1) Clear Mission 2) Accountable Organization 3) Regular Reporting
4) Responsible Fund Raising 5) Effective Communication
1)
Clear Mission
Ministries should clearly communicate their commitment to Biblical principles through their Mission Statement and Governing Operating Principles.
2)Accountable Organization
The Organization, should be governed by an Independent Oversight Committee which meets at least quarterly. Oversight Committee Members should be advised of their rights and fiduciary responsibilities as a member.
The fiduciary duties of the Oversight Committee should include (but not be limited to) ensuring that transactions, activities and the future efforts proposed by the Organization are consistent with the Organization Mission and meet applicable Federal, State and Municipal requirements.
Staff assignments should be made with care to ensure Internal Controls (such as the segregation of duties) are maintained throughout the Organization. Transactions which could represent a conflict of interest should be carefully reviewed, reported and avoided (if possible).
3) Regular Reporting
Reporting within the Organization should include regular reporting of:
a) Oversight Committee Minutes
Accurately record the activities of the Oversight Committee.
b) Program Reporting
Sufficient to assess the accomplishments, benefits and future plans of the organization. Budgets should be prepared for each program offered.
c) Resource Reporting
Records which safeguard the assets of the Organization and ensure the assets are available for the Mission of the Organization. Additionally, financial reporting of the Organization should include Financial Statements including a Statement of Activity (or Income Statement), Statement of Financial Position (or Balance Sheet) and a Statement of Cash Flows.
d) Tax Reporting
Organizations should meet applicable Federal and State reporting requirements including informational, tax and payroll returns
e) Donor Reporting
The Organization should maintain reports which include all monetary, in-kind or barter transactions related to individual donor contributions, institutional grants and foundation giving.
4) Responsible Fund Raising
Organization fundraising materials should accurately reflect the objectives, accomplishments and future efforts of the Organization. Funds raised should be used consistent with the Organization's stated objectives and the intent of the donor.
Donors should be advised of the fair market value and non-deductible status of premiums given by the Organization as an incentive for a donation (if material compared to the related donation).
5) Effective Communication
Organizations should be willing to honor reasonable request for information by interested parties.
- Information regarding the accomplishments of the Organization and its programs.
- Information regarding the independence of the Organizational structure and leadership.
- Information ensuring Restricted funds are spent in compliance with donor restrictions.
- Information indicating the Organization is in compliance with Federal, State and Municipal requirements.
- Information regarding ways in which interested parties can participate in programs (in addition to financial donations) such as attending services, volunteer activities, prayer, etc
Note: If the Organization provides Financial Summaries (annual totals for revenue, program expense, administrative expense and fund raising expense). Readers should review the information with the understanding that a reasonable amount of overhead expense is necessary for an Organization to function.
Additionally, although comparisons between Organizations may be helpful, consideration should be given to the fact that Organizations often classify expenses differently and younger ministries can require higher overhead levels to establish themselves.
