Budget Module Part 3

Questions for Individual Reflection/Group Discussion: (20-30 minutes)

This Case Study is a narrative budget project at Bethlehem Lutheran Church, Fargo ND – using its motto, or tag line, for the framework for their narrative budget. Does your congregation have a mission statement, or something like “pillars of mission,” which would serve to organize reflections and illustrations of its budget? Give some thought to what existing documents and/or values could usefully serve as a framework to illustrate your congregation’s values in mission, make a list of your ideas and share them with someone who is responsible for communication at your congregation.

Questions for Individual Reflection/Group Discussion: (20-30 minutes)

Jim Elrod quotes Woods Bowman’s work when he says: Financial sustainability occurs when a church grows its asset base in inflation adjusted terms; a financially sustainable nonprofit must attain a 3.5% net return on its asset base every year to retain its purchasing power and to position it for future growth. Is this a new idea in your setting? What obstacles do you anticipate related to budgeting for financial sustainability in your congregation? In a nonthreatening environment, discuss strategies and opportunities.

Questions for Individual Reflection/Group Discussion: (15-20 minutes)

• Jim Elrod explains the differences between financial equilibrium, financial capacity, and financial sustainability.
• As you reflect on your community, what practical changes can you take to implement these practices more fully? Who do you need to include in your conversations, what strategies will work in your setting?

Finance Fundamentals for Nonprofits: Building Capacity and Sustainability by Woods Bowman 2011 John Wiley and Sons, Inc. publisher