Sarah is a Senior Audit* Manager at CapinCrouse. She joined the firm in 1997 and has acquired a broad range of experience through serving a wide range of clients within the nonprofit industry, including colleges, seminaries, churches, Christian schools, church extension funds, foundations, and other nonprofit organizations. She is a member of the firm’s Uniform Guidance team.
Effective financial ratios can give your church vital insight into your financial condition and trends. Here’s how to analyze this information to get the most out of it.
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.