When it comes to health care coverage, churches and ministry organizations find themselves in the same boat as other employers. If a church has 50 or more full-time and full-time-equivalent employees, it must generally offer affordable minimum essential health care coverage to them and their dependents, or face federally mandated payments imposed upon employers. These payments are often referred to as “pay or play” penalties.

Donna Lively, director of insurance marketing at Dallas-based GuideStone Financial Resources, says churches need to determine if they have 50 or more full-time and full-time-equivalent employees. If so, as “applicable large employers,” they’re required to offer coverage to employees working 30 hours or more per week. This is an important step, and the regulations provide very detailed rules regarding how to count full-time and full-time-equivalent employees.

“Many churches will be surprised to learn they’re subject to these rules,” Lively says. For example, if a church controls a Mother’s Day Out, preschool, K–12 school, sports program or other ministry with staff, it may be a “controlled organization” whose employees may count toward the total employee count. If those other ministries of the church operate under the same Employee Identification Number (EIN), it could be a clear indicator that the ministry is a controlled organization of the church.

“Even for ministries who have separate EINs, they may still be a controlled organization if the church has control, provides significant funding, or is overseen by the same trustees or boards,” Lively explains. “In that situation, all employees are considered for purposes of determining applicable large-employer status.”

To help in the employee-counting process, GuideStone has made available a free calculator on its website (www.GuideStone.org/healthreform) for any church or ministry that wants to determine if it has 50 or more full-time and full-time-equivalent employees. It’s available at no cost, whether a church uses GuideStone as its health insurance provider or not. In addition to calculating employees, the calculator estimates the amount of the penalty that could be assessed if a church or ministry organization opts not to provide affordable minimum essential coverage to all employees working 30 or more hours per week.

“All providers of health care — from insurance companies, to self-insured church plans such as GuideStone’s — are trying to keep their customers apprised of the impact of the health care regulations, and the steps they need to take,” Lively says.

How to get proactive
While concerned with the practical implications of the law, GuideStone (along with other church health plan providers) is continuing to diligently advocate through legislative and regulatory efforts designed to protect and preserve health care coverage for pastors and others in ministry. The new federal law poses numerous issues, and the coalition of health plan providers is aggressively seeking various forms of technical relief through legislative and regulatory avenues, which are beyond the scope of what a particular court can provide. GuideStone, for example, is committed to protecting religious liberty through legislative and regulatory channels; others are addressing these matters through litigation. This multipronged approach is critical as Christians join in seeking to safeguard religious liberty.

The avalanche of new regulations under the health care law accelerated after President Obama’s re-election. The new regulations can create a daunting challenge for church financial leaders seeking to make decisions for 2014 and beyond. On the same website (www.GuideStone.org/healthreform), churches and ministries — can sign up for prompt email alerts on new regulations and other developments of interest.

The government’s health care reform website (www.healthcare.gov), the Department of Labor website (www.dol.gov/ebsa/healthreform) and the IRS website (www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions) all have good information for employers, as well.

As the year progresses, it’s likely there’ll be more reports of some for-profit companies considering the advantages of paying penalties rather than providing health insurance. While not providing health care coverage may appear to be more financially advantageous, Lively doesn’t expect many churches and ministries will opt for dismantling their employer-sponsored health care benefits.

“In my experience, the ministry organizations we’re blessed to serve care about their employees in a way that many secular organizations may not,” she explains. “So, I think not providing health care would be a very, very difficult decision.”

Even so, as Lively points out, the budget impact of expanding coverage is real. “Churches must carefully consider the impact health care reform will have on their fiscal health and employee morale as they make their 2014 medical coverage decisions,” she cautions. There are many questions within the health care industry and among health plans regarding various elements of health care reform. As such, certain information may change, to some extent, over time.  However, we hope our communications will provide churches a useful frame of reference as they endeavor to carry out their responsibilities and serve their employees.

Roy Hayhurst is senior manager of editorial services at Dallas-based GuideStone Financial Resources. He may be reached at roy.hayhurst@guidestone.org.

At my annual checkup, the doctor ordered a number of blood tests. I didn’t think much about it until a copy of the test results arrived in the mail.

The report had a lot of numbers listed under “in range,” “out of range” and “reference range” headings. I had many questions as I scanned the list, particularly about the numbers in the “out of range” column. What does that mean? Is one result more important than another? Does it matter if a number is out of the reference range by a little or a lot — or if it’s “high” or “low”?

There was a wealth of information at my fingertips, but none of it was useful to me because I didn’t understand the report as it was intended to be used. To me, it was just a scrap paper. To a knowledgeable user, it was a comprehensive picture of my overall health.

Asking the right questions
You might find yourself in a similar situation as you attempt to assess your church’s financial health. There’s a lot of information you could gather; but, unless you know the right questions to ask (and how to view the answers), you won’t gain a clear understanding of your church’s financial situation.

Space not permitting, we won’t go into the specific measures a church should track in this article. We will, however, provide insights into what types of questions you should be asking, and how you should analyze the answers.
Here are a few of the questions we always ask when looking at a church’s financial information:

• Are the resources being used effectively?
• Does the church have adequate cash reserves?
• Is the debt level appropriate?
• Are contributions reasonable?
• Are the expense ratios reasonable?
• How do the financial resources of the church compare with other churches?
• What are the most appropriate key financial performance indicators for the church?
• Does the church have adequate financial resources to accomplish its mission?
• Is the church accomplishing its strategic financial goals?

The answers to these questions offer insights into different facets of the church and how it’s using its financial resources. The resulting financial indicators will provide an assessment of your church’s overall financial health.

Gauging wellness
Just as a blood test helps the doctor know what to do to keep you in optimum health, a properly designed financial indicator can help a church administrator evaluate the financial wellness of a church, and also identify areas for improvement.

These are two ways to look at financial trends in your church. The first is with inward comparisons — comparing data from prior years to the current year. Inward comparisons allow your church to see how funds are received and spent over a set period. Reviewing and comparing this data across a number of years will help identify historical trends and any underlying changes within the church. This can help your church align its spending patterns with its mission and vision.

The second method is to compare your church with other churches of a similar size. Comparing your church against other churches with similar asset sizes can be misleading, because churches with older properties tend to have smaller property values due to depreciation. At the same time, comparing your church to churches with similar revenues might not be effective either, unless the makeup of the revenues is known.

For example, one church might rely solely on contributions, while another has significant sources of income from a school or other activities. Or, a church might be seeing unusually high contributions because of a capital campaign. That’s why we recommend that churches compare themselves against churches with a similar number of average weekend adult attendees, instead.

