Raising the funds to meet the mission and ministry needs of churches is becoming increasingly challenging. During this webinar we will look at some of the critical factors that make a church financially healthy and what tools you need to see where you are at and positive goals to aim for. We will discuss how to be good stewards of your church’s resources and explore some best practices for overseeing your finances. Through this Webinar you will learn how to: * Principles of stewardship and how it impacts your church * Implement a stewardship plan * Demonstrate accountability for managing your funds * Review financial reports to make strong financial choices * Review and monitor giving trends within your congregation and membership

1. 5 Keys for Church Financial Stewardship
Advanced Webinar, April 19, 2018
Dan Kimball
Product Specialist at Aplos Software

2. About Aplos
We’re the #1 solution in online donor
management software for nonprofits.
At Aplos, we believe in changing the world by making it simpler to
manage nonprofits and churches. We make it faster and do the
hard part so you can focus more on your mission.
Visit aplos.com for more information.
"Nonprofits all across the country are
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#Aploswebinar

3. Dan Kimball
Dan Kimball is a seasoned fundraiser with over
twenty years of experience in strategic fund
development and nonprofit management.
His role at Aplos as a product specialist includes
helping develop Aplos’ Donor Management
Platform to help nonprofits connect with (and
cultivate!) their donor base.
“Fundraising is a relationship business.”
Twitter: @fugativedmk
@aplos_software

4. Introduction
Raising the funds to meet the mission and ministry needs of churches is becoming
increasingly challenging. During this webinar we will look at some of the critical factors that
make a church financially healthy and what tools you need to see where you are at and
positive goals to aim for. We will discuss how to be good stewards of your church’s resources
and explore some best practices for overseeing your finances. Through this Webinar you will
learn how to:
•Principles of stewardship and how it impacts your church
•Implement a stewardship plan
•Demonstrate accountability for managing your funds
•Review financial reports to make strong financial choices
•Review and monitor giving trends within your congregation and membership

5. Stewardship
Stewardship is our response to God’s goodness and grace in the ways we use
our time, our talents, and our financial resources. It begins with the foundational
principle that “the earth is the Lord’s and all that is in it, the world and those who
live in it.” (Psalm 24:1) Although stewardship is not limited to finances, how we
use our money is an important way of expressing our faith. Nearly a third of
Jesus’ teachings have to do with this topic.

6. Financial Stewardship Principles for Churches- Bill Cox
A common, biblically-based theme in the church world is that parishioners
should be good stewards of the money God has entrusted to them. Especially
emphasized is the principle of Christians paying tithes and giving generously.
However, stewardship not only applies to church members but also to churches
themselves. In the same way that individuals are accountable for how they
invest the resources God has given them, churches and ministries are
responsible for how they steward the gifts that come into their storehouse.

7. Financial Stewardship Principles for Churches
Seven principles that can further the impact and influence of a ministry interested in building the
Kingdom of God. It attempts to show the importance of allocating financial resources in a way
that is properly aligned with the mission, vision and values of a ministry.
Prayer and Planning Go Together
Visions Need Resources
Information is Powerful
The Budgeting Process is Your Friend
Cash Reserves Should be Responsible
All Types of Debt are not Equal
Emphasis on Money Should be Balanced

8. Implement a Stewardship Plan
The best way to cultivate a deep-rooted spirit of stewardship in your congregation is to actually make a plan to
accomplish it. Brainstorm with your team what you think you can do throughout the year to communicate your
vision, regularly give feedback on how it is being accomplished, and give them opportunities to further participate.
Assign responsibilities and regular revisit it to adapt and layer in new things.
Churches that are doing stewardship well focus on it more that a couple of weeks in the fall. We suggest a year-
round strategy for helping your folks learn that being a faithful steward is about more than how the church gets its
bill paid! Herb Mather offers one comprehensive plan that a church might use in developing a year-round
stewardship strategy!
Components for a 12-month plan
Personal Witness
Preaching
Telling the Stories
An Annual Emphasis
Tithing
Time and Talent
Planned Giving
Personal Financial Management
Budget Building and Management
Accounting and Reporting System
Letters for all seasons

9. #Aploswebinar
Implement a Stewardship Plan
Have an ongoing conversation about generosity and giving. Stewardship should
not be the focus for only two to three weeks in the fall.
1. Tell stories of impact and the many great things that are happening because of the
generosity of the congregation, rather than showing charts with dollars and deficits.
People enjoy giving out of a spirit of gratitude.
2. Invite congregants to tell stories of how the church is changing their lives. This helps
them examine the impact of the church in their own life, one that is likely shared with
others in the congregation.
3. Help people see the real needs you have, not just a budget bottom line. This helps
people connect their gift to the purpose and vision, rather than simply transactional.
4. Instead of focusing on the building and its needs, shift the thinking to the mission of
the building(s) and all of the things that are happening because of the people who use
the building(s).

