Clarise’s Budget Gap

Clarise’s Budget Gap

Nobody likes administration expenses.  And if your organization owns a building, order the same thing goes for repairs and maintenance.  Imagine running a church in a small community.  Not only does it function as a house of worship, adiposity but it also is a community space fir meetings and celebrations.  But when the Treasurer announces that the roof needs to be fixed and the boiler replaced, the people only see the big number in the expenditure column.   You get the same reaction for other costs of running the organization, such as management salaries, employee benefits, computer and communication expenses.

Many faith based organizations have turned to Narrative Budgeting as a way to connect expenditures to mission.  Narrative Budgeting involves telling the story of how the organization’s resources contribute to its mission.  In the above example, the story would be told about how the building maintenance and repairs contribute to Community Outreach, an important part of the organization’s mission.  Specific examples would be mentioned as well, such as Scouts, Alcoholics Anonymous and major anniversaries.

At this point, the accountant in me says, “Wait, you are just allocating administrative costs to programs based on usage.  That’s nothing new.  We have always done that.”  It’s true, from the accounting perspective, nothing has changed.  The difference is the recognition that for many people a financial document is just a sea of numbers.  They don’t see the relationships between the numbers.  They don’t see how the numbers translate into the programs that will fulfill the organization’s mission.  They need a narrative to help them connect the financial picture to the mission, a narrative they can commit to and support.

Specific points to remember:

  • The narrative and numeric budgets need to be consistent and have the same totals.
  • Use percentages or a graph to show the proportion of resources the organization is putting into each major goal.  The proportion for each goal should reflect its priority to the organization.
  • Use the narrative budget everywhere you use the financial budget:  at the Finance Committee and Annual meetings, in the Annual Report, for staff and volunteers, and with prospective donors.

More Information

The following web sites are aimed at faith based organizations, but the instructions are easily applied more broadly.

Building a Narrative Budget –

Narrative Budgets –


Finally, in the words of Judith Johnson, a passionate advocate for Narrative Budgeting,

A narrative budget is a key communication tool in a packet of information for visitors and new members, connecting the need for both their giving and their commitment to ministry programming. It is never too early to begin telling a story that draws people into wanting to know more and to become more involved.   [Source:  Narrative Budgeting:  Christian Practice, Purpose and Narrative, United Church of Canada, 2004.]

What have been your experiences (good and bad) with budgeting?  What worked?  What energized the people?

2 Comments on “Clarise’s Budget Gap

  1. Finance is a resource that is absolutely necessary at this time, and this affects the pattern of life. for it is necessary to know the origin and history of these resources. in the management, there is a typical current and statutes. and this determines for all policies that occur in life and business management are undertaken. nice info.

    • Yes! The problem with Finance, particularly in a charity, is that it needs to translate its important messages into language that makes sense to management, volunteers and the community. We financial people need to present our reports in the context of what is important to the organization’s supporters.

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