Modern Financial Practices as Good Stewardship
By Cynthia Gordon-Floyd, CPA, Contributing Writer
We are blessed to be under leadership such as that of the late President Valerie Gary Bell, who understood the long-reaching benefits of adhering to the objectives within our Connectional Lay Organization’s Constitution and Bylaws. According to Article II, Section 3, found within our Book of Doctrine and Discipline (2016), there are 14 objectives we should target within our ministries. One in particular, “Objective g,” notes that the Lay Organization should encourage the development, recognition, and utilization of the most appropriate operational practices and modern technology in conducting the activities of the AME Church.
President Bell understood the benefits of adhering to this standard encourages us to sound financial management. It also ensures that lay leaders understand federal and state guidelines for operating our non-profit entities in a manner that does not leave us vulnerable to fines, penalties, liens, and other punitive actions.
To adhere to the goal of this particular objective, there are several changes the AME Church can effectively implement at little or no cost. First, shift from the use of Excel spreadsheets to track revenue and expenses (which can easily reflect human error to utilizing church management software which is readily available at reasonable rates.
Second, understand tax implications and appropriately issue W-2s for our pastors instead of 1099s. Using 1099s results in unnecessary taxable income.
Third, become educated and integrated with the proper use of the clergy housing allowance exclusion. It could reduce the effective tax rate for many of our pastors.
Fourth, implement mobile and online giving in all of our churches. Also, direct our members toward a focus on the sacrifice of Jesus, who indeed inspires sacrificial giving, rather than focusing on fundraisers to support the church.
The goal of Willing Steward Ministries is to educate on the best practices in church financial management and assist our clergy and lay leadership with understanding and applying the law to our advantage. In this way, the AME Church will become more effective, efficient, and fully compliant.
President Bell’s mission was to promote the advancement of each of the 14 objectives of the Connectional Lay Organization. We would be wise to continue this mission in her honor with all the glory to God alone.
Cynthia Gordon-Floyd is a certified public accountant and founder of Willing Steward Ministries (willingsteward.com), which is a financial consulting and accounting firm for churches and other faith-based non-profits. She specializes in Bible-focused financial practices, pastoral compensation issues, IRS-compliance and other financial needs specific to churches. Cynthia is a graduate of Lake Forest College and received her Master of Business Administration in Accounting from DePaul University. She is a steward and the financial secretary at the First AME Church of Manassas in Manassas, Virginia.
This article is dedicated in loving memory of the beloved CLO President Valerie Gary Bell who first encouraged me to write for The Christian Recorder.
