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Pastoral Leadership and Finances (Part 2)

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Designated giving can undermine the budgeting process. Faith-promise offerings can sometimes be helpful practically, but they can also create a false hierarchy of giving categories. Create a budget driven by the mission and vision of your church. Establish procedures and check to make sure people are following them. Conduct periodic audits to avoid embezzlement. Make the salaries one line item in the budget but don’t discuss the salary of an individual in a public meeting.


Pastoral Leadership and Finances (Part 2)

IV. Develop a Sound Structure for Giving (cont)

C. Designated giving

1. How healthy to the budgeting process is it to allow designated gifts?

2. Faith-promise offerings

D. Capital campaigns

V. Manage the Budget Carefully

A. Create a budget that is driven by the mission and vision

B. Establish priorities of what gets paid first

C. Have a solid structure with clear lines of accountability

D. Maintain confidentiality

E. Report income and expenses periodically

VI. Questions

A. What are the IRS guidelines regarding tax deductions for designated gifts?

B. Do you think the church should know the pastor's salary?

C. How do you respond when people want to designate their gifts?

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