Two answers to this question come quickly to mind.

• First, this technique in essence is untruthful.  In order to make good financial decisions a church MUST provide accurate financial reports.  Implicit in the word “accurate” is the assumption that “We are telling the truth”.  In the handful of times when I have seen this become an issue in a church, the loss of trust that was experienced turned out to be devastating.
• Second, a budget is intended to be a tool that must be used properly.  I am no handy man, so I generally leave the use of hand tools to others who are proficient in their use.  But, I have enough handy man sense to know that if I use a hand saw improperly, I might cut the board badly. (Or worse, myself!)  Likewise, a church budget should be used properly so that no one gets hurt. 

A budget should be used to guide the church through its fiscal year.  When things don’t go according to the budget plan, that’s OK.  The budget’s role is to tell the church when it is time to make mid-course corrections.  It cannot perform its role, if it is monkeyed with repeatedly.

If our answers only raise more questions (which is typical for CPAs) feel free to post a question on the blog or email me at verne.hargrave@pskcpa.com