How is our operating budget determined?
Typically it is a fairly simple formula that follows a 5-step process:
Households – We look at our total number of partner households (e.g., married adults count as 1 and single adults count as 1) and compare it to the median household income for our community. Because our partners covenant to give consistently, generously, and sacrificially to the mission of the church, we begin budget discussions with the following formula: # of households * median household income * 10%.
Health – We look deeper into the sources of income using 2 variables: per capita and distribution spread. Per capita takes our annual income and breaks it down by individual adult givers. This helps us evaluate our income in an apples-to-apples fashion with every other church in America to know where we stand relative to nationwide giving trends. Distribution spread helps us evaluate whether our budget is overly reliant on a few large donors or evenly distributed among the full partnership base.
Hindsight – We look at income from the previous 12 months to see how it compares with the figure calculated above.
Heed – We give careful attention to any known amounts that have been pledged or committed to us above and beyond normal congregational giving. We equally consider any amounts we know might not be given going forward.
Huddle – We gather as a plurality to discuss and pray through whether or not we feel God calling us to increase or decrease the budget from the figures arrived at using the first 4 steps.
Additionally, since CrossPointe began in 2009 the leadership has followed much of the budgeting advice published in a 2007 book titled Money Matters in the Church by Dr. Aubrey Malphurs and Steve Stroope. The book recommends using target percentages across our 4 major categories as follows:
- Giving 10-15%
- Personnel 45-55%
- Programming 20-25%
- Facilities 20-25%
Our leadership still agrees with this basic outline and feels it has served our local context well over the years. Beyond the percentages we strive to maintain a buffer of at least 3-6 months of operating expenses.
How is our annual operating budget used?
Information on our 2022 Budget
Total 2022 Budget: $400,286
The giving category includes church planting, global missions, and community outreach partnerships.
The personnel category includes staff compensation, benefits, training, and resources.
The programming category includes our Sunday services and our ministries such as Connections, Community Groups, Men’s, Women’s, Youth, Kids, and Worship. It also includes all events, hospitality, set design, audio/visual, administration costs, technology, and communications.
The facilities category includes our lease at the Altamonte Chapel, insurance, utilities, internet, furnishings, and cleaning.