Did you know that we found a direct correlation between a ministry becoming financially distressed and maintaining adequate cash reserves? Certainly makes sense that if you have a buffer, your ministry is less likely to focus on survival. So why don’t more ministries maintain adequate reserves?
Just as in our personal lives, putting money aside takes intentionality and discipline. Helping a ministry understand why cash reserves are so important is a first step in this process. Here are the three main reasons a ministry needs to maintain cash reserves: [read more]
If you are like me, you’ve probably had enough of all the media news surrounding the downgrade of U.S. credit by Standard and Poor’s credit rating agency. Yet there’s no denying that these are tumultuous times. The day after the DOW dipped over 600 points, I had to remind myself that the money in my retirement plan really isn’t my money in the first place and God is still in control. [read more]
We’re bringing up the topic of cash reserves again for one simple reason: It’s important. So important, in fact, that we created a free tool to help you discern if your reserves are adequate. Because inadequate reserves can translate into inability to pursue your ministry’s mission. [read more]
We have had the opportunity to analyze the financial statements of ministries across the U.S. in the past couple of years and we have found some helpful information worth mentioning.
Of those ministries, nearly 20% were deemed to be in financial distress. This meant that these ministry organizations were past due 60 days or more on payments to vendors in the past year. [read more]
We recently asked ECCU’s Ministry Advisory Panel* (MAP) “How did 2010 year-end giving (December) compare to your budget expectations?” More than one third of panelists (34.3%) said that their ministries’ 2010 year-end giving was 5% or more below their budget expectations.
According to USA Today’s article, “Study: Churches inching back from recession,” larger churches have found it easier to recover from the recession than smaller ones.
Additionally, ministries continued to meet the needs of their members and communities even with limited resources.
How does your ministry’s experience compare with the findings of these surveys?
* The MAP is composed of ECCU member and non-member ministry staff and leaders representing evangelical Christian churches, businesses, schools, and other ministries. This report was produced by ECCU’s research department. To join the panel, click here.