Performing these simple steps throughout the year will result in your year-end financial close being similar to any other month-end, rather than a stressful and time-consuming event.
Does your church track its expense ratios? This can help you identify key trends in the outflow of resources between years. It also provides the opportunity to compare with other churches and check the reasonableness of your expenses.
Without support roles in the church, little or no ministry would take place. Your church should take care not to minimize the importance of these responsibilities. You can help ensure they are given their due by following a few key guidelines.
The Office of Management and Budget’s Uniform Guidance (the Omni Circular) has brought sweeping changes for nonprofits that receive federal funding. Nonprofits need to get up to speed on their rights and responsibilities under the rule — to avoid forfeiting reimbursement dollars.
The Financial Accounting Standards Board (FASB) Exposure Draft issued in 2015 will be addressed by the Board in two phases. The following identifies the components of tentative board decisions to date.
Many nonprofit organizations provide a retirement plan for their employees. But unless the plan is already required to have an independent audit*, most organizations are unaware of the high standard of fiduciary responsibility the IRS and Department of Labor place on plan sponsors to oversee their benefit plans and operate them in accordance with regulations.
With so much attention these days paid to fundraising ratios, many nonprofits feel pressure to minimize their fundraising expenses. This makes allocating joint costs — costs associated with activities that have both fundraising and other functions — appealing. But before you take that step, make sure you’re familiar with some frequently misunderstood accounting rules.
No organization has an infinite supply of resources. Follow these steps to create a realistic and effective budget that will help your organization use the resources you do have in a way that accomplishes your goals and furthers your mission.
Every church is only as healthy as its leadership, and the healthier the church, the better the chances it will maintain sound financial management. Review these eight factors of healthy church leadership and consider where your team is strong and where there may be weaknesses.
The word “budget” can strike fear in the heart of nearly any staff member. These considerations will help you prepare to budget, resulting in a more successful process and an effective budget that supports your church’s goals.