Paper Presentation

Subject: Church Organization and Pastoral Administration

Topic: Financial Stewardship – Planning and Management of Resources
1. Rules and Regulations of the Church in Money and Property Management
2. Tax law
3. Management of Donation and Foreign Contributions and Remittance
4. Auditing
Lecturer: Mrs. James Swu
Presenters: Kughaka, Kughupu, Puloka & Duanchuingam
Respondents: Nyiwok, Nilo, Kihoi & Tingmei

Introduction
Management is a part of living. It begins from the cradle to the grave. Stewardship of money and
material possessions is a very important aspect of Christian life. It is important to realize that
financial and property within organization are to be managed in God’s ways for God’s purposes.
This paper will shortly summaries how financial stewardship and property management is
important within church organization.

1. Rules and Regulations of the Church in Money and Property Management

Most often, Christian Leadership tends to think of Money and Property Management as being
less important in the overall vision and mission of the organization. This leads to a lack of focus
on upkeep of the property and a lack of proper documentation for these assets of the organization
which may lead to litigation and conflicts.1 Money and property are the most sensitive matters
concerning to any organization and church.2 It is important to conduct periodic inspections of the
property, erect and repair boundary fences/walls, ensure timely payment of property taxes and
obtain the appropriate sanctions and certifications from local authorities. Depending on the size
of the property, it is better to appoint a dedicated staff to manage the estate and ensure legal
compliance. Any arrangement must be in writing and registered with the local authorities. 3 On
the other hand there are many churches who are facing great problem to protect their property.
Whenever they buy a property their first step of precaution is to build the compound wall around
the land. Only after this they have plan and start constructing the building before budgeting
properly.4

The glimpses into the early church of the apostles times points that the material assets of the
church were taken seriously, managed efficiently and were sufficient to meet the needs of all, as

1
Ebenezar Sunder Raj, “Christian Manager” The management Magazine for Today’s Christian Leaders:
Stewarding or Managing Property, ed., Victor Jayakaran , Vol 18 (Channai: Ayanavaram, 2019), 1.
2
Keith T. Hamilton,”Church Financial Policies,” (Duluth: 2007),
file:///C:/Users/hp/Desktop/doc/ChurchFinancialPolicies.pdf.
3
Ebenezar Sunder Raj, “Christian Manager” The management Magazine for Today’s Christian Leaders:
Stewarding or Managing Property…, 19.
4
Anbu, J.S, et al., Basic Management Handbook (Chennai: Christian Institute of Management, 2011), 120.

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was the need. The bible speaks in Acts 2: 44-45 ‘All who believed were together and had all
things in common; they would sell their possessions and goods and distribute to all, as any had
need (NRSV).’5 Property belonging to churches, institutions and mission agencies are gifts from
God. Whether it is through the government or other donors, all lands and buildings are God’s
gifts for the purpose of fulfilling the mission of God and not just for the enjoyment of individuals
and their descendants. Therefore, those in leadership positions need to understand that we are
called to act as stewards and not as owners.6

Management is lifelong process, one can never rest thinking that he/she mastered the job of
managing. One should know how to manage their own property and money in this changing
world.7 Here, church needs some certain rules and regulations to maintain finance record to all
income and expenditure:

1. The finance records in the church will be responsible for maintaining adequate financial
records at the church facilities. The church financial records or copies will not be removed from
the church premises without the finance committee’s approval.

2. Monthly financial reports of expenditure and receipts shall be made available. And annual
summary financial report should be prepared for the congregation.

3. The normal practice of financial operations of the church is for members to give their tithes
and offerings through the general budget of the church. The finance committee must approve all
fundraising events.8

2. Tax Law

Taxes are unpopular, and sometimes the government agencies in charge of collecting taxes are
thought of with disgust, whether they are corrupt or not. This is nothing new. The idea of Paying
tax or law of tax is also seen in Bible times (Matt 11:18; 21:31-32; Luke 3:12-13). 9 Income Tax
Act is important for all people. In short any person or organization will come under this Act.
Income Tax is important for all people. In Romans 13: 1-7 also mentions “if we owe taxes pay
taxes.” The general mindset is that the politicians are swallowing our hard earned money so why
then should I pay taxes? But God’s word is very clear. We have to obey the governing authority
which is established by God. So as a Church organization we also have to humbly accept the law
and imply the law within the land.10

5
F.C. Jonathan, Church Organization and Administration: Biblical understanding Theological Perception
(Delhi: ISPCK, 2007), 197.
6
Ebenezar Sunder Raj, “Christian Manager” The management Magazine for Today’s Christian Leaders:
Stewarding or Managing Property, ed., Victor Jayakaran , Vol 18 (Channai: Ayanavaram, 2019), 6.
7
W. Pongsing Konyak, Basic Administration (……), 1.
8
Keith T. Hamilton,”Church Financial Policies,” (Duluth: 2007),
file:///C:/Users/hp/Desktop/doc/ChurchFinancialPolicies.pdf.
9
S. Michael Houdmann, ed., Got Question? (Guwahati: Christian Literature Centre, 2013), 171.
10
Anbu, J.S, et al., Basic Management Handbook (Chennai: Christian Institute of Management, 2011), 130.

