From the Lewis Center for Church Leadership of Wesley Theological Seminary Leading Ideas "Does Your Church Need a Capital Budget? | Do Your Church Events Serve a Healthy Purpose?" Lewis Center for Church Leadership from The Wesley Theological Seminary of Washington, D.C., United States for Wednesday, October 19, 2016

From the Lewis Center for Church Leadership of Wesley Theological Seminary
Leading Ideas "Does Your Church Need a Capital Budget? | Do Your Church Events Serve a Healthy Purpose?"
Lewis Center for Church Leadership from The Wesley Theological Seminary of Washington, D.C., United States for Wednesday, October 19, 2016

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Does Your Church Need a Capital Budget? by Lovett H. Weems, Jr. 
Lewis Center Director Lovett H. Weems, Jr., describes how formulating and funding a capital budget can help a church stay on top of building maintenance expenses. In the absence of such a plan, congregations often defer routine maintenance until they are confronted with a major crisis — and then don’t have sufficient resources to respond.
Churches face a common dilemma when it comes to maintenance of their facilities. When operating funds are scarce, as they often are in congregations, the frequent response, unfortunately, is to defer maintenance. After a few years of deferred maintenance, the capital repair needs accumulate to a size that seems impossible to address. Then a crisis comes when something major must be replaced, and there are no funds for even a portion of the cost.
Just like the operating budget, your facilities and capital budget are critical means of supporting your church’s ministry and mission.
Churches can avoid this all-too-common problem by formulating a plan to address property renewal and replacement needs on an ongoing basis, and by dedicating sources of income to provide for these needs. This type of planning and budgeting is the essence of a “capital budget.” Some churches call it the “building fund.” Just as church leaders give careful oversight to annual operational needs, so they also must provide for longer term capital needs. It would be a mistake to think about the operating budget as dealing with ministry and the capital budget as addressing facilities. Just like the operating budget, your facilities and your capital budget are critical means of supporting your church’s ministry and mission.
Assessing Needs
The first step in formulating a capital budget is to develop a comprehensive capital needs plan by assessing the condition of your facilities and their current usage. It’s important to include a schedule of preventive maintenance and to take into consideration matters of environmental stewardship. Once all the needs have been assembled, you can organize and prioritize them..
It’s likely that your list will be extensive. And if someone saw your chart of capital needs organized by categories and years, they might even think you have a capital renewal and replacement plan. In reality, though, you have simply a wish list. From all that needs to be done, the task is to determine what is most critical to accomplish with the likely resources you have or will have.
Funding Your Capital Budget
The biggest funding mistake most churches make is not having any ongoing sources of income that provide at least some basic funds for capital expenditures. So part of your planning needs to involve assigning tentative cost estimates to each of the things you believe you must do. It’s likely that the total will surprise you, and not in a good way!
The good news is that there are many potential sources of funds that congregations can dedicate to capital needs without undercutting operating needs. Even if only a portion of rental income, memorials, bequests, end of year surplus income, and other income are directed toward capital needs, you have made a good start. The key is to establish the principle that the capital budget must have regular, reliable sources of income to stay on top of facility needs.
If your church has never had a systematic plan for identifying and funding its facility needs, you may want to plant the seed as you head into this year’s budgeting cycle. The Bible says that when you build a tower, you need to pay attention to the costs. It could have added that once you build the tower, be prepared for some upkeep costs!
Related Resources:

• Building and Funding Your Capital Budget Video Tool Kit
• Developing Your Operating Budget Video Tool Kit
• Church Renewal Requires Property Renewal by Gerald W. Keucher

Read more.
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Do Your Church Events Serve a Healthy Purpose?by Tony Morgan
Is your church calendar crammed with one event after another? Church consultant Tony Morgan says many congregations just keep scheduling the same events without ever evaluating whether they contribute to the congregation’s goals. He lays out a set of criteria for distinguishing between productive and unproductive events.
Many churches are over-programmed and event-driven. Generally, the thought behind all the events is that if we want people to take a next step, we need to get them in a certain place at a certain time and teach them. Then when people don’t show up to our events, we assume they are unspiritual or uncommitted. The truth is, by loading up our event calendars, we are asking people to make their lives more busy and complex.
Don’t continue scheduling events just because you’ve always done them. You will help more people take next steps without pulling them in too many directions.
That doesn’t necessarily mean that all events should be eliminated. I do believe there’s a place for events if they’re done right. It’s important to consider what distinguishes a healthy event from an unhealthy one.
Healthy Events

• The win is helping people take the next step after the event.
• The target audience is people who haven’t connected to the church or ministry.
• The primary way people hear about the event is through the invitation of a friend.
• Volunteer teams own the event.
• Events are prioritized so people are encouraged to stay connected in their other community engagements.
• Since guests are expected, every element of the experience is planned with that in mind. 
• You capture pictures and video to share the stories of people who were impacted by the event.
• After the event, there’s a debrief to make sure the win is accomplished.
• Every year the event is evaluated to make sure it is still fulfilling its primary purpose.
• The event is scheduled again to connect new people to church.

