Blog

Sanford Levings

"Hi, I’m Sanford Levings, President of MinistryCFO and author of this blog. The purpose of our blog is to share with you information and insights that we gather from working with and listening to our clients and partners, located throughout the country." read more

4 Benefits of Sound Financial Management

What You are Missing if You are Not Managing Your Finances

Wikipedia defines financial management as the efficient and effective management of money in such a manner as to accomplish the objectives of the organization.

In keeping with the objective of financial management, let’s discuss 4 benefits of having sound financial management:

  1. Trust is an essential requirement for a healthy culture. If you are not communicating your financial operating results to your congregation, then you are inviting mistrust to seep into your organization.Keep in mind that the lack of trust is not always apparent in an organization. For instance: your people may have the feeling that something is not right, but they can’t quite put their finger on what’s going wrong. As such, the lack of trust can become a subliminal ache that drains on your staff and your congregation’s motivation, focus and direction.At MinistryCFO, we recommend that you post your quarterly financial operating results on your website. Secondly, we recommend that you host an annual meeting for your entire congregation focusing exclusively on the financial operations of your church. All publicly traded companies are required to have an annual shareholders’ meeting, so why not the same for your church?

    Remember that perception is reality. So even if only a few members attend your annual meeting, the rest of the congregation will at least be in the know that you are forthcoming about the finances of the church, even if they do not attend the meeting.

  2. ClarityHave you heard the saying: what gets measured is what gets done? This is a brilliant axiom because it is so true. Without timely and accurate financial reports you will not be focusing on the critical drivers required to sustain success within your organization. Clarity allows the leaders of your church to make wise, informed decisions over having to rely on gut and intuition.

  3. ConfidenceKnowing where you are with your church’s money gives you the necessary confidence to discuss stewardship in your church. Lack of sound business practices results in a departure from stewardship. And remember, you can’t ask your congregation to be good stewards of their provisions if you are not going to be a good steward of the church’s provisions. This double mindedness will eventually erode your confidence.Your congregation will see your lack of confidence, whether you realize it or not. Brad Leeper, a Principle at Generis, once said: major donors have the ability to sniff out the financial operating wherewithal of organizations.So be proactive and present your financial operating results to your congregation and gain clarity and confidence in the process.

  4. Integrity

What’s behind the numbers? What you do with your money tells you what you belief.

————————————————————————————————————————–

Your church needs a CFO on a part-time basis. Let the MinistryCFO team help you establish and maintain trust, clarity, confidence and integrity within the business confines of your church.