While the numbers these comparisons provide are important financial indicators, it’s also crucial to understand how these measurements fit within the range of peer churches against which your church is comparing itself. A measurement calculated by averaging data from just a few peer churches might produce a much different result than one calculated with data from many churches.

Finally, it’s important to benchmark your church against others in a similar region of the country. Operating costs in the Midwest, for example, can be very different from costs in New York or California. Using averages from peers with demographics similar to a church’s own can provide a more accurate and objective measure of financial health.

Next steps
Determining what information to track in your church’s indicators, and finding peers to benchmark against, can seem overwhelming and time-consuming. One suggestion is to network with peer churches in your area, and agree to share data. If your church is part of a church business administrators group (such as National Association of Church Business Administration, or NACBA), it could do comparisons with other members.

Additionally, specialized reports — such as compensation studies — are available. Your church can consider using tools such as the Church Financial Health Index™, which was designed to provide in-depth answers to several of the questions mentioned at the beginning of this article. To find out more, visit www.capincrouse.com/churchhealth.

Our hope is that your church begins to ask the right questions and use indicators that will give an accurate picture of its financial health. This insight can help your church function more efficiently and effectively to accomplish its ministry.

Sarah Thompson is audit manager at CapinCrouse LLP. She can be reached at sthompson@capincrouse.com.

CE Interview: Rob Cizek, Executive Pastor, Northshore Christian Church, Everett, WA

“Surprisingly smooth” is how Rob Cizek — executive pastor and an Emmy Awards-winning TV news director — describes his transition from the newsroom to the church world. Adeptly skilled in the competitive field of broadcasting, Cizek brings professionalism, collaboration and a good sense of judgment to the daily operation of Northshore Christian Church in Everett, WA.

Cizek says he had reached a point in his television career where he had accomplished most of what he originally set out to do. So, he started praying for God’s next move for his work life. After two years of praying and waiting, Cizek met an executive pastor whose corporate experience was similar to his. He told Cizek that large churches need people with business backgrounds to run the church organization. Encouraged by the conversation, Cizek began talking with senior pastor Ken Long. In 2005, Cizek became the executive pastor of Northshore, a 1,500-member nondenominational church.

Cizek says the church board, staff and congregation were welcoming and graceful, and allowed him to lead from his strengths, without placing unrealistic expectations on him for teaching and shepherding.

What skills have you developed in the newsroom that proved handy in the church world?

Decisiveness: Newsrooms are filled with constant deadlines and the demands of live television. A newsroom leader easily makes more than 200 decisions a day. Whether in television or in church, the team needs its leader to make decisions. Make the best decisions you can on the spot so your staff members can do their jobs. You’ll get it right 98 percent of the time; for the 2 percent of the time when you’re wrong, simply ask forgiveness. Overall, your staff will see that it’s far better to make decisions quickly than to gum up the works with slow deliberation.

Authenticity: Viewers have a relationship with news anchors. The strongest anchors are those who share bits of their lives, humanize news stories and humbly own their shortcomings.

Viewers become loyal. They will love and forgive these anchors when they occasionally make a mistake.
Conversely, viewers give the egotistical and pompous anchor a very different treatment. They may watch, but they pounce hard when a mistake is made. They like to see the blowhard take a fall. The same holds true for relationships in the church, especially with pastors. People want authenticity and humility from their leaders.

Directness: Newsrooms are high-productivity environments. Things move fast towards the common goal of producing the next newscast. There’s little time to waste. As such, journalists tend to speak in a very direct manner. When people are direct, they always know where they stand with each other. The relational “air” is clear.

Focus: Different news stations focus on different segments of the community. Some are soft and friendly; other stations are tabloid. Our station chose to focus on breaking news and weather coverage.

In church, we don’t have to be all things to all people. The community is served by a huge number of churches. While every church should fulfill all the functions mandated in Scripture, there’s no need for it to be “all things to all people.” Focus equals effectiveness.

What’s your take on balancing ministry and business in managing church staff?

In church leadership, it’s tempting to see every problem as a spiritual challenge. This hinders our ability to see problems correctly. I try to categorize what kind of challenge we’re facing and provide a corresponding solution.

For instance, business problems require business solutions. People problems require people solutions. Spiritual problems require spiritual solutions. We’re most effective when we tailor the nature of our response to the nature of our challenge.

How can churches be more effective in the area of communication?

The first step is to honestly evaluate a church’s existing communication strategy. In what era was it implemented? Many churches still cling to printed methods, primarily — bulletins, ads in phone books, handouts, door hangers and mailers. It’s possible these tools may still have some role in today’s strategy, but churches need to be brutally honest about how their people communicate now.

The next step is to consider which electronic tools will best reach your congregation. More people read texts than any other form of communication. Email is largely getting ignored because of overuse and spam. The majority of people have smart phones and appreciate having an app with which to connect to their church.

People expect their church service to be podcast (and, preferably, streamed live, as well).

Websites aren’t special anymore; but, people expect to easily find a wide range of current information on your church’s site. Most people first find your church through search engines, and they check out your website before visiting in person. To make sure your website is search engine-friendly, hire a search engine optimization consultant. Make sure the site makes a great first impression. Strongly consider using ads on search engines (Google AdWords, for example).

People also expect to be able to follow your church on Facebook and Twitter. Social media feeds should be both informative (the latest events/updates) and interactive (relational) in nature. Typically, this requires that a “digital native” — a person who has grown up with social media — handle your church’s social media strategy. These individuals think differently and intuitively use the medium well.

What makes strategic planning fail — or succeed?

Strategic plans work when they involve the team from day one; people support what they help design. Other success factors include proper resourcing, constant reinforcement of the vision, empowering people to act on the vision, and having organizational structures in place that support the plan.

Strategic plans fail when leaders don’t create a strong enough sense of urgency about the necessary changes. Other factors include under-communication, creating teams that lack the necessary horsepower, failure to remove obstacles, not pruning old systems/programs/ thinking to make room for the new, and not infusing the vision into organizational culture.

How do you build a trusting relationship with your senior pastor and elder board?

Building trust starts with setting expectations. I ask them what they both expect — and don’t expect — of me in my role. Then, I ask if it’s OK to “keep short accounts.” This means they have permission to immediately speak with me about any concerns they have about me, and that I have their permission to bring up difficult subjects with them. It’s critical that difficult things be discussed immediately when they arise. This allows you to develop healthy working relationships and a reputation as someone who’s honest, intuitive, courageous and trustworthy.

