Did your congregation struggle last year with budget shortfalls? If so, you’re not alone. Many congregations deal with being “in the red,” often due to a lack of awareness among members about church finances. Andreá Cummings offers practical strategies for proactive communication, transparent reporting, and inspiring generosity—helping churches close financial gaps and strengthen their mission.
When I arrived at my church in July 2022, we were projected to end the year in the red. For those unfamiliar with the term, being “in the red” means the church does not have enough funds to cover all expenses, resulting in a financial shortfall. I discovered that many members do not think about the church budget the same way they manage their personal household budgets. This is usually because they are unaware of how a church budget is created and that it is only met through the tithes and offerings received from the congregation.
To help bridge this knowledge gap, I often remind my church members of household budget concepts. Every household must cover essential expenses—like rent or mortgage, insurance, and food. The church likewise has obligations such as salaries, insurance, and ministry expenses, and can only fund what is received through giving. If income isn’t sufficient, hard choices must be made.
If you are like me, you may have come into a church mid-year and still feel as though you have little time to meet budget, or you might be on the finance committee and need some practical steps to meet budget. Consider these proactive steps to help congregations meet their budget and support ongoing ministry:
1. Clarify church finances.
- Use plain, everyday language to explain the budget.
- Make clear distinctions between essential (must-pay) expenses and ministry/outreach opportunities.
2. Meet with your finance team OFTEN!
- Meet with your finance team monthly to assess year-to-date collections and projected challenges.
- Invite your finance team to prepare a simple and direct update for the congregation:
- What are the essential (must-pay) monthly expenses (e.g., salaries, insurance)?
- How much has already been collected this year?
- What is the projected year-end shortfall?
3. Communicate proactively—not reactively.
- Share financial needs before the end-of-year rush, since most members are planning to spend their allocation on the holidays.
- Communicate updates on giving and expenses through weekly bulletins, quarterly or annual newsletters, email, or mail as fits your congregation. For tech-savvy members, use digital giving apps and social media platforms.
- Be as transparent as possible with average monthly expenses, income, and any shortfall. The more they know, the more they are willing to rise to the occasion.
- Incorporating simple charts or infographics in financial updates can help make budget information more transparent and more engaging for the congregation.
- Include milestones and impact stories to keep members informed and motivated. This could be done in worship or via social media.
4. Make a specific ask.
- Encourage a special Christmas offering to bridge the gap, and provide clear ways to give—envelopes, mail, or online. Order special Christmas offering envelopes for Christmas Eve services.
- Don’t hesitate to suggest an amount and explain how gifts will support mandatory expenses, ministries, and outreach.
- If possible, the pastor and leaders should participate in this special offering to demonstrate stewardship.
5. Celebrate success and say thank you.
- Announce results and express gratitude through Sunday updates, email blasts, newsletters, social media, church website updates, visual countdowns, or handwritten thank-you notes.
6. Share testimonials to show the impact of generosity
- During worship, dedicate time for ministry leaders or members to share how their giving has impacted their lives spiritually or how ministry has impacted the community, etc.
When I implemented these steps in October, I saw a 20% increase in giving during the last two months of the year and raised $10,600 in a Christmas offering. Our congregation met its end-of-year budget and replenished its savings. Most importantly, transparent and proactive communication about the church’s operating costs and the impact of giving enabled us to support our ministries, meet community needs, and maintain essential operations both that year and today.
By openly communicating financial realities and celebrating the impact of generosity year-round, every congregation can take practical steps to finish the year strong and advance both mission and ministry.
Related Resources
- Congregational Giving Profile Video Tool Kit from the Lewis Center — a better way to track giving and expenses
- 5 Tips for Rightsizing Stewardship in your Church by Ken Sloane
- Being a Stewardship Leader Requires Clarity by Margaret J. Marcuson
- 9 Questions to Ask if your Church Giving is in Decline by Joe Park
- Don’t Forget to Say Thanks by Charles Lane
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