These are the subjects we will cover in the program.
Budgeting: Financial Management and Vision Fulfillment
Why have a budget?
How to build a budget
- Different types of budgets and their purpose
- Narrative
- Cash flow
- Line item
- Zero based
- The importance of collaboration
- How and when and why to make adjustments
- The 5/5 method of financial position evaluation
The Importance of Transparency: Open, Honest, Accountable
How shall we do our accounting?
What and when and why to report on church financial matters
- Internal vs external
- Records retention
- Creating a “reader friendly” statement
Internal Controls: Protecting the Church’s Assets (and volunteer’s reputations)
Why we need internal controls? (As a both faith and sound business practice)
- Policies and procedures for safeguarding money and people
- Counting and recording
- Timely Reporting
- Reconciling statements
- Assets other than cash
- The Audit (evaluating the compilation, the review and the audit)
- Insurance
- Multiple Signatures/multiple authorizations
Protecting your Building and Property (from a hostile takeover)
Clear governance standards
- Policies and bylaws
General Policies
- The “No One Rule”
- Investment Policy
- Gifts Policy (Including receiving, refusing, and retiring cash and non-cash gifts)
- The Importance of Training and Recruiting
- Permanent Funds
- Digital and Electronic Giving
- Assessing Gifts “at risk”
- Who Knows What About Giving (and WHY!)
- Undesignated Bequests (How not to have a church fight or practice poor stewardship)
- Who Decides Who Gets Paid (what to do in a budgetary short-fall)
- Do We Prosecute? (What to do in the wake of fiduciary malfeasance/embezzlement)
- Credit Card Policy
- Conflict of Interest Policy
Unrelated Business Income Tax (and the 990)
Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization’s exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T PDF. An organization must pay estimated tax if it expects its tax for the year to be $500 or more.
How Much is Enough?
Faithfully managing the “rainy day” mentality
Considerations for Staff
Evaluations
Fair Compensation (COLA and Merit)
Tax Considerations for Qualified Clergy
Structuring Financial Ministries
The Finance Team
- Gifts and skills
- Responsibilities
The Stewardship Team
- Gifts and skills
- Responsibilities
The Legacy Team
- Gifts and skills
- Responsibilities