Another key to developing trust is to implement a “no surprises” policy. This means that you make extra effort to keep people in the know about what’s happening — good and bad. When you speak with your board and senior pastor, use a direct-yet-respectful style. They should be able to count on you for timely, factual and unbiased information presented in a no-nonsense manner.

When you mess up, tell them immediately, and take responsibility for your actions. Explore difficult topics behind closed doors; then, publicly support the direction set by your board and senior pastor.

Live every aspect of your life with integrity. A consistent track record of good personal and professional decision-making builds trust.

Provide rationale for your decisions. This way even if people don’t agree with you, they understand why you do what you do. Trust is built by consistently doing the things you say you’ll do.

What’s your strategy for building a culture of innovation?

The best way to innovate is to take an existing concept and use it in a different way. The guy who invented “sticky notes” simply took an existing notepad and added sticky glue on each note so the notes can be used in a different way.

Additionally, smart innovators study history, because “everything old is new again.” Just look at the fashion industry and the way it recycles 50-year-old ideas.

Innovation is helped when your team members know they have permission to fail. It’s also fostered when your team works outside of its usual environment (goes on field trips, meets in different/inspiring places).

I urge churches to use discernment in the area of innovation. Certain organizations, such as technology companies and car makers, are expected to be innovative. Other organizations (accounting firms, for instance) aren’t. The church lies between these two extremes. The primary functions of church, as defined in Scripture, haven’t changed in 2,000 years; there’s no need to innovate here. What does change are the methods we use to achieve these functions. Cutting-edge innovation with church methods can be desirable; but, if we get them wrong, they can also waste precious budget resources and turn people off of church.

I believe the best approach to innovation is for a church to survey the new methods being successfully used by other churches. You can then figure out how to adapt those innovations to your specific church context and location. Find out where the Holy Spirit is going, and get on board. To put it in business terms, on the technology-adoption lifecycle curve, don’t be among the 2.5 percent of innovators; be among the 13.5 percent of early adopters. In practical terms, this is the way to gain the most from innovation and to minimize the risks associated with trailblazing.

How does the presence of Boeing in your community affect the culture at your church?

Boeing has nearly 30,000 employees in the city of Everett (100,000 residents). People who work at Boeing tend to be well-educated and well-compensated. The values of Boeing employees affect how our community thinks and what it values. There are engineers, fabricators, designers, test pilots, salespeople and airplane software designers. They value intelligent conversation, education, precision, giving and programs executed with excellence. When Boeing employees come to church, they bring their culture with them. As leaders, we get a lot of scrutiny from engineers at our church who want to make sure we’re doing things right and with credibility. That’s just their culture: Every plane that comes out of Boeing is as absolutely perfect as they can possibly make it, because lives are at stake. As a church, we have to be sensitive to that.

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‘Be you,’ and other tips for new Executive Pastors

Rob Cizek offers some words of wisdom to new executive pastors who are coming into the ministry from the corporate world.

Don’t let anyone devalue how God prepared you for ministry. God taught you how to administer your church in the business world because he believes it’s the best place for you to learn such things. Seminaries are great for academics and theology, but their focus isn’t on teaching people the nuts and bolts of running an organization.

Don’t pretend to be something you aren’t. Just because you were called to a job with the “pastor” title doesn’t necessarily mean you’re a spiritual superstar. People know you came from the business world. They don’t expect you to have the same gifting and background as the senior pastor. Work diligently on your relationship with God, and be transparent. People will accept you even if you didn’t go to seminary.

Find a mentor. Before starting as executive pastor, I asked the executive pastor at my previous church if he would mentor me for one year, long-distance. He did so, gladly. His insights and support really helped me make the transition well. After the first year, I developed relationships with other executive pastors in my church area. They’ve been an ongoing source of information and support for several years.

Use training podcasts, DVDs, books, blogs and Twitter. The church world has an incredible number of resources from which you can learn leadership. There are excellent podcasts, conference DVDs, books and blogs for church leaders. I find following church leaders on Twitter of particular value — so much so that I started posting resources every day (@RobCizek).

Imagine that your executive leadership team decides to launch a new campus  in another city. The leader of the church plant finds a clean, large parcel of land located in an easily accessible part of town. It’s off a busy road, with adequate parking and a large, empty building that can be easily converted to a worship facility. Better yet, the bank owns the property through foreclosure, so the church can purchase it for pennies on the dollar.

After a time of prayer and discernment, an offer to purchase is submitted and accepted. The church is the proud owner of a new site and building. Plans are drawn up for the new facility, a celebration is planned, and dignitaries are invited for the grand opening.

Then, one morning, the team leader arrives at the building to find a large, red sticker on the door.  It reads: “Closed.” The ominous sticker cites the church’s failure to secure approved zoning.

A call to the local building office confirms the church leader’s worst fear: The community has concluded that the property is located in a zoning district that doesn’t allow religious uses as a right, or by special land use approval.

What’s going on here?
Zoning — the legal authority granted to local governments from a state through its constitution, and to local government through enabling legislation — gives local communities the ability to regulate the use of land within its boundaries. Through the years, Congress found that religious entities have too often been treated unequally in comparison with secular counterparts with regard to municipalities enforcing local land use ordinances. This unequal treatment arises for a variety of reasons, ranging from a municipality’s preference for a secular entity that pays property taxes over a tax-exempt religious entity, to blatant and intentional discrimination against a religious institution.

In response to this, in 2000, Congress unanimously passed the Religious Land Use and Institutionalized Persons Act (RLUIPA), in an effort to level the playing field. Since RLUIPA was adopted 13 years ago, litigation surrounding the statute has been ever-evolving. Congress provided for five separate causes of action, damages and injunctive relief as a remedy for violation of RLUIPA, along with the ability of the Department of Justice to intervene to remedy religious discrimination. Congress further mandated a broad interpretation of the Act and added that the “use, building, or conversion of real property for the purpose of religious exercise shall be considered to be religious exercise of the person or entity that uses or intends to use the property for that purpose.”

The ins and outs of RLUIPA
While RLUIPA is a relatively new law, it has had a positive impact for religious entities throughout the United States. One of the most frequently litigated provisions of RLUIPA is what’s known as the “equal terms” clause. A recent case demonstrates the breadth of the clause.

In Opulent Life Church v. City of Holly Springs, MS, a congregation found a suitable facility in the city’s main business district. The church executed a lease agreement for the facility and then applied for a renovation permit with the city’s planning commission. In response to the city denying its application, the church filed suit, alleging the provisions of the zoning ordinance that only applied to churches were violations of RLUIPA.

