For growing houses of worship a capital budget is a necessity, and forecasting expenditures is a matter of asking the right questions.
Martin Sinderman · November 28, 2017
Planning for the future is an important part of a growing church. And a capital budget is a useful tool for determining the resources necessary to help church facilities keep pace with that growth.
Simply put, capital budgeting is a way that churches can plan for the things needed to grow their ministry beyond normal day-to-day operations, according to Mike Boblit, vice president of ministry relationship banking at Evangelical Christian Credit Union (ECCU).
“Capital budgeting is generally described as budgeting funds that are set aside for property improvements, upgrades and maintenance,” says Boblit. Known in some churches as “the building fund,” these funds generally support major, big-ticket items such as parking lot repaving, new roofs, new HVAC systems, and other major expenditures related to the church physical plant.
A capital budget for major facility-related expenses is a necessity for a growing church – and one that is often overlooked, notes Deborah Ike, president and founder of Velocity Ministry Management, a company dedicated to vision implementation for church leaders.