Have you ever had a ministry opportunity become available to you that you couldn’t take advantage of because you lacked the money to fund the opportunity? If your church is like most churches, the answer is probably “yes.” Most churches spend all the money they receive each year. Most budgets are set to spend 100% of the income that comes in during that year. But, what if there was a better way? What is there was a way to actually have funds available for those ministry opportunities that come along unexpectedly?
There is: it’s THE POWER OF 90% and it’s a simple principle to remember. When creating your church budget for the new fiscal year, most churches will either base it upon what they received last year, or add a little increase as “faith” for what God might do this coming year. Instead, THE POWER OF 90% says: base your new church budget on 90% of last year’s income (assuming you expect the income to remain the same or increase this year). Then, place the remaining 10% in an “Opportunity Fund.” This fund is money that is kept in the account and is available when those unknown ministry opportunities come about throughout the church year.
No budgeting process, however accurate and well thought through, can accurately predict every possible expenditure throughout the year. Creating an Opportunity Fund enables you to be ready for the unknown opportunities that God may bring your way that year. So, implement THE POWER OF 90% principle and see how it frees your church up to take advantage of opportunities throughout the year.
Note: if your budget is too tight to start right at 90%, then make a plan to get to 90% over a period of time. For example, in 5 years you could fully implement the 90% plan by just increasing it 2% each year. Thus, the first year you are using the power of 98%, then 96% the second year, and so on.