We are definitely not the model for how to go from portable to permanent at this stage of the game. After all, we still occupy 2 high schools. But I have learned a few things from a finance perspective that I believe will position us for a move if and when God says “Go”. We budget for savings toward future growth. Â

The budgeting process can be simplified if you think in percentages. This doesn’t remove the hard work of knowing the detail of expenses but it does give us an overview of our spending. Our goal is the following: Give away 10%, operate on 20%, allocate 40% to personnel, and use up to 30% for facilities and assets.Â

Most portable churches don’t come close to 30% toward facilities. This is often eaten up by personnel in the early days. But if you can be disciplined enough to include savings toward future expansion as part of the facilities 30%, you can begin to save toward something permanent. This will also teach you to operate on less preparing you for future facilities costs that may be more expensive. Â

I believe this is not only good stewardship but also wise. This is a good practice for any church plant just getting started. This can help put you in a cash position to make a shift. As far as discerning when and where to make that shift, that is not as easy as math and percentages.

Chunks Corbett, Executive Pastor   Â

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I sometimes just like to get my thoughts written down that I feel are stages of our church’s development. As Elevation grows we encounter some things that are obvious to churches older and larger than we are but nonetheless new to us. So here is my version of a budget shift we just went through. It’s nothing revolutionary but should be relevant to the guys over the financial books of church plants.

The shift is simple. We finally feel like we can accurately predict our spending. The last few years have really been a struggle to stay somewhat close to our budget (this is OK if you also underestimated the income). We had things come up like adding a campus (not cheap) and equipment upgrades. What bank account do you pay for unexpected capital expense items? Most church planters have one bank account that they are just trying to keep in the black.

Here are the two biggest reasons why we’ve been able to shift. First we’ve actually got a complete year of expense history to help project 2008. This also includes two quarters that have been relatively consistent. Second and where I’ll spend the most time, we now can truly separate our capitalized expenditures and operating expenses. This is because we have gone through a capital campaign and have a designated account to future expansion. This will cover the next campus we open, the satellite technology to simulcast and other technology upgrades.Â

I guess the foundational purpose of a budget is different for various churches depending on age. It would be correct for all churches to keep the capitalized expenditures and operating expenses totally separate. And you should run 2 separate budgets or spending plans. But the point is that for church plants the two are so tied together. There is no second account to fund assets and the equipment costs are abnormally high in the first years. The same offerings are paying for everything so both must be considered while budgeting.

Projecting income and expenses are a challenge in the beginning. When you add the fact that assets have to be paid for by the same funds, it really complicates how much may be left for the operating expenses.

In the end, plan and budget the best you can. Don’t miss out on this opportunity to learn with the church. Don’t ever compromise and settle in the managing of God’s money. Always leave a paper trail to everything you do and always keep the board that approves the final budget aware of the current standing of the budget. But also know that it’s just not an exact science in those first few years predicting what will be needed and spent for a dynamic organization. There will be many shifts in how things are done. We just went through one and I’m sure we’ll experience more as we grow.

Chunks Corbett, Executive Pastor

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The responsibilities of the finance department at Elevation Church include accounts receivable (depositing and recording contributions), accounts payable (recording the expenses and paying the bills), and reporting (keeping track of budgets for each ministry area).

We use ACS People Suite to record contributions. We send out a quarterly giving statement to the church that includes their year to date giving, as well as an end of year statement for tax purposes. We began using Fellowshipone and were very satisfied but switched due to an inability to get internet in the school we meet in thus not allowing us to use the check-in feature (very important to us).

For accounts payable, we use ACS Financial Suite to record all expenses. ACS has some limitations for “multi-site� churches. We’ve used Quickbooks in the past and may go back or another avenue if ACS can’t meet our “multi-site� needs. All of our controls are designed to maintain the integrity of the church. For example, I, as the finance manager, cut checks and our Executive Pastor signs them. The goal that no one person can do anything “funny� with the church finances alone.

Each ministry leader is responsible for his or her budget at both campuses. The approved budget (approved by the Board of Directors of the church) is entered into ACS Financial Suite in December for the following year and the ministry leaders are given monthly updates of the status of their budget. Our goal in the budgeting process is accountability not to limit ministry.

Balance sheets are created monthly and reviewed as part of the budgeting process. Our fiscal year runs the same as the calendar year. We have an external audit firm perform an audit of our financial statements and controls. Most people wait until they need a loan and the bank requires an audit. We do it annually for the accountability.

We outsource our payroll to Paychex (a move I highly recommend). They send out W-2’s and 1099’s for us annually as well. Payroll is performed biweekly and we enter the payroll biweekly into ACS Financial.

We perform bank reconciliations monthly and create a cash flow report weekly that informs the Executive Pastor of our financial position. We maintain a fixed asset list in Excel as well as in ACS that includes depreciation expenses. The journal entry for depreciation is made annually for the fiscal year and is reflected on the balance sheet.

These are just a few of the basics. This is not the glamorous part of running a church but it is very important in maintaining the integrity of the ministry.

Joel Salter, Finance Manager

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Who approves debt and the final budget at Elevation?
In accordance with government regulations under the IRS’s section 501(c)3 and as indicated in the church bylaws, the board of directors of the non-profit corporation (Elevation Church) make the final decision on debt and the annual budget. The board is referred to as the Ministry Leadership Team.

Who sets the Pastor’s salary?
Pastor Steven has a Board of Overseers that he is accountable to and their primary purpose is to set the salary of the Lead Pastor as indicated in the church bylaws. The Board is comprised of five members. Three of the five are senior pastors of large churches in the Southeast and understand the pressures of a fast-growing church.

How does Elevation allocate funds in the budgeting process?
We budget according to a fairly simple yet effective model. Everything is allocated according to percentages. The goal is at the end of the year to give away 10% of the annual income, use 40% for all personnel, operate on 20%, and use 30% toward facilities. Being portable is a less expensive model of church from a rent/mortgage perspective, however equipment costs are expensive and that along with saving toward future site acquisition make up the 30% total for facilities.

Chunks Corbett, Executive Pastor

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