Financial management
in our congregations

By Ronald Kelly

PASADENA—After nearly four years of intensive preparation, we have passed a significant milestone in the ongoing transformation of our church.

All U.S. congregations are now operating under the new decentralized financial management system. This system grants congregations the primary responsibility for receiving, processing and disbursing church income. The congregations are supported in this important and challenging work by denominational personnel and systems that are largely financed by apportionments of the donation income received by the congregations.

This approach provides local flexibility and responsibility with central support and accountability. It also provides a greater emphasis on local ministries while continuing to advance our shared, worldwide ministries.

Centralized support

Centralized support for the new system is provided by a number of denominational offices.

Computer Information Systems provides telephone and online support for the standard computer software programs, in­cluding the online iMIS system used to keep member records in a highly secure environment. Using iMIS, the names, addresses, donations and other member records are kept, and donation receipts are issued.

Using other software, expenditures of congregational income are recorded and financial reports issued. These reports are monitored both locally and centrally to ensure local and central accountability and compliance with denominational standards.

The Church Administration Department, in large part through the district superintendents, coaches pastors and other local leaders in the management of the new financial system. Occasional training seminars are provided. The iMIS web site also provides management references, tips and access to online help.

Congregational financial management

At the local level, financial management involves a team of members whose important roles are described in the WCG-USA Financial Management Manual (posted online at www. wcg.org/online—click on the “manuals” tab).

This team is led by the senior pastor, who provides oversight of all financial systems and personnel. The advisory council offers advice and counsel to the senior pastor concerning certain financial matters, particularly concerning the annual budget for the congregation.

Day-to-day financial operations are then carried out by the congregation’s finance committee, whose responsibilities include receiving, recording, banking, disbursing and monitoring congregational income.

The finance committee is appointed by the senior pastor (with input from the advisory council). All members are prescreened through a standard application process.

The committee usually includes three members: the treasurer (who usually heads the committee), the head usher and one general member. Some congregations also have a financial secretary, who shares part of the responsibilities of the treasurer. The responsibilities of each member of the committee are as follows:

The treasurer handles most of the day-to-day financial operations for the congregation including the following tasks:

*Monitoring the finances of the congregation’s ministries and programs.

*Maintaining the congregation’s accounting records.

*Preparing checks and financial reports.

*Issuing receipts to donors.

*Otherwise managing the financial administration of the congregation beyond the responsibilities of the head usher and senior pastor.

The head usher leads an offerings counting team that receives, counts and deposits all offerings given in the weekly worship service or received by the congregation through the mail. Each week the head usher gives the pastor and the treasurer a report that lists these donations and deposits. The treasurer (or the financial secretary) then records this information in the financial records.

It’s important to note how we divide responsibilities between the treasurer and the head usher. The team that receives, counts and deposits the offerings is completely separate from the individual who disburses and accounts for that income. This separation of duties is essential for safe and ethical financial practices. Many other similar safeguards are built into the financial system.

Processing and confidentiality

Some congregations choose not to process offerings locally, and send the weekly offering to our denominational offices in Southern California, where for a small fee those offerings are opened, counted, deposited, recorded and receipted. The donations received are then wire-transferred to the receiving congregation’s bank account. The congregation’s treasurer then disburses that income in accordance with the congregation’s expense budget.

Whether processed locally or centrally, donor records are kept strictly confidential. All such records are carefully protected and are accessed only by a few, pre-approved individuals within the congregation and denominational offices. Within the congregation, usually only the pastor, treasurer and account reviewers have access.

Within denominational offices, only a select few individuals have access for management purposes. The amounts given by individual donors are not shared with others outside this limited group.

Other local personnel

Following are other important roles in the management of the financial system:

An account reconciler reviews the congregation’s financial ac­counts in order to reconcile those accounts with the monthly bank statement. This review helps to identify any discrepancies and other problems at an early date.

Account reviewers conduct thorough annual reviews of the congregation’s financial records and systems. The reviewer is usually an accountant or other business person within the congregation.

Every third year, however, the account reviewer must be a qualified person from outside the congregation. The primary purpose for these account reviews is to confirm that all the practices and procedures of the finance committee conform to the standards and requirements set forth in the Financial Management Manual.

The role of members

Successful local financial operations are largely dependent, of course, on the regular and generous donations of the congregation’s members and other donors. Most members contribute to the weekly offering using offering envelopes provided to them by the congregation.

Many also contribute by having a credit card automatically debited monthly for a predetermined amount (if you’d like to know more about this method for donating to your congregation, please check with your pastor or treasurer). Others send their offerings to the congregation through the mail (if you wish to give in this way, be sure to use your congregation’s local address).

Some members wish to contribute to the denomination over and above offerings contributed to their local congregation. Such offerings are gratefully received and are receipted directly by the denomination.

Note also that 20 percent of every offering given to a WCG-USA congregation is automatically given by that congregation to the denomination to fund our shared and centralized ministries and support systems. This apportionment system is described in detail in the Financial Management Manual.

I want to extend my personal thanks to all those who have worked so hard over the past four years to prepare us for entering this new system. It has been a wonderful, cooperative effort of staff members in our Pasadena offices, several of our district superintendents, and pastors, treasurers and other members who participated in our pilot program.

My thanks as well to the financial teams now set up in our congregations. Their willingness to volunteer for these new, essential, duties is greatly needed and appreciated. Together we can make this new system a wonderful tool to advance our shared mission of making disciples who make disciples—all for the glory of God.

Copyright © Grace Communion International, 2004