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 When one can handle the financial and legal matters of a charitable/religious organization in
such a way that the organization does not owe any tax, it is wrong to end up having to pay taxes,
merely out of ignorance or negligence. So, let’s see how a religious organization could legally
avoid paying even a rupee of Income tax, even while meeting the obligations cast on it by the
income Tax Act, 1961.11

The Section 10 of the Income Tax Act, 1961 is being amended so as to grant exemption to the
remuneration received by the non- Indian citizen who is either an employee of, or a consultant to,
an institution or association or a body established or formed outside India soley for philanthropic
purposes, for service rendered by him/her in India connection with such purpose, provided that
such institution or association body and the purposes for which his/her services are rendered in
India are approved by the Central Government. 12 The Section 11 of the Income Tax Act, 1961
relating to income from property held for Charitable or Religious purposes is being amended,
namely:-

a) “Income derived from property held under trust wholly for charitable or Religious purposes,
and, where any such income is accumulated or set apart is not in excess of twenty five per cent of
the income from such property;

b) Income derived from property held under trust in part only for such purpose, the trust having
been created before the commencement of this Act, to the extent to which such income is applied
to such purposes in India; and where any such income is accumulated or set apart for application
to such purposes in India, to extend to which the Income so accumulated or set apart is not in
excess of twenty five per cent of the income from such property.”13

3. Management of Donations and Foreign Contribution and Remittance

According to Merriam Webster Dictionary “donation is something such as money, food, clothes,
etc that you give in order to help a person or organization.

Donor relations are a planned program of maintaining donor interest and engagement through
acknowledgement, information sharing, and personal involvement with the organization. An
essential element of any donor relations program is communicating good stewardship, reporting
back to donors and the public that we have cared for the resources entrusted to us and spent them
wisely as intended. An effective donor relations program is timely and appropriate. Donors
should be thanked promptly for gifts, all gifts regardless of size. Donor relations items and
events should be natural to the organization.14

11
Lengmi Lungleng, Church Administration Comprehensive Guide (Jorhat: TDCC Publication, 2017), 148.
12
Brojendra Nath Banerjee, Management of Christian Organizations in India (New Delhi: Masihi Sahitya
Sanstha, 1973), 105.
13
Brojendra Nath Banerjee, Management of Christian Organizations in India…, 105.
14
Anbu, J.S, et al., Basic Management Handbook (Chennai: Christian Institute of Management, 2011), 201.

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Foreign Donors: There are many individuals and organizations who give donations. Many
missions and churches receive this fund. You too can approach many individuals and funding
agencies. To get the funds abroad either through individuals or funding agencies you’ll need to
have an FCRA (Foreign Contribution (Regulation) Act) 2010 number from the Ministry of
Home Affairs, Govt. of India.15

The foreign Contribution Regulation Act (FCRA) was enacted. One of the provisions was that
the foreign property holding trust be registered with the Reserved Bank of India. The author has
the personal knowledge of the Disciples Church properties spread in Madhya Pradesh, Orissa
and U.P. was registered with full details of each property location with description of the
property and the other revenue details. However, the management and administration still
remained with the original trustees with power of attorney to the authorized Indian person, who
carried out the policies of those trustees including property alienation. 16 However, this Act, over
the years, has in effect, come to put severe restrictions on Voluntary Organization, and the matter
of receipt and utilizations of “Foreign Contribution.” 17 Foreign Contribution means the donation
received from any “Foreign Source.” However, it is important to note that FC Includes; not only
donation but also any delivery or transfer made by a Foreign Source, not only Foreign Currency
but also the Indian currency given by a Foreign Source, not only contribution received indirectly
i.e. through one or more persons, from a Foreign Source.18

Remittance: A remittance is a transfer of money, often by a foreign worker to an individual in

their home country. Money sent home by migrants competes with international aid as one of the
largest financial inflows to developing countries. Workers' remittances are a significant part of
international capital flows, especially with regard to labor-exporting countries.19

Remittance advices: Church income usually comes from three main sources: 1. donations from
church members by standing order or cheque. 2. Loose cash from collections 3. Event income,
such as magazine sales and hall lettings. There is no need to create vouchers for every donation
by standing order or cheque: it is obvious from the cash book that these are donations. Loose
cash will probably have a completed sheet identifying how much has been collected in
each value of note and coin, with a date, time and signature. Other income may take the form of
a covering letter from the magazine editor or a completed form from the hall lettings secretary.20

15
Anbu, J.S, et al., Basic Management Handbook (Chennai: Christian Institute of Management, 2011), 201.
16
Anbu, J.S, et al., Basic Management Handbook…, 201.
17
Ebe Subder Raj, SD jayakumar and Varghese Jacob, eds., Management of Christian Services in India
(Chinnai: Christian of Manegement, 2006), 229.
18
Great Plains United Methodist, Local Church Finance and Treasure’s Guide,
file:///C:/Users/hp/Desktop/doc/remittance.pdf
19
Al-Assaf, Ghazi and Al-Malki, Abdullah M.,”Remittance” (2014),
https://en.wikipedia.org/wiki/Remittance#cite_note-1
20
Robert Leach, The Church Treasure’s Handbook (Norwich: Canterbury Press, 2012), 32-33,
https://www.scribd.com/read/367617954/The-Church-Treasurer-s-Handbook.

