Free Guide to Becoming a Skilled Church Treasurer — Free Resources Inside

Photo of a church treasurer in her office

Church financial management is a huge responsibility, but with proper guidance, you can lead your church to fiscal success. This guide provides all the assistance you’ll need to be a ensure good financial stewardship of your faith community’s finances and adhere to the necessary guidelines and standards. Read on for valuable tips and access to free tools that will help you confidently take on this important role.  

  

Table of Contents  

  

 

What are the Primary Duties of a Church Treasurer? 

Church treasurer holding a calculator

The church treasurer’s job description may vary within each organization, but it typically includes the following church finance tasks: 

  • Accurate Record Keeping: The treasurer must keep track of the church's income, including tithes and offerings, expenses and donations.  
  • Budget Management: They will monitor the budget, ensuring the church is raising enough money and not overspending. They may consult with church leadership if issues are detected.  
  • Financial Reporting: The treasurer will run financial reports monthly, yearly or as needed to promote transparency within the church community.  
  • Banking and Transactions: They will monitor bank transactions and reconcile accounts regularly to ensure accuracy and protect against fraud and mismanagement. 
  • Compliance: The treasurer will ensure accounting is compliant with legal regulations.  
  • Payroll: They may oversee processing payroll for the church staff.  

These responsibilities are all essential, but accuracy and compliance are priorities. A lack of compliance with government regulations can lead to fines and penalties. It can also breed distrust in the church. With trust in churches hitting a near-all-time low of 32 percent, lack of confidence in their honesty is the last thing organizations need.  

Accuracy is also crucial. A lack of accuracy can interfere with budgeting and reduce transparency. Treasurers can ensure transparency by reconciling regularly and using automated systems that reduce errors.  

This video takes an in-depth look at the responsibilities of a church treasurer. 

 

What Financial Reports Does a Treasurer Need to Prepare? 

The preparation of financial reports is another essential task for a church treasurer. Reports facilitate transparency by communicating to leaders and the church community how much the church is making and spending. This helps church leaders show donors that their donations are going to a worthy cause.  

Reports also support decision-making. They are dispersed to the finance committee and church board so they can determine how much they can allocate to new projects – and these fund allocations are key part of the budgeting process. Standard report types include: 

  • Income Statements: Also known as a profit and loss report (P&L), this financial report shows the church's revenue and expenses over a designated period.  
  • Balance Sheets: Balance sheets state the church's assets and liabilities across a particular period.  
  • Cash Flow Reports: Cash flow reports show how much money the church receives from operations and investments, how much it spends on business activities and how much cash it has.  

  

How Does a Treasurer Manage Church Finances Effectively? 

A church treasurer has significant responsibilities, but best practices will ensure accuracy and insightful financial planning. They include:  

  • Maintaining Internal Controls: Treasurers must maintain a system of internal controls by establishing a hierarchy for spending approval processes, performing monthly reconciliations, ensuring transactions are documented, utilizing financial reporting and communicating with relevant staff members.  
  • Using Software: When church accounting is performed by hand, the risk of inaccuracies increases. Numbers may be recorded incorrectly and few systems are in place to ensure inputs match. Software-automated processes reduce errors and make systems more efficient.  
  • Planning Long-Term and Short-Term Financials: The treasurer must work with church leadership to develop a plan for long-term and short-term financials. Short-term financials may include utility payments and other ongoing expenses. Long-term financials focus on outreach programs, building incentives and similar goals. Teams must ensure short-term goals are covered while setting aside money to satisfy various initiatives.  
  • Segregation of Duties: Segregation of duties involves assigning different accounting tasks to various individuals, such as handling cash, deposits, check signing and record keeping. This system ensures oversight, breeds an honest environment and prevents fraud and errors.  
  • Financial Audits: Churches may conduct internal audits to ensure their systems are compliant and accurate. The process may involve gathering the necessary documents, clarifying uncertainties and developing corrective actions.  

