Having been in church leadership and attending meetings for over 25 years, I will admit there are still times that a financial report will boggle my mind. Attitudes about money and varying levels of competence in the leadership can result in hurt feelings, mismanagement, and even financial crisis for congregations of any size.
- Your treasurer has to be more than willing to do the job, they have to be COMPETENT. Whoever keeps the books needs to be able to explain every entry. They have to know where every dollar went. Don’t get me wrong, they don’t answer for every dollar spent or they can be frustrated by and frustrating to the other ministry staff. But, they must be able to answer where the dollars went. I once watched a treasurer hand out reports and declare, “Don’t ask me any questions about this, I don’t understand it. I just put the numbers in the computer.” Funny thing, neither did anyone else. By the time the board found someone else to do the books, a tough financial situation seemed insurmountable to some board members and they left. Nothing illegal or immoral had been done. But, adjustments could have been made far sooner if the reports were understood. Even if you have to pay a local accountant for a few hours per week to prepare reports, it can be worth it.
- Simplify reporting each step up the ladder. Scrutiny of accounts is the business of the entire board, scrutiny of expenditures is another issue. Have your controls and accountability set up so there are a smaller number of people using microscopes and a larger number of people looking unto the fields. I have watched a minister’s spending come under scrutiny by a firing squad of board members trying to save the budget by micromanaging the staff’s expenses. It’s hard to advance the Kingdom when you’re defensive.
- It is more blessed to give than receive, this is true. But, giving away other people’s money can be downright intoxicating (see government). Especially when it comes to missions giving. This is one reason Peter gets robbed and Paul gets paid. Paul, the foreign missionary, has exciting stories of survival and converting the lost. Peter, the local preacher, has a spirit burdened by the hurts and struggles of his congregation that he keeps confidential. This can lead to great generosity to the missionary at the expense of the local ministry. When the local ministry is undervalued or under-funded the minister will probably find a new locale and a revolving door won’t grow either ministry.
Remember, the biggest issue is the need to have a plan and the second is the character to execute it. Making a budget that is based in reality and adjusting it as needed will prevent a great deal of hardships for churches.