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4. Auditing

An Auditing is a systematic and independent examination of books, accounts, statutory records,

documents and vouchers of an organization to ascertain how far the financial statements as well
as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure
that the books of accounts are properly maintained by the concern as required by law. The
auditor perceives and recognizes the propositions before them for examination, obtains evidence,
evaluates the same and formulates an opinion on the basis of his judgment which is
communicated through their auditing report.21 Audit also means an examination of accounts with
a view to determine to correctness of these accounts and of the transactions they embody. The
test of correctness applied maybe one of formal legality only, or maybe also of economy and
property.22

The purpose of an audit is to determine whether the account holder has properly written and
entered all the receipts and payments in the various books of accounts i.e. journals, cash book,
ledger and all the subsidiary books, i.e. purchase book, sales book, stock book, salary register
etc. the Auditor has to examine all the books of accounts and check if the accounts are correct in
respect of every aspect, related to the budget, finance committee decisions, and as per the
direction of the management. The main work of an auditor is to detect errors which may be
errors of omission, errors of commission, clerical errors or compensation errors.23

Conclusion

In summary, as stewards and trustees of institutions or in any organization, we should never

assume ownership of the possessions entrusted to us by God to serve His people. We should use
the properties of our property and procession for the benefit of the community alone what God
has placed us in. It is a sad testimony that, today, numerous churches and institutions are
embroiled in property disputes and financial corruption. Church leaders have to be faithful
stewards in the management of natural resources, caring for God’s creation, using material goods
and church properties in a transparent way. Here, we also want to conclude that we need
Spiritual stewardship or spiritual leadership to work in our organization who are responsible in
ever activities with as God’s ‘cardholder’: to care, to protect, to guide, to order, to serve and to
share.

21
W. Robert Knechel, et el., Audit Quality: Insights from the Academic Literature, Oct 2012,
https://pdfs.semanticscholar.org/7c17/cef66b98413d71c0f494661a73361d241df3.pdf .
22
F.C. Jonathan, Church Organization and Administration: Biblical understanding Theological Perception
(Delhi: ISPCK, 2007), 222.
23
F.C. Jonathan, Church Organization and Administration: Biblical understanding Theological
Perception…, 222-223.

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Bibliography:
Berkley, James D. ed., Leadership Handbook of Management and Administration.
Amaravati: OM Books press, 2014.

Houdmann, S. Michael ed., Got Question?. Guwahati: Christian Literature Centre, 2013.

Jonathan, F.C. Church Organization and Administration: Biblical understanding

Theological Perception. Delhi: ISPCK, 2007.

J.S, Anbu. et al., Basic Management Handbook. Chennai: Christian Institute of

Management, 2011.

Lungleng, Brojendra Nath. Management of Christian Organizations in India. New Delhi:

Masihi Sahitya Sanstha, 1973.

Lungleng, Lengmi. Church Administration Comprehensive Guide. Jorhat: TDCC

Publication, 2017.

Konyak, W. Pongsing. Basic Administration (……)

Raj, Ebenezar Sunder. “Christian Manager” The management Magazine for Today’s
Christian Leaders: Stewarding or Managing Property, ed., Victor Jayakaran , Vol 18. Channai:
Ayanavaram, 2019.

Raj, Ebe Subder SD. Jayakumar and Varghese Jacob, eds., Management of Christian
Services in India. Chinnai: Christian of Manegement, 2006.

E-sources:
Ghazi , Al-Assaf and Al-Malki, Abdullah M.,”Remittance” (2014),
https://en.wikipedia.org/wiki/Remittance#cite_note-1.
Great Plains United Methodist, Local Church Finance and Treasure’s Guide,
file:///C:/Users/hp/Desktop/doc/remittance.pdf
Keith T. Hamilton,”Church Financial Policies,” (Duluth: 2007),
file:///C:/Users/hp/Desktop/doc/ChurchFinancialPolicies.pdf.
Knechel, W. Robert. et el., Audit Quality: Insights from the Academic Literature, Oct
2012, https://pdfs.semanticscholar.org/7c17/cef66b98413d71c0f494661a73361d241df3.pdf.

Leach, Robert. The Church Treasure’s Handbook (Norwich: Canterbury Press, 2012),
32-33, https://www.scribd.com/read/367617954/The-Church-Treasurer-s-Handbook.

Laue, Vonna. “Why a Church Audit? The Benefits of an Outside Perspective on the
Financial Statements” http://www.ecfa.org/Documents/ART-Why_a_Church_Audit.pdf

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