What Tasks are Included in the Treasurer's Role? 

A treasurer may: 

  • Oversee Bank Accounts: Treasurers should perform a monthly reconciliation to ensure banking information matches the system. The process involves reviewing each month's bank withdrawals and deposits to ensure they are recorded accurately.  
  • Processing Donations: The treasurer must ensure donations are entered accurately, whether they be grants, tithes, offerings or online gifts. They must also provide paperwork to donors for tax purposes.  
  • Ensuring Compliance: A treasurer must oversee systems to ensure they are compliant. Part of that involves providing donation receipts. Although churches are tax-exempt, they must report to the IRS yearly to remain compliant. The treasurer may handle tax reporting.  

How Does a Treasurer Address Financial Risks and Challenges? 

A treasurer may encounter several challenges when handling finances. This section will outline common risks and how to deal with them.  

  • Mismanagement: Mismanagement occurs when money is not handled wisely. It can be avoided through an internal control system that ensures various leaders are consulted on financial management. A hierarchy system of approval also prevents mismanagement.  
  • Unexpected Expenses: Unexpected expenses may arise for any number of reasons. There could be a natural disaster or a building expense may run over budget. Churches should always have an emergency fund in place to handle these expenses.  
  • Fraud: A nationwide survey of over 700 church leaders revealed that 30 percent of churches have experienced fraud. Fraud often occurs when malicious actors access sensitive information. Examples include identity theft, credit card fraud, wire transfer fraud and investment scams. Churches can protect themselves from fraud by using secure systems. They can also train staff to identify common scams like phishing.  

Vanco's Giving Software adheres to the highest level of PCI compliance, protecting data to the highest standards set by major credit card processors like Visa, Mastercard, Discover and American Express. Our secure systems will protect your company from fraud and other security breaches.  

  

 

What Skills and Qualities Should a Church Treasurer Have? 

A church treasurer should have a combination of skill that includes: 

Hard Skills: 

  • Financial Literacy: The church treasurer should have a comprehensive understanding of finance. They should be familiar with terms like loans, interest, credit, profits, liability and equity.  
  • Accounting and Bookkeeping Skills: Treasurers may learn as they go, but they should be familiar with basic accounting, including payments, invoices and reconciliation.  
  • Familiarity with Accounting Software: Ideally, the treasurer will be familiar with church accounting software systems.  

Soft Skills 

  • Attention to Detail: Attention to detail ensures treasurers can identify errors and provide accurate bookkeeping.  
  • Integrity: A treasurer with financial integrity will be honest when handling transactions.  
  • Discretion: Discretion ensures the treasurer will keep church financial matters private.  
  • Effective Communication: A treasurer should communicate with church leaders to ensure they understand issues identified when bookkeeping. They should also be able to provide knowledgeable input regarding financial matters.  

Why is Integrity Important for a Church Treasurer?  

Integrity is the quality of being honest and having strong moral principles. A person with integrity will do the right thing even when no one is watching. They are respectful of others, accountable, consistent and reliable.  

A treasurer with integrity will perform accounting duties honestly. They will not use financial information for personal purposes and they’ll ensure data is recorded accurately even when there’s a temptation to do so.  

For example, there may be instances when they notice an employee trying to take advantage of the company by forging checks, or they may be pressured by a church leader to alter financial data to the church’s advantage. An honest treasurer will report dishonest behavior to protect the organization.  

Why is Attention to Detail Required for Managing Church Finances?

Attention to detail is the ability to focus on all aspects of a task, no matter how small. It ensures thoroughness and consistency. An attentive person will produce high-quality work with minimal errors.  

This quality is essential in church bookkeeping, where mistakes are likely to happen. A person who’s attentive to detail will ensure numbers are entered accurately. This approach is critical when addressing tasks that require precision, such as reconciling accounts and preparing detailed reports.  

