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Loans New Congregation Grants Relocation Grants New Worship Service Grants Ethnic Ministry Grants Hispanic/Latino Ministry Grants SBC-21 Grants Missional Church Grants Capital Campaigns Financial Tips Capital Project Funding Worksheet North Indiana Conference PO Box 869 Marion, IN 46953 1.800.783.5138 info@nicumc.org	Church Financial Tips Finances Typical churches require a budget a 1,000 times their average weekly worship attendance in order to fully fund their ministries.¹ Or, their weekly gifts are at least $20 times the average weekly worship attendance.² Total compensation for staff may be 50-60% of a small church’s total budget but 40-45% in a larger church.³ Between 5 and 10% of the total budget should be spent on outreach and evangelism.⁴ No more than 20-25% of a church’s total expenditures should be for debt retirement. It’s not wise to give more than 35% of your budget to missions; it will begin to limit your future ministry and growth.⁵ It’s best to raise 50% of funds needed for building projects before beginning construction (25% if land is already paid for). Having an offering drop box in a church's lobby can increase donations.⁶ Sometimes the cost for a special part of the vision, such as hiring an additional staff person, can be seen as a mission outreach and thus, at least for a few years, be funded out of the church's mission budget. Or in the case of a building expansion, the funds could come through a capital campaign. Expect additional program staff’s salaries to be paid through new giving units within 6-18 months.⁷ A church usually will raise far more money in a capital campaign if it uses a professional fund raising company. A church's pledge drive should always come before the budget is formulated.⁸ Funding Sources Offerings Special gifts, endowments Capital funds campaigns Grants Mission fund Ministry revenue User fees Borrowing from members Borrowing from lending institution Notes ¹ Leith Anderson. ² The Interventionist, Lyle Schaller, 1997, p. 176. ³ Ibid. Lyle Schaller, 1997, p. 71. ⁴ "The Win Arn Growth Report," No. 38, p. 3. ⁵ The Interventionist, Lyle E. Schaller, 1997, p. 71. ⁶ "Ten Great Ideas from Cutting-Edge Churches," Dale Galloway, Net Results, October 2001, p. 24. ⁷ "The Win Arn Growth Report," No. 38, p. 3. ⁸ Net Results, Michael Durall, October 2001, p. 22.