10 Financial Ratios (part 9 of 10)

Weekly Offerings to Weekly Budget Goal

1. Definition: Divide weekly receipts by weekly goal
2. Results:
   1. Worst Case Scenario: this should not go below 75% for more than three consecutive weeks
   2. Best Case: if this ratio goes above 125% for more than three weeks in a row, thank the church
3. Consequences:
   1. If your weekly budget receipts drop below the weekly goal for more than three consecutive weeks without a visible reason, then
      1. Push the “Concerned” Button (but not the Panic Button just yet). Push the Panic Button when you go five consecutive weeks
      2. Tighten up on expenses and explain to the congregation ASAP about the financial situation and encourage (never belittle) them to be generous.
      3. When the financial situation returns to normal, thank the members publicly for their gifts and God’s faithfulness.
   2. If your weekly budget receipts exceed the goal for more than three consecutive weeks, determine why this happened
      1. A one-time only gift such an inheritance or bonus
      2. Increased giving by several people
      3. Several new people joining and giving

Now What? So What?

• Compare your church’s financial ratios to the optimum range for each ratio.
• Develop a 2-3 year plan to bring your ratios in line with best financial practices.

Lead On!

Steve