FINANCIAL MANAGEMENT

copyright September, 2006

K. Peter Henrickson

in the Church

Feel free to copy this page if you wish (but only this page).  Or, you can buy the book.

 

 Who is this book for? 

            This is a book mostly about money in the church:  getting it, using it, and accounting for it.  I hope that church treasurers everywhere will find the effort helpful, and that some will feel emboldened to change the way they manage their responsibilities. 

            However, it is also about the way we join ourselves into a church, how we align with intention to be religious together.  Money, with all the meanings we attach to it and with all the talking we do about it, is part of the bonding glue of our togetherness. Our treasurers function within the larger context of our beliefs and attitudes about money and membership; and, it is this attitudinal context that is at the core of what I address.  There is some discussion about technique also, which those who do the day-in and day-out financial record-keeping will understand most readily.   Thus, it will be helpful for all who are responsible for guiding our churches:  those who serve on the finance committee, those who serve as trustees or deacons (or who may someday), and those who are pastors, ministers or staff.  While the book is based in financial thinking, it is for the entire leadership – whether financial stewards, spiritual stewards, administrative stewards, or buildings and grounds stewards. 

            As you read through the book it will become clear that I am a Unitarian Universalist, and I have written from that perspective.  Earlier editions have been used and praised also by leaders in other denominations.  As a consequence, I have made attempts to broaden the language I employ.  Where my efforts are insufficient, I ask that you make further adjustments as you need them, in the belief that an open-hearted reading of the material presented here might be helpful in other faith communities. 

            I want to thank many who commented and cheered me along the way as I wrote and rewrote.  Many with whom I have corresponded on the internet through “discussion lists” such as UU-money have forced me to defend or change my thinking during the last several years.  Some of the material is simply an airing or expansion of their good thinking and I am thankful for their virtual assistance.  At the other extreme my wife, Gretchen Meyer, deals with the flesh and blood of my presence:  She puts up with my crabby insistence that I like the way I write while gently encouraging a more holistic and systemic view of church dynamics, greater clarity, and better use of commas.

K. Peter Henrickson

September, 2006

SIXTH EDITION

Version 6.1 

September, 2006

Permission to reproduce and modify the forms, reports and tables included herein is hereby granted.  The text in part or in its entirety may not be reproduced, nor used in any form, without the written permission of the copyright owner.  

 

                                                                             CONTENTS 

Section 1:  First, Getting Right in Your Head

STEWARDSHIP

PLANNING TO BE STEWARDS

            Healthy Program Services

            Determining Financial Capacity

            Gauging Unmet Needs

STEWARDSHIP, MEMBERSHIP AND RIGHT RELATIONSHIP

            Service as Revenue

CREATING A CONTEXT FOR GENEROSITY

            The Budget as Hindrance

            The Vision Budget 

            Embracing the Vision

            The Stewardship Drive

            Privacy

            Percentage Commitments

            Monthly Contribution Commitments

            Collecting the Monthly Commitment

THREE STORIES

 

Section 2:  Organizing and Doing

THE CHART OF ACCOUNTS

FUNDS

            Attractive Considerations of a Single Fund

            The Taxable Income Corporation

            Endowment Funds

CASH IS IMPORTANT

PERSONNEL MANAGEMENT

            Employer Philosophy

            Distinguishing Employment Types 

            Relating Compensation to Employment Type

            Holidays 

            Annual Leave and Sick Leave

            Benefits and Retirement 

            Compensation 

CAPITAL INVESTMENTS

            Three Positive Reasons To Consider Using Loans

            Sources of Capital Funds

            The Capital Campaign

 

Section 3:  Analyzing and Reporting

RIGHT BRAIN ACCOUNTING

LOOKING AT NUMBERS

            Financial Reports

            Stewardship Reports

INTERNAL CONTROLS AND FINANCIAL OVERSIGHT

 

FINAL THOUGHTS

  

APPENDICES 

1.   Draft Financial Policies

2.   Sample Financial Statements

3.   Draft Endowment Fund Policies

4.   Endowment Fund Statements

5.   Sample Membership Bylaw

6.   Sample Stewardship Support Guidelines

7.   Sample Stewardship Commitment Form

8.   Vision Budget

9.   Requesting Plans from Committees

10. Stewardship Drive Plan

11. Canvasser Guidebook

12. Stewardship Drive  Assessment

13. Mortgages and Loans 

14. Software

15. “Auditing”

16. Draft Chart of Accounts

17. Simple Accounting Transactions

18. Accounting Understandings

19. Employer Philosophy 

20. Draft Personnel Policy

21. Budgeting Personnel Costs 

      Bibliography

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