During this unprecedented time, leaders must take a hard look at church finances, as sufficient funding is necessary to continue ministering to the faithful. Here are some tips for reviewing and replenishing your church’s funds during the pandemic.
Communicate your financial needs and concerns
During times of crises, it is important for church leaders and administrators to share what the congregation is doing to serve the community in practical ways, as well as to invite others to join the mission.
Don’t hesitate to share the need for faithful giving during this time. Think of creative ways to help church members give when traditional methods are not an option. Utilize technology and other novel ways that will make it easier for people to give, such as app-based giving, text-to-give, or online giving through the church website.
For churches that have yet to set up for online giving, or whose members might not be receptive to tech-based ways of giving, consider offering postage-paid envelopes, checks in the mail, or drive-through giving.
Finds ways to minimize spending and streamline your budget
Reduce spending where possible – any money that is not spent can be saved for future needs and emergencies. Go over your existing budget with a fresh perspective to see where you can still cut back on costs and expenditures.
This may involve starting your budget at zero, or no expenses, then adding the congregation’s expenses by highest priority. That includes obvious and unavoidable expenses like mortgage, rent, and insurance premiums. Once those expenses have been added in, you’ll have to decide which additional expenses are necessary during this crisis.
To better manage your finances, your church may have to conduct a weekly budget review that lets you monitor expenses and cash flow more closely.
Set a budget for new and relevant ministry opportunities
With the pandemic restricting church members’ movements, it is a good time to explore new ministry opportunities to serve the needs of the congregation. If you have the means to do so, dedicate a budget for new activities to help you reach church members during this time.
Communicate your plans, goals, and activities in a clear and timely manner through portals like the church website, social media, emails, or newsletter. You can also mention these during the service and all the other ways you normally would communicate with church members.
Replenish your emergency fund
Ministries that don’t have an emergency fund and are suffering from decreased income can look into opportunities to replenish their budget. Churches can qualify for low-interest loans to provide relief during the pandemic. These loans can be availed through the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, U.S. Small Business Administration (SBA) Economic Injury Disaster Loans (EIDL), and other government programs.
Make sure your church buildings have sufficient coverage
As with any property, your church building and facilities must be properly insured to protect your congregation’s best interests. This is particularly important if your church is expanding and taking on new and exciting ministry opportunities. Your insurance policy should grow along with your church.
Check with an insurance agent with knowledge on special-use buildings to make sure that your church-owned properties have sufficient coverage. Keep in mind that some insurance companies’ policies have certain exclusions, and congregations must confirm if any of their new activities have proper coverage.
If your insurance agent does confirm that these new ministry activities are covered under existing policies, make sure to get that information in writing for when you need to file a claim.
And if your new ministry activities aren’t covered, ask them how you can get proper coverage.
Buying or selling church buildings in the United States and Canada? Let A.D. Advisors assist you. We’re sensitive to the needs and concerns of non-profit organizations. You can contact us here. You can also message our agents at Info@ADAdvisors.org and 630.606.9000. We can’t wait to start working with your ministry.
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