Does your church use a budget?

I have only pastored two churches, and neither had a budget (but we did have spending limits in certain categories). One was a small church of about 45, the other not as small (about 200 for at least a decade of my time there). My last church didn’t have a loan for over 25 years and both churches stayed in the black.

Of course, a lot of things factor into this, like buildings that were paid off, etc. I know of a Christian organization that did well financially until they got a budget.

Unknown to many, there is more than one way to handle money. My philosophy was the “bohemian method,” which involves a saving ethic and paying cash rather than taking out loans. I am assuming most churches do operate on a budget, partly because board members are often parts of corporations or businesses, and that is how we are used to doing things here in the west.

So what are your thoughts, pros and cons?