Healthy Budget Percentage Guide for a Thriving Church
Here are some guidelines to consider when determining budget percentages for your church.
Church budgeting can be intimidating and challenging, even for the most seasoned leaders. Specifically, it can be difficult to know what percentage of the budget to allocate to each ministry, program, or area of the church.
However, it is important for churches to have a solid understanding of budget percentage guidelines in order to effectively steward their resources and ensure financial health.
Here are some guidelines to consider when determining budget percentages for your church:
1. Start With Your Mission
Before allocating any specific percentages, it is crucial for churches to have clarity regarding their mission and goals. A church's mission and goals will play a large role in determining where financial resources should be allocated.
For example, a church with a strong focus on outreach and evangelism may allocate a larger percentage of its budget toward missions and outreach programs.
2. Consider Your Size and Age
For good or bad, the reality is that the size and age of your church will probably play a significant role in determining church budget percentages. For example, a small church that relies heavily on volunteers and bi-vocational elders may have a smaller percentage of the budget allocated for staff compensation compared to a larger church with multiple full-time staff members.
In addition, the age of your church can also impact budget percentages. A new or growing church may need to allocate a higher percentage towards building and facility expenses, while an established church may have more resources available for ministry programs.
3. Prioritize People
No matter the size or age of your church, it is important to prioritize people and allocate a significant portion of the budget towards programs and ministries that directly impact members and visitors. This could include things like children's ministry, youth groups, small groups, and community outreach.
This ties back into your overall mission and goals as a church. If your mission is to grow and disciple members, then investing in programs and ministries that directly impact people should be a top priority.
4. Don't Forget About Operations
While it may not be the most exciting part of church budgeting, it is important to allocate a percentage towards operations expenses such as utilities, insurance, and maintenance. These costs are necessary for the day-to-day functioning of the church and should not be overlooked.
One way to help manage operations expenses is by creating a budget surplus or emergency fund. This can provide a safety net for unexpected expenses and keep your church's finances stable in the long run.
5. Consider Long-Term Goals
Another important aspect of budgeting for churches is considering long-term goals. This could include things like building renovations, expanding the church facility, or starting a new ministry. While these projects may not be immediate needs, it is important to plan and allocate funds towards them in order to make progress and achieve your goals.
It can also be helpful to involve members of your congregation in the budget planning process and gather their input on potential long-term goals for the church. This can create a sense of community ownership and support for these goals.
6. Underestimate Your Income
When estimating your income for the coming year, it's always best to underestimate how much you'll bring in. This may seem counterintuitive, but it allows for a buffer in case of unexpected decreases in giving. It's always better to have extra funds than to fall short and struggle to make ends meet.
One general rule of thumb is to set your budgeted estimated income as 90% of the previous year's income. Doing this helps ensure that your income estimate is based in reality and rooted in how much income the church has made in previous years.
7. Review and Adjust Regularly
Budgeting is not a one-time task, but an ongoing process. It's important to regularly review your budget and make adjustments as needed. This could include re-evaluating expenses, reallocating funds, or adjusting income estimates.
Regularly reviewing and adjusting your budget can help ensure that it remains realistic and effective in meeting the financial needs of your church. It also allows for flexibility in case unforeseen circumstances arise.
Healthy Church Budget Percentages
There are no hard and fast rules when it comes to church budget percentages. Every church is different and may have different priorities. However, there are some general guidelines that can be helpful when creating a budget.
When setting these budget percentages, church leaders should confer with other similar churches to ensure that they're within reasonable guidelines.
When it comes to staff compensation, the generally agreed-upon range is somewhere between 33% - 50%. According to the Vanderbloemen Group, the average church spends 52% of the church budget on compensation.
Again, there may be churches that are above or below these percentages due to their unique circumstances. In most cases, salaries and compensation make up the biggest percentage of a church budget.
With staff compensation set at around 50%, you can then allocate around 40% of your budget to ministry expenses and operations. This would include things like utilities, maintenance, supplies, and any other costs associated with running the church.
The remaining 10% can be allocated towards long-term goals or savings for unexpected expenses.
Remember, these are just general ballpark figures and should be customized to your church's unique circumstances and needs.
It's important to regularly review and adjust these percentages as needed based on changes in the church's needs and financial situation.
