Smart Church Finances

A Pastor’s Guide to Budgets, Spreadsheets, and Other Things You Didn’t Learn in Seminary

george m. hillman jr. and john reece

Smart Church Finances: A Pastor’s Guide to Budgets, Spreadsheets, and Other Stuff You Didn’t Learn in Seminary

Copyright 2020 George M. Hillman, Jr. and John Reece

Lexham Press, 1313 Commercial St., Bellingham, WA 98225

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Unless otherwise noted, Scripture quotations are the author’s own translation or are from the ESV® Bible (The Holy Bible, English Standard Version®), copyright © 2001 by Crossway Bibles, a publishing ministry of Good News Publishers. Used by permission. All rights reserved.

Print ISBN 9781683593744

Digital ISBN 9781683593751

Library of Congress Control Number 2020931422

Lexham Editorial: Matthew Boffey, Danielle Thevenaz

Cover Design: Lydia Dahl

To a generation of ministry leaders

who allowed us to come along

and invest in their journeys

Contents

Introduction

Chapter 1: Stewardship and Joy

Chapter 2: Mission and Vision Casting

Chapter 3: Strategic Planning

Chapter 4: Budgeting and Program Planning

Chapter 5: Stewarding Staff and Volunteers

Chapter 6: Stewarding Resources and Facilities

Chapter 7: Funding Ministry

Chapter 8: Measuring Success

Chapter 9: Reporting and Forecasting

Chapter 10: Engaging Business Leaders

Conclusion

Acknowledgments

Field Notes

Field Note 1. State-of-Your-Church Assessment

Field Note 2. Mission Prompter

Field Note 3. Vision Prompter

Field Note 4. Continuum of Business Planning

Field Note 5. Strategic Planning Prompter

Field Note 6. Operational Planning Prompter

Field Note 7. Sample Job Description

Field Note 8. Compensation Checklist

Field Note 9. Performance Review Form

Field Note 10. Square Footage Guidelines

Field Note 11. Sample Church Budget

Field Note 12. Program Impact Assessment

Field Note 13. Capacity Development Assessment

Field Note 14. Church Metrics Assessment

Field Note 15. Statement of Activities Example

Field Note 16. Statement of Financial Position Example

Field Note 17. Statement of Cash Flow Example

Field Note 18. Performance Dashboard Example

Field Note 19. Leader Engagement Assessment

Introduction

In a way, this book is over thirty years in the making.

Decades ago, one of us (John) went to a Christian university to become a pastor. But there he rediscovered his love for numbers, became a math major, and soon entered the business-finance world. George, on the other hand, went to a large state university as a biology major and ended up with a social work degree and stumbled into pastoral ministry. As the two of us joke, John is a “business guy who loves Jesus” and George is a “ministry guy who doesn’t know a thing about business.” We guess it’s true—opposites attract.

Fast forward twenty years and the two of us are living literally blocks ...

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About Smart Church Finances: A Pastor’s Guide to Budgets, Spreadsheets, and Other Things You Didn’t Learn in Seminary

What can the Church learn from the business world?

You’re a leader of a ministry, nonprofit, or church. You trained to be a faithful counselor, preacher, interpreter of God’s Word—so why do you find yourself spending so much energy on administration tasks that threaten to drain your time, energy, and joy?

Look to this book for the coaching you needed, yesterday. Written from years of ministry and business experience, Smart Church Finances is built on a solid foundation of business principles but—unlike many business books—in a straightforward style that anyone can grasp. You’ll learn how to:

• Communicate vision and strategize with a team

• Steward resources well (yes, including budgeting)

• Prioritize goals, wisely make decisions, and evaluate outcomes based on vision and data

• Leverage the existing talents of men and women at your church, many of whom don’t fit in “traditional” ministry roles

This field guide to building a holistic, sustainable system for your church will both help you address the business needs of your church and free your leaders to serve, fully and joyfully.

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