How to Keep Church Financial Records: A Comprehensive Guide The Enlightened Mindset

It is important to have a financial records organization when you have so many documents. It is a good idea to have several copies of these records just to be safe. It is also recommended that churches create digital records in case something happens to physical copies. Whether you are new to keeping records for your church or are experienced in records retention, the https://www.bookstime.com/ process can be both frustrating and time-consuming when you need to tackle this challenge unassisted. Your ministry does not necessarily need to retain every document that comes your way, but this is an area where the saying “Better to be safe than sorry” applies. The smart strategy when it comes to your church record-keeping is to determine what you need to keep.

This relates to the laws of tax audits and the number of years back the IRS is allowed to look when determining an organization’s tax liability. Most organizations simply make the seven-year-rule standard for all records containing financial information since any financial document may potentially be required during a tax audit. This applies to online giving and mobile apps as well as text-to-give software. These options make church financial records much easier to manage. Now that you know how to keep church financial records, how do you make this easier? The good news is that there are several ways you can make this task more manageable.

Names Used in Church Records

Children with an out-of-unit member record may receive a calling in that unit. This helps ensure that they are included and can fully participate wherever they attend. Members with an out-of-unit record may receive a calling in that ward.

Churches and other religious organizations have special tax laws in recognition of their rights under the First Amendment. Since state and federal tax laws change from time to time and with the possibility of jeopardizing your tax-exempt status, it’s always important to consult a tax professional or visit IRS.gov if you have questions. When all folders have been labeled, and the introductory material in the finding aid is complete, the final step is to print permanent labels for each of the boxes.

Records Checklist

How you choose to do this depends on the size of your church and your staff. Here are some examples of ways churches can streamline this process. For permanent records, it is a good idea to have digital copies in case the originals are lost. Annual audit records and worksheets, insurance letters, individual giving records and accounts payable records are also important. Some of these documents include bank statements, canceled checks and bank reconciliations.

When deleting digital membership or financial information, the leader must ensure that it cannot be recovered through any reasonable means. Members may use the Unit History tool to view stories that have been published by their ward and stake leaders. A record that has a move restriction is not moved to a new unit until the priesthood leader who placed the restriction authorizes it to be removed. The records of members who live in hospitals or care facilities should be in the ward that can best serve them.

Archiving Church Records: What Items to Keep and How to Catalogue Them

Copies or originals
of some of these records (articles of incorporation, bylaws, etc.)
should be stored offsite of your church or nonprofit organization
perhaps in a secure location such as a local bank. Stake and ward leaders should make effective records management a part of their record-keeping procedures. Three important areas of records management are outlined in this section.

The new Phillip Wirsching organ was constructed to fit the chancel space in the new church. We appreciate the opportunity to provide your church or other ministry with an insurance quote and will reply to your request as soon as possible. Ministries that choose to keep paper records on hand after they’re imaged can keep these hard copy records for one or two years after imaging accounting for churches and then shred them. Organizations should also carefully consider maintaining back-up systems or off-site digital storage to prevent the total loss of important records in case of a catastrophe. To fulfill these needs, consider retaining the following categories of records. Refer to the records checklist below for a more specific records you should consider retaining.

Here are some samples of church retention and destruction policies you can use as a starting point.

• Ward members who are not present because they have another assignment or are attending another ward are counted in the ward they attend.
• There is no standard way for how organizations should keep records on file.
• Financial records should be retained for at least three years plus the current year.
• You need to follow federal and state requirements for these records.
• Such research is now more possible because the records have been safely preserved.
• Leaders who have questions about the application of data protection laws to the local management of Church records may contact the Church data privacy office at

A special page in the site should be set aside where links will take researchers to the documents in question. This final step is very time-consuming and requires yet another level of planning and implementation; even so, churches find this final effort a worthwhile thing to do. Making selected documents accessible electronically does not negate the need to physically save and preserve the original documents. It provides wider access to some of the special materials, while at the same time inviting readers and researchers to pursue a more thorough search of the full collection. There are several common mistakes churches make when it comes to financial record-keeping. One of the most common mistakes is not keeping accurate records.

Thus, a series might fill the first half of a box, or it might fill two and a half boxes, to be followed with the first folder of the next series in the remaining half box. The numbering of the folders in each box starts with no. 1 and continues to the end of the box, whether or not a new series starts midway in the box. Thus, if a new series of folders starts in the second half of a box where the first half is already full, the new series should continue the numbering already begun for that box. Finally, each box should begin with folder no. 1, whether the folders in that box start with a new series or continue with a series carried over from the previous box.

• He informs his bishop to contact the prior bishop before conducting the interview.
• There are many instances where you may need to prove your church finances and where the money is going.
• If they choose a YSA ward, they attend the ward assigned to the boundaries in which they live.
• His Social Gospel sense of mission however, did not extend as freely to the steel workers in the Homestead Strike of 1892.
• A records retention policy sets out how long records must be kept and includes guidelines and processes for how and when to dispose of records.