An attentive treasurer will go beyond paying attention during assignments. They’ll double-check figures and follow procedures, ensuring optimal compliance and accuracy.  

How Does a Treasurer Ensure Transparency in Financial Dealings?  

Transparency is vital in a church setting. A church that prioritizes transparency will earn donors' trust, ensuring they know donations are used for their intended purpose. It will make them feel comfortable giving to the church.  

Moreover, the church should be seen as a sanctuary of trust and security. If the institution is dishonest in its financial dealings even once, its reputation can be ruined.  

Treasurers play a significant role in ensuring transparency. They: 

  • Offer Open Communication: A treasurer will openly communicate with church leaders and members to address financial issues, explain the church's economic standing and answer questions when necessary.  
  • Provide Clear Reports: Nothing promotes transparency like accurate facts and figures. A treasurer provides regular reports to church leaders and congregation members, allowing them to make financial decisions and feel confident about donating.  
  • Involving a Financial Committee: A financial committee ensures no one member is solely responsible for church decisions. When several members oversee decision-making, it helps eliminate biases and dishonest behavior.  

What Ethical Challenges Might a Treasurer Face?  

A treasurer may face several ethical challenges in the line of duty. These include:  

  • Handling Restricted Funds: Restricted funds are earmarked for a specific purpose. For example, they may be set aside for a particular outreach or building project program. They assure donors their money is being used as they intended. Treasurers must ensure restricted funds are correctly categorized and used for their intended purpose.  
  • Avoiding Conflicts of Interest: Conflicts of interest occur when an accountant's financial interests influence their professional judgment. For example, if an accountant has a personal relationship with their client, they may overlook potential issues. An accountant who owns shares in a company could allow their interest to influence their assessment of financial documents.  

A treasurer may avoid ethical challenges by:  

  • Performing Regular Financial Audits: Internal and external audits ensure accurate and fairly presented financial statements.  
  • Sticking to a Code of Ethics: Accountants must adhere to a code of ethics to handle conflicts of interest correctly.  
  • Disclosure and Transparency: Any matters that could lead to a conflict of interest should be reported as soon as they’re detected.  

  

 

What Should Be Included in a Church Treasurer Job Description? 

If your church seeks to hire a treasurer, you may need to create an ad with a church treasurer job description. Here are some traits and requirements that should be included in the description: 

Primary Responsibilities 

  • Financial Management: Overseeing necessary aspects of the church's financial system, including reconciling, entering transactions and creating reports.  
  • Compliance: Ensuring compliance with financial activities, including tax reporting.  
  • Collaboration with Church Leadership: Meeting with church leadership to provide financial input that may guide decision-making. 

Necessary Skills 

  • Accounting Knowledge: The treasurer should have previous experience with accounting and bookkeeping.  
  • Software Proficiency: The candidate should have accounting software experience, preferably with the system used in your church.  
  • Organizational Skills: A treasurer must be well organized to ensure they can locate information and create comprehensive reports.  

Soft Skills 

  • Integrity: The treasurer must have integrity, ensuring an honest approach to financial management.  
  • Attention to Detail: Attention to detail ensures accuracy in accounting tasks.  
  • Effective Communication: The candidate must effectively communicate with church leaders and members to ensure transparency.  

Sample Church Treasurer Job Description 

Position Title: Church Treasurer 
Reports To: Church Board / Finance Committee / Senior Pastor 
Time Commitment: [Specify hours per week/month]

 

Position Overview: 

The church treasurer is responsible for managing the church's financial operations, ensuring accurate recordkeeping and supporting the church's economic health. This role involves budgeting, reporting and ensuring compliance with monetary policy and regulation. 

