
Commission
http://www.toronto.anglican.ca/parishlife/stewardshipdevelopment/education/narrative-budget/
Narrative / Mission budgeting from the Anglican
Church of Canada
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http://canny.org.uk/on-line-resources/freecanny-templates/free-annual-budget-template/
Budget templates from the Community
Accounting Network
http://knowhownonprofit.org/organisation/oper
ations/financial-management/budgets
From KnowHow NonProfit (NCVO)
http://www.financialmanagementdevelopment.co
m/Slides/handouts/704.pdf
From Financial Management Development
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Presentation & notes
Budget examples
Funding God’s Mission leaflet
7SS Stewardship leaflet
7SS Time, Treasure, Talents
from Caerphilly parish
7SS Parish Development
leaflet from The Graig,
Rhydfelin & Glyntaff
Follow us on Twitter!
Any Questions?
For help and support in Finance and Stewardship, contact
Janette Boyce
janetteboyce@churchinwales.org.uk
01656 868866
Richard Jones
richardjones@churchinwales.org.uk
01656 868860
ResourcesLlandaff
@DioceseLlandaff
http://llandaff.churchinwales.org.uk/mission/giving-2/