Budget deficit

With changes to our ward boundaries last year, we had a new budget allocation but it didn't kick in right away. We currently do have a budget deficit which of course carries over to this year. My question is; we've had allot of funds in our Ward missionary account for a long time and was wondering if we could call a few of the brothers/sisters that have donated to the mission fund to see if we could transfer what they donated to our Budget to level things out for this year? Total $2021

Member donations to budget are not allowed.

So, no, that can't be done.

The approved method to cover a ward budget deficit is to seek assistance from your stake. Your bishop will need to speak with your stake president and explain the situation and ask for the assistance.

I'm not a church finance guy, but I think that carrying a (relatively small) negative budget balance might not necessarily need to be immediately resolved. If the negative balance were relatively minor and the Bishop feels that throughout the year, as the quarterly allotments come in and the ward incurs expenses, there's a likelihood that the budget becomes balanced, maybe that's a possibility.

Again, others know these details much better than myself, so I might be mostly incorrect, or way out in left field. And of course if the negative balance is substantial, that changes the situation.

"Budget" can mean two things:

There's the ward allocation from which all activities are to be funded, and then there's what I call the "spending plan" that outlines how much can be spent in various organizations and activities.

I assume this is a case where expenses exceeded allocation. This is like overdrawing your personal checking account. If the ward account really did go negative, I'm sure the stake president is aware and is having a conversation with the bishop. Church Headquarters many be involved.

If it was just the "spending plan" that was exceeded, I doubt if anyone outside of the ward cares. But it does mean the bishop (with the help of the clerks) needs to keep an eye on expenses and make sure the ward leaders are aware "No stake or ward expenses may be incurred or paid without the presiding officer’s authorization." (General Handbook 34.5.7)

jvoran wrote: Sun Jan 05, 2025 1:08 pm With changes to our ward boundaries last year, we had a new budget allocation but it didn't kick in right away. 1

With the boundary changes, there probably should have been some kind of allocation transfer between units arranged.

russellhltn wrote: Sun Jan 05, 2025 1:37 pm Member donations to budget are not allowed.

So, no, that can't be done.

The General Handbook source for this is 34.6.2.2. Appropriate Use of Budget:

Members who want to contribute additional funds to the Church may not designate them for the stake or ward budget. Instead, leaders encourage them to contribute the funds to fast offerings, missionary funds, humanitarian aid, or other authorized donation categories.

Just to add, there is a budget category on the paper slips. It used to be just to return excess funds from an advancement. But with the elimination of the "Other" category in the system, it could also be used for families to pay for a youth event in accordance with General Handbook 20.6.2 and 20.6.3.

Either way, the "donation" will not show in the member's tax statements of donations.

Long ago, members did contribute to the ward budget, but that was eliminated decades ago.

russellhltn wrote: Mon Jan 06, 2025 4:09 pm Just to add, there is a budget category on the paper slips. It used to be just to return excess funds from an advancement. But with the elimination of the "Other" category in the system, it could also be used for families to pay for a youth event in accordance with General Handbook 20.6.2 and 20.6.3.

Either way, the "donation" will not show in the member's tax statements of donations.

Long ago, members did contribute to the ward budget, but that was eliminated decades ago.

The current paper tithing slips do not have a budget category on them. The only categories are tithing, fast offering, general missionary, ward missionary, humanitarian aid, and other (specify).