What would your first purchase be if someone gave your church $100,000? Think about that for a minute. Are you really considering the most impactful option?
Every church has limited financial resources, so every dollar spent should support its mission. While priorities will vary based on a church’s size, community, and vision, the following order provides a healthy framework for evaluating financial decisions.
1. Ministry to People (Highest Priority)
Reason: The church exists to make disciples, share the gospel, and care for people. Budgets should reflect that mission before buildings or programs.
Examples:
- Children’s ministry
- Youth ministry
- Adult discipleship
- Evangelism and outreach
- Missions
- Care ministries
- Community assistance
Key Question:
“Does this expenditure help people know Jesus or grow in their faith?”
2. Staff and Leadership
Reason: Healthy leaders create healthy ministries. Churches should strive to compensate pastors and staff fairly so they can focus on ministry without unnecessary financial stress.
Includes:
- Salaries
- Housing allowance (where applicable)
- Payroll taxes
- Retirement contributions
- Health insurance
- Continuing education
- Conferences and training
Retaining great staff is critical to the success of your ministry. Congregations will follow great leaders, even in outdated facilities with old technology. Find the best team and take great care of them.
Why it matters:
- Reduces burnout
- Improves staff retention
- Attracts qualified leaders
- Honors those who labor in ministry (1 Timothy 5:17-18)
Pro-tip: About 50% of your budget should be devoted to staff compensation.
3. Safe and Functional Facilities
Reason: Buildings are tools for ministry. They should be safe, welcoming, and functional—not necessarily luxurious.
Priority expenses:
- Roofs
- HVAC
- Plumbing
- Electrical systems
- Parking lots
- Accessibility improvements
- Security systems
- Cleaning and maintenance
Avoid:
Putting cosmetic renovations ahead of necessary repairs.
4. Children’s Safety and Security
Reason: Families expect churches to provide a secure environment for children.
Investments include:
- Background checks
- Security cameras
- Check-in systems
- Emergency procedures
- First aid supplies
- Volunteer training
- Safe playground equipment
Why it matters:
Protecting children is both a moral responsibility and wise stewardship. Parents are looking for safe/positive activities for their children. Reach entire families by prioritizing children’s ministry.
5. Technology That Supports Ministry
Reason: Technology can greatly expand ministry effectiveness when used wisely.
Examples:
- Livestream equipment
- Sound systems
- Church management software
- Giving platforms
- Accounting software
- Website
- Internet infrastructure
Technology should improve ministry rather than become a distraction or status symbol. Don’t invest in technology that you don’t understand. No livestream is better than a poor one that turns people away. Seek advice from pastors or other professionals.
6. Missions and Community Outreach
Reason: Churches are called to look beyond their own walls.
Some feel like this should be the priority, but I disagree. A thriving church can give more to missions than one that is struggling. Build the foundation first.
Invest in:
- Missionaries
- Church planting
- Local outreach
- Benevolence
- Disaster relief
- Community partnerships
Healthy churches regularly invest outside themselves.
7. Training and Volunteer Development
Reason: Volunteers often accomplish the majority of ministry work.
Budget for:
- Leadership training
- Volunteer appreciation
- Ministry resources
- Conferences
- Curriculum
- Safety training
Well-equipped volunteers multiply ministry effectiveness.
8. Financial Stability and Emergency Reserves
Reason: Unexpected expenses happen.
Consider maintaining reserves for:
- Major repairs
- Equipment replacement
- Temporary giving declines
- Economic downturns
- Emergency ministry opportunities
A reserve allows the church to respond wisely rather than react out of crisis.
9. Debt Reduction
Reason: Excessive debt limits future ministry opportunities.
Benefits include:
- Lower monthly obligations
- Increased ministry flexibility
- Reduced financial risk
- Greater future giving capacity
While debt is sometimes necessary, churches should work toward reducing long-term financial obligations whenever possible.
10. Stewardship and Administrative Systems
Reason: Good administration protects both the church and its reputation.
Invest in:
- Bookkeeping
- Payroll services
- Annual reviews or audits
- Internal controls
- Financial software
- Cybersecurity
- Insurance
- Legal compliance
Strong administrative systems build trust with donors and reduce the risk of fraud or financial errors.
11. Capital Improvements and Expansion
Reason: Expansion should follow ministry growth—not precede it.
Examples:
- New buildings
- Renovations
- Additional classrooms
- Sanctuary expansion
- Parking expansion
Ask:
- Is ministry demand driving this project?
- Can the church sustain the ongoing costs?
- Will this investment significantly enhance ministry?
12. Cosmetic Upgrades (Lowest Priority)
Reason: Attractive spaces are beneficial, but appearance should not take precedence over ministry or essential needs.
Examples:
- Decorative furniture
- Premium finishes
- New paint solely for aesthetics
- Designer décor
- Luxury office furnishings
These improvements are appropriate when higher priorities are already well funded.
A Helpful Financial Test
Before approving a major expense, church leaders can ask:
- Does this help fulfill our mission?
- Will it impact people more than possessions?
- Is this solving a real need or fulfilling a preference?
- Are we neglecting maintenance or staff to fund this?
- Could these funds produce greater Kingdom impact elsewhere?
- Can we afford both the initial cost and ongoing maintenance?
- Does this demonstrate faithful stewardship of God’s resources?
If the answer to several of these questions is “no,” the purchase should be reconsidered.
Final Thought
A healthy church budget reflects the church’s values. When financial decisions consistently prioritize people, ministry, leadership, stewardship, and long-term sustainability, the church is better equipped to fulfill its mission for years to come.
A church’s budget is more than a financial document—it is a practical expression of its priorities and commitment to advancing God’s Kingdom.