WNCA 2nd Monday Webinars How to Create a Narrative Budget The Rev. Cheri Lovell
Tell me about your church What images come to mind when you think about your church? What means the most to you as a member? This is the story you want your budget to tell! A narrative budget — • tells the story of your church that connects with your members — with what they value most • reminds members of their favorite people and programs • inspires people to give — you could even call it a marketing document • complements the page-of-numbers document used for church fi nancial management • should make people smile!
Tell your story! Narrative Budgets transform that page of numbers into a series of stories that bring to life what’s best about your church, and identifying the cost of o ff ering the ministries your members value. Holy Covenant United Church of Christ 9 6 2 8 2 C N e t o t l g a r r o h . C c c • u d n t r a a v n e e u l v o o B c y s o l i h r r a w . H w T w W • 0 s t 1 e 8 W 9 - 9 1 9 0 5 5 3 ) 4 0 7 (
A. Create a frame with a few categories Frame your narrative by — • ministry areas worship, education, youth, mission • goals building faith, working for justice... • your mission statement A few tips — • Choose just four to six categories • Use active words • Avoid churchy language — instead of “Christian Education,” how about “Building Believers”?
B. Assign expenses to your categories 1. Your “frame” will determine how you allocate costs “Building Believers” might combine Christian ed, pastoral care, youth, etc. 2. Where appropriate, divide costs among di ff erent categories. The pastor’s salary, for instance, might be divided between worship, education, pastoral care and administration. 3. Ask the pastor (and sta ff ) to estimate time spent in each category Rough percentages are fi ne. Combine salary, housing, fringe bene fi ts, and all professional expenses (ie, books, continuing ed) into one total. 4. Avoid the catch-all administrative category Divide costs among your categories so that each includes its fair share of o ffi ce and related costs. 5. Consider how you’ll address building and grounds You can spread costs across the other categories lay percentage of use, or create a separate category like Providing Sacred Space .
C. Tell the story in many ways A narrative budget is in fi nitely fl exible, so be creative — • Include photos of lots of people — including the cute babies and the grumpy people! • Show your programs rather than using words to explain them • Use short statements in your bullet point lists • Add a few pie charts and graphs • Be sure to describe the mission the church is accomplishing in each category’s description
Enjoy the process! A Narrative Budget isn’t bound by rules — it should be a pleasure to read and to create. You have plenty of fl exibility, so avoid overthinking the process. Have some fun! Holy Covenant United Church of Christ 9 6 2 8 2 C N e t o t l g a r r h o . C c c • u d n t r a a n v e e u l v o o B c y s o l i h r r . a w H w T w W • 0 s t 1 e 8 W 9 - 9 1 9 0 5 5 3 ) 4 0 7 (
Additional resources explainer explainer INSPIRING BUDGETS THE FINANCIAL DASHBOARD Connect givers to the mission they value Communicating church fj nances clearly & easily W Y hen people ask you about to potential givers. Narrative budgets ou can probably count on To encourage generous givers, church TALKING POINTS TALKING POINTS your church, what do you tell your church’s story in pictures and your fj ngers the number of leaders must build trust in the man- tell them? Do you talk text, reminding people of the relation- people in a church meeting agement of the church’s funds — and about how much it costs to heat the ships and programs that mean so much who are interested in the usual that trust begins with clarity. As the Above all, a narrative budget Remember: less is more! building? Or what percentage of the to them, and moving them toward line-item budget. Even church leaders saying goes: less is more. Budgets and (or mission spending plan) A good rule of thumb for pre- budget is spent on youth ministry? No! support of the ministries they value. fj nd themselves frustrated when time fj nancial statements that cover more tells the story of your church’s senting fj nancial information: You tell them about your friends, about comes to review church fj nances. than one or two pages, that provide mission & ministry. Use lots of the larger the audience, the Narratives don’t replace financials your favorite parts of worship, about Many don’t understand what fj nan- tons of detail, or that omit important pictures, bullet-point lists & more summarized the informa- the community gatherings, or about the Ti e usual page-of-numbers budget is cial documents are telling them, and elements of the church’s fj nancial graphs — but as few numbers tion should be. great for management — but does it ministries that mean the most to you. A others just glaze over at the sight of situation can cause confusion and as possible. Most people comprehend narrative budget (or mission spending make you smile? Just like you don’t all those numbers. And when budgets raise questions in church members’ What images come to mind fj nancial data more easily when mow the lawn with hedge clippers, or statements are presented in a non- minds. Questions can lead to con fm ict, plan) tells this story — it touches your when you think of your church? information is presented in you don’t inspire giving by focusing givers personally, connecting them to standard manner, even the fj nancially which in turn can breed mistrust. What ministries mean the most a simple, clear and colorful what they love best about your church on the bills. A narrative budget has savvy can become confused. When developing a fj nancial to your people? This is the story graphic format. its place alongside the traditional and its work in the world. Like a car’s dashboard, the fj nancial dashboard, consider that most church you want your budget to tell! fj nancial documents that the fj nance The items included on a fj nan- dashboard conveys important members primarily want the big Narratives inspire giving Narrative budgets are designed committee or church council use cial dashboard can change, information in a format that’s quick picture: how are we doing on giving to inspire giving. They comple- Around annual campaign time in most to manage the church’s day-to-day providing the data most useful to comprehend. Presented in line and income? are our actual results ment and supplement line-item churches, the fj nance committee dis- operations. Ti ey are complementary, to the occasion & audience. graphs, pie charts and other graphic on-target with the budget? where budgets — they don’t replace tributes the line-item budget and hopes each with its own job to do. options, fj nancial data is condensed is our money being spent? Choose When presenting a fj nancial classic management budgets. people will give enough to pay the bills. to an appropriate level and conveyed the information appropriate to your dashboard, be sure to have a Narratives may be more accurate While a standard page-of-numbers To see and download examples clearly. By its nature, the fj nancial audience and the occasion — then traditional document handy Because narrative budgets divide costs document may be great for church of di fg erent narrative budgets, dashboard o fg ers limited data, as provide the information in a graphic for those who prefer more fj nancial management, that black & across ministry areas, they actually visit the Learn section on the over-communication of detail can format that is useful, appealing and in-depth information. re fm ect the cost of a given ministry more white document o fg ers little inspiration Cornerstone Fund website. o fu en do more harm than good. easy to understand. cornerstonefund.org cornerstonefund.org This is not an o fg er to sell our securities to you, and we are not soliciting you to buy our securities. We will sell our securities only in states where authorized. The This is not an o fg er to sell our securities to you, and we are not soliciting you to buy our securities. We will sell our securities only in states where authorized. The o fg ering is made solely by our O fg ering Circular, which may be obtained by calling us at (888) 822-3863. Our securities are not insured by the FDIC or any other o fg ering is made solely by our O fg ering Circular, which may be obtained by calling us at (888) 822-3863. Our securities are not insured by the FDIC or any other state or federally regulated institution. Rates may change without notice. state or federally regulated institution. Rates may change without notice. available online at wnca-soc.org/webinars
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