Financing the mission is one of our five best practices at churchplanters.com. Today I spent about an hour talk with Will Henderson our Aussie church planting resident. I gave him a structure for laying out his initial budget. I thought I would pass it on to other church planters.
Start-up Cost – consists of anything related to getting started. They are largely the one time cost items required to getting ready to launch. A start-up budget should include: worship equipment, marketing, meeting space for first three months, core group development, cost of a physical move, administrative cost, etc.
Salary Cost – consists of salary, housing, insurance and/or any other cost related to an employee. This should include any staff you anticipate hiring during the first year. The top three staff for a new church would include: Lead pastor, worship leader, and a multi-purpose pastor. Chances are any pastor in a new church will wear at least a dozen different hats in the first few years. Look for the who, you can always figure out what.
Operating Cost – includes on going cost such as administration, programing, marketing, and rent.
There are a number of reason I like to break it down into these three areas:
- It allows you to anticipate when you will need the funds.
- It allows individuals to give toward specific needs. People are often willing to give a one time gift to a specific need.
- It allows individuals to give toward the support of a particular person. People give to people.
- A good launch with a strong core will allow you to finance the on going operations out of the launch.
- Breaking it into these three parts make it easier to manage.
- Breaking it into these three parts gives you a realistic picture of what it is going to take.
A common mistake that church planters make is to fail to anticipate the financial requirements of a new plant. We also tend to underestimate how long it is going to take to become self-supported. Failing to do your homework prior to planting can land you in church planters bankruptcy.
Stay turn and as Will develops his budget I will see if we can’t post it for you guys who are in the process.