Key Responsibilities: 

  • Financial Management: Oversee church accounts, assist with cash flow management and approve financial transactions. 
  • Budgeting: Collaborate with the senior pastor and church finance committee to create and monitor the annual budget. 
  • Recordkeeping: Maintain accurate financial records and prepare monthly reports for the church board. 
  • Compliance: Ensure the church adheres to tax regulations and internal financial policies. 
  • Donor Contributions: Record and acknowledge donations, providing year-end tax statements. 
  • Internal Controls: Implement safeguards against fraud and ensure proper handling of church funds. 
  • Bank Reconciliation: Reconcile bank accounts monthly to ensure accuracy. 
  • Leadership: Work with staff, volunteers and the finance committee to guide financial decision-making. 

Qualifications: 

  • Education/Experience: A high school diploma is required; accounting experience is preferred. 
  • Skills: Proficient in accounting software, strong attention to detail and the ability to explain finances clearly. 
  • Spiritual Commitment: A committed Christian who aligns with the church's mission and values.

Application Process:

To apply, submit a resume and cover letter to [contact information]. 

 

 

How Can Church Treasurers Use Software for Financial Management?  

Church treasurers may perform accounting and bookkeeping tasks by hand, but church financial software provides a more convenient and effective solution. Nearly 75 percent of accounting tasks can be automated through software, boosting accuracy and efficiency. Programs offer the following convenient tools: 

  • Budgeting Tools: Budgeting tools in accounting software help organizations plan their finances and manage cash flow.  
  • Tracking: Accounting software designed for churches tracks donations, allowing treasurers to organize funds according to the source and purpose.  
  • Financial Reporting: Most systems can create reports in seconds. Apply settings for the relevant dates and transactions and the database will return the information instantly.  

Popular Software Options for Churches 

  • QuickBooks: QuickBooks has established itself as one of the top accounting software programs. It now offers a church management system that handles donation tracking, expenses, taxes, etc. The system allows you to tailor your plan to meet your financial needs.  
  • Vanco: Vanco integrates with all providers to make tracking donations easy. We offer innovative giving tools that help churches grow, including customizable giving pages built around the power of telling the stories of those your church helps. Contact us online for more information.  
  • ACS Technologies: ACS Technologies offers an innovative system for church financial management. It tracks donations and offers fund accounting. As a multi-functional system, it supports mission trips, provides community analytics and boosts engagement.  
  • Planning Center: Planning Center helps churches track donations. It also offers software tools that organize information, aid with event coordination and allow you to connect with your team and congregation. The system provides its products in a unified system.  
  • PowerChurch: PowerChurch can help streamline your accounting system, track contributions, create budget comparisons, manage payroll and update transactions. It also offers communication tools that improve outreach. The system can enhance your church's efficiency.   
  • Church Windows: Church Windows offers four main modules for membership, scheduling, donations, accounting and payroll. The software serves as a solution for management and communication. Its support team does its best to ensure you make the most of the available tools.  
  • Concordia Technology Solutions: Concordia offers a full suite of technology tools that help you manage attendance, membership, budgets, accounts and web presence. The 360 Leger Tool simplifies transactions, provides secure financial reporting and secures your audit trail. It also simplifies eGiving.  

 

Free Finance Tools to Build a Healthy Church

 

  

What Responsibilities Does a Church Treasurer Have Regarding Donations and Fundraising? 

A treasurer plays a vital role in a church's donations and fundraising efforts. They must: 

  • Enter Donations Properly: Treasurers must enter donations properly using separate accounts for tithes, offerings, grants and other forms of giving. They must also specify restricted and unrestricted funds.  
  • Provide Timely Receipts to Donors: Churches must provide donation receipts so donors can claim contribution tax deductions. Vanco offers more information on how to write donation receipts,ensuring your church remains compliant.  
  • Supporting Fundraising Events: Treasurers play a role in fundraising by setting budgets and tracking proceeds. They may use systems like Vanco's event management software to provide more insight into event success. 

How Should Restricted Funds or Designated Donations Be Managed?  

Restricted funds are used for a specific purpose. For example, a donor may provide donations for an outreach program or building project.  

