Founder Ministry Finance Questions   0049-02  ZZall

                                                   - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

                            TO:  Interested Ministries                                                                                                           FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                       Phil 1:6                 FILE:  0049-02/all

                            RE:  Founder Ministry Finance Questions                                                                             Originated May 1996

      Below is a hypothetical Online Email thread (THRD) between the party indicated below and c  Jim@bcidot.org   Click here and go to List of threads (THRDs) at www.bcidot.org

FR: Kelly

        Hi Jim, I am poised to become the Founder of a Ministry that will be financially supported primarily by the Christian public. I will give you details later about the terrific needs I want to help alleviate .... what an opportunity !!!!.
        But, now I need to bend your ear on the general topic of Ministry Finances.  I need to remind you that I taught school for a couple of years before I became a Pastor some five years ago now .... so I do NOT have any formal ministry finance training or experience per se.
        Since you have been serving publicly supported ministries as a CPA for some time, Jim, what are some of the ministry finance things you think I should know about?
        For instance, Jim, if one of your grown children were to start such an endeavor, what written counsel would you give them along these lines?
          By the way,  I have already looked at some very helpful  NPO Startup  Info  that I have found on the web.

                 FR: JIM

   I commend you, Kelly, for bringing up these VERY practical issues as you pursue meeting this need. It is people like you that 'make a difference' in our world today and I am thankful for you. In my opinion, too few Ministry Founders fully look into these matters as they think about launching a Ministry supported by the Christian public.
   In response to your request, please note that below I have provided you with a list of Publications out on www.bcidot.org that are designed to assist Ministry Finance Teams.   Please especially digest the content of  1211  that is designed to help a Small Ministry with regard to financial management via the use of applicable Internet centric (or Internet Friendly) resources.  We trust you find them helpful.

PERSONAL FINANCE CARRY-OVER - - -

    Since you are going to be the 'mover and shaker'  of the Ministry, your personal "Phiscal Philosophy" will come across to the Ministry. Therefore, I believe you need to write down just where you are and what you believe regarding the following:

A> ACQUIRING FUNDS ----

    Obviously, this is the 'bread and butter' feature of ministry finance ... no funds, then no resources to fuel the endeavor itself. It is critical that you tie down the "what, how and who" aspects of this issue. Remember, whether you like it or not, YOU will be the major fund raiser. Be realistic, if you, for example, personally find it difficult to ask for money, you have a major problem right at the gitgo. See below for publications along these lines.

B> HANDLING and/or SPENDING MONEY

    Some names associated with people and money include: STINGY; SKINFLINT; FRUGAL; PRUDENT; SPENDTHRIFT; EASY-COME/EASY-GO. Please use this list to self exam yourself. You might find that your financial lifestyle up to now has shown some extremes as pointed out by some of the foregoing names.
    If so, are these extremes compatible with your anticipated Ministry and its finances?  Related personal questions are: "Are you in control of your personal finances now; do you presently live within your income, are you a slave to debt ..... do you over commit yourself so that you do NOT make payments of voluntary tithes and offerings, etc ? Do you plan ahead for large one-time purchases ... or do you end up borrowing in order to make such a purchase; do you take part in such programs as grocery coupons ... for example." go to  4001  for specific Righteous Personal Finance info.
    I was impressed with my wife's grocery purchases last week ..... by her working hard and acquiring coupons, she purchased $100.00 worth of  items for some $80.00.
    Are you saving money for your retirement?
    On the other hand, do you never spend money on some of the valuable and necessary things in life; you are so tight with money that it really hurts you when you have to spend money?
C> DEBT MANAGEMENT ---

    What do you believe and practice in this aspects of your personal money management?   Credit Card and related Debt is something today that we all must righteously handle; this device should be a tool ... and NOT a tyrant. Ideally, a Credit Card is used only as a ordinary purchasing mechanism ... and you pay them no interest.  See content of  4040  for more info. 

  •      For a Ministry, it facilitates purchases of operating items and you have no other charge account at retail stores.  Money borrowed for prudent purchase of property or equipment, like vehicles, should usually come from other sources.

