If you’re a church leader, you’ve probably been feeling the pinch. The Wall Street Journal reported yesterday about the impact of the recent financial crisis on churches. In an environment that operates directly off of goodwill donations and tithes, church incomes are in an unfortunate situation right now. You can actually be growing in attendance and dropping in giving.
Most churches operate (or should operate) daily with extreme caution financially. The expenses that are made are not frivolous, but they’re directly tied to the mission of the church. That makes it all the more difficult when times of financial hardship arise. Which ministry has to suffer? Which (already underpaid) position has to be eliminated? Here are some areas churches may be able to find savings to avoid cutting areas of mission or personnel:
- Utilities: If you’re a church bookkeeper, you know the enormous utility fees churches can incur. Churches have inherently large spaces to accommodate weekend crowds. Explore ways that you can cut your utility budget. Install automated thermostats. Keep your auditorium lights and AC off throughout the week. Install CFLs and LEDs where appropriate. Encourage your staff to turn out lights in rooms and offices not in use.
- Evaluate and renegotiate subscriptions: If your church has held long-time services (e.g., cleaning, cable, phone, internet, lawn, etc.), examine each of these contracts and see if they are worth continuing. If they are valuable, contact the vendor and competitors to see if you can lower your monthly rates. At a previous position I’d held, I was able to renegotiate our church’s telephone/internet plan, substantially upgrading our services and infrastructure at a fraction of the cost. It’s always worth a call.
- Utilize pooled-purchasing: Many opportunities exist for pooled purchasing of office equipment and products. Not every pooled purchasing plan is worth joining. Many, however, are free or require a minimal annual registration fee. These plans utilize the power of a collective buying force to get the cheapest prices and best services available.
- Don’t duplicate services: Start working together! If there are five other churches in your town that are offering the same community services, why not pool your services together under one umbrella? It will save you time, energy, and money. Work with local social service providers in your community to see what services are being offered. See what churches or community agencies you can partner with. In most cases, you can find that you can continue supporting essential community services without straining your staff and budget.
Mark Forrester 