Donations, Savings & Investments

There are many different opinions regarding using donated funds to make money. While individuals need to save money for retirement and the stock market is a good means for that to happen, a church would not have the same need.  It is not prudent to invest operating funds or savings into risky investment holdings.  Listening to the donors and looking at the church mission statement may give you an answer to this question.  The stock market does not have a ministry purpose and most donors expect their funds to be used toward ministries. If you are still unsure on whether to invest in the stock market, we recommend you talk to a qualified like-minded professional who has no financial interest in the decision.

Accountability to the congregation through annual financial reports and presentations is important to keep leadership committed to making sure church funds are being used for a Kingdom purpose. However, a church may find itself in a situation where large endowments can keep the physical needs of the church operating but leave it spiritually dead. Focusing too much on investments and return can put the church in a position to stay open, but the mission and the vision of the church may suffer. Providing financial updates to the congregation can work to maintain a balance between earning a prudent return on excess cash and making sure the funds are continuing to make a Kingdom impact.

Sometimes there is no extra money to put into savings. It can be hard to take a good look at your budget and decide what programs need to be cut to start saving, but this must be done. If there is no room to cut in the budget, having an honest conversation with your congregation about the current financial situation and the need to have emergency savings may be a good option. Not having any savings can cause a lot of problems for the church, even so far as closing the doors. It is okay to start small and build up savings over time. We know God can do much with little and can multiply resources when needed, just like the loaves and fishes.

It is important to keep a balance between funding ministries and savings.  If there are no savings to keep the building in good working order, there may be no ministries to support. If all money is tied up in savings, the ministries are not supporting the mission and vision of the church. Using some practical guidelines to help your church find that balance is important. The first step for savings is having an emergency fund for operations and building maintenance.  Because churches are uniquely different in how and where they worship, the needs of churches can look different.  What does that look like for your church? Is God calling you to stretch your resources farther than you are comfortable with and trust Him with the results? Prayerful consideration in this area, along with discernment and wisdom from godly counsel, will help your church make a good decision in balancing ministries and savings.

To keep things in perspective, always refer to your church’s mission statement. Surprisingly, that can often give answers regarding how to spend and save money. On one hand, we do not want to put the church at risk of closing because of mishandled savings and poor planning, yet on the other hand we do not want to hoard money that is not being used in alignment with the mission of the church. Keeping a balance of the two can keep the church true to the mission. The church leaders need to understand what is at stake when ignoring either of these two important parts of the church.

Let us say church leaders decided not to have any savings. Giving is good and there are a lot of ministries that need things—new sound equipment, more outreach to the community. Then, suddenly, the church is faced with some large, unexpected repairs at the same time giving decreases due to a downturn in the economy. Not only would this put your ministries at risk, but it also endangers the livelihoods of the pastors and church leaders.