Financial Best PracticesRev. Dr. Todd Adams,

Associate General Minister and Vice President

Purpose Today• Talk about the special relationship of Disciples Women

and the church•Address some areas of concern • Establish a target for minimizing risk and preparing for

greater scrutiny of religious 501c3 organizations.

Relationship• Leadership development•Advocates for generosity •An vital ministry of the church in all expressions •Ministries that are covered by the denominations

group exemption

Concerns •Accounts opened under the region or congregation’s

EIN but not reported through the congregation• Expense and reimbursement policies that don’t meet

IRS or International Accounting standards •Creating potential tax liability •Potential for fraud

Basics of Best Practices • Trust • Assured reliance on the character, ability, strength, or

truth of someone or something • b : one in which confidence is placed

Trust…• Trust in people and the systems that protect people • Transactions•Decision making•Paperwork processes•Human contact with the system•Opportunity to catch and correct errors

Accountability Accountability: • An obligation or willingness to accept responsibility; • The state of being accountable;

Accountable: • Something one can measure and explain (process, documents

etc.)

Key Phrase for Today

Trust is not an internal control

Basic Principles of Giving•People give to people, not to organizations. • They give to support a mission. • They give to organizations where there are high levels

of trust and accountability.

Key Players•Protect our leaders •Officers •Protect our staff •Protect our members – donors

Role of the Officers•Monitor receipts and expenses. •Written budget •Report gifts and expenses to the congregation or the

region•Receipting gifts properly •Noting the difference between regional /

congregational

Basic Internal Controls•Gifts are always in dual control• Counters collect, escort and process contributions

• Standardized form and process • Two counters• Use a written form and sign it

Basic Rules for Handling Money•Money is counted at the event by two people • Deposit is made immediately or cash converted to a

money order• Forms are filled out, signed and a copy given to the

president

Gift Acknowledgment •Gifts need to be receipted in the name of the church

or reported to the Financial Secretary of the church• Tax statement • No goods or services were received in exchange for the

contributions

Church Treasurer’s Handbook• Excellent resource for polices, guidelines,

compensation, benefits, internal controls etc. •Maintained by OGMP Treasury Services, Pension

Fund, Christian Church Foundation and Disciples Church Extension Fund

Reviewing Financials • Protecting the people handling the money• Reviews expenses and reimbursements• Recommends additional policies and procedures • Provides donors with confidence in the policies and

procedures

Internal Review•1 month of deposits•1 month of checks•1 month of bank statements •A group of 2-3•Best practice would be to run everything through the

church as designated funds

Expenses

Expense and Reimbursement of Expenses for Employees and Volunteers•Word Problem• Accountable Expense and reimbursement

policy• Review of Expenses

What Are Appropriate Expenses? • Travel:• IRS guidelines • Employee rate .56•Charitable / volunteer rate .14•Written policy to reimburse actual

expenses •General Assembly expenses •Quadrennial Expenses

What Are Appropriate Expenses? •Meals • IRS per diem for travel•What constitute “staff”

•Cash•Receipt requirements• Lost receipt documentation?

• Travel Guidelines in writing?

Guidelines• Transparency and accountability •Written plan • Sunshine Test • Is it accountable or it is based on trust?

Discussion•How can we share this out with other leaders within

Disciples Women?

•What are the challenges you have faced that you would like to discuss?