It is possible to set up your Jewel Budget Allocations using percentages, in which 100% of your Church Budget donations are allocated to one Local Fund or another each month. You can do this by entering percentages for all accounts, or you can mix percentages and dollar amounts.
If you choose to mix percentages and dollar amounts, then the accounts for which you enter a percentage will receive funding from what is left after all the dollar amounts have been allocated. For example, if Church Budget received $1500 during the month, and the Monthly Allocation Total Cash Amount is $900, the difference of $600 will be divided between the Percentage accounts.
In general, use dollar amounts for monies that you must spend, like the mortgage and utilities. Other items you may choose to fund as percentages, so that they only receive funds if there is sufficient income, like Flowers or Prayer Ministry.
Think carefully before using percentages, for the following reasons:
$ - Accounts and ministries receive allocations based on need and actual usage. Ministries with more than a year’s balance in hand or that are not active need no allocations. Ending balances in church expense accounts are small and in proportion to expenses. Reports are easy to understand.
% - Accounts and ministries receive allocations whether they need them or not, and what they receive is based on giving levels, not actual usage. Ending balances can be large or can be deeply in the negative. Ending balances are not clear or simple.
$ - Budget numbers are easy to produce each year. Calculate annual expenses based on actual usage, divide by 12.
% - More difficult math to come up with accurate percentages. A small variation in decimal points can make a large difference.
$ - Few additional transfers needed at end of year.
% - Lots of research needed before making end of year transfers. To zero out negative ending balances, first must reclaim excess funds in over-budget accounts, since there is no available balance in Church Budget.
Three things the board needs to know:
$ - Results in an accumulation of unused Church Budget funds that can be used anywhere on short notice. Can easily see exactly how much you have available if needed.
% - Results in a zero Church Budget balance every month. All funds are spread out among local funds, and if an emergency arises, the extra funds will have to be reclaimed before they are available. Can’t see at a glance how much is available.
$ - Just adjust the allocation amount
% - If you need to change one percentage, must change another one or more. Must always equal 100%
$ - Easier to allocate to a new fund mid-year
% - Adding new fund mid-year results in needing to refigure the percentages all over again
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The original version of this page was provided to Jewel by the Georgia-Cumberland Conference Audit Team. Created by Linda McCabe.