NACBA Conference Rod Wiltrout Church Finance Specialist

NACBA Conference Rod Wiltrout Church Finance Specialist
Healthy Church Group California Southern Baptist Convention, Fresno, CA

Table of Contents Church as a Business
Funding & Building Information You Won’t Find Anywhere Else-John Weinstein The Treasurer Cash Management Review Committee Investment Strategies, Policies and Procidures

Table of Contents Dynamic Church Budgeting The Pastor’s Role
The Finance/Stewardship Team The Budget Process Pastoral Compensation Outside Contracting vs. Internal Control Computer Software Websites and Resources to assist you

Things every church needs to know
Church as a Business Things every church needs to know

Here is What the IRS Says
You are a 501 (c) 3 business Focus of organization's purpose must be to benefit the community or society as a whole, not just the organization's members and their families or other select individuals. A §501(c)(3) organization may not devote a substantial part of its activities for lobbying purposes. (section 2A.1)

Here is What the IRS Says
If substantial lobbying activities exist, tax exempt status is forfeited. Lobbying activities may be found to be substantial in the ten to twenty percent (10-20%) range of total nonprofit activities. (section 2A.2) Any organization exempt from tax under §501(a) must nonetheless pay income tax on its unrelated business income. This refers to income derived from any unrelated trade or business regularly carried on. (section 3A)

Capital Fund Raising

Capital Improvement Funding
California Plan of Church Finance National Firm Member of NASD A subsidiary of the California Baptist Foundation John Weinstein (888) ext.

Qualifications and Duties
The Treasurer Qualifications and Duties

First, the Basics Funds must be properly managed
IRS does not tell the church how much to pay staff, but it does require that it be done in a certain and timely manner Church members want to know that the money they give is being handled properly They demand a greater accountability and have higher expectations of business operations

The Treasurer One of the most time consuming jobs in the church
Needs to produce timely and reliable information Bills must be paid on time Tax requirements must be met May be responsible for financial decisions

Qualifications Willingness to work cordially with people and the ability to be fair minded Have knowledge of the working organization of the church Should reflect the highest Christian ideals Should have knowledge of accounting procedures or the willingness to learn accounting procedures Person selected to be church treasurer, tithes

Qualifications Possess a sense of calling from God
Be open and willing to receive training Be capable of managing details of financial matters Be persons of integrity Be good stewards Be capable of maintaining confidentiality Have a good reputation

Duties Keep accurate records in appropriate financial journals of all monies received and disbursed. Reconcile monthly bank statements and correct ledgers as needed. Sign checks in accordance with church policies and procedures and verify the supporting data for each check request.

Duties Make monthly and annual reports to the church. If the church has a committee to oversee the financial matters of the church the treasurer should also make regular reports to the committee. Keep church staff and appropriate committees informed of any trends or changes in fiscal matters. Instill and preserve a high financial confidence throughout the congregation.

Duties Submit accurate financial records for annual audit according to church policy REMEMBER : the money belongs to the CHURCH not the treasurer.

Cash Management

Church Record Keeping Someone must be responsible for the stewardship of the church's funds. Keeping accurate financial records Preparing accurate and meaningful financial statements Budgeting and anticipating financial problems Safeguarding and managing the organization's financial assets Complying with federal and state reporting requirements

Preparation of Financial Reports
Comprehensible so that anyone taking the time to study them will understand the financial situation. Concise so that the person reading them will not get lost in detail. Inclusive so that all activities of the church are reported. Comparative with year to date spent or budget amounts. Timely, as soon after the end of the month as possible.

Accounting Methods Single Entry Double Entry

Counting the Money At least two counters in a secure room
Necessary tools-calculators w/ paper, red pencils, coin rollers, locking money bag Keep envelopes for three years Loose offerings counted and verified Envelopes opened, amounts enclosed verified and marked on each envelope This is from my own experience and maybe yours. Talk briefly about the danger of people coming while counting is taking place; loss of attention, miscounts, misplaced monies, etc. ALSO, talk about the policies on p Spending limits are necessary for large expenditures. You cannot spend more that the account currently has until special permission is given by the church.

Total amounts taken out of envelopes should agree with total of all envelopes
Notations of designated offerings noted on count sheet Deposit of all monies is prepared Total deposit must be equal to coins, bills and checks, notes on count sheet Totals of envelopes, special gifts, and the loose offerings must also equal total deposit All money received should be deposited and have counters sign count sheet

Cash Management Internal Control Detect error or fraud
Check accuracy and dependability of financial records Encourages adherence to regulations and policies – should be in writing Keeps honest members honest by removing the temptation of dishonesty Basic Control Do not assign the same person responsibility for more than one of the following tasks: Counting the offering Writing checks Reconciling the bank statements Recording individual contributions No payments for services from offerings

What are Contributions?
A charitable contribution is the voluntary transfer of cash or property motivated by something other than "consideration". Consideration is something being received in return for a payment.

Gift Options: see page 15-16
Cash Securities Real Estate Life Insurance Bargain Sale Personal Property Charitable Gifts of Partial Interest

Gift Options Charity Auction-gift is only amount spent above fair market value Gifts made by an individual directly to a missionary are not deductible as charitable contributions. To be tax deductible contribution must be to or for the use of an IRS approved tax-exempt organization. If the gift meets the true definition of a gift, the missionary would not have to claim it as income. See page 21.

What is Not a Tax Deductible Gift
Service Use of Property Gifts made to Individuals – may not designate the recipient of the gift Private School tuition There can be no strings attached and the gift must be used for tax purposes in the year it was given The gift is given at the point of “irrevocable giving over”

Conditions for Gift Giving
Gifts in excess of $5,000 must be appraised by an accredited appraiser and IRS form 8283 must be used to document the gift Receipt should not list value of the gift Receipt should list items on page 22 Donee (church) must keep sufficient records to validate gift Receipt must be given no later than January 31 of the year following donation

Restricted Funds These funds are used to account for resources received from donors or outside agencies, but are restricted to a specific purpose. The restrictions or guidelines for the fund should be in writing. Takes a church vote or letter from donor to un-designate or re-designate funds

Restricted Funds HOWEVER, donors cannot force church to adhere to their designation Violates irrevocable giving over of funds However, DA can and often does “Enforcing Donor Restrictions on Gifts to Charity” by Richard Hammer gives full treatment of this issue.

