All new church pastors have to deal with the setting up of financial systems, which is often their least favorite part of the planting process. Because of their need to be involved with the finances in the early stages of the plant, there is a danger of not acting with integrity in all financial matters - to cut corners - so that they can move the plant forward. Some of these corner cutters are illegal and all are ungodly. Here are some of the most common issues of which the planter should be aware.
1. Not carrying liability insurance: All places you rent require you to carry liability insurance, as a protection to themselves. To fail to carry insurance is both dangerous and endangering to the landlord.
2. Giving yourself a raise: The quickest way to lose credibility with a core group is to take charge of your own salary increases. Always submit these decisions to your coach and oversight team until you have a leadership team in the church to oversee salaries.
3. Counting the money by yourself - and taking it home: An ethical no-no by IRS standards which can open you up to legal charges if known. And do not say they will never find out, make sure you have a back-up plan instead.
4. Failure to keep your obligations: Second quickest way to lose credibility with the launch team. Pay bills on time; keep all commitments that you made, especially in the Expectation Interview process.
5. Lying about housing allowance: It is normal to underestimate housing allowances, but it unethical to adjust them after the bills come due. If you misjudged, you have to accept it. Also, make sure that you adjust your housing allowance on your tax forms if you overestimated it. If you are audited, you will be glad you did.
6. Not tithing yourself: Never say that the hours you spend in ministry are your tithe to the church. You were called of God to this ministry. Never ask the people to be obedient in this if you are not, as they will come to find out (they always do!) and they will lose respect for you.
7. Donating stuff to yourself and taking a tax write off: This is illegal, period. Do not donate to your or your children’s college expenses or anything else that is sidestepping IRS regulations in this matter.
8. Writing checks on next week’s offering: It is better to pay for stuff out of your own pocket than take a chance that someone is going to bounce a check on the church plant. Further, if you are not able to handle a budget at this low income level, beware.
9. Not reporting income: If people pay you for a wedding or funeral, you must report it on a Schedule C as income. Do not see it as free money. Remember, God knows about this.
10. Paying people under the table: We are teaching people by what we do how much we respect authority that God has set up in the government. When we ignore this fact, we will find people will ignore our pastoral authority as well at some point
11. Using tax exemption for personal purchases: You are not the church, so do not jeopardize the church’s tax status by using its exemption for yourself. Furthermore, those that do this are revealing a moral lapse in their character.
12. Failure to control your budget: Budgets are guides to help the church people know the priorities of ministry. It is impossible to always know what will be needed in the first years, but, as the leader, you need to show that you value the other ministry volunteers by not spending money budgeted for their ministries on your own priorities.
Steve Smith is the Executive Minister of Converge Southeast
