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The Bible defines the tithe as a tenth of income or produce, and offerings as any other donation to a church or ministry. A church or parachurch ministry pays the bills and its staff based on what comes in as tithes and offerings. When the offering plate does not produce enough to cover the expenses, churches get creative to increase the offering.
Configuring church finance reports makes the difference between balanced accounts and economic trouble. Many churches operate with several different funds. Funds range from unrestricted to restricted use. A church treasurer may use one or multiple bank accounts to maintain monies. The trick is to ensure receipts clearly mark if expenses were afforded via unrestricted, temporary restricted or restricted funds. Church finance-report configuration includes working out an accounting spreadsheet and filling out the appropriate tax form.
A rector is the head priest, like a senior pastor, for an Episcopal, Catholic or Anglican parish. As priest, he will oversee church policy and business, preach the Scriptures, pastorally guide the congregation, and meet with parishoners in times of spiritual question and need. When a church receives a new rector, the transition can be joyful but difficult, especially if the previous rector was beloved or had been at the church a long time. Make the transition smoother by receiving your new rector with an spirit of openness and, as a church, show some tangible displays of welcome.
Church offerings are an integral part of Christian worship. Most church services include a time for worshippers to place money in an offering plate. Worshippers may give bills, coins or checks when the offering plates are passed around. Sometimes, the offering is placed in envelopes, but many worshippers place the money directly in the offering plate. Opportunities for theft abound during the time the plate is passed around and during the counting of the money and the transport of the money to the bank. Churches can protect offerings by developing procedures to secure offerings as they are collected.
Churches are similar to other organizations in that to run smoothly they require careful planning and documentation of their policies and procedures. A policies and procedures manual is an important part of the administration of the church because it delegates authority, establishes what to do in the case of an emergency, establishes general rules in accordance with local and diocese laws, and gives church leadership a general outline for how to proceed in specific situations. If the policy and procedures manual is planned carefully and written well, it can serve as a helpful guide for years to come.
Church personnel, especially paid staff, hold a position of trust in the community and must operate with integrity. Church policy manuals outline general rules for them to follow. Although policy manuals differ in details from church to church, even within a denomination, most personnel policies are very similar.
Church accounting procedures are very similar to the accounting procedures used for most nonprofit organizations. Many churches have high volumes of cash or checks coming in over the weekend, as this is the normal time for services and collecting tithes and offerings. Churches usually prepare basic financial reports, either monthly or annually, for members to review the income and expenses collected and reported by the church. Although most churches are exempt from paying taxes by filing a nonprofit Internal Revenue Service form, they are usually required to maintain accurate financial records.
A procedure and policy manual helps employees and volunteers understand the day-to-day operations of the church. It also gives them a reference point to complete or address any unfamiliar tasks or situations. The manual should be divided into sections on each department's functions and responsibilities.
Like a business, a church needs to stay organized to run efficiently. Part of this organization is the creation of a good policies and procedures manual. Regardless of the denomination for which the manual is created, a good policies and procedures manual will dictate clearly how the church is supposed to operate.
The canons of the Episcopal Church outline the process and requirements for ordination as an Episcopal priest. Although the canons outline a timeline of at least 18 months, the process in practice is often longer, requiring as many as four to six years. The ordination process requires aspiring priests to complete a series of educational and procedural steps. The Episcopal Church allows men and women, married or single, to be ordained as priests.
You've been selected to become the pastor of a church and you're feeling overwhelmed at the responsibilities and details you are expected to understand and carry out. You need to get to know the office staff, learn how the office and church have been managed and administered in the past, and take over for the departing pastor. Don't forget to turn to God for support and guidance.
Most organizations have written financial policies and procedures to ensure fiscal responsibility and guide the organization in day-to-day operations. This is particularly important for organizations whose mission is to promote integrity in all areas of life. According to Jim Banner, auditor and CPA, "I like to define a policy as what you always do or what you never do within a certain set of circumstances." In Protestant churches policies are determined by a board of directors, which is responsible to oversee those polices. The Catholic counterpart is the diocesan finance council, overseen by the bishop.
When it comes to counting money the church has received, establish a procedure church members understand and trust. Some churches pass a collection plate for their offerings; others set it discreetly near an entrance. No matter which way your church does it, two or more people should always be involved with handling and counting church offerings.