Discretionary Funds Used at the discretion of the party (s) who oversee it List of restrictions on use of funds is required to keep funds from becoming income to recipient Ask for IRS Publication Or, you can download a copy on the IRS website,

Discretionary Funds (2) private benefit
In addition to the prohibition on inurement to “insiders,” a section 501(c)(3) organization’s activities may not serve private interests. The tax guide explains this limitation as follows: An [exempt] organization's activities must be directed exclusively toward charitable, educational, religious, or other exempt purposes. Such an organization's activities may not serve the private interests of any individual or organization. Rather, beneficiaries of an organization's activities must be recognized objects of charity (such as the poor or the distressed) or the community at large (for example, through the conduct of religious services or the promotion of religion). Private benefit is different from inurement to insiders. Private benefit may occur even if the persons benefited are not insiders. Also, private benefit must be substantial in order to jeopardize exempt status.

Financial Procedure and Review
The purpose of a review of the church’s financial records is to: Support the treasurer in his/her duties. Verify that the financial records area being maintained in an accepted accounting practice manner. Verify that disbursements and receipts are posted correctly and reconciled with the bank. Verify that the financial reports that have been given to the church agree with the official General Ledger and Balance Sheet of the church.

Review Committee

Review is to be performed when
The fiscal year ends. A new treasurer is elected. Misuse of funds is suspected. Any other time an appropriate governing board so requests.

Responsibilities of Review Committee
Spot-check the offering envelopes to verify the individual record of contributions Verify bank deposit slips with entry in financial records Spot-check disbursements for proper entry and distribution of charges to various budget accounts Check the accuracy of the total in all accounts

Determine if approved procedures have been followed in the handling of church funds Study the insurance program of the church to determine if sufficient amount is carried. Review Committee does not perform this task if the church has assigned someone else this responsibility, such as Properties Committee.

Review Committee should submit list of people to be bonded including: Treasurer Counting Committee Any secretaries handling monies Others who handle funds Blanket policies may be provided through church insurance company Study the retirement and employee insurance programs to determine if adequate protection is provided. Do not perform this task if another committee has this task. J. David Carter, Managing Your Church Finances…Made Easy, (LifeWay Press, 1998) p. 54.

For additional resources Call (800) for a copy of “A Financial Examination Guide” by Marvin peters, D. Min.

Investment Strategies, Policies, and Procedures
Questions You Should Ask

Questions You Should Ask:
Which types of investments are acceptable risk to your church? Who will administrate the funds? A person or committee? What percentage of funds will be invested? Can the broker be a church member? Ethical standard – types of prohibited companies – pornography, tobacco, alcohol, abortion, gambling, etc.? Written policies and procedures.

Dynamic Church Budgeting
Hello, my name is ________________. I represent the Stewardship Development Department of the California Southern Baptist Convention. Today we are going to look through a process to help you develop a comprehensive budget that is based on your Mission, Vision and goals for this year. Along the way we will look at possible problem areas with possible answers to those problems. Let’s begin. Holistic Budgeting for the 21st Century

Better Budgeting A budget is nothing more than your church's plans expressed in numbers, an expression of what the church would like most to do

OBJECTIVES OF A BUDGET:
To be good stewards of the money with which the church has been entrusted. To develop a total church plan to guide planning and expenditure decisions during the year. The sharing of goals and budget needs among leaders of the church. The harmonizing of leaders goals with individual committee goals and church needs and concerns. To facilitate financial reporting to the church.

Types of budgets: Same as Last Year Zero Based Budget Capital Budget
Construction

Budget Preparation and Use
Ask the right questions (p.13) Analyze future needs Update ongoing costs Determine amount of debt reduction Account for cash flow fluctuations Compare to previous year’s budgets Educate staff on the budget Who monitors the budget How often is it monitored How are over and under-budgeted issues handled Is the budget used as a mirror to reflect the church’s direction and emphasis

The Pastor’s Role in the Budgeting Process
We start with the pastor’s role in budgeting. We will start with some questions, then move to understand church cultures on money. Then we will deal with the pastor’s role and how he can assist the church in budgeting and the promotion of that budget.

Little advance planning is put into the budget process.
Why do committees so often act in a way that seems indifferent to and sometimes impedes ministry? People making financial decisions are removed from firsthand involvement in ministry. People who are actually involved in the ministries have little or no input into the budget process. Little advance planning is put into the budget process. Just read the slide and move to the next slide.

Why do committees so often act in a way that seems indifferent to and sometimes impedes ministry?
The focus is on the bottom line: How much did we take in? How much did we spend? Budget categories from previous years tend to dictate how money will be spent in subsequent years. The arrangement of the budget reflects an emphasis on maintaining a physical plant and paying staff salaries rather than fulfilling a corporate vision. Just read the slide and move to the next slide.

How can we avoid this approach?
Why do committees so often act in a way that seems indifferent to and sometimes impedes ministry? How can we avoid this approach? Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 31). Portland, Or.: Multnomah Press; Christianity Today. Recognize the different types of churches That’s a good question. The following information will help us understand how different churches think.

Five Financial Types of Church
The Family Business Church Small, family run businesses Lovers of thrift-counted as highest virtue Pastor must be business manager as well as pastor Pastor does not need to be involved in every expenditure, but must know what is going on financially Let talk about how churches think about money. The Family Business church is mostly found in rural areas or small towns. However, they can be found anywhere, especially if a town or city has grown up around a church of long standing. Just read the slide and move on.

The Entrepreneurial Church Risk Takers-Business owners that started from scratch-goal oriented Risk-taking is a sign of character Willing to lose money if gain is worth the risk Goals must always have a dollar sign attached These people have a “Bill Gates” mentality. They see risk taking as a sign of spirituality. In their eyes, a pastor who refuses to risk lacks faith. He must risk his own money, not just the church’s. Entrepreneurial people are goal oriented, and they bring that orientation with them to church. But their goals usually include money. So the pastor whose goals and vision for the church exclude financial concerns may have trouble gaining a following for ministry ideas. Entrepreneurs describe their work in terms of how much they make rather than how much they save. Entrepreneurial churches appear to change pastors and staff members with great ease. The grief process after a resignation or termination does not appear to be as long as in other churches, hi the world of the entrepreneur, leadership changes are common. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 19). Portland, Or.: Multnomah Press; Christianity Today.

Nonprofit Community-process oriented Avoid failure-journey as important as the destination Do everything by study and analysis Question everything-nothing personal Will follow the process-time is not an issue A significant number of our communities are dominated by nonprofit organizations such as government entities, universities, and religious bodies. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 21). Portland, Or.: Multnomah Press; Christianity Today. “If you will accept questions as compliments or as requests for your approval, you will love working with university professors. If you see their questions as threats or delays, you will be miserable. ” Most nonprofit organizations create energy through study and analysis, and that means asking lots of questions. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 22). Portland, Or.: Multnomah Press; Christianity Today. Nonprofits live off of the voluntary generosity or the taxes of others, and as a result they feel an obligation to avoid failure. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 23). Portland, Or.: Multnomah Press; Christianity Today. It is assumed, for instance, that the person charged with supervising finances and spending money will follow procedures, even if the organization suffers as a result. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 24). Portland, Or.: Multnomah Press; Christianity Today.

