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church finances

Where Does All The Church’s Money Go?

Orginally published on Wednesday, May 31, 2006 at 9:56 PM
by Todd Rhoades

Here's an interesting article featured recently in the Bakersfield Californian. I think it's interesting because there are always people in the church who will want to know how much money is spent; and where it is spent. And, there are always going to be some that are upset at how church funds are used. The question is... how do you handle people like this? Here's the article... Duane Meadows gave. His church took. And Meadows is mad. "Some people are going to get tired of being milked after a while," said Meadows, who stopped tithing to his Bakersfield church last year. He has since left the church...

Tithing, in which members give one-tenth of their earnings to their house of worship, is the chief way churches stay solvent. Among non-profits, churches keep the most honest financial books, studies have shown.

Yet every church seems to have someone like Meadows, who vehemently asks:  Where is the money going?

Megachurches, defined by a recent study as those with more than 2,000 members, such as Bakersfield’s Valley Baptist and Valley Bible Fellowship, are even more prone to the query than smaller churches such as the one Meadows belonged to.

With expensive mission trips, sprawling campuses and dozens of sports and eclectic ministries, megachurches have been accused by some of lapsing into a materialistic suburban faith—wasting collections on frills and grand complexes rather than concentrating on preaching the unadorned message of Christ.

Critics worry that this is the wave of the future. Megachurches have increased 50 percent over the last five years, according to Megachurches Today, a new study by Hartford Institute for Religion Research in Dallas. There are more than 1,200 megachurches in America.

The occasional scandal of a church leader making off with donations— reported hotly in the media because of the irony—and televangelists living like millionaires, as reported in the 1980s and ‘90s, raised suspicions among a number of congregants about how donations are spent, local church leaders say…

Meadows said the church he left was spending money improperly. But Meadows wasn’t able to give concrete examples.

Even so, the outrage congregants have expressed toward Meadows suggests how touchy people get when church finances are called into question.

"There seems to be something sinful in asking people who run the church about the money," said Gigi Maurer, who attends First Presbyterian in downtown Bakersfield.

When church funds are abused by a leader, it’s often due to that person forgetting that he or she is beholden to the board of trustees, the church members overseeing finances, said Marilyn Adams-George, who has worked for churches and other nonprofits in executive positions for 35 years.

"If you are a director or a pastor or an employee of a nonprofit, you have to remember that you are a servant," Adams-George said. "When you lose sight of that, you’ll see the congregation get up and walk away.

"I think it’s wise to those in charge to have some humility and remember they are a servant (of the board)," she said…

As for megachurches spending time and money on posh buildings, church basketball courts, recreation leagues and myriad secular social programs such as scuba diving classes and chess clubs, the Rev. Phil Neighbors of Valley Baptist, attended by some 7,000 people, said such activities allow members to meet one another and form spiritual bonds.

Moreover, the substantial tithing megachurches receive enables them to help others to a greater degree than that of small churches, he said.

"The fact is our church generated $130,000 for Katrina relief," Neighbors said. "People say of such a big church, ‘Why don’t you give?’ We are. When the need is there, we can step up and make a major contribution."

Yet for Horton, who partly blames megachurches for America’s "moral decline," smaller is still better. He and his family currently attend a diminutive Church of Christ in New Mexico.

But he’s still not satisfied. He wants less.

Horton has told church elders to sell the church building and have the parish meet at the local fairgrounds or in a school complex when classes are not in session.

"First-century Christians didn’t have their own building to meet in," Horton said. "They met in people’s homes.

"It’s a huge waste of money to maintain a church building."

How do you relate your church’s financial matters to the congregation?  Have you ever had to deal with an irate individual or group on the subject of giving?  How did you handle it?


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 TRACKBACKS: (0) There are 10 Comments:

  • Posted by

    The biggest turnout we had for a business meeting within the last year was when we met to discuss the “severance package” the church was going to offer our pastor who resigned. We had 1/10 that number when we voted on the Constitution and ByLaws.

  • Posted by Wes

    This is an topic and apprently not interesting to many but I’m going to respond anyway.

    We have quarterly meeting where a financial report is given to members listing financial income and outflow. Members are free to ask questions.

    Prior to the quarterly congregational meeting our leadership team has met and reviewed the financial report.

    We do have a fiduciary resonsibility to our church and a stewardship responsibility to God and church.

    It is a frustration to go through these hoops. Usually the ones who attend our meetings are the seniors who worry more about money and who want to manage what is done. Our young adults think it is unnecessary and a waste of time. In comparison our senior adults are the ones who have and typically will stick with a church through good times and bad while the young adults are quicker to “be led by God” to someplace else when things get intense.

    We are a congregational based church with bylaws by which we must operate. THe only way to get rid of or change the bylaws is via the bylaw presented method. I’ve tried to instill in my young adults that they need to attend and speak up at these meetings in order for their views to be represented. Seniors will vite their values and young adults will vote theirs. Neither is inherently good or bad, however, the seniors are typically entrenching in their vote while the young adults are progressive.

    We recently went through a building program and some questioned expenditures and called for an audit of the books. It was a rough couple of years. The church has never had the books audited by an outside firm.

    The church voted overwhelmingly to not do the audit and in it’s response support me the pastor. The dissenters have been slipping away the past 6 months and peace is returning. One saving grace was that through the whole process we had regular meetings of the leadership team and the congregation to provide and present the financial report.

    I have been most surprised that people will attend and give to a church where there is no financial information given and no oversight by the people.

  • Posted by

    I believe the government should require churches to file form 990 so that members can obtain an honest reporting.  Many churches do not provide financial details like what is required in form 990.

    I also believe the money is being wasted on buildings.  The NT Christians used the money to help each other in need and others in need.  See how much help you get today if you go to the average church and ask for money to meet a need.

  • Posted by Marc

    The church is in giving money out like the government: ;-(

  • Yeah .... and have nothing to say.

  • Posted by

    All the money belongs to God. We answer to him that is the Church and how much does that cost. The cost depends on wither we serve man, or the Lord. I ask you, how much money did the apostleship carry in the little bag of Judas. The LORD will provide what is needed if we follow him first in all things and it will not be more than we need or less than what he has planned for a servant to spread the gospel in his name.  we must remember and love who is in charge of our lives and speak the truth in his name, so that many will be convicted by the Holy spirit and saved. by the Love of Christ and his believers. Buildings do not a church make, or Government requirements on afor how it is spent for his Glory and the spreading of his word in the world. Jesus is our King and we are his servants and there for follow him lest he make another rope for a whip and beat us with it and over turn the tables on those who do not use his money for the spreading of his truth. He knows that when two or more get together in his name, congregation, it is simply the love we receive from the Lord and pass the truth and love on to others ,so they may believe that he is our redeemer and follow him..  amen.

  • Posted by Bola Tangkas

    wow valued information, great gob- http://www.indolucky7.com

  • Posted by Steven Macklen

    The best way for money not to be a stumbling block is to not need any.  Remove the need to spend and remove the judgement.  There are plenty of free places to worship, and free internet feeds from great pastors.  Then more resources could to the mission spoken of in James 1:27.  Churches burdened with the expenses of property and staff are naturally going to put their agenda ahead of the poor and needy.  I find it hard to present my ideas to existing churches.  It is a “conflict of interest”...; but tell that to Jesus.  I will offer my business location as a place of worship, but I do not feel I could tell an existing church to get excited about it.

  • Posted by Geldanlage

    Nothing to say and giving out much money. Thats bad.

  • That is some inspirational stuff… Never know that opinions could be this varied. Thanks for all the enthusiasm to offer such helpful information here.
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