Managing
church finances
By Rev. Dr. Perry J. Hopper, MBA
Managing church finances can be a complex task under the
best circumstances. When we consider the unprecedented
times in which we are currently living as a result of the
COVID-19 pandemic, managing church finances can become
a daunting task.
Churches rely on the tithes and offerings of their members and
faith-based organizations on the gifts of generous donors as
a source of income to maintain building operations and fund
ministry programs. What do you do when worship services are
no longer being held on site and staff are mandated to work
from their homes? How do you manage your finances and
generate the income needed to keep your church running?
A financial strategy and a plan of action will help to guide your
church through difficult times.
Your church leadership or finance committee, if your church has one,
might be faced with difficult decisions in the weeks and months ahead.
Some decisions — such as suspending ministries, instituting a hiring
freeze, postponing building projects, and staff furloughs — will not
come easily. Strive for incremental savings rather than major cuts to ease
the impact on your congregation.
With many people facing reduced employment or unemployment,
weekly giving has been greatly reduced. For these reasons, church
members are no longer giving as much as they did and those who can
still give might not be aware of different options available for them to
continue making contributions. Here are a few ideas to help sustain
giving at your church during these difficult times:
Digital giving — Set up electronic giving, if you have not already done
so, with apps such as Tithe.ly, easyTithe or Givelify.
Automatic Online bill pay — Many banks offer this option.
Church members can set up their church as a recurring weekly or
monthly payment.
Schedule giving reminders — Send an email to church members
on Saturday night to remind them that their giving and support is still
needed even though they’re not attending normal worship services.
Establish a COVID-19 relief fund for your church — During
times of crisis, those who can give, want to support ministries that are
closest to their hearts.
Communications with church members about finances is important,
especially during trying times. Transparency is key, as difficult as it
is to communicate the cold, hard facts about your church’s financial
situation. When you make your members aware of the church’s financial
challenges, it provides your congregation the opportunity to participate
in solutions, such as cost-saving ideas and strategies for raising funds.
The federal government has also stepped in to provide economic
assistance with the Coronavirus Aid, Relief, and Economic Security
Act (“CARES Act”) signed into law on March 27, 2020. The CARES
Act aims to reduce the economic impact of the COVID-19 pandemic
and authorizes aid to various sectors of the economy. Programs that
provide assistance to churches and faith-based organizations and their
employees include:
#1: Paycheck Protection Program (PPP)
The Paycheck Projection Program (PPP) is a new loan program based
on the loan program of the Small Business Administration (“SBA”) and
will make loans potentially forgivable to qualifying small businesses.
8 CHURCH EXECUTIVE | MAY / JUNE 2020