Corporate setting-competing for resources and approval Pastor is the “big picture” person-laity sees only their project or ministry People take rejection of their idea or project personally-become adversarial All decisions must stop at all “chain of command” groups or people to be implemented A fourth environment in which churches operate is the corporate setting. Some communities are dominated by people who work for large corporations. Generally, people in corporations have specialized views on money; some are trained to create new money through sales and user fees; others are trained to save money by financial control. Few people in a corporation are trained to see the big picture. In a church of this culture, the pastor may be seen as the big-picture person, the one to whom members must bring their specific interests for evaluation and blessing. The Christian education committee, the missions committee, and the music committee become competing interests, each crusading for more resources. If the pastor rejects their ideas, people may become angry—until, that is, they have another idea that needs approval. If their report is accepted, they see the pastor as an ally—until, that is, the time when their proposal fails. Also, most corporations have a clearly defined chain of command for making decisions, spending money, and allocating resources. Some points on the chain are perfunctory stops, although corporate workers know they must make every stop. But they also know that each stop is not equal. The effective corporate climber knows where to make full stops and where to make whistle stops. The pastor and staff can build credibility and become effective planners in the corporate church only by doing the same. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 25). Portland, Or.: Multnomah Press; Christianity Today.

The Mixed Economy Church-made up of the previous four groups Each group has its own financial terms and phrases-words mean different things to different people Pastor becomes the interpreter for the various groups Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 14-27). Portland, Or.: Multnomah Press; Christianity Today. Churches with highly diverse membership, and thus with highly diverse financial standards, may need to include interpretation as a regular agenda item at the annual leadership retreat. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 27). Portland, Or.: Multnomah Press; Christianity Today. My goal is to lead people to become a family of faith. Recognizing that different churches approach financial management differently has not resolved all financial conflicts, but it has reduced these conflicts to a minimum. And that, in turn, makes it a lot easier to become a church family. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 27). Portland, Or.: Multnomah Press; Christianity Today.

The Pastor’s Role First, it’s subjective; each church culture may change how your role is viewed Second, your personality and culture may be totally different than that of your church Third, recent or past conflict may dictate that you initially work differently than you have in the past So, what should every pastor do? Too many pastors try to run with the vision before they find out exactly what kind of church they are dealing with. The pastor may have to learn the culture of the church and compare it to his own. He will need to work with church where they are. With time both the pastor and the church will adjust to a “blended” style of leadership. The pastor may also have to work with reactionary leadership over past conflicts, especially in the area of money. The saying, “Once burned, twice wary” has a lot of validity in the church. Don’t expect a church to immediately trust you if they are still working through past hurts. Help the church to gain your trust before trying to move them to your style of leadership.

The Pastor’s Role Staff the Church Finance Committee with those who are active in ministry Communicate Biblical Principles of finance Devise a plan for ministry Let ministry leaders determine needs Plan for more and for less Present Financial Information to inspire Vision People in ministry know what is needed to get the ministry done. Committee members lose touch with ministry if they only serve in an administrative capacity. They better understand how to put together a budget when they see what ministry involves. The focus should be on ministry, not the bottom line. What is being accomplished for the kingdom is more important than how much it costs. Do not disregard cost, but don’t focus on it either. Do not assume that your people function from biblical standards when it comes to money and budgets. Teach what the Word has to say about it. The pastor needs to lead in defining the church’s purpose, nurturing the vision, determining the priorities and developing a plan for action. Failure to do any of these things will cause the pastor grief in days to come. This begins with “rank and file” ministry leaders. I highly recommend a Ministry Proposal to help the leaders define what their portion of the goal looks like and what it will cost to accomplish. Each budget line item needs to be carefully evaluated to see that Kingdom work is done and that the church gets maximum “bang for the buck”. Each church should a faith based budget, a contingency budget and a Hallelujah budget. This allows the church to work with whatever situation comes it’s way. You do this by a) giving more exposure to people than financial reports; b) have an annual celebration rather than an annual meeting; c) use visual images, not just numbers; d) and prepare clear financial budgets and reports.

The Pastor’s Role Help raise the funds five ways Preach stewardship
Make people aware of financial opportunities Be someone your church members can trust Herald the Great Commission Be the conscience of the church Be careful not to promise more than God does, but preach tithing as a part of Biblical, lifestyle stewardship. Warn visitors when you preach on tithing. Otherwise, that’s all they think you care about. Teach about percentage giving, not dollar amount. God is interested in our sacrifice and that is different dollar amounts for different families. Consider your timing when preaching on stewardship. Help people be aware of projects they can give to in addition to their regular tithing. Many people have the gift of giving and would give more if made aware of where they could help. People identify with different issues, so don’t just talk about one issue. Focus on the benefits of financing that need. Be careful not to do so every Sunday or try to put too many issues before the people. People should feel that what they share with their pastor stays with their pastor. They shouldn’t hear about their personal lives from the pulpit. Simply changing their names will not disguise who you are talking about. Preach the Kingdom of God on a regular basis. It’s what Jesus preached. It should be sufficient for us. If we focus on Kingdom building, God will build his church. He said He would. It’s easy to fall into the world’s way of handling possessions. The pastor’s job is to hold our lives up to the Word of God and let it dictate our lifestyle. Pastors must model what they preach. To do any less is hypocritical.

The Pastor’s Role Speak in a financial meeting to: Clarify an issue
Provide information when you are the only source Lead redemptively regarding controversial issues Affirm major decisions 1. The pastor is often the only person who represents continuity in a committee. Church committees are in constant transition, and the people in them, or many of them at least, may be asked to discuss issues of which they have little knowledge. If an embryo of confusion exists in financial matters, I find it helps everyone if I speak up. 2. The pastor sometimes has privileged information that the committee needs if it’s going to make an intelligent decision. 3. Financial issues are great arenas for controversy. Sometimes individuals or groups become polarized and often question the motives of those who differ with them. But often the pastor can bring unity to the group. 4. After a committee has approved a large expenditure or is facing a deficit, it’s important to reassure them of the decision they’ve made. …they tend to see more risk and problems than exist…I’ve just discovered a church’s financial problems are usually not as grave as they first appear…Sometimes we help a committee think about their difficult work in hopeful terms.Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Pages 57-58). Portland, Or.: Multnomah Press; Christianity Today.

