Funding Costs of ECFA Membership

Funding Costs of ECFA Membership - 0947-10 March 2010

Funding Costs of ECFA Affiliate Membership - 0947-10 Jan 2010

TO:   All Interested Onliners                                                                                FROM: Jim Bramer. Retired Auditor-CPA
                                                                                                                                         FILE:   0947-10/fwi

   RE: Funding ECFA's Membership costs                                                         Originated in February 2010

   Today's "FOR WHAT IT IS WORTH" Editorial

PERSPECTIVE :

                All Christ Centered Ministries must have financial integrity. This seems especially true for Non-Church endeavors who are financially supported by the general Christian public and not by their members or their congregation.   In this setting I am thinking about those Smaller Ministries who perhaps annually handle something like $100,000 or less.

                It is these Small Ministries who can obtain this needed external provided financial credibility via the Evangelical Council for Financial Accountability (ECFA) membership that embraces at least the following:

     >> The ECFA requires each of their members to have an annual CPA-Auditor relationship. The least expensive of such an assignment is called, not an audit per se, but a “Compilation” that is described when you Go Here.

     >> There is a one-time ECFA membership application fee of $350.00.

     >> Plus there are the annual membership ECFA fees as described when you Go Here and Here

                                                                                                     PROPOSAL:

                Most of these Small Ministries have difficulty even meeting their needed operational expenses, so it exceptionally difficult for them to afford the costs of the annual CPA-Auditor and the ECFA membership. I propose the following within this context:

     >>   Ministry savvy CPA-Audit firms provide inexpensive remote annual Compilation services. Remote issues for such an assignment like the following can be fully utilized in today's “Internet Friendly” environment.

     1>   It is NOT necessary for the staff of a Ministry savvy CPA-Audit firm to go to the client – no travel costs, etc.

     2> The member's entire Computerized set of books (like QuickBooks for example) can readily be available to the CPA-Audit firm by placement on their computer system.

     3> The needed interaction between the client and the CPA-Auditor can take place via such Internet resources as telephone conferences while viewing the respective computer desktops plus via the free Internet product known as “Skype.”     We have an overseas Missionary grand-daughter and how special it is for us to use “Skype” Internet resources to see her and for her to see us as we talk with one another.

     >> There has been some discussion about ECFA establishing a system that will financially assist these qualified members to pay for both their essential annual CPA-Auditor fees and their ECFA costs. This would be accomplished by ECFA establishing a well advertised donor provided “Special Purpose Fund” that would have specific conditions that a member must meet in order to qualify for such help. Ideas along these lines would include:

     1> This member's Board of Directors must handle their finances in a specified ways - examples: compliance with written financial policies that ECFA is satisfied with; have an applicable Treasurer and a Finance Committee of their Board; limited financial control by the Founders (or the Ministry dominate person) and their family.

     2> This ECFA “Special Purpose Fund” would pay for only an understood percentage of said ECFA membership and the CPA - Auditor fees/costs --- the Ministry MUST first pay them and then apply to this ECFA resource for their understood reimbursement percentage.

     >>   At least every other year their Ministry savvy CPA-Audit firm would grade these clients and ECFA would get these reports. Of course, bad grades would need to be addressed. See grade report matters when you Go Here.

     >>   There has also been some discussion about ECFA being provided with the capital to fund an “Endowment Fund” whose earnings would fund the activity of this proposed ECFA “Special Purpose Fund” .

        Please contact me at Jim@bcidot.org if you have comments or questions about any of this.

K E E P   L O O K I N G   U P !!

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UPTD: March 08, 2010

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