As much as the church is a place of worship, running it needs money. There have been so many cases of mismanagement of church finances that raises the question of whether people are doing this in the right manner. There are some very common mistakes that are made when managing church finances. The following are some of the most common mistakes that churches make and some solutions to church financing problems.

To begin with, most of them have no vision when it comes to the management of the church which is a mistake that cripples everything. There ought to be a vision in order to have a mission and therefore these institutions ought to be run like a business at least in the financial aspect. This means there should be a financial plan entailing expenditures and ways of generating income.

In this, there must be a working margin whereby there are details of church revenue and expenditures on the financial plan that are reasonable. Also, depending solely on offerings made on Sundays is not very reason and therefore the management may consider looking more ways to generate income for more development and a smooth running of this place of worship.

Many churches are usually afraid of asking for financial help from the congregation because many people interpret this as an institution that is only interested in money. This is because there have been so many churches opening for the sole purpose of making an income. Members are therefore required to be more open minded and be willing to contribute money to help the development of their church.

In regards to asking for contributions, the management should at least reveal the plans that the money contributed is meant for and with time reveal the progress made which should be evident; a thing that most churches fail to do. As a result, the congregation loses the giving morale and start giving in to the theories that churches are meant to fleece them which is a mistake that should be avoided at all cost.

Moreover, even with people being willing to give, it is unfair to keep them contributing every time; instead, they should contribute in buying things that are needed and in making necessary developments. Otherwise, there might be a breach of trust and as a result people will slowly lose their motivation to the initial visions they made and agreed upon.

Some of the mistakes made by the management are the same ones made by the normal businesses. For instance, they acquire debt that is too much too handle. This leads to a situation where all the revenue goes into the payment of the debts therefore stagnating the development; as a result, apart from being disappointed, people begin to lose faith with the leadership as they might feel somewhat fleeced even if the mismanagement was not intentional.

The purpose of the board of management is to ensure that these finances are handled much financial intellect and therefore member of this board ought to be qualified in this field in order to keep track of expenditure and the flow of these finances in order to avoid mismanagement.

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