The Pastor’s Role Clarify what is delegated in regards to finances
Make sure the bases are covered in finance promotion Determine how much you should know about individual contributions Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 31). Portland, Or.: Multnomah Press; Christianity Today. Each church has unique traditions, so the job titles and descriptions of committees and boards will not necessarily reflect accurately what each does. When dealing with money issues, it is imperative that everyone know what is being delegated and to whom. Your budget should be promoted in terms of Kingdom ministry and goals accomplished. You will share dollar figures, but in terms of how the church and it’s membership will benefit. What is the church’s culture? Some churches do not want the pastor to know who gives. Other churches expect the pastor to know. Some pastors are uncomfortable in knowing who gives what. If so, he should explain to the committee his reluctance to know. The pastor should know if a member’s giving suddenly drops in amount, even if he does not want to know how much. This is often an indicator that the member is unhappy with church activities or the pastor himself. The pastor needs to address such issues. It may also be an indication that the church member is undergoing financial difficulty or money management issues. The pastor can render valuable ministry or assistance which can be done discreetly. Church members are very appreciative of this approach. Remember, there is no more volatile issue than finances in the church. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Page 31). Portland, Or.: Multnomah Press; Christianity Today.

The Finance /Stewardship Team

Require all people on Finance /Stewardship team to:
Possess a sense of calling from God Be open and willing to receive training Be persons of integrity Be tithers and good stewards Be capable of maintaining confidentiality Mature believers-understand biblical principles of finances Ministry oriented J. David Carter, Managing Your Church Finances…Made Easy. LifeWay Press, Nashville, TN. 1998Page 12 Talk through briefly. Ask if there any other qualifications that should be added. Write them down on a white board if possible. Ask why they should be added. This will often reveal a prior issue. Talk briefly about the danger of reaction planning.

The Finance/Stewardship Team consists of:
Stewardship Education: communicates the various aspects of biblical stewardship through the church programs, activities and materials Mission Support: helps members understand how the church fulfills the Great Commission in the church, the association, the state convention, and around the world Consists of four functions Stewardship Education- 1)Communicate various aspects of biblical stewardship. Tells the how and why of managing everything God entrusts to us; 2) Determine and use the best avenues possible for communicating this message, including programs, activities, and materials for all group ages. ¨ Here we use all of the programs and ministries to teach on stewardship. How many of you have an annual stewardship emphasis in your church? (raised hands) I recommend four, but have at least one. ¨ You would have a month-long emphasis with the pastor preaching four stewardship messages, only one about money. The Worship Leader would select music and anthems that would emphasize each sermon the pastor preaches. The Sunday School would have at least one, maybe two, stewardship Sunday School lessons from older children up. You could teach a Partners with God Bible study followed by a Family Money Management Seminar. A Wills Seminar could also be offered. Mission Support- 1) To help members understand how the church seeks to fulfill its mission through ministries in the community, the association, the state convention, and throughout the world; 2) To plan a year-round emphasis, with special attention during the budget preparation period, to raise the congregation’s awareness of the church’s mission work through the association and convention. ¨ The stewardship committee would work with the WMU or Women on Missions to promote missions work.

The Finance/Stewardship Team consists of:
Budgeting: Guides the church to have the best budget that focuses on Purpose, vision, and ministries, rather than on how much it costs. Promotes involvement in and commitment to ministry Accounting: Encourages confidence in the church by being responsible in receiving, counting, depositing, disbursing, recording, reporting and auditing church funds Budget- 1) To lead the church to have the best possible unified, ministries-centered budget; 2) Involve a wide representation of the membership in the budgeting process, including understanding the ministries being planned and helping them make new commitments in giving. ¨ There are two types of budgeting, historical (looking at the past) and purpose driven (looking at the future and what God is calling us to do). Historical budgeting says, “We made the budget last year. Let’s add 10 percent and call it the budget this year. Or, we didn’t make the budget last year. Let’s take 10 percent out of the pastor’s salary and call it the budget this year. This makes the pastor and his wife REAL happy. ¨ The better way is to pray to see where God wants us to join Him and then write a budge that reflects that vision. The budget will always be larger than income we currently have. Now, you know God is involved with your ministry. Accounting- 1) To encourage confidence in the church by sound procedures for receiving, counting, depositing, disbursing, recording, reporting, and auditing area’s concern; 2) See that all persons who handle church finances or sign checks are bonded. ¨ People need to feel that their tithes and offerings go only for what the church has voted. You need to have a good accounting trail. The ushers don’t count the money; no relatives count the money on the same counting team; two people deposit the money; the treasurer is only one signer; two signers are needed on each check. Otherwise, the following story could be yours.

Accounting Questions You Better Ask
—Do we count and record offerings immediately after they are received? Every moment they sit around uncounted is a moment when they can be dipped in to. —Are offerings always stored in a secure or well-supervised area? —Do we count our cash and checks twice for accuracy? To err in addition is human. But the more we check our work, the more we develop careful accounting habits and avoid careless accounting mistakes. Just read the slide and move to next slide

—Do we place offerings in lockbags (money bags provided by the bank requiring a key to open) after counting? —Do we place the lockbags in a safe or a night depository until the bank opens? —Do we strictly limit who has access to the safe? —Do we change the safe combination when someone is no longer authorized to use it? Just read the slide and move to next slide

—Do we make sure that the same person is not involved in more than one of the financial procedures of the church (collecting funds, counting them, recording the giving, authorizing expenditures, writing the checks, auditing the account)? The more access a person has to the various procedures, the greater the ability to misuse funds. Just read the slide and move to next slide

—Are all persons authorized to write checks against church funds held responsible through an accounting/auditing system? —Do we provide the bank with annual updates of persons authorized to sign checks against any account associated with the church? Some banks are, surprisingly, not strict about who signs checks for a church or for a particular program of the church. They know we’re a volunteer organization with a high turnover in leadership. Just read the slide and move to next slide

—Do we issue annual receipts for giving? This is just another check on determining that what comes in has, in fact, been accounted for. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (page 120). Portland, Or.: Multnomah Press; Christianity Today. These are issues that you need to address to close the possibly of fraud or stolen funds from your church. An ounce of prevention is a TON of cure.

The Budgeting Process We now begin the actual budgeting process.

Develop a Financial Ministry Plan with the world as your Mission Field

1. What is a Financial Ministry Plan?
2. How Do You Implement a Financial Ministry Plan? 3. Annual Financial Ministry Plan: step by step

What is a Financial Ministry Plan?
A plan for ministry built on a church’s values, mission and vision that helps a congregation remain focused upon ministries rather than money spent. This will help to guide the over-all mission and direction of the church!