The night before oral argument was scheduled before the Court of Appeals, the city amended its zoning ordinance and replaced the language that barred only “churches” from the courthouse district to now exclude “churches, temples, synagogues, mosques and other religious facilities.” The appellate court determined the church had established an equal-terms case by differentiating between religious and nonreligious land uses in its zoning ordinance.

Another important (and often litigated) RLUIPA provision is known as the “substantial burden” clause. It provides that “[n]o government shall impose or implement a land use regulation in a manner that imposes a substantial burden on the religious exercise of a person, including a religious assembly or institution….” The clause also provides a narrow exception: A government’s imposition of a burden is permissible if it “is in furtherance of a compelling governmental interest; and is the least restrictive means of furthering that compelling governmental interest.”

A recent case litigated by this author in the southern district of California construed whether the City of San Diego imposed a substantial burden on a Catholic school when it denied the school permits to construct new facilities on its campus. In Academy of Our Lady of Peace v. City of San Diego, the facts established that the school is the oldest high school and the only all-girls Catholic school operating in San Diego County. The last classroom constructed on campus was built in 1965. And, for the last several decades, Our Lady of Peace (OLP) had felt constrained in its limited facilities. To reduce crowding, the school’s consultants prepared a plan that met all the zoning and planning requirements of the City of San Diego and the State of California. Accordingly, the plan was approved by the City Development Services and unanimously approved by the planning commission. The politically active neighbors who opposed OLP’s plan appealed the planning commission’s decision to the city council.

The city council held a hearing on the appeal in January 2009, but withheld its decision. Soon after, one council member — whose district included the school and was elected to office merely weeks before the decision was made — met with a city staff planning member and requested that he reverse his earlier findings which supported OLP’s plan. The staff member felt obligated to change his decision, even though he’d never before been asked to make reverse findings based on political pressure. Once the staff recommendation changed, the city council met and voted to deny the modernization plan. The neighbors then hosted a fundraiser and paid off the councilmember’s campaign debt.

OLP filed suit, alleging the city’s March 2009 decision substantially burdened OLP’s religious exercise. After nearly four years of litigation, the case proceeded to trial in October 2013. The city denied any improper conduct, and instead contended that the city council’s actions were required under the California Environmental Quality Act (CEQA). On Oct.19, 2012, the jury disagreed with the cty and found in favor of OLP, awarding it more than $1.1 million in damages — the largest jury verdict to date. The case later settled, in February 2013.

Not a dead end
So, what should a church do when faced with a “zoning denial” after finding and purchasing the ideal worship facility and/or parcel of land? If the zoning doesn’t permit religious use, it should employ an experienced RLUIPA attorney to determine if the denial of religious use can be legally challenged.

Then, it should move forward in pursuit of its dream of a new church home.

Headquartered in Bloomfield Hills, MI, Daniel Dalton is co-founder and partner of Dalton & Tomich, plc, representing religious entities throughout the United States in land use and zoning matters. He can be contacted via the organization’s website: www.daltontomich.com.

A Google search for “church fundraiser” is enough to make your head spin — there are literally hundreds of options to choose from. To help readers decide, Church Executive consulted with a few “in-the-trenches” fundraising experts.

Tried-and-true ideas
Some fundraising ideas are “tried-and-true” for a reason: They work. And doggone it, people like them.
According to Matt Fass, owner of Mission Viejo, CA-based ABC Fundraising, cookie dough falls into this category, as do two other popular options: flower bulbs and candles.

“First, cookies, flowers and candles are always welcome additions to the home,” Fass says. “Almost all people enjoy them, and they brighten up peoples’ lives. They’re uplifting — which is in line with the values of a church.” Second, he contends familiar products are easier sells. Last but not least, he points out that these ideas don’t require a startup cost.

Outside-the-box options
Churches looking for a more unique idea can sell flower and vegetable seeds, plant them in their church’s community garden, and host a farmer’s market once they bloom. To this end, selling pumpkin seeds is a good idea; revenue is generated with the sale of the seeds and again, in the fall, when the pumpkins are grown and can be sold at a church pumpkin patch. (NOTE: At least one fundraising company will dispatch truckloads of pumpkins. And, Virginia Beach, VA-based Creative Displays offers a “pumpkin tree” that can be used in the fall at the patch, and again as a display/fundraiser — to sell sponsored poinsettias or remembrance candles during the holidays — a few months later.)

Another unique idea is to sell custom “church-opoly” board games — not just the games itself, but sponsorships of the dozens of “properties” around the board and of the paper money.

Jay Abramson, owner of Pride Distributors, Inc., has been making these custom games for more than 30 years. He’s helped more than 1,500 organizations — many of them nonprofit — raise millions of dollars.

As Abramson points out, part of the fundraiser’s success is its lack of upfront cost. “You could sell all the ad spaces [properties] in one day, or it could take two years,” he says. “But, the neat thing is, the game only gets produced once the ad spaces are sold.” Then, he works with clients to determine how many games to produce.

Church clients can get pretty creative when selling the spaces/properties — hosting a “property auction,” or even selling the spaces to church families. “What’s great about these [games] is that people actually talk while playing them,” he points out. Often, those conversations revolve around the property sponsors.

Abramson suggests selling the 36 ad spaces/properties for about $280 each and individual board games for $25. At that rate, a nearly $13,000 profit is possible by selling just 500 games.
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Online: the bold new church auction frontier

By RaeAnn Slaybaugh

In 2011 and 2012, to raise funds for their church’s mission of building a duplex in Haiti, deacon Hank Babin and pastor Steve Graves of Mulberry Baptist Church in Houma, LA, took an old-school fundraising idea — the church auction — to a new-school format: eBay.

The process wasn’t hitch-free, but the monetary (and resulting ministry) payoffs were inspiring. To date, the church has raised more than $60,000.

Why go online?
Graves and Babin didn’t want to organize a live event, because of the time and resources it would require. “It would have diverted our time from getting items, or even the effort in Haiti,” Graves says. Also, as Babin points out, the items “were so large in scope that we knew we could raise more money if we went regional.”

Naturally, the option of hosting an online auction emerged. Graves and Babin quickly discovered eBay Giving Works — an established, credible and national marketplace. That year, the church made $25,000 in support of the Haiti mission selling donated football tickets, weekend getaways and other offerings.

Last year, donors were encouraged to “stay home for Haiti.” A staff member gave up his baseball season tickets. More sports tickets followed — to football games, and even the Masters golf tournament. Hunting, fishing and sport expeditions, and signed memorabilia, were offered up. The church raised about $37,000.

In 2011, winning bids for auction items came in from 10 different states; 16 states in 2012. “Going online definitely broadened the buyer pool,” Graves says. “It told the Haiti story to many more people. We got many comments from buyers, and even from people who bid, but didn’t win items.”

