Across the country and the world we have entered a season where we are not able to meet as local churches in the same way we have been accustomed to. As churches, each of you are making decisions and judgments on how to navigate through this season of ministry and administration. Wisdom seeks to be a resource for you as you navigate this changed season well.
As of early Sunday evening, the CDC has ordered that gatherings be limited to 50 individuals for the next 8 weeks. Many state governors, including Washington state’s Jay Inslee and Massachusetts Charles Baker, have now ordered gatherings to be limited to under 25 individuals for a period of at least three weeks, if not more. Prior to and with these announcements many churches are emphasizing online services and online giving.
Do you have restricted contributions coming into your church? Does your board or council designate funds for specific ministries? Are you unsure what you have to do with restricted or designated funds?
Restricted contributions bring with them the requirement of additional accounting needs. Fund accounting ensures that both restricted contributions and funds designated by leadership are used for the correct corresponding expenses, allowing the church to steward all monies collected for specific uses intended by the giver.
Funds can be considered special projects outside the normal operations of the church. Churches track these projects using fund accounting practices to keep everything separate. The income coming in, both the restricted giving and leadership designated funds, and the expenses used for the project are separate from the operating activity of the church.
There are many types of funds churches use to set aside specific money. Examples of the most popular funds in church accounting are often: Building Fund, Missions Fund, and Benevolence Fund. Although these funds can be found in many churches, your church may have these same funds, more funds, or fewer funds depending on your specific needs.
Wisdom Over Wealth recommends using either Quick Books Online, our preferred software solution, or Aplos for fund accounting. Both systems use different means to accomplish the goal of true fund accounting, keeping funds separate from the church operating budget.
If your leadership team is looking to Get Started with fund accounting or are interested in implementing this, give us a call or send us an email! We’d love to partner with you! with fund accounting or are interested in implementing this, give us a call or send us an email! We’d love to partner with you!
Many ministers, especially those just starting out, neglect to “render unto Caesar” and fail to file income tax returns.
Churches can now help their employees with their healthcare needs! Providing health insurance reimbursements for employees was a routine practice utilized for nearly 50 years, until the Affordable Care Act made the practice illegal. Many churches have struggled to help their employees with their health care needs since the law changed. Fortunately for many, new rules went into effect January 1, 2020, allowing these benefit practices to begin once again.
Christmas is one of my favorite times of the year. Living in the Northeast I can’t help but be taken in by the glittering lights, snow covered trees and community traditions that surround the holiday. But it’s easy to get so wrapped up in the seasons and responsibilities that we lose sight of the reason for it all.