Develop Your Church’s Values
Which convictions would your church die for? Which values drives your church’s focus and budget? Which opinions influence the way your church “does church?” Your church could have 8-10 values

There are many churches doing things well that they shouldn’t be doing at all Doug Brown
The church needs a purpose and vision statement or the following quote will explain your church. ¨ The darkest period in the history of Israel was in the book of Judges. In chapter 21:25 it says, “25In those days there was no king in Israel; everyone did what was right in his own eyes.” KJV ¨ Your church needs focus and direction.

Develop A Church Purpose Statement
Describes what your Church does Broad Sweep of church focus Based on Matthew 28:19-20 and Acts 2:42-47 Focus on Great Challenge

¨ The reason I picked Saddleback Community Church’s purpose statement is not because they are large. I picked it because it deals with the five areas of church growth. ¨ Notice that the purpose statement speaks to each issue in an “end-statement.” They are not going to fellowship; they are going to bring people to Jesus and membership in his family. You can measure the results. All purpose statements should be written this way.

“To win the contest you must deny yourselves many things that would keep you from doing your best...but we do it for heavenly reward that never disappears. So I run straight to the goal with purpose in every step.” 1 Corinthians 9:25-26 (LB) God’s word speaks to this issue of purpose. Paul did everything with a purpose. ¨ Good must always be the enemy of best. The church only has time, money and resources to do the best. That means finding where God is at work and joining him in that work.

Develop Your Church Vision Statement
Whom will your church reach? How many will you reach? How will your church develop those you reach? What kind of ministries will your church have? How will your church reproduce and how often? How will your church empower your people for kingdom growth? What will your church become?

What is the difference between a purpose statement and a vision statement?
¨ A purpose statement says what we will do. A vision statement says what we will look like if we accomplish what we set out to do. ¨ A purpose statement deals with issues. A vision statement details those issues. Who will we reach? How many will we reach? How much land should we buy? What kind of workers will we train? These are questions that the vision statement answers. The following verse talks about vision.

“These things I plan won’t happen right away
“These things I plan won’t happen right away. Slowly, steadily, surely, the time approaches when the vision will be fulfilled. If it seems slow, do not despair, for these things will surely come to pass. Just be patient! They will not be overdue a single day!” Habakkuk 2:3 (LB) ¨ While some parts of the vision will be fulfilled right away, other parts will not be fulfilled in your lifetime. Rick Warren has been working on this vision for 20 years and they have not accomplished all that they have purposed yet.

¨ Always keep this quote in mind when sharing purpose, vision and what we will do during the next year.

Goals Based on Purpose and Vision Made with an eye on the economy
Made with an eye on the giving potential of the people Three budgets Faith Budget Contingency Budget Hallelujah Budget When a church is prepared to answer the questions, “What will we do if we have more money than expected?” and “What will we do if we have less?” it will keep mere numbers from dominating the discussion when those contingencies arise. Bethany Bible Church in Phoenix has such a plan. Dick Stunden, the church administrator, says they always have more needs than funds available. If they project $975,000 income but receive from various ministry departments requests for $1,000,000, they will generally plug in an extra $25,000 into income as a “faith factor,” trusting God for the difference. If the difference is greater, they begin restructuring the budget. If they do have to cut back, then they let the individual ministries decide how exactly they will do that. If the youth commission, for instance, has requested $40,000 but only $30,000 becomes available, the board kicks the decision as to what to cut to the youth pastor and lay staff. Bergstrom, R. L., Fenton, G., & Pohl, W. A. (1992). Mastering church finances. Series statement from jacket. [Mastering ministry] (Pages 36-37). Portland, Or.: Multnomah Press; Christianity Today.

Why should a congregation have a Financial Ministry Plan?
Attracts commitment and energizes people. Creates meaning in lives to persevere. Challenges people to trust God.

Why should a congregation have a Financial Ministry Plan?
Clarifies congregational direction. Generates an urgency among member’s to give.

CHARACTERISTICS OF A GOOD FINANCIAL MINISTRY PLAN
1. Equitable (Fair) 2. Capable of Change 3. Attainable/Challenging 4. Complete

1. What is a Financial Ministry Plan?
2. HOW DO YOU IMPLEMENT A FINANCIAL MINISTRY PLAN? 3. Annual Financial Ministry Plan: step by step.

THE SECOND STEP: AGREE ON FORMAT!
How Do You Implement A Financial Ministry Plan? THE SECOND STEP: AGREE ON FORMAT! A Great Commission Church (Missions & Evangelism) A Ministering Church (Personnel) A Growth-Conscious Church (Education/ Relational Growth)

AGREE ON FORMAT! A Singing Church (Music Ministries) A Supportive Church (Practical Ministries) A Caring Church (Practical Ministries)

Bringing Other Programs and Ministries into the Mix
Communicate the purpose and vision of the church to the Ministry Leaders Review the goals for coming budget year Let the ministry goals determine the needs Help them tie dollars to their goals Use the Ministry Proposal plan This most be done in clear, written and spoken language. It must be free of “Christian” so that the new believer can understand and grasp their part of the purpose and vision. The pastor needs to preach on purpose and vision every month, finding a different way to share it. He might preach it from overall vision, the “nuts and bolts” aspect, the process angle or some other way to help people understand what God is doing in their midst. Make sure that the goals are in line with the purpose and vision of the church. These two statements should guide all that the church does. Also look to make sure you are being involved in places where God is showing Himself at work. Having the leaders use a ministry proposal will help you to bring dollars and cents to the goals. It will also help your leaders determine their goals and articulate them in a manner that the membership can embrace.

A MINISTRY PROPOSAL This form should be made available to any person or organization wishing to have budget input requests. Date to be returned to Stewardship/Budget Planning Committee:__________Submitted by: _________ Project: __________ A description of proposed ministry and how it relates to the mission of the congregation __________________________________________________________________________________________________________________________________________ Why this ministry is needed:______________________________________________ _____________________________________________________________________ The costs to the congregation in the coming budget year in detail:_________________ What this will mean to the congregation in opportunities and costs in future years:____ What will be the result if we do not fund this ministry? __________________________ 6. Estimated expenditures per month (cash flow): Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total

Ministry Proposal Purpose Statement The Purpose of Saddleback Church is to lead people to the saving knowledge of Jesus Christ and into the fellowship of His church, growing them in Christ like maturity, equipping them for ministry in the church and their mission in the world, and to celebrate Him in worship. Ministry Purpose Statement of __________________________________________________________ ________________________________________________________________________________________________________________________________________________________________ Action Plans 1. _________________________________________________________________________________________ _________________________________________________________________________________________ 2. _________________________________________________________________________________________________________________________________________________________________ 3. _________________________________________________________________________________________________________________________________________________________________ 4. _________________________________________________________________________________________________________________________________________________________________ This is a ministry proposal (this and the following slide) designed by a church to fit their personal needs. They tied the ministry purpose statement to the church’s purpose statement. Then they listed the action plans, in order of priority, based on the goals for the year and the dollar amounts tied to each action plan. You may want to adapt a Ministry Proposal along these lines and use your church name, logo, etc in the header of the spreadsheet (excel for example) that you use to develop them. In the case of a budget shortfall, it’s easy to determine which part of each ministry budget to cut. This helps the Stewardship Team in developing the contingency budget.

