Strategic Financial Assessment

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Strategic Financial Assessment Places Growing Ministry On the Path to Long-Term Stability and Future Acquisition

 

A small, well-tenured ministry with a recent explosion of multi-generational membership growth had been considering erecting a new church facility to accommodate the people and projected expansion.  With the passionate leadership of a first time pastor and a predominantly seasoned board of trustees, KDR was called in to provide some insight and assess the current financial stability of the ministry.  This research would equip them with the potential steps needed to progress into a new building development process.

 

Situation

This traditionally small membership ministry is currently experiencing overwhelming growth under its new pastoral leadership.  With this growth, space has seemingly become coveted and they are currently leaning towards a new building project.  A portion of the ministry saw this as a great marketing opportunity, while a sizable aspect of the leadership team wanted to professionally assess the financial strategy that would be best for an endeavor of this magnitude.

 

Strategy

 A financial assessment of giving units within the current church family was calculated along with the evaluation of the past three years quarterly financial projections versus actual revenue.  We also assisted in creating a people and workflows evaluation to diagnose the financial impact that a potential new facilities operating structure would impose on the current revenue, salaries, and staff.

 

Their immediate financial reserves would suffer a 65% decrease that would demand a three-year management strategy to curtail spending activities that have not rendered themselves beneficial to the potential building project.  KDR suggested the employment of an experienced bookkeeper and accountant that would assist in regulating the churches financial picture and enhancing the long-term stability of the ministry.

 

During the first few months of this assessment, we noticed that there was still more work to do.  Our attention began to focus toward current on-site facility enhancements that would deem themselves cost effective to the ministry and produce increased space and beautification for the churches current growth explosion.

 

 

Results and Rewards

Due to our assessment strategy and financial stability plan, the ministry has been able to add on space for worship services at a minimal cost and increase their exposure through technology and outreach ministry opportunities.  With the financial planning and savings, they have increased community involvement via youth and women ministry.  Finally, the three-year management strategy will place them in the proper financial space to acquire an additional 72 acres of land in immediate proximity of the current facility.

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