- - And the Lord direct your heart in the love of God as you continue to faithfully serve Him - -

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                    TO:  Interested Onliners                                                                                                   FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                        
   
                    RE: J I Ms  J R N L  for the month of December 2004                                                         FILE:  0212-04/jrnl        

Relevant features of "PlanJecting" include:  

1.   The Non-Church Ministry Executive Officer is the PRIMARY PLANJECTOR -- this person has a "finger on the pulse" of the ministry; and therefore orchestrates its plans and objectives. This person has the overview needed.
2.   The Internal Accountant (Bookkeeper or one with a similar title) is the SECONDARY PROJECTOR -- too often these roles are reversed. It is the important function of the  Internal Accountant to largely be a financial historian and reporter. This person is more reactive than proactive. The Internal Accountant has information at their disposal to "put dollars" to the plans set forth by the PRIMARY PLANJECTOR, with the net financial effect being approved by others.
3.   It is important that the Ministry Executive Officer (or this person's departmental delegates) accept as fact that the PLANJECTION dollars "belong" to the Ministry Executive Officer and are not the dollars of the Internal Accountant -- all this person should do is put "flesh" dollars to your plan "bones". The Ministry Executive Officer is responsible for approved plans; the PlanJected amounts simply converts them into measurable financial terms.
4.   The measurement of what actually happens as compared to what was PlanJected (often referred to as "Actual versus Budget") will never be "alive" and result in meaningful management until the resultant PlanJected dollars are actually "owned" by the Ministry Executive Officer (or this person's departmental delegates).
5.   All parties involved must have a "feel" for the difference between recorded income and expenses (Accrual Basis Accounting) and money which is actually available or used (Cash Basis Accounting). It is best for the PLANJECTION system to reflect the recorded income and expenses even if actual money has not exchanged hands yet, since it is fully reflective of the entire scope of the financial cycle.
6.   As plans are developed, please be reminded that certain plans actuate certain on-going or fixed financial obligations; others might be one-time or discretionary financial obligations. Be especially sensitive to fixed obligations such as facility upkeep and staff salaries/benefits as you plan the ministry's actions.
7.   Make use of contemporary tools, such as personal computer systems, to operate and manage an effective PLANJECTION system.

Bux Box -- Spending Control alternative to the usual Ministry Budget system (5)

       

    Please link to  1211  where in February 2006 we talk about the AFT (After the Fact) QBuxBox Weekly Internet Acctg System

    The  GPFund  has been struggling in three smaller Churches in recent months, so they have decided to use the Bux Box QuickBooks Accounting system explained in detail at  0002  since it helps you to better monitor your spending than the usual Church Budget line item accounting system.  It includes at least the following as you:

• Establish GPFund  Department spending groups - we call them GPFund Bux Boxes.
• Determine which of the Bux Boxes has first priority to the weekly GPFund Sunday Tithes/Offerings Income
• Place this Income upon receipt by order of priority to the applicable Bux Boxes..
• Provide weekly Bux Box balance reports so you know if there is anything to spend in said Bux Box.  See sample at   0601
• Use the QuickBooks "Class" accounting feature to provide types of GPFund Income and Expenditures necessary info.

Four Step Personal Finance Plan (6)

        Please note the very simple Four Step Personal Finance plan for financial success below as suggested by Finance Counselor Humberto Cruz at HCruz5040@aol.com .

1> Know what you (and your spouse) want. This requires some serious thinking. (Jim Bramer's comment: "A Christian, of course, is to have the Lord's insight on these matters".)
2> Spend no more than what you make, preferably less. Amazingly, studies show that apparently less than 10% of Americans really know how much they make and spend.
3> Save and invest the difference. Pick an investment asset allocation that is likely to achieve your desired return with the lowest possible risk.
4> Protect what you have. Be sure you have the necessary insurance; an accident or illness can wipe you out.

Current Use of Credit/Debit Cards (4):

            The following quote this month came from a Federal Reserve Bank official:  "For the 1st time, the use of credit cards, debit cards and other electronic bill paying by Americans has eclipsed the use of paper checks --- we expect this trend to continue."   How does this resonate with providing such means for the receipt of Ministry and Church income.  Please see content of   0907.   It is also interesting to read recently that the Salvation Army bell ringers, in at least the Phoenix Arizona area, now hear the swipe of credit/debit cards as well as the clang of coins in their red kettles.

Making a List and Checking it Twice (7):

    Of course, we associate this with the Santa song -- and I know this does not have anything specifically to do with Ministry Finance  or  Righteous Personal Finance   per se --  but I am impressed with the general concept that, to be effective, we need to write things down.  I trust the content of  0091,  0906 and  0914  contribute to what Harvey@Mackay.com says:   "If you do not want to be listless, make a list."

Potentially helpful links for JIMs JRNL Readers  (1):

   Source of Non Cash Donations  ---   http://www.naeir.org/index.cfm
   Gifts in Kind - catalog buying code BKAF162  ---   http://www.agrm.org/catalog.html
   Contribution rules   ---   http://www.thechurchreport.com/content/view/135/32/
   Technology and Contribution Income  http://www.thechurchreport.com/index.php?option=content&task=view&id=77&Itemid=32
   Donor Advised Funds   ---    http://www.efca.org/foundation/indways/daf.html
   Debit Cards - Like writing an Online check     http://www.nclnet.org/debitbro.htm#intro
   More re Debit Cards   ---    http://www.thebeehive.org/money/debit-cards.asp
   Too much Email -- not Good   ---    http://www.usatoday.com/tech/news/2004-12-07-email-usat_x.htm
   ECFA 3rd Qtr Publication  ---    http://www.ecfamembers.org/pdf/Newsletters/FOCUS_3Q_2004.pdf
   Common Mistakes of Ministry Start-ups --- http://nonprofit.about.com/od/nonprofitstartup/tp/common_mistakes.htm
   Have Budget - Will Go  ---    http://www.crown.org/newsletter/default.asp?issue=323&articleid=362&MemberID=396870

Truisms: (2)

        Below is one of my Ministry Finance "rule of thumbs" or precepts/beliefs/principles  Please go to  0069  for our complete TRUISMS list.

    Budgets are a Given - realistic operating budgets are essential; Ministry buyers MUST know their spending limits.  Please go to  0910  for some believed Annual Budget Truisms.  Also see  5009  regarding some Church Budget Truisms.

Prayerful Thots:

     Heavenly Father, the advent, or CHRISTmas, time of year is so very very special.  How can we ever thank you enough for sending your only begotten son here to satisfy man's sin problem.  May we all do our part to get His message of redemption out to mankind.  In thy precious name,  Amen