Budget Request Action Plan #1 ____________________________ $_________ ____________________________ $_________ $_________ Action Plan #2 ____________________________ $_________ Action Plan #3 ____________________________ $_________ Action Plan #4 ____________________________ $_________ Grand Total for Ministry ……… $_________

Missions Expenditures
Local State Worldwide Congregational participation Mission trips Your church needs to be involved in missions at various levels. In Acts 1:8, Jesus told us to start in Jerusalem and move outwards to the entire earth. Your church needs to do the same. People want to be involved in missions. They are no longer content just to give money. Your church needs to provide these opportunities at all three levels. You can work through your denomination to satisfy this need for your congregation For Southern Baptists, this is accomplished through local ministries that they participate in. Then it moves to the associational level and then the state and international Cooperative Program. The following presentation is what we do. Your denomination will most likely have a different plan. (Show the CP presentation)

Possible New Ministries or Building Programs
Where has God revealed that He is at work What building/parking/land limits will you experience this year Do you have a long-range plan to alleviate this constriction Will you build debt free or use a lending agency This question will help you, your leadership and the membership see where opportunities that God is showing your church. This question will help see the costs of a particular ministry or direction the church is taking. Additional building planning should start up to three years before you break ground, especially in “church unfriendly” communities or counties. Many cities and counties see the church as a deficit since it takes utilities, water, and sewer, but does not contribute to the tax base (pay for these services). You need to be involved with your community so that it sees you as a benefit in helping with teen gangs, etc. Some churches feel the need to build debt free. They The California Church Plan of Finance can help you if you want to build debt free or do a bond program to fund your building or improvements. They work with many denominations in many states.

Current Ongoing Debts and Expenses
What expenses do you currently have Upkeep of existing facilities/parking/ landscape What percentage of the budget to they comprise What upcoming expenses will need to be addressed in the coming year What is the plan for reducing or eliminating the debts You will want to factor in your current expenses in addition to your goals for the coming year. Putting your budget into a percentage per item will help you to stay balanced in your ministry. This can be adequately displayed through a spreadsheet slide inserted into your PowerPoint or other media display. It also helps your congregation to see how one particular ministry impacts the rest of the budget. You could show what the difference between previous year’s ending balance and the proposed budget ending balance to indicate how debts will be reduced or eliminated.

Staff Financial Support/New Staff
How do you determine compensation for your staff What type of evaluation tool do you use in determining staff compensation How do you assess staff needs i.e. insurance, retirement, salary, etc. How do you determine when new staff are needed The following slides will illustrate how many Southern Baptist churches determine compensation for their staff. The Mastering Church Finances book that I have referenced throughout this conference gives other ways to do so. You will want to look at this book as well. While the book is currently out of print, you can download a copy off the web at

Tax Reporting Requirements for Ministers
Generally treated as employees for income tax Should receive a W2 form Self-employed for Social Security and pay self-employment tax ¨ Minister’s are in a “Catch 22” when it comes to taxes. We are employed for income tax purposes, but self-employed for SECA taxes (social security) ¨ There are 20 questions asked by the IRS to determine whether you are self employed. If you answer any of them yes, then the church for income tax purposes considers you employed. You are still self-employed for SECA and must pay 15.3% taxes, instead of 7.65% that employed people pay. ¨ The only time a pastor would receive a 1099; is if he preaches a revival or some other service for which he is paid more than $600. 3 3 3

“Pay Package” Dangers A lump sum is misleading
Payment of unnecessary taxes May choose cash over insurance and retirement protection Church could inherit financial liability ¨ A lump sum gives the congregation the impression that the pastor makes more than he actually does. When he asks for a raise, the people feel resentful that he is “money hungry” when, in reality, he is not making enough to care for his family’s needs. ¨ The pastor must pay taxes on any money that comes into the pastor’s possession. It is needless and expensive for the pastor to pay taxes on money that is not actually income to his family. The IRS HAS SAID THAT THE PASTOR MUST PAY TAXES ON INCOME AND HOUSING ONLY. ¨ The pastor may feel forced to choose between insurance for his family and shoes for his children. Most of us will choose the latter to the detriment of the family when a medical emergency strikes someone in the family. ¨ If a medical emergency occurs and the pastor is uninsured, the church will feel obligated to care for that need. This can cause resentment on the part of the congregation. It can also cause undue expense if the illness or accident runs into the thousands of dollars. 4 4 4

Church Ministry-Related Expenses
Automobile expenses Denominational meetings Books, periodicals, tapes Continuing education Hospitality expenses Accountable Reimbursement plan ¨ Each of these areas should have a budgeted amount in the church budget. The pastor must give receipts in order to receive money for items purchased or expenses incurred in ministry. This is called an accountable reimbursement policy. He may not receive the “leftover” money in the accounts at the end of the church year. If he does, the IRS can rule that it was income and tax him on the entire dollar amount. 6 6 6

Key Points to an Accountable Reimbursement Plan
Adequate substantiation of expenses is required Written record stating amount, date, location, business purpose Receipts required for expenses over $75 Expenses must be substantiated within 60 days ¨ Each of these areas should have a budgeted amount in the church budget. The pastor must give receipts in order to receive money for items purchased or expenses incurred in ministry. He may not receive the “leftover” money in the accounts at the end of the church year. If he does, the IRS can rule that it was income and tax him on the entire dollar amount. Key Points to an Accountable Reimbursement Plan Adequate substantiation of expenses is required Written record stating amount, date, location, business purpose Receipts required for expenses over $75 Expenses must be substantiated within 60 days ¨ There are forms available to help with these expenses from the Annuity Board. 8 8 8

Key Points to an Accountable Reimbursement Plan
Excess advances must be returned within 120 days Cannot be funded from salary Church reimburses business expenses from budgeted church funds Excess advances must be returned within 120 days Cannot be funded from salary Church reimburses business expenses from budgeted church funds 9 9 9

