The church has always been known as place of worship; however, this place of worship does not run on its own but rather requires money to keep it going. Due to poor management, there have been various incidences where churches finances have been mismanaged which consequently raise doubts on the reliability of these institutions. In order to avoid such mistakes in church financing, there are some things one ought to keep in mind for a smooth running of this institution.
To begin with, most of them have no vision when it comes to the management of the church which is a mistake that cripples everything. There ought to be a vision in order to have a mission and therefore these institutions ought to be run like a business at least in the financial aspect. This means there should be a financial plan entailing expenditures and ways of generating income.
Churches also make the mistake of working without a margin. The margin between the revenue and the expenditure must be reasonable enough. It is impossible to have a successful management if the developments envisioned by these churches depends solely in the Sunday offerings. They must make an extra effort to get other sources of income.
There are churches that fear asking money from their congregation due to the various speculations that have been running around of churches that are only running for financial benefits. As much as this might be true, this should not deter one from requesting the congregation to contribute in realizing the vision of these institutions as it is for their own good and benefit.
In regards to asking for contributions, the management should at least reveal the plans that the money contributed is meant for and with time reveal the progress made which should be evident; a thing that most churches fail to do. As a result, the congregation loses the giving morale and start giving in to the theories that churches are meant to fleece them which is a mistake that should be avoided at all cost.
To encourage people to contribute, the leaders need to avoid making too many financial asks. In some churches, the congregation is asked to contribute towards too many projects at a particular time and this leads to a breach of trust. With time, people become less motivated to contribute and this leads to less income. The leaders must therefore ask for help only for the things that are essential.
Just like in running other businesses, churches tend to also make the mistake of getting themselves deep in debt in the name of wanting to make development in order to keep up with the ever advancing world especially technology-wise. With this, all contributions made only end up in settling these debts which stagnants developments.
The purpose of the board of management is to ensure that these finances are handled much financial intellect and therefore member of this board ought to be qualified in this field in order to keep track of expenditure and the flow of these finances in order to avoid mismanagement.
To begin with, most of them have no vision when it comes to the management of the church which is a mistake that cripples everything. There ought to be a vision in order to have a mission and therefore these institutions ought to be run like a business at least in the financial aspect. This means there should be a financial plan entailing expenditures and ways of generating income.
Churches also make the mistake of working without a margin. The margin between the revenue and the expenditure must be reasonable enough. It is impossible to have a successful management if the developments envisioned by these churches depends solely in the Sunday offerings. They must make an extra effort to get other sources of income.
There are churches that fear asking money from their congregation due to the various speculations that have been running around of churches that are only running for financial benefits. As much as this might be true, this should not deter one from requesting the congregation to contribute in realizing the vision of these institutions as it is for their own good and benefit.
In regards to asking for contributions, the management should at least reveal the plans that the money contributed is meant for and with time reveal the progress made which should be evident; a thing that most churches fail to do. As a result, the congregation loses the giving morale and start giving in to the theories that churches are meant to fleece them which is a mistake that should be avoided at all cost.
To encourage people to contribute, the leaders need to avoid making too many financial asks. In some churches, the congregation is asked to contribute towards too many projects at a particular time and this leads to a breach of trust. With time, people become less motivated to contribute and this leads to less income. The leaders must therefore ask for help only for the things that are essential.
Just like in running other businesses, churches tend to also make the mistake of getting themselves deep in debt in the name of wanting to make development in order to keep up with the ever advancing world especially technology-wise. With this, all contributions made only end up in settling these debts which stagnants developments.
The purpose of the board of management is to ensure that these finances are handled much financial intellect and therefore member of this board ought to be qualified in this field in order to keep track of expenditure and the flow of these finances in order to avoid mismanagement.
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