6 Steps to Start 2016

By Raul Rivera

With the clock close to striking midnight, signaling the end of one year and the beginning of another, Pastor Eric found himself standing on his back porch reflecting on the Scripture that reads, “The old has passed away; behold, the new has come.” This particular verse resonated deep within him, as he anxiously anticipated what was to come in the new year.

Pastor Eric had just completed his second full year of ministry at the church that he and his wife had planted just outside of Birmingham, Alabama. Overall, he felt it had been a good year for the church. The church had experienced growth in attendance, several people had come to the saving knowledge of Jesus Christ, and even more individuals had gotten baptized for the first time.

From a ministry perspective, it had been great. From an administrative perspective, however, it had been a year of learning some things the hard way. As he stood there on his back porch full of hope for a fresh year, Pastor Eric still wished he had been better prepared to fully lead and pastor his young church.

 

So, what is your story?

We will revisit Pastor Eric’s story a little later in the post, but my guess is that for some of you, Pastor Eric’s story is a “been there, done that” experience. You have gone through the difficult and tough times of learning things the hard way; and I am sure many of you would say that you are better off for it.

For others reading this post, Pastor Eric’s story reflects to some degree where you feel your church is today. As pastors, there are many decisions and responsibilities that rest on your shoulders. A pastor’s concern is not only with the spiritual health of his congregation, but also with the business, or administrative, aspects of leading the church, which is often the cause of several sleepless nights.

When I was pastoring, there were more sleepless nights than I care to experience in a lifetime, but the lessons I learned have stuck with me to this day. And because I know Pastor Eric’s story resonates with many of you, I want to share with you 6 steps I believe can help you shape 2016 into the best year your church has yet to experience.

 

Looking to the past, present, and future

In order to help shape 2016 into one of the best year’s for your church, it is necessary to not only look to the future, but it is necessary to consider the past and present as well. Therefore, of the 6 steps for you to consider, we will look at two things from the past, two things from the present, and two things for the future.

 

Two things to consider from the past

1. Review last year’s board meeting minutes

Board meeting minutes are some of the most important documents that your church should maintain on a regular basis. Make sure that board meeting minutes exist for any and all board meetings last year. You will also need to check them for accuracy. Make sure that each set of minutes accurately reflects what took place during that meeting.

If some of your minutes have gone missing, or you do not have any minutes at all, you can conduct a special board meeting with the board of directors to discuss documenting past decisions. During this time, you will need to make your most accurate, good-faith estimates of times and dates when certain decisions were made.

 

2. Review board members

The importance of having board members that work well together and toward the same goals cannot be overstated. Are there members on your board who cause more division than unity? Are they the source of grief and strife amongst the board? If so, then it may be time to part ways with them. And I am not referring to someone who may have simple disagreements here and there. There will be disagreements at times, and that is okay. I am referring to someone who is intentionally trying to cause division amongst the board.

Removing a board member is never an easy decision, and it should never be your first choice of action, but at times, after much prayer, it may be necessary in order for your board to remain effective. (For more information on removing a board member, click here.)

 

Two things to consider from the present

3. Compensation agreements

The beginning of each year is the perfect time to review, restructure, and re-approve any compensation agreements. Perhaps this is the first year that your church will be compensating you or any other staff member. If so, it is important to know that whether or not the individual is a ministerial employee or a regular employee, each individual’s compensation must be approved prior to him or her receiving compensation. This most often will be done in the form of a compensation package that is approved by the board of directors. If you need assistance, or have further questions about compensation packages, feel free to call our office, toll free, at 877-494-4655.

 

4. Handling donations

Do you know the difference between restricted and designated offerings? Do you know how to properly handle non-cash donations? If a member wants to donate a vehicle to the church do you know what to do next? Does your church have a prescribed method of how tithes and offerings are counted?

Being able to answer these questions is an important aspect of being a good steward. Properly handling donations is of utmost importance not only for the purpose of church compliance, but also for the donors who wish to claim a tax deduction for their donation.  One way to do this is to use a program that tracks and manages your church’s donations. If you do not use any such program then you may want to consider using our cloud software, Kingdom Steward.

 

Two things to consider for the future

5. Begin saving money

I realize that some of you are thinking, “How are we supposed to save money when we struggle to pay rent every month?” And while that is a valid concern, I am not necessarily talking about saving hundreds or thousands of dollars from each week’s offering. If you begin by saving a little bit here and a little bit there then before you know it, your church will have a substantial amount in its savings account. As Proverbs 13:11 (ESV) says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.”

Now perhaps your church has been saving money regularly for some time and the church has a nice cushion in its savings. Have you considered how to best protect your church’s savings? Sure, the bank can keep it safe, but in the instance your church finds itself in the midst of litigation, your church’s savings and assets become vulnerable.

I would suggest that when your savings becomes substantial, consider establishing a tax-exempt holdings corporation to protect your church’s assets. The holdings corporation is a great line of defense for protecting the assets of your church. (Click here to read more about the holdings corporation.)

 

6. Consider starting a church-owned for-profit arm

The time for change has come! Life is too short to live satisfied with the traditional. There are “new wineskins” that God has for you and your church in this time and season. So, why not start and run a church-owned business and break out of the traditional methods used in the past? Why not begin to utilize a new way of doing church business?

A for-profit arm is a ministry-owned business that is explicitly established to do business and to make tax-free money for the church, paid in the forms of donations and dividends. The for-profit arm exists as a regular for-profit business that is described in Internal Revenue Code section 502.

The type of business can be anything you want it to be so long as it is a legal business and your ministry feels good about it. Whether it is real estate investing, commercial leasing, hauling, dry cleaning, a retail store, a convenient store, a car dealership, a restaurant, or other unique idea, your church can own the business.

 

Pastor Eric’s resolve

Thankfully, Pastor Eric had surrounded himself with some godly men and women who had a knack for administrative tasks. There was much that had to be corrected, relearned, and simply redone. There were even some, who Pastor Eric considered close confidants, that left the church in the midst of all the change. But standing there that night with the New Year on the horizon, Pastor Eric felt confident, perhaps more than ever before, about the direction in which the church was headed.

 

Conclusion

As we begin 2016, may you be encouraged that we serve the God who is the author of all things new. May you be confident moving forward this new year as a child of the living God and “know that in all things God works for the good of those who love Him.”

I want to challenge you to make a resolution this year to take some time to work on your ministry and not just in the ministry. One way to do this is to join us at one of our upcoming Ultimate Church Structure Conferences. We would love to have you, and I promise that you will not regret it!

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