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By Michael Castrilli

Church Capital Assets Planning

Yesterday, I discussed the importance of creating a church capital assets budget! As a refresher, capital assets are simply those items that the church owns that have value extending beyond one year. Can you think of some examples?

Yes, I am sure you guessed – the church building, the rectory, or other assets like major equipment – for example, a boiler, the church organ, or computers and technology.

Interestingly, even though these assets are critical to accomplishing the mission of the parish, many parishes do not have a capital budget. This may be due to a number of factors, but the process of creating a capital budget does not have to be overly difficult.

If a church building is unusable due to maintenance, issues or the high cost operate the facility, how does the parish accomplish the critical mission? Capital budgets can be helpful in this regard.

Today, let’s walk through the various categories and questions that can help you put this budget together.

Capital improvements – Do you have any significant projects planned for new buildings, additions, major refurbishes or upgrades?

Asset purchases – Do you anticipate any purchases of new equipment like computers, software (e.g. financial management system) or other assets that will be available beyond one year?

Equipment repair – Do you have equipment that might require repair in the upcoming years? Is money available for unexpected equipment breakdowns?

Facility upgrades – Are there any updates planned or necessary? Examples might include painting, carpeting, or retrofitting classrooms for new LCD screens.

Deferred maintenance – Have resource been allocated for the replacement of assets before they fail? This category also includes scheduled or routine maintenance (e.g. the annual boiler inspection) to ensure that assets last for their expected useful life.

Don’t forget to consider any new planned investments on the horizon and ensure that you build into the budget the expected useful life of the assets. As you consider the categories above, create a three to five year (or more) budget. Remember, it does not have to be perfect! By undertaking this review and understanding your critical infrastructure needs, you may be surprised by the insights you gain.

Check out some of the most popular tips so far of the Church Finance 30/30 Series!

Tip 18, capture and catalog assets and a picture of sunrise at St. Meinrad Archabbey in Louisville, Kentucky.
Sunrise at St. Meinrad Archabbey

By Michael Castrilli

The 3-R Approach to Address Financial Challenges

Previously we have discussed how to construct a church financial narrative with impact and ease. However, we all know that writing about money is simple when finances are in great shape. Inevitably, church financial challenges occur and also need to be communicated.

Address Financial Challenges with 3-R

Picture of doors with the inscription "Holy doors of Mercy" showing that openness if required when it comes to addressing financial challenges
The Cathedral Basilica of Saints Peter and Paul., Philadelphia, PA

For example, from a decrease in collections, the parish drew a larger percentage of endowment funds than in previous years. Responding to financial challenges can feel overwhelming, but consider breaking the problem down using the 3-R Approach. The first step is to Reflect what has occurred. What is the actual data telling you about what happened? The second step is to Review reasons or circumstances and consider any changes that are necessary for the future. The third step is to Refine any policies and procedures to mitigate the likelihood that the problem will occur again.

When reporting a challenging situation, keep the narrative simple, straightforward, and offer answers to the relevant “W” questions.

  • What happened?
  • Who is/was involved?
  • When did it take place?
  • Why did it happen?

So, we have constructed the financial narrative, we have addressed any challenges, now what? Let’s choose the most compelling visuals to include in your financial reports. Next week we discuss choosing visuals to communication financial understanding!

Read More Church Finance 30/30 Tips

By Michael Castrilli

Performance Driven Churches

A performance management system is a coordinated and collaborative method to create, measure, track, and achieve parish goals. An effective performance management system will hold the parish accountable for ensuring that parish priorities are in fact accomplished. This type of system creates a performance-driven parish because all members of the team are on the same page in terms of direction, priorities, progress, and accountability.

Do you remember in elementary school when the teacher would send home a progress report? The progress report would include commentary about coursework, skill development and behavior.  The report typically offered commentary on student performance and was sent home early enough in the quarter or semester to allow you to make adjustments prior to the final grade.  The purpose of a performance management system has a similar objective.  In order to track progress, a structure must be in place to track progress and offer (should it be necessary) an advanced warning system for adjustments. Therefore, the system can help the parish achieve a grade of A+ as it relates to accomplishing goals!

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By Michael Castrilli

Rx for Frustration = The Present Moment

It’s Monday Morning…and you’re halfway through your 9 AM meeting and your mind starts to wander…

You begin thinking about all of your To Do’s, a whole list of calls that still need to be made, even details left undone that you may have missed from the prior week’s work and you begin to feel a great sense of anxiety build within you! Sound familiar? You are not alone.

Morning at the BeachThe feeling that you have too much to do and not enough time to do everything is common for so many busy professionals. However, what we forget when we become overwhelmed is that one of the key aspects of remaining productive in meetings is staying present. What I mean is that if you are always thinking about the past or the future, you are not really present to the individuals or the work right in front of you or around you.

Being present is more about listening well in the moment and fighting the temptation to dwell on the past or obsess about the future. When you are present, you stay actively engaged and allow the present moment to help you accomplish the goal immediately in front of you. The question then becomes, how do I stay present when I have so much on my mind? Here are a few tips.

1. Turn off technology

Turning off your mobile phone during meetings can help you stay focused and present. Even when your phone is silenced, you may feel this small vibration that is beckoning you to check out, or reminding you that someone or something wants your attention.

Turn it off and find your mind rests a bit easier. One hour with your phone off is not going to hurt anyone. Plus, you typically can’t respond during the middle of a meeting anyway, so turn it back on when you are done. This is a great cure for finding some quiet and focused mental time in a meeting.

2. Write it down and refocus

Instead of resisting all of the tasks pummeling your brain for action during a meeting, keep a piece of paper out and call it “Out of my mind notes” so when you think of something you must do, you can quickly write it down and refocus.

Often, people are fighting so hard to focus, they end up taking so much time resisting their own thoughts that they defeat the very purpose of their attempt to pay attention. Write it down and let it go. When a thought comes, write it down and you will allow your mind to rest.

3. People first

Next time you are in a meeting and your mind starts going crazy with thoughts, just smile and remind yourself of the principle I call People First. People First is the idea that when tempted by worries about the past or the future, focus on the human beings who require your full attention in this very present moment.

If you are so caught up in your own mind, you may miss the colleague sitting next to you who has offered a brilliant idea because you are so busy thinking about all that you have to do. It’s hard to obsess about To Do lists when you look people in the eyes and really listen to what they are saying instead of listening only to what your brain is telling you to think about.

With People First, remind yourself what’s really important – meaningful connections to the world around you. Great ideas may have come from thoughts, but human beings are the ones that actually made them become a reality.

Live in the present moment and focus on the people around you. It makes meetings better, your time more productive, and puts your To Do list in proper perspective.

By Michael Castrilli

The Benefits of Church Budgeting

My experience working with ministers is that for many, developing a church budget is a necessary, yet stressful and time-consuming exercise. People resist or even fear the topic because of seemingly complicating processes or past negative experiences. Even with personal finances, many people grow up learning that developing a budget is good practice but a constraining activity designed to prevent or control people from doing all of the things they want to do.

So, why spend the time working on the church budgeting process? Below are six benefits:

Church Budget Benefits

The budget is the plan and tool that will help you…

  1. Connect resources to parish priorities
  2. Create a plan to allocate money coming into the parish and expenses to be paid
  3. Ensure that plans stay on track
  4. Empower effective financial decisions
  5. Bring collaboration, communication, and buy-in
  6.  Strategize for the future