What's key is that the total percentages allocated need to add up to 100%. It's unwise to operate a church with a budget that exceeds the church's income. This could lead to financial struggles and ultimately hinder the church's ability to fulfill its mission.
Additionally, it's important to involve the congregation in the budgeting process. By communicating and explaining the budget percentages, members can feel a sense of ownership and support for these goals.
Key Budget Goals For Financial Health
According to Aplos, churches should strive for the following goals:
- A minimum weekly attendance of around 150. When a church hits this metric, it typically signifies a healthy and sustainable congregation.
- Six months worth of operating expenses. This ensures that the church has enough funds to cover unexpected expenses and allows for flexibility in budgeting.
- Average giving per member of $1,700 per year. Maintaining this ratio allows for a balanced budget without relying too heavily on a few large donations.
Building A Culture of Generosity
One crucial aspect of budgeting for a church is cultivating a culture of generosity within the congregation. This includes educating members on biblical principles of stewardship and giving, as well as creating opportunities for them to give back to the church and community.
Some ways to encourage generosity within the church include:
- Teaching on tithing and giving. Regularly communicate with members about the biblical principles of giving and how they support the mission of the church.
- Provide transparency in financial matters. Sharing budget information and updates with members can help them understand the importance of their contributions and build trust within the congregation.
- Create opportunities for service and outreach. Encouraging members to volunteer their time, talents, and resources to serve others can foster a culture of generosity and gratitude.
- Offer multiple giving options. In addition to traditional offering baskets, consider providing electronic giving options such as online donations or automatic recurring payments.
Trusting God With Church Budget Percentages
Ultimately, setting healthy church budget percentages is an exercise in trusting and honoring God. As it says in Psalm 24:1, "The earth is the Lord's, and everything in it." We must remember that all resources belong to God and that we are simply stewards tasked with managing them well.
As leaders in the church, it's important to seek God's guidance and wisdom when making budget decisions. This may involve prayer, seeking counsel from trusted advisors, and regularly evaluating the impact of budget allocations on the church's mission and goals.
Church budgets may not be the most exciting or glamorous aspect of ministry, but they play a vital role in supporting the work of God's kingdom. By approaching budget planning with prayer, transparency, and a heart for generosity, we can honor God and steward his resources well to further his mission in the world.
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Church budgeting can be intimidating and challenging, even for the most seasoned leaders. Specifically, it can be difficult to know what percentage of the budget to allocate to each ministry, program, or area of the church.
However, it is important for churches to have a solid understanding of budget percentage guidelines in order to effectively steward their resources and ensure financial health.
Here are some guidelines to consider when determining budget percentages for your church:
1. Start With Your Mission
Before allocating any specific percentages, it is crucial for churches to have clarity regarding their mission and goals. A church's mission and goals will play a large role in determining where financial resources should be allocated.
For example, a church with a strong focus on outreach and evangelism may allocate a larger percentage of its budget toward missions and outreach programs.
2. Consider Your Size and Age
For good or bad, the reality is that the size and age of your church will probably play a significant role in determining church budget percentages. For example, a small church that relies heavily on volunteers and bi-vocational elders may have a smaller percentage of the budget allocated for staff compensation compared to a larger church with multiple full-time staff members.
In addition, the age of your church can also impact budget percentages. A new or growing church may need to allocate a higher percentage towards building and facility expenses, while an established church may have more resources available for ministry programs.
3. Prioritize People
No matter the size or age of your church, it is important to prioritize people and allocate a significant portion of the budget towards programs and ministries that directly impact members and visitors. This could include things like children's ministry, youth groups, small groups, and community outreach.
This ties back into your overall mission and goals as a church. If your mission is to grow and disciple members, then investing in programs and ministries that directly impact people should be a top priority.
4. Don't Forget About Operations
While it may not be the most exciting part of church budgeting, it is important to allocate a percentage towards operations expenses such as utilities, insurance, and maintenance. These costs are necessary for the day-to-day functioning of the church and should not be overlooked.
One way to help manage operations expenses is by creating a budget surplus or emergency fund. This can provide a safety net for unexpected expenses and keep your church's finances stable in the long run.
5. Consider Long-Term Goals
Another important aspect of budgeting for churches is considering long-term goals. This could include things like building renovations, expanding the church facility, or starting a new ministry. While these projects may not be immediate needs, it is important to plan and allocate funds towards them in order to make progress and achieve your goals.
