Introduction
As organizations largely staffed by volunteers who may not have a business or accounting background, congregations will want to establish systems, policies, and procedures to reinforce financial health and vitality.
It’s also vital to prevent the opportunity for mistakes or malfeasance by any volunteer or leader--no matter how loved and trusted they may be. It is unfair to put people in situations where their reputation is their only protection against accident or allegations of dishonesty. Instituting checks and balances protects both staff and volunteers by preventing the opportunity for misappropriation of funds.
The UUA's Becoming a Safer Congregation Guide Financial Safety for Congregations and a Financial Controls Checklist .
Of course, no system will completely protect a congregation from possible financial loss.
In This Section
Congregational Financial Health
From LeaderLab
Having a healthy culture around money will help a congregation have less anxiety and more open communication around money.
Talking About Money as People of Faith
Jan Christian, Kay Crider
From LeaderLab
The power of money in our own lives often goes unexamined. This plays out in our congregations in all sorts of ways.
Segregation of Financial Duties
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
All financial best practices depend on reducing the risk of embezzlement or theft by increasing transparency and detection.
Financial Reports
From LeaderLab
Financial reports help the finance committee and the board assess the financial health of the congregation so they can make adjustments or decisions as nee
Creating a Purpose-Based Budget
From LeaderLab
We often claim that budgets are moral documents, and that congregational budgets should reflect our values. But line item budgets that include "office supplies, utilities, salary" and other such...
Church Financial Management Software Safeguards
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
In setting up church financial management software, it’s important to provide safeguards to prevent tampering with the electronic records
Securing the Sunday Offering
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
The Sunday offering is fairly vulnerable to theft or embezzlement unless good checks and balances are in place.
Electronic Giving
From LeaderLab
If dropping a check or cash into the basket is the only way your congregation invites financial gifts, many in your pews can’t participate.
Handling Petty Cash
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Hiding the petty cash in the back of a desk drawer assures it will be found by even the most inept burglar.
Paying Bills (Disbursements)
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Your congregation needs safeguards to make sure no one has the opportunity to use your system to embezzle funds.
Property Insurance Challenges
Safe Congregations Team, UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Property insurance challenges are becoming more common. While we can't make these problems go away, we have some suggestions.
Expense Reimbursements
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Employees and volunteers should be reimbursed for approved church related expenses.
Staff Credit Cards
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Many congregations supply a credit card to more easily segregate work-related expenses.
Avoiding Scams
From LeaderLab
Because relationship, compassion and trust are all qualities that congregations are trying to cultivate, church members and staff can fall prey to scammers
Rental Income
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
There are nuanced tax rules regarding income derived from renting your building and/or parking lot, depending on its relation to your core purpose.
Restricted Accounts
From LeaderLab
A portion of the money in the church’s checking accounts may represent money that is held for specific restricted purposes.
Operating Budget
From LeaderLab
Your operating budget helps your congregation live its mission in the world. How you allocate your resources reflects your values and goals.
Cash Reserves
From LeaderLab
A congregations’ income ebbs and flows, so it is a good idea to have some cash reserves that can help keep the bills paid in the summer.
Payroll
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
It’s important to make sure the payroll is handled accurately and confidentially.
Completing W-2 Forms
From LeaderLab
Guidance and resources for completing W-2 forms for both ministers and other congregational staff.
Audits
From LeaderLab
Rarely can congregations pay for a full-blown audit of the church books by a CPA. An alternative is a review of the congregation’s cash management.
Embezzlement
From LeaderLab
Embezzlement from congregations is not unusual; it almost always occurs when one individual has been granted a high degree of trust with no safeguards.
Endowment Funds
From LeaderLab
Endowments need special handling to ensure transparency, accountability and impact.
Minister’s Discretionary Fund
From LeaderLab
A Minister’s Discretionary Fund is an account that the minister can use to provide confidential assistance to those facing emergency financial need.
Money Matters Resources
From LeaderLab
Consulting, Publications and Connects for Congregational Finance staff and leaders.
Professional Expense Allowances
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
Some business expenses of staff are reimbursed and are not reported for income tax purposes.
Tax Exempt Status
UUA Office of Church Staff Finances, Ministries and Faith Development
From LeaderLab
UU Congregations are churches, and exempt under U.S. Tax Law. There may be advantages to seeking 501(c)(3) such as sales tax exemption.
The Unique Finances of Your Minister
From LeaderLab
You’ve probably heard that there are special tax rules for ministers. It’s important to understand the basics of payroll and taxes for the minister.
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