Navigating the learning curve
When Babin took the lead in listing items, and even creating templates that made the auction look more professional, he’d never sold anything on eBay; nor had Graves. Naturally, they encountered a few speed bumps — among them, getting eBay to raise its $1,000-per-month financial limit, which it imposes on new sellers. (“They do that so new users can’t sell thousands of dollars of stuff and then disappear without delivering,” Graves explains.)

To promote the auction, Babin and Graves capitalized on Facebook and email, word-of-mouth marketing and generous donations of ad space, including a local billboard. eBay also helped out with promotion, providing banner ads, videos and articles during and after the auction.

Words of wisdom
For other churches considering online auctions, Graves offers a key piece of advice: Get good items. “For me, one of the great things about this is that we raised money without our church members writing a lot of checks for it.”

Babin recommends spending a little more time to make the auction stand out and look professional. “Be relentless, and constantly think of people and connections who may help your cause,” he adds. “And, enjoy the journey that God takes you on.”

Finally, Graves urges churches to remember that an auction doesn’t really end when it closes. “We follow up with donors, buyers and other supporters to help them know they were not only part of an auction, but the mission work in Haiti,” he explains. These reminders take the forms of trip reports, personal notes, pictures of children in Haiti saying ”thank you,” and invitations to celebrate the mission work at the church.

“We didn’t share a vision for a successful auction,” he concludes. “We shared a vision for helping people.”

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The rummage sale, reinvented

By RaeAnn Slaybaugh

For more than 40 years, the women of Velda Rose United Methodist Church (VRUMC) in Mesa, AZ, have held three-day rummage sales twice a year.

While the concept isn’t new, what is unique is their success rate: They’ve generated as much as $49,000 in a single weekend! And since their first sale in 1965 (which profited $523), the women have raised in excess of $1.1 million in support of a wide range of charities.

“People are good to us. God is good to us,” says Joan Most, who heads up the sales.

Now, the women of VRUMC are taking their rummage to another level — by going indoors. Last year, the church added a 20,000-square-foot, single-story sales and storage building to its property: the Velda Rose UMC Missions Warehouse. It accepts donations Monday through Friday, year-round.

To pay off the mortgage, the building is being “sold” for $40 per square foot to church members. Donors are recognized on a plaque on a “Wall of Honor.” Most says this idea (which she credits to her husband) has been the most profitable, so far.

To raise additional funds, she and her team also host an English tea; sell cookbooks, fruit cakes and cookie bears; and regularly offer “Unique Boutique” wares for sale, including handmade creations by a church sewing circle.

Additionally, Most says, a bond on the property has been forgiven.

The church’s last three-day sale, held in February 2013, netted more than $45,000.

“There’s nothing you can serve or sell so well, and that also builds this kind of comradery,” Most says. “The parking lot sales of years past were really taking their toll on our group. We reached a point where our bodies couldn’t take it anymore. Now, with this dedicated building, the sale is over at 3 p.m., and we’re ready to lock the doors and go home.”

The second-annual Good Steward Awards — coming in our December 2013 issue! — will continue the tradition of celebrating churches that demonstrate best practices and innovation.

We’ve “mixed it up a little” in terms of categories and subcategories this year:

FACILITIES — Construction (green, adaptive re-use, multi-site, multipurpose, expansion, accessibility), disaster recovery, children’s spaces, sports and recreation, food service
FINANCE — Responsible investing, financial transparency, cost savings, financial education/ministry
FUNDRAISING — Capital campaigns, small-project fund raising, alternative revenue
LEADERSHIP — Overcoming challenges, staff management (training, workplace culture, managing a multi-site staff), innovative outreach
SAFETY & SECURITY — Child protection, staff management (exceptional screening processes), risk management
TECHNOLOGY — Multi-site management, on-line and mobile giving solutions, maximizing social media (Facebook, Twitter and LinkedIn), accommodating worshippers with special needs, awe-inspiring theatrical productions/worship arts

Do you know of a church that deserves recognition in one of these areas? Maybe it’s your own church! Regardless, the CE staff wants to know. And, the nomination process only takes a few minutes with our new online nomination form.

Nominate as many churches as you’d like; we’re eager to hear from you. The deadline for submission is September 16, 2013 — but why wait? It’s never too early to recognize a church’s good work.

For an in-depth look at our 2012 Good Steward Award winners, visit the CE website.

Questions? Contact Church Executive Managing Editor RaeAnn Slaybaugh at 602.265.7600, ext. 204.

Establishing financial controls is fundamental to the success of any charitable organization. These controls serve as a framework for policies and procedures to assist the organization in achieving its goals, while ensuring its compliance with its fiduciary responsibilities.

The fundamental areas that must be addressed to implement these controls include:

• Organizational structure
• Job descriptions
• Financial reporting
• Budget controls.

Organizational structure
The first order of business must be to establish  an organizational structure that defines how financial decisions are made. In other words:

• Do the organization’s bylaws identify who has authority to acquire property or incur debt on behalf of the organization?
• Are these decisions made by the board of directors?
• Do these decisions require congregational approval?

Whatever the case, prior to the organization making a significant financial decision, the proper authority — as identified in the organization’s bylaws — must provide its approval.

Additionally, the bylaws should identify which corporate officers can execute documents on behalf of the organization. Proper documentation of the decision-making process should be retained (such as board meeting minutes or notice of a congregational meeting) so evidence exists that the appropriate protocol was followed in accordance with the bylaws. Significant financial decisions that affect the organization should never be made without the proper authority’s approval.

Job descriptions
Job descriptions for all staff — particularly those handling the organization’s finances — are integral to implementing proper financial controls. Employees need to be aware of their specific roles and responsibilities so there’s no question as to who’s handling specific tasks.

Job descriptions are a tool for employers to hire individuals with the appropriate skill sets. They also serve to provide benchmarks so disciplinary action can be taken, if necessary. Job functions that are considered “high risk” should be appropriately identified and performed under a dual-control process to ensure checks and balances are in place. To reduce the risk of embezzlement, no single individual should be able to both approve and disburse funds.

Financial reporting
Segregation of duties is key to establishing financial controls so that the risk of error, intentional fraud and reputational risk are minimized. Procedures should be in place to periodically review the controls to make certain they’re adequate and operating effectively. It’s also a good idea to have an independent CPA firm complete an assessment of the controls to provide recommended changes or enhancements.

The key to an organization’s financial health is predicated, in part, by its ability to manage itself based on the accuracy of its financial records. Those records roll up to financial statements consisting of a balance sheet and income-and-expense statement, which should be reviewed by management on a timely and consistent basis.