Unhealthy Events

• The win is getting people to show up for the event.
• The target audience is people who have already connected to the church or ministry.
• The primary way people hear about the event is through promotions.
• Staff teams own the event.
• Events are scheduled to force people to 
• choose church over other community engagements.
• Since guests are not expected, certain elements don’t need as much attention.
• You capture pictures and video to share the story of the event itself.
• After the event, you communicate how many people showed up.
• Every year the event is scheduled because it’s expected.
• The event is scheduled again to keep people from leaving the church.

If you haven’t in the past, it may be time to reevaluate the events your church offers in a given calendar year. I recommend listing every event, and then as a team, assessing whether each event is healthy or not.
Use this as an opportunity to simplify your approach to ministry. This may mean adjusting an unhealthy event so it can be moved to the healthy column. Or you may discover that it’s time to completely cut some unhealthy events from your calendar.
Whatever you do, don’t continue scheduling events just because you’ve always done them. If you’re willing to get serious about eliminating some events from your calendar, I can tell you from experience that you will help more people take next steps without pulling them in too many directions.
This article is reprinted from TonyMorganLive.com and used by permission.
Related Resources:

• Launching Sustainable Ministries by Ann A. Michel
• Bearing Fruit: Ministry with Real Results by Lovett H. Weems, Jr. and Tom Berlin
• Measuring What Matters: A Conversation about Metrics and Mission by Ken Carter

Read more.
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The Right Question
Leaders do not need answers. Leaders must have the right questions.
Will Willimon speaks in a sermon about the rich man who goes on a journey and entrusts his property to workers, giving one five talents, another two talents, and the third, one talent. (Matthew 25:14ff.) Upon the rich man's return, the workers faced the same question, Willimon reminds us, that all of us face:

What have you done with what you were given? 

Want more Right Questions? Read Right Questions for Church Leaders.
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Learn Best Practices to Build and Fund Your Capital Budget
Your capital budget isn't just about facilities. It's about using your facilities to further your church's mission. To assist you in this important process, we introduceBuilding and Funding Your Capital Budget. This new video tool kit helps you understand what a capital budget is, how to engage the big questions about your church, and how to assess your current situation. You will also learn how to organize and set priorities and how to fund your capital budget. No matter your church size, this resource provides clues and wisdom to help your capital budget advance your mission and accomplish God's vision for your congregation.
Learn more now.
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Quotable Leadership
The primary task of leadership is to direct attention. To do so, leaders must learn to focus their own attention.[Daniel Goleman]
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Pursue Your Doctor of Ministry in the Nation's Capital
Wesley Theological Seminary and the Lewis Center for Church Leadership together offer a Doctor of Ministry in Church Leadership Excellence. With this track, clergy will receive the enhanced knowledge, skills, and motivation to increase congregational and denominational service, vitality, and growth. The next cohort begins in May 2017 in Washington, DC. Learn more and apply today.
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"Building and Funding Your Capital Budget" Video Tool Kit Now Available for Tuesday, 18 October 2016
NEW: "Building and Funding Your Capital Budget" Video Tool Kit
Learn how to help your church stay on top of building maintenance expenses.
Your capital budget isn't just about facilities -- it's about using your facilities to further your church's mission.
To assist you in this important process, we offer Building and Funding Your Capital Budget. This video tool kit helps you understand what a capital budget is, how to engage the big questions about your church, and how to assess your current situation. You will also learn how to organize and set priorities and how to fund your capital budget. No matter your church size, this resource provides clues and wisdom to help your capital budget advance your mission and accomplish God's vision for your congregation.
Building and Funding Your Capital Budget is ecumenical and designed for both self study and group use by trustees, finance committees, pastors, and finance staff.

• Instructional Segments
• What is a Capital Budget?
• Engaging the Big Questions
• Assessing Where We Are
• Organizing and Setting Priorities
• Funding Your Capital Budget

Presenter
Dr. Lovett H. Weems, Jr., is distinguished professor of church leadership ofWesley Theological Seminary and director of the Lewis Center.
Building and Funding Your Capital Budget -- $59
Save when you buy Building and Funding Your Capital Budget and Developing Your Operating Budget together for $99.
Learn more.
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Editors: Dr. Ann A. Michel and Dr. Lovett H. Weems, Jr.
Lewis Center for Church Leadership of Wesley Theological Seminary
Connect with the Lewis Center:

Lewis Center for Church Leadership

Wesley Theological Seminary

4500 Massachusetts Avenue NorthWest

Washington, D.C. 20016, United States

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