Prudent Financial Management at the Local Church

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Financial management at the local church involves planning, organizing, controlling, and monitoring financial resources to achieve goals. Prudent financial management is cautious and practical stewardship of church finances. Objectives include mobilization, utilization, protection, and availability of funds, often sourced from church members through offerings and tithes.


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  1. PRUDENT FINANCIAL MANAGEMENT AT THE LOCAL CHURCH By Ps Hopekings Ngomba Ps Hopekings Ngomba

  2. What is financial Management? It is the process of planning, organizing, controlling and monitoring financial resources with a view to achieve organizational goals and objectives. https://www3.fundsforngos.org/financial-management/2-what-is-financial-management

  3. What is Prudent Financial Management? What does the word prudent mean? According to Collins English Dictionary, the word prudent means: 1 discreet or cautious in managing one's activities; circumspect 2 practical and careful in providing for the future 3 exercising good judgment or common sense Prudent financial management is therefore cautious practical management of financial resources to achieve the goals and objectives of the church.

  4. Objectives of Financial management Proper MOBILIZATION of Funds Proper UTILIZATION of Funds Proper PROTECTION of Funds Proper AVAILABILITY of Funds

  5. Proper Mobilization of Funds Source of Income/Revenue Source of Income/Revenue: from Church members Let the elders and officers of the church follow the direction of the Sacred Word, and urge upon their members the necessity of faithfulness in the payment of members the necessity of faithfulness in the payment of pledges, tithes, and offerings pledges, tithes, and offerings.--R. & H., Dec. 17, 1889. {CS 106.3} God in His wise plans has made the advancement of cause dependent upon the personal efforts of His cause dependent upon the personal efforts of His people and upon their freewill offerings.. . {4T 464.2} people and upon their freewill offerings.. . {4T 464.2} urge upon their of His His

  6. Offerings and Tithe as Revenue Offerings and Tithe as Revenue Voluntary offerings and the tithe constitute the revenue of the gospel. {5T 149} God has instituted that His business of saving souls be supported by church members tithes and offering. At a local church all operational expenses be paid from offerings. .

  7. Who is responsible for Mobilization of Funds? Church Pastor, Church Elders, Church Officers If the pastors show that they are not fitted for their charge, , if if they fail to set before the church the importance of returning to they fail to set before the church the importance of returning to God His own, if they do not see to it that the God His own, if they do not see to it that the officers under them are faithful are faithful, and that the tithe is brought in, they are in peril , and that the tithe is brought in, they are in peril. . They are They are neglecting neglecting a matter which involves a a matter which involves a blessing or a curse to the church curse to the church. They should be relieved of their responsibility, and other men should be tested and tried {CS 106.1}. officers under them blessing or a

  8. Who is responsible Let the church appoint pastors or elders who are devoted to the Lord Jesus, and let these men see that officers are chosen who will attend faithfully to the work of gathering in the tithe [and offerings] {CS 106.1}. It is the duty of It is the duty of the elders the elders and and officers of the church the people on this important matter, and to set things in order the people on this important matter, and to set things in order. The ministers themselves should be strict to carry out to the letter the injunctions of God's word (CS 106.3) officers of the church to to instruct instruct

  9. Whose responsibility Those who hold positions of trust in the church should not be negligent, but they should see that the members are faithful in performing this duty. . . . Let the elders and officers of the church follow the direction of the Sacred Word, and urge upon their members the necessity of faithfulness in the payment of pledges, tithes, and offerings.--R. & H., Dec. 17, 1889. {CS 106.3}

  10. All Church Leaders called to mobilize funds T 05 20 Tithes and Offerings 1. Tithe Frequent appeals shall be made by division and union leaders, conference/mission/field presidents, church pastors and elders, and others on whom responsibility is placed, that all believers be faithful in returning God s tithe, which will provide sufficient income from the churches to cover the budget requirements of the various conferences/missions/fields and help in sustaining the church s activities in all lands. 2. Offerings In addition to the tithe, freewill offerings are essential in order to provide equitable support for each organizational level of the church s world work. Such offerings should be systematic, in order to: a. Nurture the sense of responsibility each mature church member should feel for the church s work as a whole.

  11. b. Permit the church member to receive the blessing that regular and planned giving brings to the giver. c. Ensure a steady flow of funds for all aspects of a balanced program.

