This is the concluding part of the series on Finance. I am grateful to Stephen Mathews of Stewardship for writing this for me and hope that churches, in particular, will improve their practices as a result.
The issue
In our churches administration can be like housework – only thought about when it is not done.
To Paul it was much more than that. It was:
- A ‘gift’ alongside those of apostles and prophets (1 Corinthians 12)
- An action which “honours the Lord” (2 Corinthians 8)
- Respect for authorities (Romans 13)
Every week at Stewardship we see churches with failures in financial administration; some are minor, but some are major which result in pain and real cost. In those cases the church is like a ‘leaky bucket’, allowing funds to slip away like water, often with consequent reputational damage. Our greatest critics tend not to be regulators but our own supporters who expect better from us.
My intention is not for churches to be ‘perfectionist’ but rather that we honour the Lord in our administration, doing this as well as we can.
The ingredients
The key ingredients in creating good administration include:
- Investment of ‘time’ and ‘talent’ (and maybe ‘money’)
- Knowing what you don’t know
- Getting the balance right
Investment
We now run our churches in a world full of regulations, far more now than only 20 years ago. We:
- Handle flows of money
- Employ people
- Claim Gift Aid and other charity tax exemptions
- Operate subject to Charity Law etc
The regulations in each area should be understood at least to the level that church members, regulators and others would expect.
Most problems come about because we haven’t thought about the regulations or, if we did, we underestimated their complexity or how they would impact us. Resolving that requires investment of some leadership time, individuals’ talents, and sometimes training and support. Thank God for the gift of administration!
Knowing what you don’t know
Regulations are always changing but ignorance is no defence. As church leaders we can’t expect to know everything, but we should have our eyes open, alert to changes which will impact our church.
Look out for the gift of administration and volunteers who are knowledgeable. We can also do our own research, but it is likely nowadays that all churches will have to look outside of themselves for some help with knowledge or services. It is part of the cost of operation.
Getting the balance right
Striking the right balance is important for churches and their finance teams. We do not want to be leaky buckets, but neither do we want to button everything down so tightly that nothing really ever happens!
Plugging a leaky bucket may be as straightforward as introducing policies, procedures and practices. However don’t underestimate the tension that this can bring into churches; delay, frustration and restriction. The key is to handle this tension well with dialogue and openness.
Conclusion
When we invest in financial administration the rewards are:
- Supportive and effective processes
- Problems are anticipated
- Romans 13 is lived out
- Strong reputations are built
That is a good return on our investment as leaders, trustees and finance people.
Footnote by Nigel
The issues addressed in this series require action. I urge churches to re-read this series and to carry out a Financial Health Check using the tools below to ensure that your financial practices are exemplary. When God had created each part of creation he looked at it and declared it good. Would your church’s finances enjoy the same plaudit?
I have used the services of Stewardship for many years. They are helpful, understand ‘church’, and give good advice and support services. Click on some of the resources below and you will understand what I mean. I commend them to you.
Free linked resources:
Raising the Standard – transforming the culture of money in the church
Financial Health Check for Churches
Financial Controls in Churches and small Charities
Tax Pitfalls for new Churches and Charities – how to avoid common problems
Gift Aid small Donations Scheme (applicable only in UK)
Volunteers in Church – some Dos and Don’ts
Training and advice
Free Advice for Church Treasurers
Support Services – Consultancy Helpline
Written by Guest Writer, Stephen Mathews.