The Basics of Church Insurance Part 2: Rules of Financial Management

srfmAdminUncategorized

The Basics of Church Insurance Part 2 Rules of Financial ManagementThe Basics of Church Insurance Part 2: Rules of Financial Management

When it comes to running a business or organization of any kind, the right financial management plan is key to your success. This is especially true when it comes to a non-profit organization such as a church. As we discussed in part 1 of this blog post, churches have become increasingly susceptible to lawsuits and legal issues in recent years.

When it comes to defending your church against a claim, it does not matter if allegations are true or not. While purchasing the right church insurance policy is the only way to 100% financially protect your establishment, having finances in order to begin with can help decrease your chances of a financial incident adversely affecting you.

If you are the pastor of your church, it’s your responsibility to see that the finances are handles in a professional manner, and protect the financial foundation of your church. So what can you do to simplify your financial management strategy?

First, it’s important to establish a budget and stick with it. As with a personal or family budget, a church budget is valuable only if it is followed. There must be a general consensus and willingness on the part of the church leaders and congregation to live with the budget that has been set forth. It’s important to set up a system of accountability for spending decisions within your budget and regularly evaluate your financial picture.

Second, you should always communicate about church finances. It’s important to keep the congregation informed of the church’s financial situation. This can be done through weekly financial updates in your church’s worship folders, business meetings, prayer meeting announcements, or even congregational letters that are sent to your church member’s homes.

One last, but very important, step you can take in managing your church’s finances is to demonstrate accountability. Integrity in the area of finances is absolutely crucial. The congregation will stop giving to a church of there is a lack of trust about how the finances are handles. A couple ways to mitigate financial loss in the church is by implementing a policy that no usher should deliver an offering to the church safe without another unrelated person present, and by never leaving money unattended or in control of only one person.

At Sinclair Risk and Financial Management, we understand the extreme importance of a solid financial plan, and the role it plays in your overall church insurance package. When you partner with us, our team of seasoned and talented professionals will gain a full understanding of your Financial Management philosophy, goals, and individual risk tolerance. We’ll also get inside your business operation to identify exposures to loss that threaten your business. Contact us today at (877) 602-2305 for more information.