PREPARE FINANCIALLY FOR THE FUTURE #4

            During the last few weeks, I’ve written about basing your Ministry Spending Plan (a/k/a your budget) on the vision of your church; about making a plan of sustaining ministry, based on ministry today and tomorrow; and about high-capacity donors.

            Our conversation about preparing financially for the future continues. Some of you have experienced financial mistakes in your churches, and some of you will. Mistakes don’t mean lack of financial health. No matter how healthy your church is, I think it’s vital that you spend time doing a financial analysis. This is different from the annual church audit (which is mandatory). A financial analysis will look at ratios, at generosity, at leadership, at use of assets (personal, financial, fixed, etc.) and at financial practices.

            While financial analysis work is important, it, of course, seems to focus on the past. And it does help you determine what has worked and what has not worked in the past. But it can also help you better focus on the future. We have to learn from the past, but not be bogged down in it. We have to stop focusing on what happened “back then” so much that we lose sight of what’s coming down the road.

            Don’t become so attached to the past that you can’t see the future.

            Learn from the past but stay future-focused. There are going to be rough waters ahead, some financially. Consider these questions to keep you focused on what’s important:

·         Where is God leading you?

·         What are you being asked to do?

·         What is your church called to be?

Stay focused on the future; and learn from the past. Each is important to the other.

 

Please feel free to contact me at (315) 427-3668 or susanranous@unyumc.org if you’d like to talk about doing a financial analysis of your church, please let me know and I’d be happy to discuss the various components of a financial analysis.