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Stewarding Church/Ministry Finances

Stewarding Church/Ministry Finances. MinistryLift Conference October 4, 2013 John Webber. Seminar Description.

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Stewarding Church/Ministry Finances

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  1. Stewarding Church/Ministry Finances MinistryLift Conference October 4, 2013 John Webber

  2. Seminar Description This seminar covers the practical issues of creating and managing a budget and helps people understand how to read and interpret their organization’s (e.g. church, corporation, etc.) financial statements.

  3. Agenda • Important Considerations • The Process, Mission to Financial Reports • Important Considerations • From Mission to Financial Reports • Faith • Prayer • The Process, Practical • Time • Accounts • Budget • Financial Reports • Questions/Comments

  4. Important Considerations Designated legally as a Non-Profit Organization

  5. Resource http://www.cica.ca/focus-on-practice-areas/governance-strategy-and-risk/not-for-profit-director-series/npo-briefings/item65428.pdf

  6. Important Considerations • Key Players • Board • Accountability • Administration • Internal Reporting • To Board • To Members and Constituents (Donors) • External Reporting • CRA (T1030) • Auditor

  7. Important Considerations Leadership Accountability Obey your spiritual leaders and submit to them-continually recognizing their authority over you; for they are constantly keeping watch over your souls and guarding your spiritual welfare, as men who will have to render an account (of their trust). Hebrews 13: 17 (Amplified)

  8. From Mission to Finance To understand the numbers on financial statements it is necessary to understand what is behind the numbers.

  9. From Mission to Finance Strategies RESULTS REPORTING MISSION Long-term Plan Short-term Plan Budget

  10. Faith-based NPO Advantage and Challenge • GOD is central to our mission and planning • Discernment

  11. The Faith Component • “A church will face a crisis of belief when God invites them to become involved in a work only He can accomplish. • Faith and action will be required” • Experiencing God

  12. Have you made a “HEAD” commitment or have you made a “HEART” commitment?

  13. Prayer FOR UNITY I want men everywhere to lift up holy hands in prayer. 1 Tim. 2: 8 FOR WISDOM & DISCERNMENT But the wisdom that comes from heaven is first of all pure; then peace-loving, considerate, submissive, full of mercy and good fruit, impartial and sincere. James 3: 17 FOR PROTECTION Your enemy the devil prowls around like a roaring lion looking for someone to devour.1 Pet 5:8

  14. Process

  15. Process – Time Details • Time Frames • Some information is reported as at a point of time • Some information is accumulative. Sums over a specific period of time. • Time Periods • Calendar Year-end – 12 month period ending Dec 31. • Fiscal Year-end – 12 month period ending as at date (month end) determined by Board and continues.

  16. Process - Accounts • Financial Reports show summarized totals for the sum of related accounts. • Chart of Accounts – all accounts used by administration to record transactions.

  17. Financial Statements - Accounts

  18. Chart of AccountsExample - Salaries and Related

  19. Chart of AccountsExample – Donations (Contributions)

  20. Accounting for Contributions • Deferral Method • Restricted Fund Method

  21. From Mission to Finance - Budget Strategies RESULTS REPORTING MISSION Long-term Plan Short-term Plan Budget

  22. Budgeting PRAYER AND DISCERNMENT MISSION STRATEGIES Previous years results Budget Input from leaders in category areas Finance Officer/Board

  23. Balancing the Budget Revenues Expenses • What can be expected based on historical giving? • What special circumstances may impact revenue in this year? • Based on our estimated plan for the year, what in faith do we believe God will do? • What are the total expected expenses that will be required to be paid? • What expenses are fixed? • What can be eliminated or decreased? • What needs to be increased? Board and Congregational Approval

  24. Financial Reporting Previous Years Results Periodic Reports Actual results vs. Budget Year end Financial Reports

  25. Year end Financial Reporting • Statement of Financial Position (at point of time) • Statement of Operations (over a period of time) • Statement of Changes in Net Assets (over a period of time) • Statement of Changes in Cash Flows (over a period of time) • Notes to Financial Statements

  26. Statement of Financial Position

  27. Statement of Financial Position - Assets

  28. Statement of Financial Position – Liabilities and Equity

  29. Statement of Operations

  30. Statement of Operations - Revenues

  31. Statement of Operations - Expenses

  32. QUESTIONS & COMMENTS

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