The treasurer is one of the most important, least seen and appreciated people in the church. If they do their job well, nobody knows it. If they don’t do their job well, the whole church suffers. I liken the treasurer to the liver in the human body. Without it you are dead. If it doesn’t do its job well, you won’t function up to your potential. So what makes treasurers so special?
The treasurer handles all the monies that flow into the church. This person often oversees the counting of offerings, depositing of the money into the bank and the distribution of funds to the various programs and ministries. The bills must be paid on time. He or she balances the books and gives an accurate, meaningful financial report to the church.
Treasurers often are the first to know when financial issues are brewing in the church and are often trusted advisors to the pastor and staff. IRS codes and regulations must be followed and updates must be obtained on a regular basis. Proper forms, such as the I-9, must be filled out by new employees and W-4s must be updated annually. W-2s must be issued by January 31st of the next year to all paid staff. Compensation for each staff member is often handled by the treasurer and the finance team. That’s a lot to say grace over and I have not covered all that they do.
The treasurer’s role can be a headache. Sometimes pastors and treasurers go “head to head” over spending decisions. This happens for several reasons. First, the pastor may not understand the culture of the church and may try to force a new culture too quickly. He may not be a good money manager and his actions may force the treasurer to “put the brakes” on the spending in the church. The treasurer is always asked to make the money go further, especially when income is down. This can be frustrating as the treasurer only accounts for the money but does not raise the income.
However, sometimes it is the treasurer who is at fault. Some treasurers have had the office so long, they think the money is theirs, not the church’s. They may not be current on how to compensate the pastor and may be using the old compensation package instead of using an accountable reimbursement system. Sometimes it is just a personality clash.
How can treasurers be a blessing to the pastor and the church? First, stay informed. The Church Treasurer’s Alert (800-222-1840) is a monthly publication that will keep the treasurer informed on a variety of issues. Church Law Today is an excellent Internet resource with a library of materials that can be accessed for any question a church might face. It also has four Internet newsletters that deal with everything from children protection measures to business cell phone usage.
Second, understand that the treasurer’s job is to manage the church’s funds, not dictate their dispersal. The treasurer only enacts what the church or its officers authorize. The treasurer does not make policy, only enacts it. The “Reasonable Man” theory comes into play – what would a reasonable man do in this situation? It is a fiduciary responsibility.
Third, lead the church to adopt a set of financial policies and procedures for the handling of the church’s monies. There is always a reluctance to do this because a church is held liable to its policies and procedures. However, the IRS and the State of California expect any non-profit organization to have a set of written policies and procedures.
Asking one of our larger congregations for a copy of their financial policies is a good start. They have already dealt with may of the issues you will face as a church. I can also provide you with several samples.
Fourth, attend update training for treasurers. Watch associational Websites and www.csbc.com for upcoming training. Discussing financial issues with other treasurers will allow you to do a better job and possibly make it less stressful. Be careful, however, to make sure the training is creditable. There are a number of seminars whose chief job is to scare you into buying their products and services. They make you think you are not proficient in your ministry. If you have questions about the credibility of a seminar, please ask.
Fifth, either join a group or start a treasurer affinity group. There is one which meets in the Fresno area that is comprised of treasurers and comptrollers and is interdenominational. You will find much help from a similar group. Ask your associational director of missions if he is aware of such a group in your area.
Here are two resources to assist you in your work:
There are more issues we could cover. The best advice is to keep working on your skills, knowledge and understanding of both your church and the accounting field. It will serve you well as you continue to serve our LORD and his church.
For more information, contact Rod Wiltrout, Church Finance Specialist & GuideStone State Representative, at 559.229.9533, ext. 258 or click here to email Rod Wiltrout.
P/559.229.9533 