Congregational Financial Assessment

It is important in the conducting of a capital project to determine the answer to the question, “What can we afford?”  The answer to that question is necessary so that the architect has a ‘financial box’ which will be the basis of the project design.  The answer to the question is also necessary to set the financial goal of the campaign.  This Study therefore conducts the following elements.

1. Affordability is related to the money that can be raised over a three-year giving period but is also related to the amount of the mortgage needed if the church decides that the need of the project will involve a level of debt.

2. The initial aspect of the Study is to determine the past five-year window of financial and ministry performance determined from the following five-year information; budget, income to the budget, additional giving from members beyond the budget support, attendance, number of donors, endowment/building funds already available, assets funds available if the church is relocating. This Study determines the nature of the church. Is it growing, declining or in a maintenance format? That nature of the church will determine the potential available.

3. The second aspect of the Study is to do a Donor Base Assessment which determines the giving of all donors in decreasing numerical value, the age and tenure of the donors and their giving pattern. This information helps decide donor distribution, the age factor, donor assimilation and the change in giving methodology. These factors are important to determine from the budget giving and per giving unit formulas what the potential is. All information received of course is confidential including no ‘names and numbers’.

4. When the analysis from the Study has been done, the Consultant will present a Financial Potential Report to the church Board so that the decision can be made as to what is affordable.

This Study is very important.  Whether this Study is done or if the information is received in some other form, it is needed if the decision will be made as to what can be done in the area of financial support.  When campaign goals are realistic and achieved, it will provide significant encouragement to all.