Finance Fridays: Three Stories from XP Briefing
Earlier this week my friend Todd Rhoades and I launched a new publication: XP Briefing. Each month XP Briefing will share 40-50 stories of interest to executive pastors, church administrators, and anyone else who is interested in the operational side of church. This morning, I figured I would share three stories from this month’s edition:
- Understanding Donor-Advised Funds: Donor-advised funds have become a popular tool for donors to make charitable contributions to organizations that they wish to support. By making a tax-deductible contribution to a fund, donors receive an upfront tax benefit while allowing their donations to grow through investments. Donors then select charities to whom they would like distributions to be sent. While this can be an excellent tool for the generous, savvy donors understand that there are several restrictions that make this different from simply sending a check through the mail. Source: Wall Street Journal
- Bond Issues as a Loan Alternative: Oftentimes when churches look to fund ministry projects they feel as though their only option is a loan. Nathan Ealy recently interviewed David Roberts of Rives, Leavell, and Company to learn more about financing projects through bonds. The interview covers costs involved, when bonds are a wise choice, and some basic how-to’s of a bond issue. Source: Generis
- Five Questions to Answer Before Applying for a Loan: At the recent XP-Seminar in Dallas, Randy Marsh of the Evangelical Christian Credit Union shared five criteria used to determine whether they are a worthy credit risk or not, and to evaluate their overall financial health: Character: If the church can afford to, will it repay the debt? Cash Reserves: How much is enough? Cash Flow: Can the church afford to repay the debt? Collateral: If the church is willing but unable, how will the debt be repaid? Climate: What are the trends? Source: Managing Your Church
We are pretty excited about XP Briefing, and we think you will be too, so we are giving away the first month free to anyone who subscribes throughout the month of March. And because we like Billy Mays, and know that everyone else likes a bribe, we are throwing in a featured job listing on ChurchJobs.tv with every subscription to XP Briefing… that’s a $99 value in and of itself.
How are YOU keeping up to speed on the operational side of church leadership?