Is the church a business? That’s a thoughtful question! A church is not primarily a business, but in practice, many aspects of running a church resemble how businesses operate. Churches are nonprofit organizations and are not intended to generate a profit. They may accept donations, own property, employ staff, rent space, and manage budgets like a business. A church can function using business structures. Church funds should be managed responsibly to support its mission.
Churches have: Leadership (pastors, elders, deacons, committees), Marketing strategies (social media, events), Financial planning and budgeting, and Staff and payroll. Churches rely on income to cover expenses like salaries, utilities, building upkeep, outreach, and ministries. They must budget, keep records, and often file annual reports much like businesses do. The church is a community of believers of Jesus Christ focused on worship, discipleship, faith, and service.
The Avenue relies on the Rocky Mountain Foundation’s HUB for monthly financial statements and payroll. This negates the need for a financial person on staff. Processes have been set in place for review by The Avenue staff. The Chairman of the Finance Committee reviews the monthly financial statements and the General Ledger in collaboration with the pastoral staff to verify accuracy. This is my spiritual gift being used to benefit God’s kingdom. I strive to be a support to the pastoral staff, providing timely and accurate analysis of the finances.
The Avenue has quarterly family meetings to review the church’s finances. I present the latest financials to the church and answer questions from the congregation. We want to maintain complete transparency.
The annual budget process resembles that of any business but uses faith budgeting rather than zero-based budgeting. Those in charge of the various ministries submit what they anticipate as expenditures for their ministries. The ministry may add or adjust expenses from the prior year.
The annual budget is presented to the church in November for the upcoming year. Church members are encouraged to ask questions. The budget is then voted on by the church. Once approved, the budget guides next year’s spending and revenue.
It is great joy to be able to assist our pastors with the financial piece of our church. God has called our pastors to serve, to minister to others, to shepherd the flock and to bring others to know Jesus Christ. This is their spiritual gift!
April Elliott is currently serving her third year as the Finance Committee Chairman for The Avenue Church located in Aurora, CO. She has served on the Finance Committee for The Avenue for two previous terms under two different pastors and three different associate pastors. She recently retired after forty-seven years as a Certified Public Accountant and worked as a property accountant in the shopping center business for the last twenty years.