It can also be helpful to involve members of your congregation in the budget planning process and gather their input on potential long-term goals for the church. This can create a sense of community ownership and support for these goals.
6. Underestimate Your Income
When estimating your income for the coming year, it's always best to underestimate how much you'll bring in. This may seem counterintuitive, but it allows for a buffer in case of unexpected decreases in giving. It's always better to have extra funds than to fall short and struggle to make ends meet.
One general rule of thumb is to set your budgeted estimated income as 90% of the previous year's income. Doing this helps ensure that your income estimate is based in reality and rooted in how much income the church has made in previous years.
7. Review and Adjust Regularly
Budgeting is not a one-time task, but an ongoing process. It's important to regularly review your budget and make adjustments as needed. This could include re-evaluating expenses, reallocating funds, or adjusting income estimates.
Regularly reviewing and adjusting your budget can help ensure that it remains realistic and effective in meeting the financial needs of your church. It also allows for flexibility in case unforeseen circumstances arise.
Healthy Church Budget Percentages
There are no hard and fast rules when it comes to church budget percentages. Every church is different and may have different priorities. However, there are some general guidelines that can be helpful when creating a budget.
When setting these budget percentages, church leaders should confer with other similar churches to ensure that they're within reasonable guidelines.
When it comes to staff compensation, the generally agreed-upon range is somewhere between 33% - 50%. According to the Vanderbloemen Group, the average church spends 52% of the church budget on compensation.
Again, there may be churches that are above or below these percentages due to their unique circumstances. In most cases, salaries and compensation make up the biggest percentage of a church budget.
With staff compensation set at around 50%, you can then allocate around 40% of your budget to ministry expenses and operations. This would include things like utilities, maintenance, supplies, and any other costs associated with running the church.
The remaining 10% can be allocated towards long-term goals or savings for unexpected expenses.
Remember, these are just general ballpark figures and should be customized to your church's unique circumstances and needs.
It's important to regularly review and adjust these percentages as needed based on changes in the church's needs and financial situation.
What's key is that the total percentages allocated need to add up to 100%. It's unwise to operate a church with a budget that exceeds the church's income. This could lead to financial struggles and ultimately hinder the church's ability to fulfill its mission.
Additionally, it's important to involve the congregation in the budgeting process. By communicating and explaining the budget percentages, members can feel a sense of ownership and support for these goals.
Key Budget Goals For Financial Health
According to Aplos, churches should strive for the following goals:
- A minimum weekly attendance of around 150. When a church hits this metric, it typically signifies a healthy and sustainable congregation.
- Six months worth of operating expenses. This ensures that the church has enough funds to cover unexpected expenses and allows for flexibility in budgeting.
- Average giving per member of $1,700 per year. Maintaining this ratio allows for a balanced budget without relying too heavily on a few large donations.
Building A Culture of Generosity
One crucial aspect of budgeting for a church is cultivating a culture of generosity within the congregation. This includes educating members on biblical principles of stewardship and giving, as well as creating opportunities for them to give back to the church and community.
Some ways to encourage generosity within the church include:
- Teaching on tithing and giving. Regularly communicate with members about the biblical principles of giving and how they support the mission of the church.
- Provide transparency in financial matters. Sharing budget information and updates with members can help them understand the importance of their contributions and build trust within the congregation.
- Create opportunities for service and outreach. Encouraging members to volunteer their time, talents, and resources to serve others can foster a culture of generosity and gratitude.
- Offer multiple giving options. In addition to traditional offering baskets, consider providing electronic giving options such as online donations or automatic recurring payments.
Trusting God With Church Budget Percentages
Ultimately, setting healthy church budget percentages is an exercise in trusting and honoring God. As it says in Psalm 24:1, "The earth is the Lord's, and everything in it." We must remember that all resources belong to God and that we are simply stewards tasked with managing them well.
As leaders in the church, it's important to seek God's guidance and wisdom when making budget decisions. This may involve prayer, seeking counsel from trusted advisors, and regularly evaluating the impact of budget allocations on the church's mission and goals.