To monitor financial performance, the financial statements should be carefully reviewed, as they’re representative of the organization’s financial health and are the basis for making key financial decisions — incurring debt or making capital expenditures, for example. Key indicators (liquidity, revenue and expense trends, debt levels and performance to budget) should be evaluated to confirm that adequate financial controls are in place.

These statements can also be used to help management identify areas that warrant attention, such as targeted expense cuts. Annually, the organization should engage an independent CPA firm to audit its financial statements to confirm their accuracy.

The audit may also serve to expose fraud or other inappropriate activities. If discrepancies are found, the organization’s board should immediately take action to ensure that the appropriate controls are put in place.

Budget controls
Prior to the beginning of every fiscal year, the organization should establish a budget of anticipated revenues and itemized expenses. This practice will provide management with a global view of the inflows and outflows of the organization. Each department head should be tasked with providing a comprehensive breakout of anticipated expenses for his or her area, including capital expenditures.

Once all of the information is consolidated, it will become apparent whether or not the organization needs to raise funds or reduce expenditures to achieve a break-even status so that cash reserves aren’t eroded.

Most important, performance to budget must be monitored on a monthly basis, once the budget is established. Department managers must be held accountable for performance to budget, as any variances may affect the overall organization. A defined process for approving expenditures should be implemented to ensure they’re necessary and authorized. As performance is tracked, it may be necessary to make adjustments along the way.

An organization’s ability to meet its goals directly correlates to how effectively it establishes and monitors its financial controls. A charitable organization must implement controls to foster an environment that promotes accountability and transparency, whether it’s establishing a set of bylaws to affect a collaborative decision-making process, creating job descriptions to establish accountability, or consistently monitoring financial performance.

Teresa Loker is senior vice president and credit manager in the religious institution division of San Francisco-based Bank of the West. She can be reached at teresa.loker@bankofthewest.com.

The CE Interview: Larry Brey, Campus Pastor, Elevation Church, Charlotte, NC

Larry Brey was a college professor and director of sports medicine at Gardner-Webb University in Boiling Springs, NC, when he decided he was created for more than what he had become. Against all logic, he joined a group of eight
families to follow a young, passionate pastor who wanted to change the world.

Elevation Church in Charlotte, NC, would soon become one of America’s megachurches under the leadership of that young, passionate pastor: Steven Furtick. “Explosive” was how people described Elevation’s growth. In its first year, weekly attendance grew to more than 1,800.

Now, in its seventh year, Elevation welcomes 12,000 people each weekend across seven campuses.

“I think everyone [on the core team] knew very early on that God was going to do something big through Elevation; we just didn’t think it would be that fast,” says Brey.

But, fast didn’t mean easy. The year leading up to the church launch saw the core team wrestling with every imaginable curve ball, as well as some serious setbacks. On Feb. 5, 2006, when Elevation finally held its first Sunday experience in the auditorium of Providence High School, 121 people showed up. Brey, who took the attendance that Sunday, recalls the rundown: 98 adults, 23 kids.

Today, Brey serves as the campus pastor at Elevation’s University City location — and for the past seven years has been seeing people who are far from God raised into life in Christ.

What did the early days of Elevation Church look like? What was your role back then?

Those early days through the launch of the church were very hard. None of us were from Charlotte, and we had very few contacts in the city. Churches were starting left and right. People really didn’t want to be a part of something that didn’t exist yet.

As with any new church, everyone carried multiple roles. My official title was assimilation pastor, but you name it and I did it. I took care of facility rentals, volunteer scheduling, first-time guest follow-up, setting up mail and phone service, pulling trailers, and setting up our sound system until we launched. My biggest role revolved around creating a great guest experience and driving our first-time-guest follow-up processes.

When we started Elevation, we didn’t think of it becoming a multisite church; that came out of the rapid growth, and because we ran out of seats. When we launched a campus, we didn’t hire additional staff; we reallocated our current leadership staff and gave them additional duties. As we opened additional campuses, my role was to help launch the campus with the right structure and systems and to ensure that it operated with the right culture and DNA.

How does your role as campus pastor impact the entire Elevation movement?

As campus pastors, our primary role is to create an incredible weekend worship experience. It begins in the parking lot with an honoring and engaging experience from our guest services teams, and then flows through a seamless children’s-check-in experience, and continues through an amazing worship experience where guests feel like they’re in great hands because they know what’s coming next and are free from distractions. The impact is one life at a time.

When we can create a place where people feel loved and welcomed, where everything that happens makes sense, and where the sermon is engaging and applicable, lives will be transformed. We see it every weekend as God changes countless lives.

What does Elevation look for in a campus pastor?

We’re always looking for the best and the brightest leaders. The kind of people who would make great campus pastors are the ones who’ve been transformed by the church the most; the ones who “get” the vision and heart of the house.

The ones who aren’t looking for a stepping stone to the next thing, but are called to make an impact for a greater thing. People who are likeable and who make everyone around them better. They need to have the capacity to communicate in a compelling manner and multiply the culture/vision of Elevation in everyone who walks through the doors.

Is there competition among Elevation campus pastors?

I think anyone who’s a successful leader is competitive. The hard part is harnessing that spirit of competition into one that makes everyone better and raises the level of excellence. Pastor Steven is a fantastic leader in leveraging that spirit of competition. He has learned how to make us all better by fostering a healthy competition on our staff.

Often in a competition, there’s a winner and a loser. That’s divisive competition because it puts people on different teams. When that happens, people work against each other.

Healthy competition is when we recognize we’re teammates and we’re working for the same thing — to create the best possible worship experience, where people can meet Jesus. And if you have a better idea to accomplish that, and you’re getting better results, there’s something I need to learn from you!

Your weekly worship gathering happens at a YMCA facility. In this setting, what operational issues do you often have to address?

We have two permanent campuses and five portable campuses. The campus I oversee meets at a YMCA in the gymnasium. It’s by far our most portable campus and requires the greatest amount of gear, the greatest number of people engaged in the process, and the shortest tear-down time.

