When You Face a Budget Shortfall
In the red. Ugh. This is not where we wanted to be.
Facing a budget shortfall when you’re in ministry is one of those things that test our faith. Whether your family’s budget or your payroll depends on it, it’s a stressor that can feel insurmountable.
How do you get out of it?
I wish we had the one answer. I wish we had the three options from which you could pick. But the truth is, we don’t. What we can do is offer a few questions to consider to get back to black. Having coached individuals and organizations through this scenario several times, we’ve seen success and we have seen failure. But in every situation, these questions helped.
How do you track donors? If you are not tracking your donors - what they give, how you communicate with them, when they lapse, how you thank them, then that’s your first stop. You need to know where you stand with donors to understand why you’re in trouble. Otherwise, you don’t understand your source. You are just looking at a symptom.
How often do you thank your donors? If you just ask and rarely thank, try shifting that balance before you do anything else. Tell them a story of impact, thank them, and don’t make an ask. Do that three times with consistent intervals. Then ask. You may see a difference in support pretty quickly.
What motivates your funding? If you are identifying a financial need then finding a donor/donors for it, you might be a little backward. That approach can work for very specific instances. But on the whole, you need a budget that is based on your entire vision. From that, you can parse out needs and make asks. Make sure that “bakes in” administrative costs necessary to get the job done in the field.
If you hire a consultant, can you pay them for three months without them bringing in a single dime? The reality is, consultants can rarely bring dollars in the door within a month. The relationship is still king, and they have none of that credibility with your donors. So do a few steps first to make sure you can pay the consultant, and hire someone who helps you build systems not simply give you a few one-time ideas. That way you only need to pay them for a season and you can get back to health with a new foundation.
A red balance sheet can be scary but it’s not the end of the world. As you take these steps, make sure to ask close friends to pray with you. God’s timing is often different from ours. But we do know He is the source of all of our needs met.