A loan denial isn’t always bad, especially if it leads you to implement a best practice. According to When the Bank Says No a Your Church blog by Lee Dean, being rejected for a loan request creates an opportunity for your ministry to “pursue another lender, adjust the project, improve its financial situation, or a combination of the three.” One way to improve your financial situation is by assessing your ministry’s cash reserves, an important best practice whether or not you’re trying to get a loan. But getting your reserves where they need to be, your ministry can be in a better position to secure that loan approval sometime down the road.
Donations typically comprise the bulk of the income received by ministries. However, it is normal for churches and religious organizations to conduct other activities, such as summer or winter camps, men’s and women’s retreats or the sale of religious books. As long as these activities are directly related to the organization’s purpose, there are no issues related to taxes or tax reporting. However, the organization can cross the line when activities are not a substantial part of the organization’s exempt purpose. [read more]
A blog post by Sheri Laninga entitled Financial Review at Church? suggests that financial reviews should be conducted even if your ministry finances are in good shape and that financial accountability is important for maintaining a code of honor in the church.
What are some questions you ask in conducting your ministry’s financial review?
In the normal course of ministry, many nonprofit organizations—as well as missionaries and other individuals—maintain foreign bank and financial accounts. If you own or have authority over a foreign account (such as a bank account, brokerage account, mutual fund, or unit trust), read on. You may be required to report the account yearly to the Internal Revenue Service. [read more]
It’s been said that to know where you’re going, you have to know where you’ve been. This proves true according to a recent blog post by Rev. Margaret Marcuson, who says that understanding your church’s financial present requires looking at its financial past. How do you start making that archaeological dig? In Ten Tips for Understanding Your Church’s Money Story, Marcuson talks about how to get started.
What method are you using to better understand your church’s financial story?