Church budgets may not be the most exciting or glamorous aspect of ministry, but they play a vital role in supporting the work of God's kingdom. By approaching budget planning with prayer, transparency, and a heart for generosity, we can honor God and steward his resources well to further his mission in the world.
podcast transcript
Church budgeting can be intimidating and challenging, even for the most seasoned leaders. Specifically, it can be difficult to know what percentage of the budget to allocate to each ministry, program, or area of the church.
However, it is important for churches to have a solid understanding of budget percentage guidelines in order to effectively steward their resources and ensure financial health.
Here are some guidelines to consider when determining budget percentages for your church:
1. Start With Your Mission
Before allocating any specific percentages, it is crucial for churches to have clarity regarding their mission and goals. A church's mission and goals will play a large role in determining where financial resources should be allocated.
For example, a church with a strong focus on outreach and evangelism may allocate a larger percentage of its budget toward missions and outreach programs.
2. Consider Your Size and Age
For good or bad, the reality is that the size and age of your church will probably play a significant role in determining church budget percentages. For example, a small church that relies heavily on volunteers and bi-vocational elders may have a smaller percentage of the budget allocated for staff compensation compared to a larger church with multiple full-time staff members.
In addition, the age of your church can also impact budget percentages. A new or growing church may need to allocate a higher percentage towards building and facility expenses, while an established church may have more resources available for ministry programs.
3. Prioritize People
No matter the size or age of your church, it is important to prioritize people and allocate a significant portion of the budget towards programs and ministries that directly impact members and visitors. This could include things like children's ministry, youth groups, small groups, and community outreach.
This ties back into your overall mission and goals as a church. If your mission is to grow and disciple members, then investing in programs and ministries that directly impact people should be a top priority.
4. Don't Forget About Operations
While it may not be the most exciting part of church budgeting, it is important to allocate a percentage towards operations expenses such as utilities, insurance, and maintenance. These costs are necessary for the day-to-day functioning of the church and should not be overlooked.
One way to help manage operations expenses is by creating a budget surplus or emergency fund. This can provide a safety net for unexpected expenses and keep your church's finances stable in the long run.
5. Consider Long-Term Goals
Another important aspect of budgeting for churches is considering long-term goals. This could include things like building renovations, expanding the church facility, or starting a new ministry. While these projects may not be immediate needs, it is important to plan and allocate funds towards them in order to make progress and achieve your goals.
It can also be helpful to involve members of your congregation in the budget planning process and gather their input on potential long-term goals for the church. This can create a sense of community ownership and support for these goals.
6. Underestimate Your Income
When estimating your income for the coming year, it's always best to underestimate how much you'll bring in. This may seem counterintuitive, but it allows for a buffer in case of unexpected decreases in giving. It's always better to have extra funds than to fall short and struggle to make ends meet.
One general rule of thumb is to set your budgeted estimated income as 90% of the previous year's income. Doing this helps ensure that your income estimate is based in reality and rooted in how much income the church has made in previous years.
7. Review and Adjust Regularly
Budgeting is not a one-time task, but an ongoing process. It's important to regularly review your budget and make adjustments as needed. This could include re-evaluating expenses, reallocating funds, or adjusting income estimates.
Regularly reviewing and adjusting your budget can help ensure that it remains realistic and effective in meeting the financial needs of your church. It also allows for flexibility in case unforeseen circumstances arise.
Healthy Church Budget Percentages
There are no hard and fast rules when it comes to church budget percentages. Every church is different and may have different priorities. However, there are some general guidelines that can be helpful when creating a budget.
When setting these budget percentages, church leaders should confer with other similar churches to ensure that they're within reasonable guidelines.
When it comes to staff compensation, the generally agreed-upon range is somewhere between 33% - 50%. According to the Vanderbloemen Group, the average church spends 52% of the church budget on compensation.
Again, there may be churches that are above or below these percentages due to their unique circumstances. In most cases, salaries and compensation make up the biggest percentage of a church budget.
With staff compensation set at around 50%, you can then allocate around 40% of your budget to ministry expenses and operations. This would include things like utilities, maintenance, supplies, and any other costs associated with running the church.
The remaining 10% can be allocated towards long-term goals or savings for unexpected expenses.
Remember, these are just general ballpark figures and should be customized to your church's unique circumstances and needs.
It's important to regularly review and adjust these percentages as needed based on changes in the church's needs and financial situation.
What's key is that the total percentages allocated need to add up to 100%. It's unwise to operate a church with a budget that exceeds the church's income. This could lead to financial struggles and ultimately hinder the church's ability to fulfill its mission.