10. #Aploswebinar
Implement a Stewardship Plan
5. Regularly show gratitude for those who support ministry, whether through their time or finances.
Many Pastors and church staff do not see what people give, but donors still need to feel thanked and
encouraged. You can thank supporters and volunteers each time you give an update on a ministry. You
can also ask leadership to help you write thank-you notes to donors (you don’t need to see the amount
given to say thank you).
6. You can implement recurring online giving. This is a convenient way for many people that plan to
tithe, but sometimes miss because they were out of town or forgot their checkbook. It also helps the
church plan for its finances if giving is more predictable and doesn’t slow down as much in the summer
months.
Enhancing your church’s stewardship strategy takes time. It’s not just about raising money. It’s about
changing people’s mindsets

11. Establish a budget and live within it!..……Practice good discipline
Communicate about church finances.
Yes, it’s possible to spend too much time talking about money. But I have found the opposite (too little talking
about money) is a bigger problem in most churches. We need to overcome our fear of being misunderstood.
Here are some ways to keep our people informed.
Financial updates in weekly worship folders . . . Monthly update including both cash flow and budget-need to
be most helpful.
Stewardship messages . . . A once-a-year preaching emphasis is not too much. Give Biblical exposition on
stewardship and give application by mentioning specific church needs and opportunities for giving.
Business meeting updates . . . Most church business meetings include the presentation of financial reports
for congregational information or action. Taking time to communicate at that time seems especially
appropriate.
Prayer meeting announcements . . . Communicate with the people who are most committed to prayer, since
they regularly bring the needs of the church before the Lord. Print “prayer prompters” to highlight financial
needs.
Congregational letters . . . Use occasional church mailings to reach the entire church family. Keep letters
short, concise, and positive! I’ve found this approach most helpful for a special giving initiative or stewardship
drive.
Testimonies . . . Invite individuals to share in corporate worship settings about the the difference the church’s
ministry has made in their lives. Celebrate the good things happening in your church throughout the year!
Accountability for Managing Your Funds

12. Demonstrate accountability.
Every church needs to regularly examine its practices regarding the handling of money. Integrity in this area
is absolutely crucial. The congregation will stop giving to the church if a lack of trust exists over the handling
of finances. Keep at least the following in mind:
The person who opens the mail should log the incoming checks. Count these later with the regular
offerings.
No usher should deliver an offering to the church safe or bank building without another unrelated person
present.
All offerings should be counted and agreed upon by two or more people.
Do not leave money unattended or in the control of only one person.
Checks should be signed by someone other than the one who prepares the checks, and not related to the
preparer.
Have your financial records independently reviewed annually. Consider a schedule for outside audits.
Taking the time to put the financial house of the church in order pays rich dividends for the church family
and allows church leaders to function more effectively.
#Aploswebinar
Accountability for Managing Your Funds

13. Financial reports to make strong financial choices
There are two primary factors to consider when determining
whether your church is financially healthy: your budget, and your
giving practices.
Budget
• Does your church pay its expenses on time?
• Does your church have adequate emergency funds?
• Does your church maintain sufficient undesignated reserves?
Giving
• Is you church’s giving campaign effective and ongoing?
• Does your church membership support missions beyond the local
church?
• Is your church building toward expansion, or just treading water?

14. What Good Fund Accounting Looks Like
What is Fund Accounting?
Fund accounting is a method of accounting used
by a nonprofit organization that illustrates
accountability, rather than profitability. In a
business you want to know how much was spent,
how much was earned, and how much was left
over. With a nonprofit you want to know these
things, but you also want to make sure that the
money you have, receive, and spend is allocated for
the proper purpose. Welcome to fund accounting.
What features will help provide internal controls and transparency in your organization’s bookkeeping.

