Here are the four most common money mistakes I see when I help youth workers manage their budgets.
You love working with students and despise working with money. That’s why you’re a youth minister and not an investment banker. But you also know the fastest way to lose your job is to mismanage your church’s money. You’re doing the best job you can with the funds you’ve been given, but it’s easy to mess up without even thinking about it. These are the four most common money mistakes I see when I help youth workers manage their budgets:
1. Paying sales tax sometimes or all of the time. Depending on your state, as much as 7 percent of your budget could go to sales taxes if you’re not careful. It takes just a little bit of work on the front end to figure out tax-exempt systems, but after that, it’s a no-brainer to make sure you don’t pay what you don’t have to pay.
2. Being too optimistic when paying deposits or buying tickets. I know, it would be awesome if 80 students showed up for the Switchfoot concert, but if that’s never happened before, you can’t count on it. Don’t get stuck with 40 extra tickets—that’s like setting $1,200 on fire.
3. Failing to negotiate totally negotiable prices. Imagine you ran a retreat center that was running far below capacity during the off-season. Would you rather rent your space at discounted price or not rent it at all? Can you imagine how many fundraisers you could cut if you asked for and received a 20 percent discount on your next big rental?
4. Focusing on saving pennies instead of making a few big wins. I know a guy who would call his volunteers to ask them to cut pizza coupons from the Sunday paper. It saved him a few dollars, but he would have saved hundreds of dollars and hours of time if he’d just called the pizza place and asked for a church, nonprofit or large group discount.
Now it’s your chance to be the teacher. What is one of the money mistakes you’ve made? How did you fix it?