Additionally, it's important to involve the congregation in the budgeting process. By communicating and explaining the budget percentages, members can feel a sense of ownership and support for these goals.
Key Budget Goals For Financial Health
According to Aplos, churches should strive for the following goals:
- A minimum weekly attendance of around 150. When a church hits this metric, it typically signifies a healthy and sustainable congregation.
- Six months worth of operating expenses. This ensures that the church has enough funds to cover unexpected expenses and allows for flexibility in budgeting.
- Average giving per member of $1,700 per year. Maintaining this ratio allows for a balanced budget without relying too heavily on a few large donations.
Building A Culture of Generosity
One crucial aspect of budgeting for a church is cultivating a culture of generosity within the congregation. This includes educating members on biblical principles of stewardship and giving, as well as creating opportunities for them to give back to the church and community.
Some ways to encourage generosity within the church include:
- Teaching on tithing and giving. Regularly communicate with members about the biblical principles of giving and how they support the mission of the church.
- Provide transparency in financial matters. Sharing budget information and updates with members can help them understand the importance of their contributions and build trust within the congregation.
- Create opportunities for service and outreach. Encouraging members to volunteer their time, talents, and resources to serve others can foster a culture of generosity and gratitude.
- Offer multiple giving options. In addition to traditional offering baskets, consider providing electronic giving options such as online donations or automatic recurring payments.
Trusting God With Church Budget Percentages
Ultimately, setting healthy church budget percentages is an exercise in trusting and honoring God. As it says in Psalm 24:1, "The earth is the Lord's, and everything in it." We must remember that all resources belong to God and that we are simply stewards tasked with managing them well.
As leaders in the church, it's important to seek God's guidance and wisdom when making budget decisions. This may involve prayer, seeking counsel from trusted advisors, and regularly evaluating the impact of budget allocations on the church's mission and goals.
Church budgets may not be the most exciting or glamorous aspect of ministry, but they play a vital role in supporting the work of God's kingdom. By approaching budget planning with prayer, transparency, and a heart for generosity, we can honor God and steward his resources well to further his mission in the world.
VIDEO transcript
Church budgeting can be intimidating and challenging, even for the most seasoned leaders. Specifically, it can be difficult to know what percentage of the budget to allocate to each ministry, program, or area of the church.
However, it is important for churches to have a solid understanding of budget percentage guidelines in order to effectively steward their resources and ensure financial health.
Here are some guidelines to consider when determining budget percentages for your church:
1. Start With Your Mission
Before allocating any specific percentages, it is crucial for churches to have clarity regarding their mission and goals. A church's mission and goals will play a large role in determining where financial resources should be allocated.
For example, a church with a strong focus on outreach and evangelism may allocate a larger percentage of its budget toward missions and outreach programs.
2. Consider Your Size and Age
For good or bad, the reality is that the size and age of your church will probably play a significant role in determining church budget percentages. For example, a small church that relies heavily on volunteers and bi-vocational elders may have a smaller percentage of the budget allocated for staff compensation compared to a larger church with multiple full-time staff members.
In addition, the age of your church can also impact budget percentages. A new or growing church may need to allocate a higher percentage towards building and facility expenses, while an established church may have more resources available for ministry programs.
3. Prioritize People
No matter the size or age of your church, it is important to prioritize people and allocate a significant portion of the budget towards programs and ministries that directly impact members and visitors. This could include things like children's ministry, youth groups, small groups, and community outreach.
This ties back into your overall mission and goals as a church. If your mission is to grow and disciple members, then investing in programs and ministries that directly impact people should be a top priority.
4. Don't Forget About Operations
While it may not be the most exciting part of church budgeting, it is important to allocate a percentage towards operations expenses such as utilities, insurance, and maintenance. These costs are necessary for the day-to-day functioning of the church and should not be overlooked.
One way to help manage operations expenses is by creating a budget surplus or emergency fund. This can provide a safety net for unexpected expenses and keep your church's finances stable in the long run.
5. Consider Long-Term Goals
Another important aspect of budgeting for churches is considering long-term goals. This could include things like building renovations, expanding the church facility, or starting a new ministry. While these projects may not be immediate needs, it is important to plan and allocate funds towards them in order to make progress and achieve your goals.
