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Church Cash Reserves

Faith & Finance (formerly MoneyWise)

Christian talk radio with Rob West

February 29, 2020

The emergency fund is a key part of wise money management. Only God sees the future but that doesn't mean we can't plan for the unplanned by having a cash reserve. That's also true for churches. Like members of the flock, churches also need money in the bank for unforeseen expenses. But what rules govern the management of those funds? MoneyWise host Rob West tackles that topic today! Churches need a cushion to ensure that routine expenses are paid on time. Without it, they run the risk of getting hit with late fees. If there's a mortgage on the church property, there needs to be at least a few months payments stored up to avoid foreclosure in the event of an interruption in revenue. Planning and wise management of funds are necessary because there'll always be pressures within the church about how they should be used. Should some of it go toward paying down debt early, or, to be more generous to the staff? And what about starting new programs? Having a cash reserve is simply the faithful administering of Gods resources. This honors God, and the church has to make it a priority; it's key to giving the world the right impression of God. It's important to build up reserves during the good times especially when the church is growing it can be part of the budget process. For any of this to work, leadership needs to communicate the importance of having cash reserves to the congregation. It doesn't show a lack of faith; it's simply good stewardship. Properly communicating clear, specific goals and the progress made toward them might even inspire more faithful giving.

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