The money they donate must fund those initiatives. These donations may not be used for any other purpose and they differ from unrestricted funds, which may be used as the church sees fit.  

A treasurer must ensure designated donations are appropriately managed by:  

  • Separating Accounts: Treasurers must set up funds for separate accounts to prevent funds from commingling. For example, they may have a building fund, a ministry fund and so on.  
  • Record Keeping: All transactions related to restricted funds must be accounted for through detailed record keeping. Records should list the donor's name, the designation amount, the restrictions placed on the fund and when and how the fund is applied.  
  • Donor Intent: The treasurer should communicate with the donor to ensure the donation is applied to the intended cause.  
  • Regular Reporting: Reports must be provided regularly, ensuring donors can see how their money is spent.  
  • Fund Accounting: Fund accounting separates transactions into different funds, including restricted funds. It creates an organized system ideal for church accounting.  

A well-organized restricted donor system assures that the donor's money is being used for its intended purpose. It boosts financial transparency in the member-church relationship.  

This video provides more information on restricted funds management.  

 

  

What is the Importance of Compliance for a Church Treasurer? 

Churches have tax-exempt status, so they have limited tax filing requirements. However, they must still report to the IRS annually by filing a Form 990 or Form 990EZ. Churches with gross receipts of $50,000 or less can use Form 990-N.  

They must also provide donors with donation receipts that they can utilize for tax purposes.  

Churches are not required to provide financial reports to members. However, doing so promotes a sense of transparency. Reports also provide insight that guides church leaders in making fiscal decisions.  

Although churches don't have many compliance regulations, they are still vulnerable to risks that can promote a sense of distrust among members. They can address risks by:  

  • Managing Church Activities: Not all church activities are tax-exempt. Examples may include renting out facilities for public use, organizing bake sales and running stores for financial benefits. Churches must follow guidelines when engaging in these activities or they may lose their tax-exempt status.  
  • Fund Accounting: Fund accounting ensures funds are allocated to specific causes. The system must be appropriately organized. Consulting or accounting professionals may provide the necessary oversight.  
  • Monitoring Internal Controls: Internal controls ensure that multiple officials oversee financial decisions, ensuring transparency.  
  • Remitting Correct Payroll Taxes: Contrary to popular belief, churches are not exempt from payroll taxes. These taxes must be remitted correctly.  

  

 

How Does a Church Treasurer Collaborate with Other Church Leaders?  

A church treasurer will often find themselves in a position where they need to collaborate with church leaders. They may consult with them on financial matters and provide input that guides financial decisions. Meetings may be held regularly or on an as-needed basis.  

Treasurers may also work closely with other staff members on a less formal basis. For example, they often consult the financial secretary to develop policies and procedures. They may also work closely with the church accountant, controller, financial administrative assistant and payroll secretary.  

During meetings, treasurers should focus on clear communication. They must avoid jargon to ensure church leaders understand the implications of financial data. Treasurers may also use visual aids to express concepts more clearly.  

Treasurers may also be called upon to oversee budget management for various projects. The church budget guides financial planning, helps generate income, ensures smart spending and outlines organizational activities. Vanco provides a budgeting template that can be useful in this capacity.   

How Should a Treasurer Communicate Financial Updates to the Congregation? 

Treasurers must prioritize clarity and transparency when communicating financial updates to the congregation. Here are some best practices to keep in mind.  

  • Avoid Technical Jargon: Technical jargon can confuse members and breed a sense of distrust. Treasurers must relay information in layperson's terms using phrases everyone understands.  
  • Provide Summaries: Summaries offer a snapshot of finances, avoiding church members needing to review long numerical reports to get the whole picture.  
  • Go Beyond Numbers: Rather than communicate in numbers, treasurers can explain the church's financial situation using words and images.  
  • Regular Engagement: Important financial information should not be reserved solely for regular meetings. Members should be addressed when critical financial matters are identified. Asking for input supports transparency.  
  • Establish Policies: Churches must work with financial teams to provide policies for collecting, analyzing, reporting and auditing financial information to ensure everything is done by the book.  
  • Maintain Confidentiality: Treasurers and church leaders can work together to maintain confidentiality in financial reporting by using secure systems and access controls and integrating proper employee training.  

