Church Accountability

[InfoCentral]

I am now beginning to question whether the church I now attend is actually being run as a family business or for the advancement of the Kingdom. I would like to see the required financial report on salaries and expenses that all 401c are required to file. I have been told that this information must be provided to anyone who requests it. How do I go about obtaining this information without stirring up the hornets nest?

[oldzimm]

Asking for a financial report in a tactful way, hmmm..... that would be hard to do.

Most Churches I know give a yearly finance report to the congregations, it protects them from any finger pointing.

[Guest]

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Before discussing the ten most significant facts that can be found in the Form 990, we first provide some background information on how to use this guide and then on the Form 990 itself.

During the course of discussing each of the ten items, there are several links to more detailed explanations for those who want to learn more about the subject. The point for which further elaboration is provided is underlined in blue. All the reader needs to do to access the expanded material is to click on the blue line. (We refer to these instances of expanded material as the “expansions.”) Having considered the more detailed discussion provided in an expansion, the reader can click on "Back" at the top left hand corner of her screen and she will be taken back to the main text.

Now we provide a little background information on the Form 990. The Form 990, entitled “Return of Organization Exempt From Income Tax,” is a report that must be filed each year with the Internal Revenue Service (IRS) by organizations exempt from Federal income taxes under section 501 of the Internal Revenue Code, and whose annual receipts are "normally" more than $25,000 a year. It is an information return and not an income tax return since the organizations that file it do not pay income taxes (except, as explained below, in certain cases an organization may have to pay an “unrelated business income tax”).

There are many different kinds of nonprofit organizations that are exempt under section 501 of the Code. Charitable organizations are the principal focus of this guide. They are exempt from income taxation under section 501©(3) of the Code and, in addition to being required to file the Form 990 itself, must also file Schedule A to Form 990. (Schedule A need not be filed by most other organizations exempt under section 501, such as trade associations, social clubs and the like.) Generally, organizations are exempt under section 501©(3) if they pursue charitable, educational or religious purposes.

An organization "normally" receives more than $25,000 a year if its gross receipts for the immediately preceding three tax years average $25,000 per year or more. Organizations with gross receipts of less than $100,000 and total assets less than $25,000 at the end of the year may file a short-form Form 990 called Form 990-EZ. Organizations that are classified as private foundations (generally organizations that receive funding from a very few sources) are required to file a Form 990-PF. Generally churches are not required to file a Form 990 (although some churches file voluntarily).

Today the Form 990, in addition to being the main IRS reporting form for nonprofits, is the basic component of the annual report that must be filed with a large number of state offices that regulate charitable solicitation. Many states require supplemental reports as well as the Form 990.

The Form 990 serves two essential purposes. First, it provides information that helps government agencies (the IRS and state charity regulators) enforce the laws that govern nonprofits. For example, it helps government regulators learn whether groups have been spending their funds in a way that might cause them to lose their charitable and tax-exempt status. Second, the Form 990 provides a great deal of financial information about the filing organization’s financial condition, about its financial strength or weakness and about such things as the sources of its income.

The Form 990 is a very public document and it is becoming more public. Today an organization’s Forms 990 for the past three years must be shown to anyone who wants to see them. In addition, copies of these forms must be given to anyone who requests them (either in person or in writing) and who pays a reasonable fee -- $1 for the first page and 15 cents for every page thereafter and postage, if applicable. Furthermore, most Forms 990 beginning with the year 1997 are being posted on the Internet by the National Center for Charitable Statistics and Guidestar, two nonprofit groups in the Washington D.C., area. Finally, it is only a matter of time before all charities will be required to file their Forms 990 electronically. Thus, virtually every Form 990 is or soon will be accessible by anyone in the world.

http://www.npccny.org/Form_990/990.htm

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National Center for Charitable Statistics

http://nccs.urban.org/

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GuideStar

http://www2.guidestar.org/

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Good Hunting

[~candice~]

Innocent before proven guilty. I would approach the situation very humbly. It would be quite difficult to fellowship there and submit to the authority of the pastor after accusing him of being a profiteer, KWIM? Why not ask him over for a cuppa and informally ask how the church is being managed?

[Guest]

Ask for it from the church accountant. Our church has a quarterly business meeting, where everything is laid out right there on a report each member is given.

