Financial Management for Vestries

Taking on any volunteer position is challenging. Accepting the fiscal and fiduciary duties of one’s church can be daunting until you realize you have a dedicated CFO at your service.

The diocese offers an annual workshop for parishes sharing the top ten resources for financial management at the Vestry level. 

Top 10 Financial Management Resources

1. Church Pension Group Website, CPG.org 
   This newly redesigned website is something else! I don't know how to start describing to you how useful it is. From dedicated resource centers about healthcare insurance and lay pensions, to detailed documentation on property insurance topics and payroll services. There are clergy resources of all types (compensation guides and benchmarks, tax guides, retirement planning). And when a relevant topic affects all Episcopal churches (such as the small business tax credit), I guarantee you there will be a special section to educate us. The site is very interactive and everyone should have the joy of experiencing it for themselves. 
   
   
2. Manual of Business Methods in Church Affairs, updated annually. The DFMS of the Protestant Episcopal Church in the USA
   The "textbook" for congregational accounting in the Episcopal Church.  You should regularly be utilizing Chapter II: Internal Control Questionnaire and Chapter VI: Audit Guidelines as you ensure the accuracy and proper oversight of your financial functions.
   
   
3. Church Finance Today and Church Tax and Law Report from Christianity Today
   These great publications, Church Finance Today and Church Law and Tax Report, are not free, but the weekly emails are.  Sign up on their website and receive timely tips. We have a subscription in the Diocesan Office, so when you ponder a specific issue or question, reach out and she will happily research the topic for you and provide the backup material that you need.
   
   
4. The Vestry Resource Guide and ECF Vital Practices  
   The Vestry Resource Guide has been trusted for years as an orientation to the roles and responsibilities of the Vestry. The new ECF Vital Practices is the online extension of this spiritually-grounded font of best practices and key information, including articles, blogs, and templates which are available by browsing the online site or through a subscription to regular emails.
   
   
5. Parochial Report Workbook and Online Filing Site
   This is where someone in your group goes to file the annual Parochial Report each year.  But your Vestry may not know about the valuable Parochial Report Workbook, which details for each line how to determine what figures to use.  Areas such as outreach and fundraising generate questions by all involved, and this workbook provides examples and illustrations to make things clear. We all want accurate parochial reports as these figures drive the reporting from a congregational to a national level. The Vestry is responsible for approving the accuracy of this report, so please take care to understand the implications of how the metrics of a church are measured in our church. By the way, if the workbook alone is not enough, be sure to attend an annual Parochial Report Workshop offered early in the year.
   
   
6. The 2015 Diocesan Budget Presentation
   This publication provides a good example of thorough budgeting and fund accounting principles (if I do say so myself).  But it also includes the 2014 Apportionment Schedule and an explanation of the apportionment calculation.   Also, be sure you know about the Apportionment Blast Report that I email monthly to the financial leadership at each church.
   
   
7. Endowment Fund Management Services and Planned Giving Tools from the Episcopal Church Foundation
   The Endowment Fund Management Services at ECF are closely engaged with our Diocese and churches.  Whether you currently have "endowment funds" or not, it is critical that your Vestry adopt a formal Endowment Fund Policy and establish resources for planned giving. Take it from those of us who have learned over the last few years, these legacy gifts are too important to neglect. As an example, see our Sample Endowment Fund policy. We have a great relationship with the folks at ECF, so if you need an introduction, just let me know!
   
   
8. Sample Church Accounting Policies and Procedure Manual
   This document is a well-organized template to get you started with a policy and procedure manual that is unique to your church. No one likes starting from a blank page – download this sample and customize it to your situation.  Remember that it is a living, breathing document that will change over time. But this documentation is so important to the proper internal controls for your congregation (and it helps with training too).
   
   
9. Holy Conversations, Strategic Planning as a Spiritual Practice for Congregations. By Gil Rendle and Alice Mann. The Alban Institute.
   There is not one number or dollar sign in this book – a perfect complement to the "financial stuff" in order to get to the heart of the decision-making framework for your Vestry. This book was featured at the 2010 College of Presbyters and 2011 Vestry Retreat, so I know there is one in every church office.
   
   
10. Wiley Not-for-Profit GAAP Interpretation and Application of Generally Accepted Accounting Principles for Not-for-Profit Organizations. By Richard F. Larkin and Marie DiTommaso.
    Just to show off, or protect you against the tough questions from the CPA's on your team! My favorite chapters are 7-Fund Accounting and 17-Importance of Budgets to a Not-For-Profit, stressing the importance of timely interim statements and five-year master plans. Certain members of your Vestry might savor this book for its thorough explanations and suggested procedures. By all means, get the latest edition.  I would start a book club group for this, but that might just be too much.