Budget-Making at First Friends Meeting
First Friends Meeting, like other places of worship, balances its spiritual side with the practical to be able continue to serve members, attenders and the community well into the future. This message, part of a Financial Education Project series, is intended to demystify the budget-making process.
The Process
1. The first step in creating a budget for a new calendar year takes place in September, when the Finance and Development Committee collects budget requests for the upcoming year. Clerks of the following committees provide requests: Christian Education, Connections, Fellowship, Ministry and Counsel, and Witness and Service.
Other budgetary requests come from the following sources:
· Administration – Requests are provided by the office.
· Building and Grounds – Finance and the Maintenance Committee confer to estimate needs.
· Friends Assessment – This budgetary item is set annually by Western Yearly Meeting.
2. The second step is for the Finance Committee to convene to review budgetary requests, focusing on areas that might reflect overlap of committee responsibilities or that could elicit questions in the final approval process. For example, if a committee requests a substantial increase without explanation, the Finance clerk could follow up for clarification.
3. The third step is a convening of Clerks Council – which consists of clerks from all committees plus Trustees, as well as the Clerk of the Meeting – to discuss the category of Personnel and Services. The largest expenditure at First Friends is Personnel and Services, which includes compensation and benefits for both salaried staff and hourly workers.
Clerks Council considers whether increases in compensation are in order for the new year, taking into account performance, cost of living, and current financial status of the Meeting. This discussion helps the clerk of Finance to determine a “placeholder” figure to present in the new budget in the category of Personnel and Services.
4. The fourth step in budget creation is for the clerk of Finance to present a budget at the November Monthly Meeting for attendees to approve, decline, or approve pending specified changes. Once a budget is finalized, most of the budgetary categories are unlikely to change in the new year. There may be future changes in the category of Personnel and Services, however, depending on the financial health of the Meeting after the close of the prior calendar year and other economic factors.
5. A final budgetary step may take place at the March Monthly Meeting if the clerk of Finance needs to present an updated budget, with changes most likely to be in the category of Personnel and Services. All changes to the budget must be approved by Monthly Meeting.
How to Engage
Monthly Meetings are essential to the business dealings of First Friends. These meetings usually take place the third Sunday of the month following Meeting for Worship. Typically, there is no meeting in December, and often no meeting in either June or July.
At each Monthly Meeting, the clerk of the Finance Committee presents a report showing year-to-date budget development, with comparisons to one year prior. The clerk’s report also includes a summary of financial activity and an accounting of available reserves.
Anyone who would like to engage in the budgetary process is encouraged to attend Monthly Meetings to stay up-to-date on First Friends finances. If unable to attend all of the meetings, it helps to at least attend the November meeting for the initial presentation of the budget. The March Monthly Meeting also is insightful in case of budgetary adjustment.
Another way to engage in the budgetary process is to join a committee. Committee members can give feedback to clerks to help determine budgetary requests. Additionally, serving on a committee is one of the best ways to get to know other members/attenders and enrich the First Friends experience.
Coming Up
The many volunteers who work on the financial needs of First Friends Meeting take care to keep the budgetary decision-making process transparent and accessible. Please email any questions or comments to office@indyfriends.org, and stay tuned for the next installment of the Financial Education Project, which will address the financial role of Trustees.