15. Tracking Your Funds Correctly is Essential
for Nonprofit Reporting
Cash Balance by Fund
Income Statement by Fund
Balance Sheet

16. Financial reports to make strong financial choices
Foundation
Balance Sheet
as of 12/31/2017
Account Number Account Name Amount
Assets
Cash
1000 Checking $2,466,170.01
1002 Petty Cash $12,000.00
1202 WePay $0.00
1234 Endowment $0.00
Total Cash $2,478,170.01
Accounts Receivable
1100 Accounts Receivable $0.00
1101 Membership Receivable $0.00
1201 Receivables $0.00
Total Accounts Receivable $0.00
Other Assets
1200 Building $0.00
Total Other Assets $0.00
Fixed Assets
1235 Land $0.00
1236 Buildings $0.00
1237 Vehicles $0.00
1238 Equipment $0.00
1239 Computers $0.00
Total Fixed Assets $0.00

17. Foundation
Balance Sheet: Compare by Fund
as of 12/31/2017
Account Number Account Name General Fund Missions Fund Building Fund Amount
Assets
Cash
1000 Checking $1,461,291.80 $659,481.22 $340,096.99 $2,460,870.01
1001 Savings $1,300.00 $1,000.00 $0.00 $2,300.00
Total for 1000 - Checking $1,462,591.80 $1,000.00 $0.00 $2,463,170.01
1002 Petty Cash $12,000.00 $0.00 $0.00 $12,000.00
1202 WePay $0.00 $0.00 $0.00 $0.00
1234 Endowment $0.00 $0.00 $0.00 $0.00
Total Cash $1,474,591.80 $660,481.22 $340,096.99 $2,475,170.01
Accounts
Receivable
1100 Accounts Receivable $0.00 $0.00 $0.00 $0.00
1101 Membership Receivable $0.00 $0.00 $0.00 $0.00
1201 Receivables $0.00 $0.00 $0.00 $0.00
Total Accounts Receivable $0.00 $0.00 $0.00 $0.00
Other Assets
1200 Building $0.00 $0.00 $0.00 $0.00
Total Other Assets $0.00 $0.00 $0.00 $0.00
Fixed Assets
1235 Land $0.00 $0.00 $0.00 $0.00
1235.1 Land -
Accumulated
$0.00 $0.00 $0.00 $0.00

18. Foundation
Compare Income Statement by Ministries
for the period of 01/01/2018 to 04/18/2018
Account Number Account Name Men's Ministry Women's Ministry Youth Ministry Amount
Income
General Income
4000 Tithe Income $16,124.32 $16,124.36 $16,124.32 $48,373.00
Total General Income $16,124.32 $16,124.36 $16,124.32 $48,373.00
Merchandise
Income
4104 Miscellaneous $11,200.00 $11,200.00 $11,200.00 $33,600.00
4200 Year-End Recap Video
Income $10,938.62 $10,938.76 $10,938.62 $32,816.00
4300 Silent Auction Income $14,000.00 $14,000.00 $14,000.00 $42,000.00
Total Merchandise Income $36,138.62 $36,138.76 $36,138.62 $108,416.00
Total Income $52,262.94 $52,263.12 $52,262.94 $156,789.00
Expense
Event Expenses
5200 Coffee Truck $9,333.38 $9,333.24 $9,333.38 $28,000.00
5202 Gas $7,000.00 $7,000.00 $7,000.00 $21,000.00
5203 Decorations $8,866.62 $8,866.76 $8,866.62 $26,600.00
Total for 5200 - Coffee Truck $25,200.00 $25,200.00 $25,200.00 $75,600.00
5201 Various Event Food/
Beverage $6,766.62 $6,766.76 $6,766.62 $20,300.00
Total Event Expenses $31,966.62 $31,966.76 $31,966.62 $95,900.00
Administrative
Expenses
5000 Payroll $0.00 $0.00 $0.00 $0.00
5001 Full-Time $3,976.98 $3,976.84 $3,976.98 $11,930.80
Total for 5000 - Payroll $3,976.98 $3,976.84 $3,976.98 $11,930.80
5100 General Marketing $5,852.00 $5,852.00 $5,852.00 $17,556.00

19. Foundation
Budget: Year to Date
for the period of 01/01/2018 to 04/18/2018
Account Number Account Name Actual Budget Difference
Income
General Income
4000 Tithe Income $77,798.00 $18,781.32 $59,016.68
4000.2 Test $0.00 $0.00 $0.00
4007 Tithes and Offerings $0.00 $0.00 $0.00
4100 Coffee Cart Income $100.00 $0.00 $100.00
4101 Fundraiser Tickets Income $0.00 $0.00 $0.00
4103 Grant Income $0.00 $0.00 $0.00
Total General Income $77,898.00 $18,781.32 $59,116.68
Merchandise Income
4102 T-Shirt Sales Income $0.00 $0.00 $0.00
4104 Miscellaneous $33,600.00 $0.00 $33,600.00
4200 Year-End Recap Video
Income $32,816.00 $0.00 $32,816.00
4300 Silent Auction Income $42,000.00 $0.00 $42,000.00
Total Merchandise Income $108,416.00 $0.00 $108,416.00
Fixed Assets
4301 Fixed Assets Disposal Gain $0.00 $0.00 $0.00
Total Fixed Assets $0.00 $0.00 $0.00
Total Income $186,314.00 $18,781.32 $167,532.68
Expense
Event Expenses
5200 Coffee Truck $75,602.00 $0.00 $75,602.00
5201 Various Event Food/
Beverage $20,300.00 $0.00 $20,300.00
5210 Event Marketing $350.00 $0.00 $350.00
Total Event Expenses $96,252.00 $0.00 $96,252.00
Administrative
Expenses
5000 Payroll $11,930.80 $0.00 $11,930.80

