Financial Update (and Year-End Giving Info)

By Gary Keith, Lead Pastor 

Last Year’s Surplus Last year, God blessed His ministry here at LBF with financial offerings that went over and above our planned budget and expenses. Our budget last year was $1,650,000. We received $1,689,930 – a $39,930 surplus. We are so grateful for God’s provision and the generosity of our church body.

Many of you know we carry a mortgage for the property and buildings. While our monthly mortgage payments are only 7% of our monthly expenses – a very healthy percentage – it has long been a priority of the Elders to pay down this mortgage note in an effort to become debt free. In light of this long-term goal, the Elders have decided to apply our surplus giving from fiscal year 2012-2013 of $39,930 towards our mortgage principle. This application of the surplus funds, combined with other gifts made to our debt reduction fund last year total $114,940. That amount will be applied to our mortgage debt reduction.

We see this as a huge blessing from God in His provision for this church. We are more than thrilled that we have the opportunity to reduce our debt by a significant amount. I hope you will rejoice with us in how God has provided for us this past fiscal year.

Some of you may be wondering why would we take the surplus from last year and apply it to debt reduction when our current giving isn’t funding our new budget? Good question. I encourage you to read on.

Current Year’s Deficit 

Each year the Elders gather and prayerfully create our annual budget. A measure of faith goes into building any budget as no one can predict the future, especially for a spiritual work of God. We are utterly dependent on His guiding and provision. And that’s exactly where God wants us to be. Our eyes are “fixed on Jesus as the author and perfecter of our faith” (Hebrews 12:2). He is the God that owns the cattle on a thousand hills (Psalms 50:10). Everything is His; we are merely stewards who manage what He owns.

It’s in faith we build and plan our budgets. And this planning too is of God. “For which of you desiring to build a tower, does not first sit down and count the cost” (Luke 14:28).

Faith and planning come together in our budgeting process. And this leads us to our current situation. As we mentioned earlier, last year we had a surplus of giving. But this year we’re missing our budgeted income/giving goals. As a result, I’ve had conversations with people who are concerned for our financial health. I’m thankful for church family members who are genuinely concerned and are motivated to pray for our church. And while the four-month negative trend isn’t positive news – no matter how you look at it – we’re committed to not spending more money than we have actually received.

Approach to Budgeting 

How it is possible to spend less than we’ve actually received? It’s based on our planning and approach to budgeting. Our annual budget plan contains three levels of ministry funding:

1. Level 1 – Core Ministry. This represents ministry we will absolutely fund during the year. For example: funding given to all ministries – missions, kids, students, college, and adults. Also included are salaries, facilities, utilities, and administrative costs. 
2. Level 2 – Opportunity Ministry. This represents ministry we’d like to invest in this year, but doing so is dependent on our current progress towards funding our budget goals. For example: smaller one-time ministry project investments, equipment purchases, smaller building improvements, training opportunities, etc. 
3. Level 3 – Future Strategic Investments. This represents ministry we will only fund if giving is fully supporting the annual budget. For example: larger building improvements and equipment purchases, development of future ministry initiatives, further payments towards debt reduction, etc. 

If giving is not fully supporting the budget (where we are currently) we will not spend monies on Level 3 – Future Strategic Investments. Depending on the level of giving, we might invest some in Level 2 – Opportunity Ministry, but not at a rate that would jeopardize our ability to fund Level 1 – Core Ministry.

We believe God is using His ministry at LBF in powerful ways in the lives of hundreds of people. We continue to trust in and depend on God for His provision in our church finances. As a part of the family of LBF, we would ask you at this time to prayerfully consider what God would have you give financially. as part of your worship and being obedient to what God asks of you. It’s not about a tithe, it’s about responding to whatever God asks of each of us.

We thank you for your financial contributions, service, and prayers for Life Bible Fellowship Church. May God be glorified in all we are and all we do as we continue to passionately pursue LIFE in Jesus and lead our neighbors to do the same. If you have any questions about our finances, please don’t hesitate to contact me @ (909) 981-4848.

Year-End Giving

As the end of 2013 approaches, please remember the IRS laws regarding giving. In order for your giving to be included in 2013, all mailed checks must be postmarked no later than December 31, 2013. PayPal giving cannot be any later than 11:59 p.m. on December 31, 2013. Thank you for supporting our ministry here at LBF.