Annual/Quarterly Conference Reporting Observations
By Cynthia Gordon-Floyd, CPA, Contributing Writer
In the Disciplinary Questions posed at each Quarterly Conference, the pastor is asked the following questions:
- What is the present indebtedness? (For Stewards, Trustees, and the Stewardship Commission, respectively.)
- How much money has been collected for the General Budget Fund?
I would suggest that it is time to change this language to more closely reflect how we should report on the financial activities of our churches.
While the Pastor, Stewards, Trustees, and other lay leaders may be actively involved in encouraging the congregation to give, should those gifts be reported as money raised by the Stewards or Trustees? It is money given by the congregation to support the needs of the church and should be clearly reported as such.
Should church indebtedness be reported as belonging to the Stewards, Trustees, or the Commission on Stewardship and Finance? Many pastors and church leaders have been required to assist the church with securing debt for various reasons. I, too, was a trustee years ago when my church entered into its first mortgage debt, and I personally guaranteed the debt along with my fellow trustees. (Hallelujah! It’s liquidated!) We entered into the debt in the name of our church. The initial responsibility to pay the mortgage belonged to the church. Our responsibility was to pay it if the church could not.
I should reiterate that the debt was held in the name of the church. We should not secure debt in the name of individual church members. If you have a current situation of this nature, this is an excellent time to refinance the debt. It may still require a personal guarantee if the church is not financially strong, but church debt and deeds are to be held in the name of the church. Many states have made it easy to incorporate a church, and you may apply online at www.irs.gov for a tax identification number (EIN). Church incorporation and an EIN will help the refinance process move smoothly.
Many of our congregations have instituted requirements for members to give specifically for the church to meet its obligation for the General Budget. I believe that asking members to contribute separately to raise money for the General Budget portrays it as an additional burden. Ideally, I strongly encourage churches to incorporate the General Budget responsibility into the annual church budget. Therefore, this would allow you to teach and train on stewardship and tithing principles while securing the funds to cover the General Budget and other assessment responsibilities.
Cynthia Gordon-Floyd is a certified public accountant and founder of Willing Steward Ministries, LLC. Willing Steward Ministries (www.willingsteward.com) is a financial consulting and accounting firm for churches and other faith-based non-profits, specializing in Bible-focused financial practices, pastoral compensation issues, Internal Revenue Service compliance, and other financial needs specific to churches. Cynthia is a graduate of Lake Forest College and holds her MBA in Accounting from DePaul University. She is a Steward and the Financial Secretary at the First AME Church of Manassas in Manassas, Virginia.