  

 

What Training and Resources Should a Treasurer Pursue?  

Treasurers may pursue training to obtain employment and advance in their career. The following resources may be helpful:  

  • Certificate in Church Financial Management: Turner Seminary offers an 8-course online workshop on financial management. Students who complete the workshop may earn a Church Financial Management Certificate. They can move on to earn their Certificate in Financial Management II.  
  • Church Finance Conference: The Church Finance Conference is an annual event that helps attendees gain insight into complex financial church processes. It provides information on taxes, payroll, insurance coverage, housing allowances, internal controls, compliance and insurance.  
  • Faith and Finances: This course offers everything you need to build faith and finances. Admission is free, although attendees must pay for course materials. This 4-6 week course is ideal for small groups.  
  • NonProfitReady.Org: NonProfit Ready is a free online training course for nonprofit finance professionals. It offers over 600 free learning resources. Create an account to access all the tools it provides.  
  • Church Treasurer Resources: Visit this page to learn more about the church treasurer position, and to access agencies and web and print resources that can guide you on your journey.  
  • Local Church Treasurer & Finance Training Materials: This document offers links to resources that can help you create financial records and ensure compliance in your organization.  
  • Treasurer 101 Webinar: A series of free downloadable videos and documents that educate you on a treasurer's tasks and duties. 
  • Checklist for a Nonprofit Treasurer: This article serves as a virtual checklist treasurers can use to ensure they are prepared for various tasks and meet compliance standards.  

This video shows more recommendations for bank accounting software for churches.  

 

 

  

What’s the Difference Between a Volunteer and a Paid Church Treasurer? 

The most apparent difference between a volunteer and paid church treasurer is that one gets paid and the other does not. However, there are often different tasks and expectations that come with these arrangements. For example: 

  • Scope of Work: A volunteer treasurer may handle all accounting duties in a smaller church. A paid treasurer may work in a larger church and handle complex accounting duties. Essential responsibilities, such as invoicing and accounts payable, may be left to other staff members.  
  • Accounting Expertise: A paid treasurer is expected to have a certain level of accounting expertise. Volunteers may have minimal experience and see their position as a training opportunity.  

There are various pros and cons involved with each position. Perhaps the most obvious is the pay. Paid accountants earn a salary that helps them earn a living and this also represents an additional payroll expense for the church.  

However, a volunteer can take the role as a learning opportunity and can easily earn valuable accounting experience for free. They can then use this experience to move on to a paid position in the church or another organization.  

A volunteer treasurer also has fewer expectations. Churches understand they are providing free services and may be willing to live with some errors. A paid professional must provide efficient services or risk damaging the church and possibly losing their job.  

  

 

How Should a Church Treasurer Plan for Financial Emergencies 

A church treasurer should be able to foresee financial emergencies and plan accordingly. Here are some ways they help protect the church when an emergency occurs.  

  • Build a Reserve Fund: The treasurer should set aside a reserve fund that can be used to cover emergency expenses. Experts recommend holding between three to six months of operating expenses in the reserve fund or 5-10 percent of the church's budget.
  • Identifying Potential Risks: Treasurers can identify potential risks through regular reporting. Reports may reveal previously unrecognized debt due to certain expenses. The treasurer can advise leaders to cut back on spending in that area. Regular audits also reduce risk by detecting inaccuracies and ensuring compliance.  
  • Creating Contingency Plans: Contingency plans address natural disasters, unplanned downtime, supply chain issues and budget changes. A plan may identify potential risks, outline how the business will respond and assign resources to protect against disasters.  

  

 

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