Even though churches are known to be places of worship, they also need finances to run the place. In the past, there have been several incidences where negligence has led to mismanagement of church funds and as a result questioning the managing board. In running these places of worship, there are a couple of common church financing mistakes that they do and below are possible solutions to counter these mistakes.
Lacking vision is one common mistake leaders make as one can go nowhere without a vision; there ought to be a vision to have a mission. In this aspect, churches should be managed as a business whereby there are financial plans and a laid out plan that is agreed by the congregation in order to have the support from every member in pushing these goals forward and realizing them.
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.
Church finances must be handled just like someone would handle their own business. Churches must make it a point of hiring qualified financial managers to take care of this responsibility and make sure an audit is done at least annually to keep track of how the finances are being used. This will significantly reduce the cases of funds mismanagement.
Lacking vision is one common mistake leaders make as one can go nowhere without a vision; there ought to be a vision to have a mission. In this aspect, churches should be managed as a business whereby there are financial plans and a laid out plan that is agreed by the congregation in order to have the support from every member in pushing these goals forward and realizing them.
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.
Church finances must be handled just like someone would handle their own business. Churches must make it a point of hiring qualified financial managers to take care of this responsibility and make sure an audit is done at least annually to keep track of how the finances are being used. This will significantly reduce the cases of funds mismanagement.
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