[Smalcald]

What is going on in the rest of the ministry? Usually when there is a problem in one part there is in another. But if you like the congregation I would just get involved. Most normal congregations will be very open about the finances, if they are very secretive about the finances and spending, there is no reason to push it, that would be enough of a red flag for me to move on.

[Openly Curious]

I am now beginning to question whether the church I now attend is actually being run as a family business or for the advancement of the Kingdom. I would like to see the required financial report on salaries and expenses that all 401c are required to file. I have been told that this information must be provided to anyone who requests it. How do I go about obtaining this information without stirring up the hornets nest?

--I don't think it is a matter of stirring up the hornets nest. The church should be a good steward of what has been put in their trust and because of this every member should be provided financial business reports. The church is required to give a financial report annually you should request the next date of that meeting and if you get no response continue to ask for the date then if a year goes by and there was no annual finacial report given then the next question should be why wasn't there. It's up to you on how much it weighs upon you heart in which way you go and do there is no need for hornets swarming.

It is the law also that the churches business minutes be recorded and be made available to members upon request. Here you could ask the seceretary of treasurer in the church if you could see the business minutes of a certain meeting of your choice and you can read everything that happened in that meeting.

On the same token it is the law that the church has to make the financial record books available to the members. The financial record book is a ledger that shows how the offerings came in like total tithes to the church, benevolent fund, missions fund, evangelism outreach fund, just whatever the church is involved in and whatever the designated offerrings were given for like VBS etc., Here you could ask the secretary of treasurer to see the financial record book and if they do as required then you can see from their records pretty much to the tee on what is happening in the financial department.

Both the finanancial record books (ledger) along with the business minutes are usually stored in the churches office. If the treasurer has a seperate office then these records should be found inside the treasurerer office. The treasurer should be able to give any of this information at your request.

[InfoCentral]

I don't want to ask them for the financial report because I know that it wouldn't be taken very well. Like I said I just opened my eyes and noticed that it is run like a family business. Calling financial stewardship into question would definitely stir up the hornets nest. They are not open about their finances. I have started to noticed the church centric focus and the discouragement and chastising of members who stray into activities outside the church. Last week he preached about people attending multiple churches and how they are wrong and need to stay where they are in one church where the church can take care of them and the Pastor can be their Sheppard. They need to show loyalty to the church by not venturing outside to other Christian activities.

Then there is the prosperity gospel that gets preached each Sunday just before the offering is taken where God wants to bless you abundantly but first you need to show faith and give to him first so he can give back to you 100 fold. It just seems to be leading to a business model. I would like to have some hard figures and not just a hunch based on circumstantial evidence. I was hoping I could get it through the IRS by just requesting it and then they wouldn't have to know about it and get offended.

Edited July 13, 2011 by InfoCentral

[Fez]

Then there is the prosperity gospel that gets preached each Sunday just before the offering is taken where God wants to bless you abundantly but first you need to show faith and give to him first so he can give back to you 100 fold.

What makes you say it is a family business? Is there more than, stay at this church, and it is a good thing to pay?

How involved are you (allowed), in the Church and it's activities? Are there any activities outside of the church itself?

Are the elders connected to family, or are they independent, and how are they chosen? Do you feel part of the church or just a visiitor?

For instance, I am involved enough to be able to ask our pastor, "How are we doing with finances/". "What are we spending on at present?". Then there is our financial statements meeting where the entire church is informed as to the state of finances.

[Guest]

I don't want to ask them for the financial report because I know that it wouldn't be taken very well. Like I said I just opened my eyes and noticed that it is run like a family business. Calling financial stewardship into question would definitely stir up the hornets nest. They are not open about their finances. I have started to noticed the church centric focus and the discouragement and chastising of members who stray into activities outside the church. Last week he preached about people attending multiple churches and how they are wrong and need to stay where they are in one church where the church can take care of them and the Pastor can be their Sheppard. They need to show loyalty to the church by not venturing outside to other Christian activities.

Then there is the prosperity gospel that gets preached each Sunday just before the offering is taken where God wants to bless you abundantly but first you need to show faith and give to him first so he can give back to you 100 fold. It just seems to be leading to a business model. I would like to have some hard figures and not just a hunch based on circumstantial evidence. I was hoping I could get it through the IRS by just requesting it and then they wouldn't have to know about it and get offended.

Doesn't sound like a church that I would continue to attend.