Budgeting Guidelines
BUDGETING GUIDELINES
Rutland Street Church
| Document Owner | Eldership of Rutland Street Church |
| Applies To | Elders, Treasurer, and any staff involved in financial planning |
| Adopted By | [Trustee names] |
| Date Adopted | [DD Month YYYY] |
| Review Date | [DD Month YYYY — annually] |
| Legal Basis | Charities Act 2005; Charities Services reporting standards |
1. Purpose
A budget is a financial expression of the church's priorities. It helps the eldership make considered decisions about how to deploy the resources entrusted to it, plan for the year ahead, and report back to the congregation with clarity. Done well, the budget process is an act of faithful stewardship. Done poorly, it leads to financial stress and a loss of credibility.
2. Principles
- The budget reflects the church's vision and ministry priorities — it is a ministry document, not just a financial one
- It is built on realistic income projections — based on actual giving history, not optimism
- It is approved by the full eldership before the start of the financial year
- Operating expenditure is funded from operational income — not from reserves as a default
- A contingency reserve of [5–10%] of annual expenditure is maintained where possible
3. Annual Budget Process
| Timing | Action |
|---|---|
| 2 months before year-end | Treasurer reviews current year actuals; ministry teams submit requests |
| 6 weeks before year-end | Treasurer drafts budget based on income projections and ministry needs |
| 4 weeks before year-end | Elders review and refine draft |
| Before year-end | Elders approve final budget by formal resolution — recorded in minutes |
| Month 1–2 of new year | Budget communicated to relevant staff and team leaders |
| Monthly | Actual income and expenditure reported against budget at each elder meeting |
| Mid-year | Budget reviewed if significant variances have emerged |
| Year-end | Annual accounts prepared; actuals compared to budget for annual report |
4. Income Projections
- Base giving projections on the previous year's actual giving
- Apply a modest growth assumption only if there is a clear basis for it
- Identify one-off income separately from regular giving — do not rely on grants or bequests to fund ongoing costs
- Factor in any known changes — congregation growth or decline, significant giving changes
5. Expenditure Planning
- Staff costs — salaries, KiwiSaver, ACC — must be costed accurately against current IRD rates
- Include all fixed costs: rent, rates, insurance, utilities, licences, subscriptions
- Ministry budgets are allocated by team with a responsible person for each
- Capital expenditure is budgeted separately and approved individually by the eldership
6. Financial Reporting
Monthly financial reports to the eldership should include:
- Year-to-date income vs budget
- Year-to-date expenditure by category vs budget
- Current bank balance
- Forecast to year-end where significant variances exist
An annual summary of income and expenditure should be shared with the congregation. Transparency builds trust and encourages faithful giving.
7. Review
These guidelines are reviewed annually. The CCCNZ Resource Library (cccnzrl.org) has an Annual Return Checklist and supporting budgeting resources.