Budget to Advance the Vision!
Earlier this week our Network Presbytery finalized our 2026 ministry budget. After months of planning, prayer, and collaboration, there was a sense of genuine gratitude and peace knowing we had stewarded well what God entrusted to us. That process reminded me of something important. Healthy ministry does not happen by accident. It is the result of conviction, clarity, and preparation. Churches that plan well lead well. Churches that steward resources well build trust, strengthen ministry, and position themselves for future impact. That is why I want to encourage you as a pastor or church leader to begin preparing now for your 2026 church budget.
Budgeting is not just about numbers. It is about vision and stewardship. It is one of the practical ways we align ministry priorities with ministry resources so we can carry out the mission God has given us. When done well, budgeting becomes an act of worship and wisdom. Below are key areas to help guide your preparation.
1. Plan Thoughtfully for Staff Compensation
It is important to remember that your ministry team is not simply an expense on a spreadsheet. They are partners in the gospel who stand with you to fulfill the mission of the church. Because of that, planning responsibly for their financial stability is a vital part of biblical stewardship and healthy leadership.
One practical way to care for your team is to ensure their income keeps pace with the rising cost of living. A helpful guide for this is the annual Cost of Living Adjustment (COLA) released by the Social Security Administration each October. The COLA increase for 2026 is 2.8 percent, and many churches use this figure as a baseline when planning annual compensation adjustments.
To be clear, the COLA is not a raise. It does not reward performance. It simply keeps staff from falling behind inflation. Every organization I have ever been part of has treated a COLA as a normal part of responsible compensation. As long as the budget allowed, we made sure our team received it.
While a COLA protects staff from falling behind financially, a raise serves a different purpose. Raises should reflect growth, responsibility, and performance. When team members take on additional leadership, expand their responsibilities, or consistently serve with excellence, it is appropriate to recognize that contribution with a raise when finances allow. Think of it like this: a COLA honors economic reality, while a raise honors personal contribution.
When determining an appropriate raise amount, consider the purpose behind the increase. A merit or performance increase, which rewards strong work and leadership, typically falls between 1 to 5 percent in addition to the COLA. A retention increase may vary and is designed to keep compensation competitive enough to retain valuable staff members in today’s ministry and marketplace environment. A promotion or role-based increase, given when someone takes on greater responsibility or moves into a higher level of leadership, generally ranges from 5 to 15 percent in addition to the COLA.
If your church cannot provide the full COLA, communicate that honestly and look for other ways to value your team, such as a small bonus, paid rest time, or professional development support. Healthy teams are not built by accident. They are built by intentional care.
2. Plan for Utility Increases
Utility costs continue to rise across the country, and churches are not exempt. Electricity, gas, and water rates are expected to increase by an estimated two to three percent in 2026. While that may seem small, it becomes significant over the course of a year, especially for churches with larger facilities. It is wise to plan for this increase in your operational budget and to consider a simple facility energy review. Upgrades such as LED lighting, programmable thermostats, and improved insulation can reduce long-term costs and free more resources for ministry.
In addition to budgeting for increases, here are a few helpful stewardship steps to consider:
- Review HVAC usage policies since heating and cooling systems account for nearly half of most church utility expenses.
- Evaluate unused space that may be heated or cooled unnecessarily during the week.
- Schedule preventive maintenance on HVAC systems to extend lifespan and improve efficiency.
- Check for ministry discounts with utility providers or local energy rebate programs designed for nonprofits.
- Consider energy-saving habits like automatically turning off lights, reducing water usage, and consolidating midweek facility use.
Good stewardship is not only spiritual obedience, it is also wise planning. A few intentional changes can help protect your ministry budget while also modeling responsibility to your congregation.
3. Prepare for Property Insurance Increases
Property insurance is one of the fastest-growing expenses for churches. For 2026, most ministries will likely see increases around ten percent. Do not guess and do not recycle last year’s number. Contact your provider now, secure an updated quote, and verify your coverage. Many churches discover too late that their buildings are insured at outdated replacement values. Good stewardship means protecting the ministry God has entrusted to you.
4. Anticipate Ministry Resource Costs
Inflation affects ministry just as it does every other area of life. Expect higher costs for discipleship and outreach resources, curriculum, media tools, ministry events, and general church supplies. Plan for a two to three percent increase in these areas and involve your ministry leaders early so the budget reflects real needs rather than last-minute guesses.
5. Plan for Expansion, Not Just Survival
Ministry should always move forward. A budget built only for maintenance will eventually limit the mission. Build a 2026 budget that reflects your true priorities and creates room for ministry advancement.
Prayerfully consider:
- Evangelism and outreach opportunities
- Local and global missions support
- Developing emerging leaders
- Next generation ministry investment
- Church multiplication partnerships
A mission that is not funded is only a dream. A funded mission becomes a reality.
6. Build Margin Before You Need It
A strong financial plan always includes margin. Margin is the intentional space between what you could spend and what you choose to spend. It protects your church from unnecessary financial pressure and keeps ministry stable. Start by adding a small contingency line to your “next year’s budget” so unexpected needs do not create stress. Then, as resources allow, work toward building operating reserves equal to two or three months of expenses. A healthy budget will intentionally create margin, Doing so will strengthen your ministry, allowing you to keep saying yes to what God calls you to do.
7. Communicate Early and Lead with Clarity
The earlier you begin the budget process, the healthier it will be. Set a clear timeline, involve the right people, and communicate consistently. Share real numbers and trends with your team. Invite questions and build trust. When communication is clear and consistent, the budget process strengthens unity instead of straining relationships.
A Final Challenge
Stewardship is a sacred trust. Budgeting is not just about numbers and spreadsheets. It is also about prayer for wisdom, clarity of purpose, and intentional preparation. When we lead with wisdom and faith, we honor God in the present and prepare our ministries for the future He has planned. So begin now. Because, a well-built budget will empower you to advance the vision God has given you for the year to come.