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VI. Managing and Investing Church Financial Assets

A. Financial Management for Church Funds | B. Analyzing Financial Worthiness of a Charitable Organization

INDEX

B. Analyzing Financial Worthyiness of Charitable organization

This information may be especially helpful for church stewardship committees, trustees or property committees, or even the missions committee when evaluating ministry groups seeking financial support from the church or individual members.

INTRODUCTION
Churches and church members regularly receive requests for financial support from a wide variety of organizations. How do you judge whether an organization follows proper standards so that your gift gets to the right place in a timely and cost-effective manner? Here is a list of standards gleaned from several sources, including the Better Business Bureau and the Evangelical Council for Financial Accountability. For follow-up on specific organizations, you may want to contact these groups personally for further information.

PRESENTATION

1. Is the organization committed to the highest standards of financial integrity? How is this evidenced? Is the mission clearly identified?
2. Does the organization provide full financial disclosure?
3. Does the organization have an independent, rather than self-perpetuating, board that oversees its operations and accepts responsibility for the activities of the organization?
4. Are the financial records audited annually by a Certified Public Accountant?
5. Is there a review procedure to insure compliance with fund-raising standards?
6. Is the organization responsive to your inquiries about programs and finances so you know how funds are being spent and what the programs that you support are accomplishing?