Personal Security Program
Term Life Plan Personal Accident Plan Disability Plan Medical Plans Comprehensive Health Maintenance Organizations Catastrophic ¨ Term life is based on age. The premiums are cheaper when you are younger, more expensive as you get older. The expectation is that you are building your retirement, thus needing less insurance as you get older. Term insurance is much cheaper than whole or modified whole life insurance. ¨ This insurance is needed because accidents often happen when the pastor or his family is not engaged in ministry activities. ¨ Disability insurance covers the pastor in the event that the illness or accident results in his inability to work. Most medical plans do not cover this type of accident. ¨ Savings can often be found through an HMO. However, you should be sure that the service is adequate for your needs. ¨ Catastrophic insurance would cover events that might include the whole family (car wreck where whole family is involved) 12 12 12

Recommendations Consider providing insurance coverage for all full-time ministers and employees Contribute to a Church Retirement Plan an amount equal to 10% of personal income for all eligible ministers and employees Consider a Social Security offset for ordained ministers Your church can help your pastor pay some of his Social Security taxes. Remember that all licensed, ordained, or commissioned paid staff pay 15.3% in SECA taxes rather than the 7.65% taxes most people pay in FICA taxes. If your church were to pay half of his/her taxes, your minister’s W-2 would reflect that as income. However, even after paying SECA and income taxes, that portion of the minister’s taxes would be reduced at least 25%. That can be a real blessing to your staff. Happy staff members stay longer, do a better job and are happier doing it. 18 18 18

Salary Housing Allowance
Personal Income Salary Housing Allowance ¨ The pastor only has to pay taxes on income and housing. Income tax does not include housing; SECA does include housing as part of his income. He does not have to pay taxes on insurance and other expenses if the church pays them. The IRS sees those expenses as “the cost of doing business.” 19 19 19

Determine How Much Salary
Church’s financial situation Location and cost of living Education and experience Inflation Performance ¨ Each church needs to reach as far as possible to care for their pastor. The scriptures are plain that the minister is worthy of his hire and is worthy of double honor. ¨ Each location has different cost of living. It’s much more expensive to live in a metropolitan area than a rural area. Those costs should be factored into the pastor’s compensation. ¨ Education and experience should also factor into his compensation. A Pastor with 10 years of experience should receive more than a pastor “fresh from seminary.” The same holds with pastors with education versus pastors without education. ¨ Performance is an area often overlooked in regards to pastoral compensation. Some years a pastor puts in extra hours, leads the church to exciting growth, guides the church in stewardship efforts that dictates an increase more than the cost of living raise he might otherwise have received. 20 20 20

Housing Allowance For ministers Designated in advance by the church
Must be done before January 1st of each year. Legal limits This must be read into the minutes. It is not voted on, only noted. This computation comes from a worksheet the pastor fills out and submits to the personnel or finance committee. 21 21 21

If You Own or Rent The maximum amount eligible for exclusion is the least of: The designated amount The actual eligible expenses The fair rental value of the home including furnishings plus utilities ¨ Some churches have a set designated amount that they will pay a pastor for housing. However, I recommend that housing costs dictate what a pastor can claim as housing. ¨ There is a form that you can get from the Annuity Board to help you determine the eligible expense. You can designate as much income as you can verify as housing expenses. ¨ Fair rental value is no longer valid according to the courts. 22 22 22

If You Live in a Parsonage
The maximum amount you can exclude is the lesser of: The designated amount The actual eligible expenses Remember that a minister must still pay SECA on the value of a parsonage provided by the church. It is wiser to sell the parsonage and give the pastor an increase so he/she can buy their own home and build up equity for their retirement. Otherwise, where will they find the money to buy a home in their retirement? 23 23 23

Housing Allowance Can Include
Mortgage or rent Utilities Taxes Insurance Furnishings Repairs and improvements ¨ Allowance should be made in the housing allowance if there are plans to buy furniture, appliances or other durable goods for the house. You cannot deduct more for housing than you state in your housing form that the pastor gives to the church before the new church year. This form should be noted in the December business meeting. 24 24 24

Recommendations Designate housing allowances for ordained ministers
Consider cost-of-living increases Consider appropriate merit increases Just read and go to next slide 25 25 25

A Budget form example for use by Budget Committee
Proposed church ministry budget of _________________ Church Our Mission To bring people to Jesus and membership in his family, develop them to Christ-like maturity, and equip them for their ministry in the church and life mission in the world, in order to magnify God’s name. ¨ Notice that the purpose statement is on top of the budget. Your purpose statement needs to be on everything; pastor’s stationary, calling card, banner in front of the church, posted at each doorway. Saddleback’s is ETCHED into the glass on the front of their church. Be intentional with your purpose and vision. ¨ The budget is broken into six ministry areas. All budget items need to be seen as ministry. ¨ The budget items are grouped together to help church members understand how the ministry is done and what is needed to make it happen. Without this grouping, the membership will not feel compelled to fund it. They have bills of their own. ¨ People want to be part of something larger than themselves. Purpose and vision is the vehicle that allows them to be part of the church and find their place in it.

I. Our Mission Ministries Jesus said, “As the Father has sent me,
even so send I you” (John 20:21). This sending occurs each time we give our tithes and offering through our church. Our gifts through the Cooperative Program broaden our reach to enhance our witness to 131 countries, beginning here in our own state. Our church has a part in Associational missions as we give to support mission ministries closer to home. Local mission projects-the food bank, nursing home and jail ministries-are supported not only by our gifts but by our involvement. Ministry Current Proposed Coop. Prog ____% $______ $_______ Assoc ____% $______ $_______ Local ____% $______ $_______ Total ____% $______ $_______ ¨ Notice that the first section is devoted to missions and it is the only section listed by percentages. Your church should tithe if they want the membership to tithe. Growing churches have strong missions emphasis and giving. Each area has a scripture and a description. Let’s look at how the Cooperative Program helps us fulfill the Great Commission. II. Our Pastoral Ministries Luke recorded that Jesus sent out the seventy-two witnesses. He stated that “the worker deserves his wages” (Luke 10:7). God has led our pastor to this church to equip the saints for ministry. Through preaching, teaching, and counseling, we are reminded of God’s eternal care over us. Ministries Current Proposed Pastor $______ $_______ Housing Allow. $______ $_______ Secretary $______ $_______ Total $______ $_______

