Pastors around America were shocked in 2018 when they realized that their churches may have to pay the Unrelated Business Income Tax (UBIT) to IRS because of parking for their employees. As illogical as this is, the 2018 TCJA law declared that the expense of providing free parking (and/or transit passes) for employees is deemed to be an item of Unrelated Business Income (UBI) to charities.
Initiating the practice of budgeting sets a plan around how God is calling His church to use the funds He will provide. Intentional forethought from church leadership in crafting a budget guides the church financially throughout the year, increasing stewardship of the funds God has entrusted to your church, increasing accountability for church leadership, and fostering confidence in the management of funds given by congregants.
Churches frequently fall prey to thinking that there is no need to budget because “next year is going to be a lot like this year”. When I hear those remarks from churches, I think of the truth in Yogi’s observation, and wonder if heaven weeps at a missed opportunity to hear what the Lord has planned for that ministry. Is that church headed to where He wants it to go – or to “someplace else”?
