It is a new year!  How did your church do with its 2025 budget? Did you see extra money in your account?  What will you do with the extra from 2025?

Some churches benefited from year-end and new year giving and realize they collected more money than they spent. Leaders breathe a sigh of relief.

Born from a spirit of prudence and a conservative nature, many churches keep funds—from general savings to dedicated accounts—sitting idle in no- or low-interest checking and savings accounts. While this ensures immediate access, it also means the churches doesn’t benefit from interest.

If your church finished 2025 with more cash than is necessary for operational cash flows, or if you have specific reserve funds, the new year is the perfect time to ask a critical question: Is our money growing?  Is it working for our church? 

Cultivate Your Financial “Pots” 
Local churches often maintain several distinct financial “pots,” and each “pot” deserves cultivation of the funds planted in them: 

• General Savings/Operating Reserves: Money set aside for emergencies or future projects. Is it earning less than 1%? 
• Memorial Funds: Dedicated funds given in remembrance of loved ones. These funds often sit untouched for years, waiting for the right project. 
• Trustee/Building Funds: Capital designated for maintenance, repairs, or future expansion. These funds can grow substantially over time but often sit in non-interest-bearing accounts or low-yield CDs. 
• Endowments or Long-Term Reserves: Money intended for perpetual growth to support ministry for generations. “True” donor-restricted endowments are to be invested for total return in diversified portfolios, according to state law. 

Letting funds sit in low-yield accounts or no interest account (i.e., checking accounts) means losing out on the power of compounding investment returns, essentially diminishing the purchasing power of those dollars over time due to inflation.

For churches seeking more growth-oriented options, consider Midwest Methodist Foundation, which has been growing funds for ministry since 1949!

If your church is holding funds in low-yielding CDs, consider transferring the funds to the Foundation when they mature. The Foundation offers professionally managed investment options that align with United Methodist values, providing significantly better returns than local bank deposits and CDs over the long haul. Withdrawals from church accounts are fulfilled and received by the church typically within just 2-3 business days.

Make the hard-earned gifts and tithes of your congregation grow for your church’s ministry. This new year, take the crucial step of engaging your leadership to explore how your church’s money can be cultivated and grown in their pots for a greener future!

For more information, please contact Chris Walters or visit the Midwest Methodist Foundation webpage.