Financial Accountability
In an age of financial scandal and meltdown it is critical the church conduct itself above reproach. Here's a quick check-up to keep us honest Abe's.
1. Check your registration status with the Attorney General. Churches do not file federal taxes (990) or state taxes (AG 990). While the church does not need to register with the federal government (form 1023 for 501c3 status) they do need to register with the State Attorney General. Check here to see if your church is registered. If not then you must complete a Form CO-1 and CO-3 with the attorney general. Failure to register can result in up to a $500 fine for each board member. While that is not likely to happen it is important to comply. If you need help we are happy to work with you.
2. Review collection procedures of offerings. Most churches have a two person counting rule but you should be certain you are carefully tracking cash from the moment it is put in the basket until it is deposited in the bank. Difficult times fuel temptation. Protect your offerings.
1. Check your registration status with the Attorney General. Churches do not file federal taxes (990) or state taxes (AG 990). While the church does not need to register with the federal government (form 1023 for 501c3 status) they do need to register with the State Attorney General. Check here to see if your church is registered. If not then you must complete a Form CO-1 and CO-3 with the attorney general. Failure to register can result in up to a $500 fine for each board member. While that is not likely to happen it is important to comply. If you need help we are happy to work with you.
2. Review collection procedures of offerings. Most churches have a two person counting rule but you should be certain you are carefully tracking cash from the moment it is put in the basket until it is deposited in the bank. Difficult times fuel temptation. Protect your offerings.
3. Review any investments. Assuming you have any left it is a good time to reconsider your investment policies. Some churches make the mistake of holding onto gifted stocks too long. You should sell such gifts. Short term investments at the moment bear less risk. If you have investment accounts you should be certain you have a policy regarding them and that you are carefully monitoring the performance.
4. Be transparent with income and expenses of the church. Many churches face financial challenges as a reflection of their membership. This is an excellent opportunity to demonstrate the blessings of giving by faith and living by faith. If interested we have a three part Bible study on this subject available for small groups at no charge.
5. Review your charitable contribution policy to ensure you are handling designated gifts for benevolence and other purposes correctly. If you do not have a policy we are happy to provide you with a model policy at no charge simply e-mail churches@administerjustice.org.
posted by Bruce D. Strom at 8:30 PM