It can also be helpful to involve members of your congregation in the budget planning process and gather their input on potential long-term goals for the church. This can create a sense of community ownership and support for these goals.
6. Underestimate Your Income
When estimating your income for the coming year, it's always best to underestimate how much you'll bring in. This may seem counterintuitive, but it allows for a buffer in case of unexpected decreases in giving. It's always better to have extra funds than to fall short and struggle to make ends meet.
One general rule of thumb is to set your budgeted estimated income as 90% of the previous year's income. Doing this helps ensure that your income estimate is based in reality and rooted in how much income the church has made in previous years.
7. Review and Adjust Regularly
Budgeting is not a one-time task, but an ongoing process. It's important to regularly review your budget and make adjustments as needed. This could include re-evaluating expenses, reallocating funds, or adjusting income estimates.
Regularly reviewing and adjusting your budget can help ensure that it remains realistic and effective in meeting the financial needs of your church. It also allows for flexibility in case unforeseen circumstances arise.
Healthy Church Budget Percentages
There are no hard and fast rules when it comes to church budget percentages. Every church is different and may have different priorities. However, there are some general guidelines that can be helpful when creating a budget.
When setting these budget percentages, church leaders should confer with other similar churches to ensure that they're within reasonable guidelines.
When it comes to staff compensation, the generally agreed-upon range is somewhere between 33% - 50%. According to the Vanderbloemen Group, the average church spends 52% of the church budget on compensation.
Again, there may be churches that are above or below these percentages due to their unique circumstances. In most cases, salaries and compensation make up the biggest percentage of a church budget.
With staff compensation set at around 50%, you can then allocate around 40% of your budget to ministry expenses and operations. This would include things like utilities, maintenance, supplies, and any other costs associated with running the church.
The remaining 10% can be allocated towards long-term goals or savings for unexpected expenses.
Remember, these are just general ballpark figures and should be customized to your church's unique circumstances and needs.
It's important to regularly review and adjust these percentages as needed based on changes in the church's needs and financial situation.
What's key is that the total percentages allocated need to add up to 100%. It's unwise to operate a church with a budget that exceeds the church's income. This could lead to financial struggles and ultimately hinder the church's ability to fulfill its mission.
Additionally, it's important to involve the congregation in the budgeting process. By communicating and explaining the budget percentages, members can feel a sense of ownership and support for these goals.
Key Budget Goals For Financial Health
According to Aplos, churches should strive for the following goals:
- A minimum weekly attendance of around 150. When a church hits this metric, it typically signifies a healthy and sustainable congregation.
- Six months worth of operating expenses. This ensures that the church has enough funds to cover unexpected expenses and allows for flexibility in budgeting.
- Average giving per member of $1,700 per year. Maintaining this ratio allows for a balanced budget without relying too heavily on a few large donations.
Building A Culture of Generosity
One crucial aspect of budgeting for a church is cultivating a culture of generosity within the congregation. This includes educating members on biblical principles of stewardship and giving, as well as creating opportunities for them to give back to the church and community.
Some ways to encourage generosity within the church include:
- Teaching on tithing and giving. Regularly communicate with members about the biblical principles of giving and how they support the mission of the church.
- Provide transparency in financial matters. Sharing budget information and updates with members can help them understand the importance of their contributions and build trust within the congregation.
- Create opportunities for service and outreach. Encouraging members to volunteer their time, talents, and resources to serve others can foster a culture of generosity and gratitude.
- Offer multiple giving options. In addition to traditional offering baskets, consider providing electronic giving options such as online donations or automatic recurring payments.
Trusting God With Church Budget Percentages
Ultimately, setting healthy church budget percentages is an exercise in trusting and honoring God. As it says in Psalm 24:1, "The earth is the Lord's, and everything in it." We must remember that all resources belong to God and that we are simply stewards tasked with managing them well.
As leaders in the church, it's important to seek God's guidance and wisdom when making budget decisions. This may involve prayer, seeking counsel from trusted advisors, and regularly evaluating the impact of budget allocations on the church's mission and goals.
Church budgets may not be the most exciting or glamorous aspect of ministry, but they play a vital role in supporting the work of God's kingdom. By approaching budget planning with prayer, transparency, and a heart for generosity, we can honor God and steward his resources well to further his mission in the world.