20. Financial Health- Spending & Planning
Planning for unexpected large expenses.
Know your full costs. Set aside some of your limited time to
analyze your true costs of operating. Think through the
operating realities of your organization. What are your day-
to-day expenses? How much cash do you need in the bank
at the worst times of the year to pay your bills on time?
What funds should you have that can be set aside to
maintain your facility, upgrade your technology, or invest in
new systems? What risks do you see coming down the road,
and what would it take to meet those risks? What
opportunities should you take, and how much money would
you need to take them? Do you have any debt to repay, and
what is your plan for repayment?

21. Operating/Cash Reserves: What are they and why have
them?
In its very simplest conception, an operating reserve is a rainy day fund,
and people have such funds because they provide shelter from the storm.
Operating reserves are essentially the accumulation of unrestricted
surpluses that are liquid (as opposed to invested in fixed assets) and thus
available for use at the discretion of an organization's board. The presence
of an operating reserve increases an organization's ability to take mission-
related risks and to absorb or respond to temporary changes in its
environment or circumstances, such as the unanticipated event of
significant unbudgeted increases in operating expenses and/or losses in
operating revenues.
The question most nonprofits struggle with is: “What is the appropriate
amount to be set aside in an operating reserve?”
Financial Health- Cash On Hand

22. Operating/Cash Reserves: What are they and why have them?
On the surface, it would seem that a church should have financial reserves if at all possible. But there are implications that argue both ways
on this issue. Let’s look at eight of them.
Meet current obligations before funding a reserve. A church in California had reserves of nearly $250,000, but it was not current on its
bills, even its utility bills. The witness of a church is damaged when it does not meet current obligations in a timely fashion. That should be a
priority over a reserve fund.
A reserve can serve as a contingency for unexpected expenses or downturns in giving. This purpose is consistent with other organizations
and with families.
Church members can feel that ministries are neglected if the church has reserves. Ministry needs are unlimited. When a ministry leader
or someone who has an affinity with an underfunded ministry sees money in a reserve fund, he or she can feel the ministry is being slighted
since funding seems readily available.
The leadership of a church should clearly communicate the purpose of a reserve fund. Here is a statement straight from the annual
budget of a church: “As good stewards of God’s funds, we seek to maintain the equivalent of approximately three months’ funding of the
annual budget for unexpected contingencies.”
Consider a cap on the reserve funding. In the example of number four, the church implicitly capped the reserve funding at 25 percent of
the budget. Such a move communicates wise stewardship rather than hoarding.
Reserves can relieve stress on church leaders. Church leaders have many different areas that can engender stress. A church financial
reserve can alleviate some of the financial stress.
Excess reserves can lull members into complacency. I have seen churches with large reserve funds or endowments that are doing a
terrible job in ministry. The members do not see the need to give or to serve. Many of them think the church should pay for ministry to take
place.
With any reserve, the tension is between stewardship and complacency. For that reason, I often recommend the reserve amount be
capped at a certain percentage of the budget, usually between three and six months of the annual budget.
Financial Health- Cash On Hand

23. Review and monitor giving trends within your congregation
and membership
When it comes to determining how efficiently your nonprofit operates, there’s nothing quite as
helpful as a large pool of accurate, relevant performance indicators that can show you exactly how
well you’re doing. Here are some key indicators to use:
• What % gives
• Average gift size
• New donors
• How many donations did your organization receive this year?
• What channels did those donations come through?
• What were the standard donation sizes?
• How many gifts your organization received over a set amount of time.
• Gift Growth
• Pledge Fulfillment rate
• Donor Retention Rate
• Online giving
• Recurring Giving
• Age breakdown and giving habits
•

24. Conclusion/Q&A

25. Contact Me
Email
dan.kimball@aplos.com
Twitter:
@fugativedmk
@aplos_software
nonprofitchef.com