With a busy ministry to manage, it is easy to forget how important finances are in keeping the church active and growing. Financial professionals will tell you that the future of the organization relies on the ability of its leaders to make savvy money decisions.

It is always best to be proactive rather than reactive. Consider these 10 business tactics that will help keep the church treasury secure.

1. Conduct Regular Audits

Audits protect the people handling the money as much as they do the organization. An audit ensures those in charge are safe from suspicion. Regular audits also show when investing or money-building strategies are not working and keep debt under control.

2. Develop a Strategic Budget

Take the church finances beyond the basic budget. A strategic budget system anticipates future projects and builds based on the core values of the church. Look closely at the church statistics and trends. Is the audience growing? What does that mean to the allocation practices? How about a saving program that allows you to draw money out during slow periods when contributions are down.

3. Financial Accountability Beyond the Church Leadership

Establish financial silos within the church. One team of trusted individuals will collect and count donations, while another manages the day-to-day finances and bookkeeping responsibilities. Establish a committee to create rules for distribution of funds and assign auditing to an independent accountant that is not a member of the church.

4. Rotate Cash Handlers

The collection of offerings is a possible problem area for churches. Rotating cash handlers on a regular basis helps prevent any impropriety. Create a system for collections that includes:

• Timely deposits
• Bank lockbags
• Teams of counters instead of one or two individuals
• Standardized forms for recording cash deposits
• Avoid allowing related individuals to be on the same team for cash handling, as well.

5. Invest Socially

Socially responsible investing is not only practical; it works to strengthen the message of the church.

You might look for organizations that support:

• Fuel sustainability
• Environmental stewardship
• Consumer protection
• Diversity in Education

Bill Somplatsky-Jarman, the Coordinator of Social Witness Ministries for the Presbyterian Church (USA) calls socially responsible investing the fastest growing segment in the financial market.

6. Keep Church Debt under One-Third

When budgeting, allocate no more than one-third of the general fund to pay debt. This will set guidelines for the committee that manages the purchases. Avoid borrowing money for items that depreciate, as well, like vehicles. Instead, focus debt on assets that will appreciate over time such as land.

7. Manage Campaigns Wisely

A poorly organized project can empty the treasury… fast.

Whether you are promoting a mission or making big-ticket purchases, establish a committee to oversee the process. The group can determine the expenses and elect a manager. Additional marketing in the community and within the congregation will create more funding opportunities and alleviate stress on the church finances.

8. Good Banking Practices

A bank is an asset to the church, but only if the leadership knows how to use it. Look for banks that offer deposit, lending and contribution services. Ask for recommendations from the congregation and ministry network when selecting banks, as well. Go online to research the reputation of the bank before establishing a relationship with it.

9. Set Controls for Fund Distribution

No one individual should control every aspect of money distribution. Instead, delegate each function to a separate leader in the church.

• One person should prepare the checks
• A different person should sign the checks
• A third individual should approve invoices for payment

Segregating these duties ensures more than one person is responsible for the disbursement of funds.

10. Limit Service Terms for Treasurers

Rotating treasury duties gives those managing the money a needed break, but also protects the church for fraudulent practices.

Money management within the church environment requires a business attitude. From financial audits to spending control, churches that make smart money decisions honor both God and the congregation they serve.