III. Our Christian Education Ministries
“It was he (Christ) who gave - some to pastors and teachers, to prepare God’s people for work of service, so that the body of Christ may be built up - attaining to the whole measure of the fullness of Christ” (Eph. 4:11-13) Christian growth is a key to deepening our effective service to Christ. By providing trained leadership, Bible study resources, Vacation Bible School, and a strong focus on missions, we help Christians grow toward mature disciples. (If you have a Minister of Education, place the position in this section) Ministries Current Proposed Sunday School $______ $_______ Discipleship Trg $______ $_______ Brotherhood $______ $_______ WMU $______ $_______ Youth Ministry $______ $_______ Conferences $______ $_______ Other $______ $_______ Total $______ $_______ ¨ Education and Music ministries are what most people think of when they think of the budget. It is important that they understand how these ministries inter-relate and what it costs to have them. IV. Our Music Ministry The psalmist encourages God’s people to “Sing to the Lord a new song, for he has done marvelous things” (Psa. 98:1) Music is a vital part of our worship experience each week. We are blessed with trained and talented musicians and committed laypersons whom God has placed among us. These musicians help us regularly express love, devotion, praise, and thanks to our Savior. Ministries Current Proposed Literature and supplies $______ $_______ Special Activities $______ $_______ Other $______ $_______ Total $______ $_______

V. Our Supportive Ministries
“Day after day, in the temple courts and from house to house, they never stopped teaching and proclaiming the good news that Jesus is the Christ” (Acts 5:4). Ministry is a never-ending process. Materials are needed, supplies are purchased, meetings attended, communications sent out - all with the purpose of keeping our membership informed and trained to do the work of the ministry. Some of these activities complement all the ministries of our church, while others support a specific activity. Ministries Current Proposed State Baptist Paper$_____ $_______ Publicity $______ $_______ Postage/office $______ $_______ Church Media Lib. $______ $_______ Stewardship Res. $______ $_______ Revival Exp.. $______ $_______ Recreation $______ $_______ Special Events $______ $_______ Annuity Program $______ $_______ Insurance (personnel)$______ $_______ Travel Reimburse. $______ $_______ Conventions/Conf. $______ $_______ Social Security $______ $_______ Floral Arrange. $______ $_______ Total $______ $_______ ¨ Supportive Ministries is where these costs are placed. Remember that you must pay taxes on anyone who is not licensed and ordained. The IRS will pierce the corporate veil to get taxes due. They start with the treasurer, since this person has authorization from the church to sign checks. They don’t stop there, however. Next, they go after the pastor, then the trustees and then the deacons. They will attach your personal property to get this money. ¨ Buildings and Grounds ministries are your first date with prospective members. We could meet anywhere because we have "Koinonia” (warm feelings) for each other. However, new people do not have this, so they will judge you based on the appearance of your facilities. ¨ Is the grass brown? Mowed? Flowers or weeds? Clean carpets? Freshly painted walls? ¨ The bottom line is they want a church that is at least as nice as their home, if not one step above it. And YOU NEVER GET A SECOND CHANCE TO MAKE A FIRST IMPRESSION! VI. Our Building and Grounds Ministries “...and I have built the temple for the name of the Lord, the God of Israel” (1 Kings 8:20) Our church building has been erected in honor of God and as a gathering place for all who would come to learn from Him. Our building also offers a comfortable and convenient place where we can be equipped to share Christ’s Good News with a lost world. Ministries Current Proposed Custodian $______ $_______ Utilities $______ $_______ Insurance $______ $_______ Supplies (Cleaning) $______ $_______ New Equipment $______ $_______ Debt Retirement $______ $_______ Total $______ $_______ Total Budget $______ $_______

January Skit from drama book February Couples Testimony on tithing March Annie Armstrong promotion April Financially Confident Women – Sunday evening conference (4 weeks using individual cost for workbooks) May Tract – Bulletin insert – (Order from CSBC or LifeWay Resources) June Senior Adult Testimony on tithing (5-6 weeks prior) July (5minute) SS class stewardship emphasis – Teachers will hand out tract and discuss tithing at the beginning of class. Tracts can be ordered from Stewardship Dept at CSBC August September October Skit and letter to church members promoting Tither’s Enlistment Emphasis (or some other Prove the Tithe Day emphasis). Tither’s Enlistment Emphasis (or some other Prove the Tithe Day emphasis) -Prove the tithe Day and commitment Sunday led by pastor Distribute Church planning calendar and Ministry Proposal forms to all leadership for budget preparation November Family Money Management Seminar Ministry Proposal forms for budget consideration due from leadership Stewardship committee meetings to finalize budget. (6-9 pm Dinner provided) December Distribution of church budget and invitation to church families to attend ministry presentation and church budget vote. Lottie Moon promotion. Ministry presentations to church. Budget vote. New Budget Celebration.

Year Round Stewardship Ideas
Tract Inserts and Bible markers for the bulletin Purchase tracts from the Stewardship Development department Purchase additional tracts from LifeWay Resources Skits Related to sermon subject matter Related to special subjects i.e. Christian Money Management, Stewardship, Budget Banners, Posters, Flyers Sunday School Emphasis Lessons for adults, youth and older children These are samples of things that you can do to promote stewardship. The 40,000 free tracts from the Stewardship Development department disappear very quickly (generally within 30 days), so do not delay in returning the form if you are interested in getting them.

Year Round Stewardship Ideas
Additional Helps “Utilities” letter. Encourages them to continue faithful giving, states what the annual budget is, a main emphases for the year, and progress report on emphases to current date. Use Tither’s Enlistment Guide as format End of the Month five minute stewardship emphasis in Sunday School class. The “PG & E” letter refers to the brochure or letter that you get with your utility bill. The brochure is designed to let you know what is going on that you should be aware of. It is the same with the letter you will send. I recommend that you send the letter (sample in the back of your handout) with a tithing statement at the end of each quarter. Some of the statements will have a 0 for dollars given. So, include a self-addressed, stamped envelope with a tithing envelope inside. You know what people will do? They will write a check and put it in the envelope. They won’t come to the church to get one, but they will give if you make it convenient. The five minute emphasis is to help people be caught “doing right.” Each month, many people decide if they will tithe. Let’s help them make the right decision by encouraging them on the last Sunday of the month.

Outside Contracting vs. Internal Control

Issues at Hand Workman’s comp Income and Social Security Tax
Planning Financial Support p. 22 Benefits Oversight Qualifications-yours and theirs

Computer Software

Computer Software What do we want this software to do?
Do we want it to do just accounting or just church management, or a combination of the two? Can the software be networked with other computers? How many? (Not all do) How user friendly is the software?

What is the cost? Some programs come in modules that can be added later as the need arises.
Is there any telephone or online technical support? Is there any extra cost beyond the software cost for technical help? Can I get a trial version of the software to look at? Types of Software..

Websites & Resources to Assist You
Merrill, D., & Shelley, M. (1984). Fresh ideas for administration & finance. Carol Stream, Ill.; Waco, Tex.: Christianity Today; Word Books.

What Questions can We answer for You?
Okay, I’ve talked a lot. What questions do you have? After answering their questions, give the meeting back to the pastor or whoever is in charge. ext 258 cell phone

NACBA Conference Rod Wiltrout Church Finance Specialist

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