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How to Manage Budget Cuts

Due to the economic effects of COVID-19, you may notice a decrease in your church’s income. However, as church leaders, we must choose to respond instead of react to these changes. When it comes to finances, before we begin pulling money out of the bank or making cuts, we must commit to crafting a financial plan that has been built on prayer, research, and careful thought.

While it is up to you and your church’s oversight to find a financial management plan that is right for you, here are a few steps that other churches have recently taken to ensure that they are making the right calls when it comes to budget cuts:

1. Identify the nonessentials.

We encourage you to look through your church’s budget line by line to find some items that may not be currently essential to the health of your organization. Some areas you can look into are your facilities, executive travel, and security budgets. 

2. Prepare for different scenarios.

When it comes to preparing for a budget cut, don’t solely prepare for one scenario. Think through several scenarios, and have a budget in place for each one. That way, if that specific scenario occurs, you are financially prepared.

We encourage you to consider making a budget that coincides with the following scenarios:

What would your budget look like if it were cut by 25%?

What would your budget look like if it were cut by 35%?

What would your budget look like if it were cut by 50%?

3. Be proactive in finding solutions.

As the leader, it is up to you to be on the front-lines of finding solutions that will help with budget cuts. For some creative ideas on finding solutions, check out the videos linked below. 

While these are solely suggestions, we believe that these steps could be useful in navigating budget cuts.

For more information on how to manage budget cuts, we encourage you to check out the following video trainings from ARC:

In the end, you know what is best for your church as a whole, and we are praying that God will give you the wisdom to make the right decisions for your church.

Our vision is to see the local church grow in every community.

© 2020 Church of the Highlands

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