9 Finance Questions Every Church Planter Must Answer

Most church planters don't plant a church because they love finances and administration. They plant because they feel a call to share the Gospel in a particular place. They envision preaching, discipling, and shepherding people. When I started my own church planting journey, I knew little about what was needed financially and administratively. I knew we needed funding, but had no idea about everything else that came with it.

You don't need to be an expert in church finance. But you must know some essential aspects from the start. The nine questions below put the most important financial tasks on your radar.

The 9 Questions

1. Are you set up correctly with state and federal authorities?

Filing your articles of incorporation and registering as a nonprofit with your state is step one. Without this, nothing else works: no bank account, no tax exemption, no legal protection for your leadership.

2. Have you filed for tax exemption with the IRS and your state?

Form 1023 (or 1023-EZ for smaller churches) establishes your federal 501(c)(3) status. Many states have a separate exemption process as well. This is what makes donations to your church tax-deductible for givers.

3. Do you have what you need to open a bank account?

Banks require an EIN (Employer Identification Number) and typically your incorporation documents to open a business account. Get your EIN from the IRS for free; you need it for everything from payroll to giving platforms.

4. Do you have an online giving platform to receive and track donations?

Planning Center Giving, Subsplash, and Pushpay are the top three platforms for churches. Pushpay is the only one that connects directly with QuickBooks. Choose one before your first Sunday and set it up properly from the start.

5. Do you understand minister's tax and is your housing allowance set up correctly?

If you're the pastor, you are self-employed for Social Security and Medicare purposes, which means SECA taxes, Schedule SE, and a housing allowance designation your board must approve before the first paycheck of the year. This is one of the most common areas of IRS audit for ministers.

6. Are you tracking donations for year-end giving reports?

Every donor who gives $250 or more in a calendar year needs a written acknowledgment from the church. Most giving platforms automate this, but only if they are set up correctly from the beginning.

7. Do you have a budget that can grow with your church plant?

A simple budget in a spreadsheet works early on. But build it in a way that reflects how you want to categorize expenses long-term, including ministry areas, administrative costs, and personnel, so your chart of accounts makes sense as you grow.

8. How will you track and code expenses?

Every expense needs a receipt and a ministry purpose. Establish your expense reporting process early, even if it is simple, so there is never a question about where ministry funds went.

9. How will you teach a biblical view of giving and stewardship in your church?

The administrative side of finances only serves the mission when your congregation understands why generosity matters. Build a culture of stewardship from the first Sunday, not as a fundraising tactic but as discipleship.

A word of encouragement. You do not have to figure all of this out today. But having these questions on your radar early, and knowing who to call when they come up, is the difference between a church plant that thrives administratively and one that scrambles. People on your core team or with your sending church can help, and so can our team at ChurchBiz.

Take the course. The Church Plant Finance Course from ChurchBiz walks you through every one of these questions in depth, with practical lessons built specifically for church planters. From entity setup to minister payroll to your first budget, it is the financial foundation course your church needs. Explore the course