Taking Care of Church Business
Congregations select individuals to represent them in the various aspects of their operational activities. One of those important activities is the management of the congregation’s financial matters. Elected leadership of the congregation typically completes required paperwork with banks and other financial organizations authorizing specific individuals to conduct financial business on behalf of the congregation. Although it is customary for the congregation to select these individuals as a matter of routine business each year, a congregation also needs to routinely revisit the paperwork on file with the various financial institutions with which it conducts business to ensure that the list of authorized individuals is kept current. Doing so minimizes difficulty that may occur due to out-of-date paperwork.
Consider two scenarios, which are offered to make the point:
Scenario 1: A congregation elects a new treasurer because the one who has served the church for the past many years moved to a distant city. Because of an emergency, the new treasurer goes to the bank to withdraw money from the church’s checking account and learns that she is not authorized to conduct business with the bank on behalf of the congregation. The paperwork was not updated at the bank in a timely manner, and now there will be a delay while the necessary corrections are completed. This may be a short delay or a longer delay depending on the requirements of the bank and the availability of church representatives who are acceptable to the bank for making the corrections. In the meantime, the emergency cannot be addressed.
Scenario 2: A congregation encounters a very divisive situation that causes some members to leave the congregation in anger. Those who leave the congregation include the current elected leadership of the congregation. The congregation elects new leadership but, in the pressure of the moment, fails to contact the bank and complete paperwork authorizing the new leadership to conduct business on behalf of the congregation. This poses a risk for the congregation because the bank still recognizes the former leadership as the authorized individuals and would honor requests if made by the former leadership.
Every congregation should review all authorizations issued on its behalf on a regular basis, at least once a year, and each time new leadership is called into service. Each review should include contacting every financial organization with which the congregation has a relationship to ensure that the list of authorized individuals is current and accurate.
Submitted by District Executive, Kevin Kessler.
Consider two scenarios, which are offered to make the point:
Scenario 1: A congregation elects a new treasurer because the one who has served the church for the past many years moved to a distant city. Because of an emergency, the new treasurer goes to the bank to withdraw money from the church’s checking account and learns that she is not authorized to conduct business with the bank on behalf of the congregation. The paperwork was not updated at the bank in a timely manner, and now there will be a delay while the necessary corrections are completed. This may be a short delay or a longer delay depending on the requirements of the bank and the availability of church representatives who are acceptable to the bank for making the corrections. In the meantime, the emergency cannot be addressed.
Scenario 2: A congregation encounters a very divisive situation that causes some members to leave the congregation in anger. Those who leave the congregation include the current elected leadership of the congregation. The congregation elects new leadership but, in the pressure of the moment, fails to contact the bank and complete paperwork authorizing the new leadership to conduct business on behalf of the congregation. This poses a risk for the congregation because the bank still recognizes the former leadership as the authorized individuals and would honor requests if made by the former leadership.
Every congregation should review all authorizations issued on its behalf on a regular basis, at least once a year, and each time new leadership is called into service. Each review should include contacting every financial organization with which the congregation has a relationship to ensure that the list of authorized individuals is current and accurate.
Submitted by District Executive, Kevin Kessler.
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