FINANCIAL PLANNING FOR A CHURCH

A: In many ways running a church is the same as running a small business. You must make sure that enough money is coming in to pay the bills going out. You may be personally liable for bills owed by the church, in the same way that a business owner is liable for bills incurred for a business. An advisory board is a great start. Next you need a solid financial plan, cash flow budget and a strong accounting system (these go and-n-hand). There are a few tax differences between a church and a small business that must be considered especially with regard to your long term financial security. Among the most important issues is that you may not be eligible for social security benefits. If so, then alternate arrangements must be made. Legal obligations for children is not affected by the fact that you operate a church or that one child is adopted. Standards of support are set by each state and administered by county government on a level field. I have worked with a number of churches throughout the country in establishing an operating plan, setting up an accounting system and designing tax-efficient compensation and benefits programs for ministers. (See www.freedombenefits.org for more information on church benefit plans). So please feel free to schedule a consultation is you want to discuss your concerns and hear about the ways other churches deal with these issues.