Because of the volume of gear and people required, we set up on Saturday from 7 p.m. to 9 p.m. Each Saturday, 120 volunteers will unload three 20-foot storage pods, two 16-foot trailers, two box trucks, and two 12-foot trailers. We set up the auditorium in the gym, where we put down a flooring surface; then, we set up a 40-foot-by-20-foot stage, three 16-foot-by-9-foot screens, 340 feet of 18-foot-tall velour pipe and drape, and 200 feet of 8-foot-tall pipe and drape. We bring six lighting trusses up two flights of stairs and run hundreds of feet of lighting, power and audio cable. We also set up more than a dozen rooms for our eKidz ministry, as well as stage all the hallways to look like Elevation. When we launched the campus, we realized the amount of work it would take to set it up. But, we embraced the challenge and, as Pastor Steven has taught us, “We think  inside the box.” What many would have seen as a huge obstacle to overcome with Saturday night set-up, turned into the greatest opportunity for our campus to develop community and instill the culture deep into the volunteer base.

What are the advantages of meeting for worship at a community facility?

Our operating costs are significantly decreased through renting a facility on the weekends. It’s a very cost-effective way to open new campuses. The rent we pay provides YMCA an income that helps it offer greater services to the community.

The advantage is not only financial. People come to YMCA on the weekends to work out, but then find a church meeting there. So, they come on in and worship with us, and many end up giving their lives to Christ — that never gets old!

How do you identify high-caliber people and develop them into church leaders?

I think that’s one question that every church is wrestling with. Excellence attracts excellence. If we operate at the highest capacity, people are drawn to that, and they want to be a part of it. Those people are walking in and out of our doors every weekend; our opportunity is to inspire them for something greater, something more.

One opportunity is to invite some of them to come on staff. But, the greater opportunity is for people to do what they’re doing in a greater way. We encourage and equip them to use their current platform to advance the kingdom, and we remind them that God has called them into the marketplace not just to survive it, but to transform it. We try to provide multiple on-ramps to help identify high-caliber people, such as volunteering, leading our small groups or [taking on] leadership [roles] based on their giving and generosity.

There are a lot of high-caliber leaders who need someone to step into their lives and challenge them for more. At Elevation, campus leaders and staff are the ones stepping into the traffic lanes and into people’s lives, inviting them into a life of greater.

How do you keep up with a visionary leader like Steven Furtick?

Pastor Steven is the most anointed and forward-thinking leader I’ve ever been around. He’s thinking months and years ahead of the rest of the church, and that’s the way it should be.

Our job isn’t to keep up with him, because we really can’t; our job is to keep him at the right altitude. When he’s at the right altitude, he can deal with things that only he can do. He’s getting time with God and seeking clear direction for the church. When he’s at that altitude, he’s looking at things from the right perspective and asking questions that can only be asked from that vantage point.

When we, as leaders, aren’t executing the things he’s entrusted to our care, it means that he has to come down to a lower altitude — air space we’re called to occupy — and deal with something he shouldn’t be touching. Every time that happens, it slows forward momentum. Our role is to do the things that we’re called to do, so that he can do the things that only he can do.

How does Elevation run a lean and mean megachurch?

Elevation has experienced explosive growth, with more than 12,000 people each weekend across our seven campuses in seven years of ministry. What God has done is incredible, and only he can take the credit. If we were to settle in and think we’ve arrived, we could let up. But we don’t think we’ve arrived; we really feel like we’re just getting started.

We don’t compare ourselves to what has happened; we compare ourselves to the need that exists.

There are more than one million people in the Charlotte area. When we compare ourselves against that need, we’ve barely scratched the surface.

We’re intentionally understaffed because our role isn’t to do the work of the ministry — it’s to equip the people for the work of the ministry. Elevation wouldn’t exist were it not for the thousands of volunteers who use their gifts for God’s glory each and every week. They really are the engine that makes everything happen. A great staff member is one that empowers people to do what they were created to do. If a staff member can’t figure that out, they won’t be on staff very long.

What’s the biggest strength that you bring to the leadership table at Elevation?

I think my greatest contribution to the staff is a relentless passion for creating a culture of honor. A culture that lives out 360 degrees of honor — honor for those above you, alongside you and entrusted to your care because of the position and potential of each individual in your life. That passion is constantly trying to raise the bar of our culture to a level consistent with the vision God gave Pastor Steven for Elevation.

What’s heavy on your heart as a church leader?

There’s greatness inside of everyone, and the burden I feel is the burden of complacency. People are settling for less than God’s best because good becomes good enough. Time talks people out of their dreams, or they feel like their past disqualifies them from their destiny.

I have an insatiable desire for people to step into the fullness of becoming the person God created them to be.

Larry Brey, campus pastor
Email: lbrey@elevationchurch.org
Phone: (704) 246-0813 — Office
Twitter: @lbrey

Does your church have a process in place to manage the congregation’s safety and welfare as they venture out?

Every year, 330 million people worldwide take a faith-based trip. In preparation, they’re finding a plethora of exciting, stimulating information about their destinations. They’re also finding “life-changing” religious vacation options from a host of Christian sites across the globe, each offering memorable pilgrimages, spiritual journeys, retreats, mission trips, “voluntourism” and cruises.

What they’re not finding is a lot of information on the risks inherent to religious travel today. Many faith-based destinations are in politically troubled places, and terrorism is an ever-present threat. Unfortunately, a dearth of information exists for church leaders who are committed to managing such risks and protecting their traveller groups.

Putting risk into perspective
According to the UN World Tourism Organization, the United States is home to about 335,000 religious congregations and places of worship. And, according to National Tour Association, 52 percent of religious-trip travellers book through their churches.

This means church leaders must be aware that they carry a responsibility to keep their travelling members safe.
Our Key Travel 2012 Survey uncovered some alarming findings:

• When traveling abroad, a surprising 24.4 percent of respondents said they’d encountered a serious incident.
• Thirty-eight percent said they hadn’t been made aware of the risk levels associated with a destination or given a pre-trip briefing.

To this end, any reputable travel management company will recommend that those organizing faith-based travel have an up-to-date travel policy — one which includes:

• A set of guidelines that travellers can consult;
• What church members should do if they run into trouble;
• Current information on which countries are safe to visit;
• Which airlines are safe for travel;
• Which hotels are safe for lodging;
• Any current country-specific risks.

Go beyond just a policy
A church’s monitoring of risk factors is vital — before, during and after travel. Emergency procedures need to be set up in advance. In the event of an evacuation, prior briefing, planning, training, and swift, accurate lines of communication can make all the difference in getting travellers back home safely.

Preparation should include details of evacuation routes: the location(s) of the nearest airport(s), safest form(s) of transport, nearest hospital(s) — and, very important, key contact information. For example, if a church member has a worsening medical problem, are there English-speaking doctors in, say, Jordan? Or, if a member’s bag is stolen in Egypt, where would he or she turn?