D> FINANCE MANAGEMENT TOOLS

    Do you have a personal 'hang-up' with using computers as finance tools? Are you using one at home even now to augment your personal finance handling? In your circle of friends, is there someone that you trust to properly using Computers?  Think through who will be the other members of the M)inistry F)inance Team - MFTeam. These MFTeamates will be important --- choose well! This MFTeam will need to see that your financial record keeping is appropriate and timely updated; be realistic about check signers; make appropriate use of inexpensive computers and software for bookkeeping and mailing record keeping; make it easy for people to give repetitively --- provide return envelopes and be able to accept Donations using "Credit Card" and "Electronic Funds Transfer" systems. Know where you are regularly financially ... just because you have money in the Bank does NOT mean you can spend it for operations, etc.       This Ministry set of books would show you how special Ministry financial transactions are booked and reflected. Many beginning Ministries do NOT have all of  the needed MFTeam resources.

 E> MINISTRY FINANCE POLICIES - - -

    Once you have a handle on where you are coming from personally and it's probable effect on the new Ministry, I recommend that you use the Publication below to help you write down some initial (as your Ministry matures, they should be updated) Ministry Finance Policies.  To remind you .. a Policy is "something we ALWAYS do or something that we NEVER do" under the agreed set of circumstances.

 F> OTHER THOTS - - - - -

     1> Be financial credible to your public. Complying with the membership requirements of the E)vangelical C)ouncil for F)inancial A)ccountability - ECFA - greatly helps in this regard.
    2> Having served as Treasurer of the E)vangelical C)hristian C)redit U)union - ECCU - for a good share of the 1980s, I am biased, but I recommend that your Ministry use the ECCU Credit Union as your Bank, (it is NOT necessary these days, in my opinion, to have your Bank next door) and you can be a part of this Ministry focused stable financial institution.
    3> Consider having a generic name for the Ministry;  think carefully before your own name is part of the legal name. Frankly, be honest ... is there an ego issue here.
    4> Be careful about the "Good ol Boy" aspects of your corporate Board members - do you really view them as Ministry policy making advisors or simply as 'if I have to have them, I will get somebody that always agrees with me, etc.'; Do NOT have only family members; to what degree are they expected to help raise or supply funds; a Ministry Founder sometimes inappropriately operates the Ministry as would a proprietor of a business .... or, your decision is final, etc.
    5> Have a wholesome relationship with the IRS and other governmental agencies; Do NOT view them as the enemy ... comply with their mandates.
    6> You, as the Ministry leader, are likely to be high profile .. especially if your name is in it's name. Be careful about your personal finance "trappings", or lifestyle. Perception is important ... be a righteous steward of your personal assets. What kind of car do you drive and the size and number of your personal residence(s). Further, I recommend that, within the purview of privacy, aspects of your personal Ministry Salary and Benefit information (only that which flows via the Ministry) be available annually to constituents who ask.
    7> I hope it goes without saying that the Ministry MUST live up to all of its financial commitments.... pay your bills on time; righteously honor gift designations; be just and fair to all who work at the Ministry.
    8>  You might find the services within the following links of value: 

                                http://www.elshaddai.com
                                http://www.churchadminservices.com

FR: Kelly

      Thanks, Jim. This is EXACTLY what I was seeking.  I will digest this and get back to you with more requests for help, no doubt.

   Some of our topical WEB  publications are listed below:

Bank Balance, Beyond the 0058-01 ZZall
Board Members & Ministry Finance Info 0008-01 ZZall
Budgeting at a Ministry 0010-01 ZZall
Check Signing at a Ministry 0066-02 ZZall
Debt and Ministry 0126-02 ZZall
FAQ Publications List 0012-01 ZZall
Fund Accounting - Not Fun 0041-01 ZZall
Fund Gathering-Raising Perspective 0123-02 ZZall
Fund Raising Philosophy 0036-01 ZZall
Homers Serving BLVR and Ministries  ZZfwi
 Internal Control Ideals 0039-01 ZZall
Ministry Accounting Issues 0060-02 ZZall
Ministry Finance Team Info 0000-99 ZZall
 New Church Fiscal Matters 5050-02 ZZchu
Phiscal (Fiscal) Philosophy - 0052-01 ZZall
Policy and Administration Manual 0054-01 ZZall
 Policies Q & A - at a School   7003-01 ZZsch
Special Purpose Funds Perspective 0070-77 ZZall
Ten Commandments - Ministry Finance 0032-01 ZZall
TRUISMS List 0069-01 ZZall

    The bulk of this Publication originated in May 1996 and was   .   UPTD: May 04, 2008     

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       (1) An Online Document, or  WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
       (2) WRIT formats include the perspective of   Jim@bcidot.org  via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and via FAQ, response to Frequently Asked Questions