Nathan Davis serves as Partner, CRI Advisors, LLC†, Partner, CRI Capin Crouse Advisors, LLC†, and Partner, Capin Crouse, LLC*. He has 15 years of experience providing auditing and accounting services to various nonprofit entities, including churches and denominational entities, colleges and universities, private schools, and international mission organizations. Nathan is a regular speaker at regional and national conferences, seminars, and webinars. He also frequently writes articles on church financial leadership, church governance, accounting, and church key performance indicators.
If you monitor financial and other ratios for your church, you will not only want to compare the results between years but also with peer churches. Here’s how to identify the right peer churches to compare against.
When prepared correctly, ratios can provide your church with valuable information about your financial health. Watching out for these common mistakes will help your church prepare accurate ratios that provide meaningful financial insight.
Comparing your church’s financial results can help you spot issues as well as strengths and plan strategically. Here's how.
Whether or not you believe a church should go into debt, if your church has debt it is important to monitor debt ratios and measurements. Your lender will be monitoring them even if your church isn’t.
This important ratio shows the days of operating cash and investments your church has on hand to fund annual cash expenditures, specifically related to very liquid assets.
This key income ratio can be compared from year to year, allowing you to see giving trends and determine the impact on your church and its budget.