Enlist technology
A number of technology products and services can assist with traveller welfare and risk management.

iProfile — Designed by award-winning security specialist Maxwell Lucas, iProfile allows users to store medical information, emergency contact details and copies of vital travel documents (passports, insurance policies and visas). This information can be retrieved by users anywhere in the world with Web access.

Existing mobile technology — A range of alerts, reassurances and personal security services can summon help when needed. At the touch of a button, church leaders can send personalized messages to a group of contacts. This also enables travellers to get in touch when they need to say, “I’m OK” or ask for help.

Specialist software — Specialist software looks at travel itineraries and compares them with the latest security and risk information. If a traveller is headed to, or already in, an area where he or she will face a high level of risk, this is automatically reported back to key contacts at the church. Prompt action can then be taken to ensure that suitable contingencies are put in place, and that travellers receive the help they need should an incident occur.

Be forewarned, be forearmed
A church travel organizer wants to be worry- and stress-free on a trip. To ensure this, he or she needs reassurance and peace of mind.

It’s worth any effort to make sure your group of church travellers is well-briefed and prepared, and that contingency plans are in place for their safety and well-being.

Steve Summers is CEO of London-based Key Travel, a global travel management company for non-profits. It offers a range of travel-risk products, all designed to meet the needs of humanitarian and missionary organizations. www.keytravel.com/usa/missionary_travel

Eastview Christian Church promotes and instills financial integrity and trust throughout the congregation by employing a combination of oversight and sound policy.

As God entrusts your ministry with additional resources, the need for well-established financial controls becomes more and more imperative. From a small church of 19 people in 1955, to one where attendance regularly exceeds 5,000 today, Eastview Christian Church has seen its annual operating budget grow from a few thousand dollars to several million dollars over the past 60 years.

With that growth, we’re keenly aware that God’s mandate to steward his resources well hasn’t changed. However, the consequences of doing it poorly are exponentially greater.

Under our church’s original structure, much of the financial controls were regularly reviewed and carried out by church elders and volunteers. As the church expanded and transitioned to a structure of policy governance, staff roles increased; consequently, the direct involvement of elders and volunteers in financial processes diminished.

To maintain accountability and adequate transparency under this new governance model, Eastview relies on submission to regular reviews by the board of elders, as well as adherence to clearly established policies and procedures pertaining to the stewardship of church resources.

Borrowing from the business world
From an operational standpoint, Eastview relies on a number of important proactive accounting policies and operating procedures to control and safeguard the church’s assets. Some are specific to churches; others are just common, prudent business practices.

Given the importance of our mission as a church, we evaluate all internal control processes through three lenses to make sure they are an effective fit: vision, integrity and risk. Processes must serve to facilitate ministry, promote integrity and reduce risk. A great control process or procedure will accomplish all three without sacrificing one goal for another. We aim for maximum ministry with minimal risk, coupled with a high level of integrity. (Let me point out that our church vision statement includes being “dangerous,” so risk really refers to loss of assets, resulting in failure of our mission.)

In areas less tied to ministry practice, this three-pronged fit — with our church’s vision, integrity and risk profile — is often easier to accomplish. For example, we still pass the offering plate at every Sunday service. We always have three individuals handle the contributions in a controlled room for accountability. All funds are stored in locked bags in a drop safe while on church premises. Safe combinations and keys are given only to certain staff members. Moreover, our accounting staff never processes cash without the presence of at least two (usually three) employees, all of whom are required to sign off. Contribution checks are processed only by accounting staff, and all records are kept confidential, with restricted access. These processes work efficiently, reduce risk of loss, maintain integrity and don’t impede our ministry.

But, by the same token, we’ve chosen to forego some processes that other churches use because our risk is comparatively low. In these cases, the costs and processes involved could negatively impact our ministry.

Segregation of responsibilities
We’re fortunate as a church to have reached a size where resources are available for greater segregation of duties without impeding ministry. We have four accounting staff — two full-time and two part-time. This enables us to maintain a distinct segregation of duties, which promotes efficiency and accountability between roles. Separate staff processes deposits, pays the bills, performs bank reconciliations and prepares financial reports.

We also use technology to help facilitate this segregation by limiting access to certain software components and by tracking who makes particular transactions. Without this segregation of responsibilities, it becomes much easier for losses to go undetected and for integrity to more easily be brought into question.

In churches where this separation isn’t feasible, it’s necessary to get creative; other personnel or volunteers must be enlisted to maintain a healthy checks-and-balances level, and to safeguard church funds.

Ministry often directly intersects with financial controls in the area of expenses and resource allocation. To facilitate ministry while at the same time controlling budget spending, Eastview uses a combination of check requests and staff credit cards with preset limits. Budget funds are released quarterly, and large capital purchases must be approved by the executive pastor. Regardless of size, every purchase must be documented with a receipt and entered in our purchase order system. Also, checks exceeding a certain threshold amount must be counter-signed by a member of the pastoral leadership team. Directors meet regularly with the executive pastor and review their ministry budgets. In some cases, the above processes can impact ministries; but, the reduced risk of abuse and higher level of accountability support the financial control.

To build on the financial leadership of our past and maintain the highest levels of integrity going forward, church leaders must constantly reevaluate the controls and safeguards in place to protect the resources with which their ministries have been entrusted.  In churches where this is done well, we’re more likely to see ministry succeed and God’s provision increase.

Mark Zimmerman is the pastor of finance at Eastview Christian Church in Normal, IL.

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3 steps to financial accountability

The elders of Eastview carry out their oversight role in a few key ways. All establish a foundation for how the church will operate, fiscally.

Elders require the senior pastor to provide an annual balanced operating budget and ministry plan that’s in line with the church’s vision. Doing so establishes a clear benchmark for how church resources are expected to be used. It also reinforces the principle that we, as a church, won’t spend more than God provides.

As part of the budget process and review, the elders also establish and document the senior pastor’s compensation and benefits. This is done with the assistance and support of compensation surveys of similar-size churches to ensure the levels are appropriate and fair. We, in turn, follow this example when setting compensation across all staff positions throughout the church.

The elders require regular meetings with the senior pastor and pastor of finance to review the financial reports. In these meetings, actual operations are compared to budgets, and any areas of variance are discussed. Regular review increases transparency and provides an opportunity for intervention or guidance when necessary.

The treasurer of the board of elders maintains open communication with the pastor of finance. This allows for free dialogue concerning financial matters and practices and further promotes a culture of transparency. All financial records are open to review at any time by members of the board of elders. (This includes the senior pastor’s expense reports, which the treasurer reviews on a quarterly basis.)

Although regular reviews may not always seem necessary — and in some cases, even tedious — knowing they’re performed instills greater trust in leadership throughout the church.