  12. Combined Offering Plan SID W 30 05 Alternative/Combined Offering Plan policy is SID v SID W 30 05 Alternative/Combined Offering Plan policy is SID voted offering plan for all churches as follows: Local church 50 percent Local conference 20 percent Union 5 percent Division 5 percent General Conference 20 percent

  13. Giving Guide Giving Guide For systematic giving, a second 10 percent of income in addition to tithe is suggested as the goal for individual giving, in order to provide for local church needs, conference needs, and the worldwide needs of the Church (Division Financial Policies SID Working Policy, 2013, p. 526)

  14. Proper UTILIZATION Of Funds Prepare budget: Budget Financial plan with Income and expenses estimates for the year. Identify essential Expenses: Rentals, Utilities, Security, Consumables, Evangelism, wages, Maintenance etc Control Budget : Using Financial Statements Comply with Policy on Percentage and Use of funds

  15. Offerings for Church Expenses Offerings for Church Expenses His people today are to remember that the house of worship is the Lord's property and that it is to be scrupulously cared for. But the funds for this work are not to come from the tithe. {9T 248.2

  16. Tithe Not for Church Expenses Tithe Not for Church Expenses Not to support church needs or care for the house of God- A very plain definite message has been given to me for our people. . . They are making a mistake in applying tithe to various objects, which though good in themselves, are not the object to which the Lord has said that the tithe should be applied. Those who make this use of the tithe are departing from the Lords arrangement. God will judge for these things {GW 226} Not to defray church expenses { CS 103} Not to pay church debt {6T 103} Not to be used in the construction of buildings {Letter 93, 1899}

  17. Proper PROTECTION of Funds: Institute Internal Controls Give receipts to members self-carbonated receipts Adopt 2 Kings 12:9 regarding offering baskets and offering bags Count and Record Offerings at point of collection as exemplified on 2 Kings 12:10 Require that all payments be authorized by the board. Present a report of all funds received and disbursed to the church during business meetings monthly Prepare bank reconciliation statements where possible

  18. Proper PROTECTION of Funds: Institute Internal Controls Monthly Verification and Annual Audit Monthly Verification and Annual Audit: : Every set of accounting, records from those of the local church to those of the General Conference are subject to audit by auditors appointed for the purpose. This rule applies to every denominationally affiliated institution . . . . Church Manual, 2011, p. 135 The conference treasurer, or other individual appointed by the conference committee audits the church financial records, usually each year. . . .Or by the Pastor, district leader, head elder or by any others authorized by the church board . . . . P. 83 Apply proper discipline Apply proper discipline for theft, fraud, embezzlement of church funds.

  19. Proper AVAILABILITY of Funds Ensure that funds are available to support the running of the local church. Encourage faithfulness by being exemplary Promote stewardship Understand the church s income and expenditure situation at all times Spend within budgets Shun debts

  20. Why should members be persuaded to be faithful stewards? In obedience to his word: This matter of giving is not left to impulse. God has given us definite instruction in regard to it. He has specified tithes and offerings as the measure of our obligation. And He desires us to give regularly and systematically. . . . In anticipation of His blessing: Our heavenly Father did not originate the plan of systematic benevolence to enrich Himself, but to be a great blessing to man. He saw that this system of beneficence was just what man needed.--3T 404, 405. {CS 67.3} If we have prosperity in our secular business, it is because God blesses us. . . When that which God claims is rendered to Him, the remainder (90%) will be sanctified and blessed to our own use. But when a man robs God by withholding that which He requires (10%), His curse rests upon the whole (100%). {4T 477.1}

  21. Expression of our gratitude to His goodness Expression of our gratitude to His goodness: These gifts are to be made in consideration of the great goodness of God to us. (CS 80.1) To hasten the Lords return To hasten the Lords return: When all are faithful in giving back to God His own in tithes and offerings, the way will be opened for the world to hear the message for this time. . . Christ would, ere this, have come to earth . . . (6T 449.4). To safeguard the church from Spiritual darkness: His people do not give Him in tithes and offerings that which is His own. This robbery of God, which is practiced by both rich and poor, brings darkness into the churches; and the minister who labors with them, and who does not show them the plainly revealed will of God, is brought under condemnation with the people because he neglects his duty.--R. & H., April 8, 1884. {CS 87.2}

  22. Many are not faithful I have had direct light from the Lord upon this question, that many Seventh-day Adventists were robbing God in tithes and offerings, and it was plainly revealed to me that Malachi has stated the case as it really is. {TM 60} Tithe faithfulness is at 35% in SID

  23. THE END

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