At some point in your life, you might need to look for a new Church.
You might move.
You might need a more sound doctrine.
You might be called to a different ministry.
Or, you might even need to escape Church hurt.
Whatever the reason, you will want to make sure your new Church is financially stable. To assess the financial situation, here are a few questions to ask leadership of a prospective new Church –
What internal controls exist to prevent fraud and money mismanagement?
Internal controls can include –
- segregated financial duties [for example, the person who authorizes checks should not be the same person who writes checks],
- policies for expense reimbursement,
- conflict of interest questionnaires and
- other procedures to guard against financial issues.
When you hear stories about a Church administrator who embezzled funds, the stories often point to a lack of internal controls.
Although internal controls will not prevent fraud, they can protect the Church’s integrity and make fraudulent efforts much more difficult.
How much of the budget is allocated to missions, ministry and service to those in need?
Naturally, salaries and occupancy costs will dominate the Church’s operating budget. Even so, ministry and mission work should be among budget priorities.
Why?
Because these are God’s priorities. And, as God’s institution, the Church’s priorities should reflect God’s priorities.
Does the Church generate enough cash flow to pay its current debt?
Sometimes, a Church that cannot pay its debts will consider merging with another Church to stay afloat.
Before joining a Church, it is important for you to know whether or not the Church’s financial struggles will require significant operating changes.
Also, high debt can be a red flag. Is the Church involved in risky investments? Are the current leaders qualified leaders to make financial decisions?
When a Church discloses any issues with debt, it is a good idea to follow up with additional questions to identify any financial issues.
Do you let the congregation review the Church’s financial statements?
Financial transparency is important for the integrity of the Church.
At certain Church’s, the congregation is invited to business meetings where they can review, analyze and comment on the Church’s financial statements. This process demonstrates good money management and accountability for Church expenditures.
Do you have a reserve fund? What is the policy for use?
A key component of financial stewardship is saving for unexpected events.
Proverbs 30:25 praises the ant for saving up food in the summer.
In Genesis 41:49, Joseph saved up enough grain to provide for the Israelites during a severe famine in Egypt.
Whether it’s a savings fund, endowment fund or even an insurance policy, a Church should be financially prepared for an emergency.
Even though your reasons for joining a Church should extend beyond financial responsibility, a Church’s financial health can indicate its overall health. While no Church is perfect, you want to attend a Church healthy enough to equip you with sound teaching and fellowship.