Let's Talk about Church Finances

I have a friend that is skeptical of the way many churches handle finances. He's not a Christian, or at least doesn't self-identify as one. One of the primary reasons he's skeptical of the Church is that his experience tells him that the Church cares more about money than about people. His story isn't terribly uncommon. The church hasn't always done well at talking about finances, handling finances, and caring about people over finances. Knowing this has affected the way we handle the topic of money and finances at State Street. 

There are a few things in regards to money and the Church that I hold in tension:

  1. Possessions and money are an important topic in Christ's teaching. There's been a tendency, at least since Christ's time but likely throughout all time, to idolize money, power, and possessions. Christ spoke about this temptation. The Church needs to combat this temptation. 
  2. Money is required to do the work of the Church: helping the hungry, creating communities of inclusion, staffing various ministries/initiatives, and, for practical purposes, paying the electric bill among other things. 
  3. The Church hasn't often spent money wisely. This shouldn't surprise anyone. The Church is made up of people. People aren't always wise in the way we handle our finances and possessions. The Church's lack of wisdom is an extension of humanity's lack of wisdom. 
  4. I think many of the proof-texts used to support the tithe in the Church are uninformed at best and manipulative at worst. This seems especially rampant among the Evangelical church.
  5. Generosity is an essential path in becoming more like Christ. Christ demonstrated an immense amount of generosity in His ministry and on the cross. I believe He invites us to embrace generosity in the same manner. 

These things held in tension manifest themselves in different ways in our particular community at State Street. We choose not to pass any plates for offering. We do, however, believe that giving is an essential part of our worship. By demonstrating generosity, we allow ourselves to also claim allegiance to something greater than ourselves. 

We have also decided to forgo some of the normative budget trends within the Church in order to make a new way forward that best fits our vision. While it may be normal to spend 50-70% on staffing, we don't think it will help us achieve our mission. The same can be said with building expenditures. Some research would say that we can spend 25-30% on a church facility. By doing this, we would limit some of the good work that we try to do in LaPorte. We don't believe this is the best or only way to lead a Church, but it has allowed our specific community to meet the needs of our specific ministry vision. 

Each year, our leadership team comes together and looks over the past year's expenses and income. We compare our past expenses with the projected budget. Our finance team is tremendous at calculating those figures in advance and presenting them to the leadership team. Our projected budget typically comes very close to our actual income over the year. This year we were within 1-2% of our estimated budget. 

We have certain metrics that we aim to meet. If we don't prioritize the money being spent on community ministries (like the Pax Center, missions, etc.), it's been our experience that those types of initiatives will be the first to suffer if budget cuts are ever needed. But, community ministries are essential to the make-up of our community. There is no Pax Center without State Street but there also isn’t a State Street without the Pax CenterFeeding the hungry, helping the hurting, and loving the lonely is foundational for us. So, we prioritize it in our budget. 

However, just like everything else that is worth doing, we had to sacrifice some things for a life of better things. We have a smaller staff and are extremely dependent on volunteers because of it. We don't spend as much money on facilities. Our staff is continually cognizant about spending only what we need or what will make their ministry better. They say 'no' to some things, to say 'yes' to our community ministries. But, because of our belief in the radical nature of the Kingdom of God lived out, we know it's worth it. 

We have an average attendance of roughly 300 people. About 1/3 of that number are children, many others are in economically depressed situations, others are young families without a ton of dispensable income and others are more financially stable.  In all, many of these give generously of what they have been given. We budget conservatively so that we can continue to do ministry in the way Christ has called us. But, He has been faithful in our five years of ministry to provide for our needs and much, much more. 

I want to be transparent when dealing with our finances. It's good to talk about it and not hide it. Certainly we need to be honest about the Church's past transgressions, but the way to fix them is not to ignore them or not talk about it further. I want to be transparent because I don't want the way State Street handles finances to be a hurdle for anyone to know Christ. It's worth talking about. 

Here is State Street's yearly budget put in pie chart format. If ever there is a question about how we maintain our budget or the values we maintain, do not hesitate in contacting myself or email the finance team at finance[at]statestreet.tv: