Author: Luke Loescher
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What is a Capitalization Policy?
A capitalization policy is an important accounting method that establishes a monetary threshold for determining when a purchase should be treated as a fixed asset on the balance sheet rather than an operating expense on the income statement. For example, a capitalization policy may state that any equipment, furniture, vehicle, or other long-term business asset…
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Building Financial Resilience for Churches
The COVID-19 pandemic has created immense financial challenges for many churches and religious organizations. With in-person services suspended or operating at limited capacity, donations have declined drastically. This has put immense strain on church budgets and finance. As churches look to rebuild and recover, building financial resilience will be critical. Here are some tips for…
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Financial Stewardship in Churches: Nurturing Prosperity with Purpose
Financial stewardship in churches goes beyond mere management of funds; it’s a sacred responsibility grounded in biblical principles. As stewards of the resources entrusted to them, churches play a pivotal role in fostering prosperity with purpose. This article delves into the nuances of financial stewardship, offering insights, strategies, and real-world examples to guide churches on…
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Enhancing Your Church Finances: Tips for Maximizing Revenue
Financial stability is crucial for the growth of any church. This guide provides practical tips and strategies to help you enhance your church’s finances.
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The Ultimate Guide: What Should Church Funds Be Used For? 11 Eye-Opening Insights
Introduction Churches have long been pillars of communities, providing spiritual guidance, social support, and charitable services. But the question that often arises is, “What should church funds be used for?” This is a topic that has sparked debates, led to policy changes, and even caused divisions within congregations. In this ultimate guide, we’ll explore the…
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Unlocking the Complex Dynamics: A Comprehensive Exploration of Restricted and Unrestricted Funds in Church Accounting
Explore the intricacies of church accounting as we delve into the differences between restricted and unrestricted funds.
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Comparing Single-Entry vs. Double-Entry Accounting for Churches
Explore the nuances of church accounting from simplicity to depth. Choose wisely between single and double-entry methods for financial clarity and transparency.
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Dual Tax Status: Understanding How Ministers File Income Tax
Determining whether pastors and other clergy are considered employees or self-employed for tax purposes can be a confusing tangle. This comprehensive article examines how income tax, Social Security tax, Medicare tax, and self-employment taxes apply to minister salaries and additional ministerial services. Key Differences Between Income Tax and Self-Employment Tax To start, it’s important to…
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Comprehensive Guide to Payroll Taxes Withheld
Understanding payroll taxes is crucial for both employers and employees. These taxes encompass a variety of deductions made from an employee’s earnings. Here, we delve deep into the intricacies of payroll taxes, their types, and their implications. Types of Payroll Taxes: A Detailed Overview Payroll taxes can be broadly categorized into the following: 1. State…
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10 Essential Guidelines to Avoid Church Financial Management Pitfalls
Churches, like any other organization, are susceptible to financial missteps. Proper financial management is crucial not only for the church’s sustainability but also for maintaining the trust of its congregation. Here, we delve into ten common church financial management mistakes often make and provide guidance on how to avoid them. 1. Implementing Robust Financial Checks…
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Accrual Basis Accounting: A Comprehensive Guide
Accrual basis accounting stands as a cornerstone in the world of finance and business. It provides a clear and accurate picture of a company’s financial health, ensuring that revenues and expenses are recorded when they are incurred, not just when cash changes hands. In this guide, we delve deep into the intricacies of accrual basis…
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The Ultimate Guide to Selling Fundraiser Tickets Online
In today’s digital age, the potential for nonprofit organizations to amplify their reach and impact has never been greater. One of the most effective ways to harness this potential is by selling fundraiser tickets online. This guide will delve deep into the nuances of online ticket sales, highlighting its advantages and providing a step-by-step approach…
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Evaluating Church Financial Health: A Comprehensive Guide
Churches, like any other organization, require sound financial management to ensure their sustainability and ability to serve their congregations effectively. Evaluating a church’s financial health is not just about checking the numbers but understanding the underlying systems and processes that support those numbers. This article delves deeper into the importance of assessing a church’s financial…
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Strategies to Engage and Retain Church Visitors Effectively
Discover innovative methods to engage and retain church visitors using technology. Dive into the power of social media, text messaging, and video content.
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How Many Bank Accounts Should a Church Have?
Have you ever wondered how churches manage their finances? Just like any other organization, churches need to maintain financial transparency and accountability. One of the ways they achieve this is by having the right number of bank accounts tailored to their specific needs. Let us answer the question of how many bank accounts should a…
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Church Asset Management Best Practices
Managing church assets well is crucial for sustainability. Learn best practices for inventorying assets, maintenance, financial planning, and more.
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Common Errors in Pastoral Taxation and How to Avoid Them
Pastors must understand pastoral taxation, avoid misclassifying income, report housing allowances and gifts accurately, and stay compliant.
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Can You Handle the Truth? Busting Myths about Church Accounting Software!
As a church accountant with years of experience under my belt, I’ve seen the inside workings of many small to medium-sized churches. I’ve witnessed firsthand the transition from traditional ledgers to modern software, and let me tell you, it’s been quite a journey. This article is for you, pastors of small to medium churches, to…
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Introduction to Tax Exemptions for Churches: Understanding the Basics
The concept of tax exemptions for churches is not just a financial matter; it’s a topic deeply rooted in historical and legal frameworks. These exemptions, while providing significant benefits, also carry a set of challenges and responsibilities. This guide aims to demystify the intricacies of church tax exemptions, providing church leaders and financial administrators with…
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Evaluating Church Financial Health: A Comprehensive Guide
Churches need strong financial management, robust accounting systems, and regular monitoring to ensure sustainability and effective service.