“Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed.” (Romans 13:7)
As a fundraising consultant, I have often been asked when construction should begin, how much debt should we assume, etc. Prominent members in one parish demanded that the church incur absolutely no debt in their need to acquire new property. Another parish financed their entire building program at a new location through debt.
Of course, these issues vary from project to project and from parish to parish. However, some general guidelines may be useful.The article below recently appeared in the publication “Church Law and Taxes” a division of Christianity Today. “Church Law and Taxes” sponsors newsletters by subscription, publications and maintains a blog on the business side of church management.
The author is Vonna Laue, managing partner and West Region Director with Capin Crouse LLP, a certified public accounting firm specializing in nonprofit organizations. She is also an Editorial Advisor for Church Finance Today. Churches that do not have the time or ability to develop key financial metrics and indicators may be interested in CapinCrouse’s online dashboard called Church Financial Health Index™.
Read this article in a larger font, download and print from a PDF here: Six Debt Ratios and Measurements Your Church Should Monitor