Financial Management on Church Administration
CHAPTER ONE
Objective of the study
The major aim of the study is to examine the financial management in church administration. Other specific objectives of the study are;
- To examine the cash management system of New Life Gospel church.
- To examine the impact of financial management on church growth and survival.
- To determine the investment management system in church administration in Nigeria.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
The Church as an Organization
The church is composed of a body of Christian believers, sharing the same creed and acknowledging the same ecclesiastical authority. Persons join churches for various reasons, however, generally, they do so to practice their faith and share it with others to convert them into their fold. The church may therefore be said to be composed of a group of persons joined together for some common interest and hence classified as an organization. The church, like all organizations are created with a vision which is operationalized through a mission to attain its purpose. Since organizations comprise individuals with varied aspirations and purposes joining the organization, the persons involved need to share and have a common understanding of the vision and how to operationalize it through a common shared mission. In order to remain focused to maintain its existence and achieve its purpose,it must consciously develop a strategy towards achieving its vision. Also, as an organization grows, a structure is required for assigned roles, responsibilities and relationships required to operate the shared strategy. Staff is required with requisite skills and competencies to make the system of procedures, processes required work. Appropriate leadership with leadership style and skills is required to motivate staff and facilitate realization of strategic goals is necessary. Shared values are the values, standards, vision and corporate culture .As an organization, the church needs to plan its programmes and activities, organize requisite resources for implementation of its activities, monitor and control how the activities are undertaken and finances managed towards goal realization. Since the internal and external environments must interact for an organization to achieve its purpose, all stakeholders need to share a common understanding of the purpose and how it is operationalized to enable them play their roles and responsibilities efficiently and effectively, particularly, in resource mobilization and use (Shepherd & Yeo, 2005).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain financial management on Church administration. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of financial management on Church administration
Summary
This study was on financial management on Church administration. Three objectives were raised which included: To examine the cash management system of New Life Gospel church, to examine the impact of financial management on church growth and survival and to determine the investment management system in church administration in Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from New Life Gospel church in Osun state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
As a religious, the level of organization and consistency is exemplary. The church has much strength such as the incorporation of corporate or secular standards that promotes efficiency in all facets of the organization, professionally trained staff and volunteers, a corporate governance system (COE) who guide and monitor all activities, a good recordskeeping culture and a good brand name with regards to its integrity in all of its dealings. However, they face a few weaknesses; the lack of a functional manual and the nature of appointment unto the COE. There also seems to be an information gap where some significant is unknown to key personnel due to time lapse. The church is furnished with the technologies, opportunities and resources needed to achieve high FM standards. It has the resources to take advantage of opportunities that would enhance the framework. For instance, the use of cloud servers and other technological advancements, stable cash flows and little intervention from political and other regulatory authorities. The main threats are the political and economic variables that could affect operations or standards. The presence of this wealth of resources and proven track record which far exceed the weaknesses and threats are enough to conclude that New Life Gospel church is indeed a church with good financial management.
Recommendation
The church needs a contemporary manual which incorporates the current systems and guidelines suitable for a religious of its nature. The new manual should be comprehensive and incorporate the various segments of finance instead of trying to create a manual for each segment, which has failed in the past. This will limit the degree of subjectivity employed in the performance of duties. church can create cross-sectional sub-committees for each financial segment with specialized personnel for more frequent and relevant input and review. This would be aimed towards reducing the burden on the entire group whilst minimizing the bureaucracy so issues do not have to wait till it is addressed at the COE meetings. Smaller units could even hold ad hoc meetings to address burning matters. The basis for COE election should be reviewed to incorporate the strategic needs of the church. This is not to do away with spiritual growth standard, but to act as an additional requirement or criteria.
References
Acheampong, B. O. (2017). Planning and Management in the Missional Agenda of the 21st Century Church: A study of Lighthouse Church International. Verbum Et Ecclessia, p. 38 (1).
Agyei, A., & Kusi, R. (2006). Financial Reporting by Non-Profit Organisations in Ghana: A Study of Church Organiations in Ashanti Region. unpublished.
Agyei-Mensah, B. (2016). Accountability and Internal Controls in Religious Organizations: A Study of Methodist Church Ghana. African J. Accounting, Auditing and Finance 5 (2).
Ahiabo, G., & Mensah, C. (2013). Effectvieness of Internal Control on the Finances of Churches in Greater Accra, Ghana. p. 4 (13).
Ahortor, C. (2009). Financial Management Issues in Church Organizations. Seminar on Finanacial Management and Retirement Planning. Accra. Biblica Inc. (2011). New International Version.
Biema, D. (1997, August 4). Kingdom Come. Times’ Magazine. Boateng, R. (2016). Research Made Easy. CreateSpace Independent Publishing Platform.
Booth, P. (1993). Accounting in Churched; a Research Framework and Agenda,. Accounting, Auditing Accountability Journal, 6, 37-67.
Braun, V., & Clarke, V. (2016). Thematic Analysis. The Journal of Positive Psychology 12(3), 297-298. (2015). Center for the study of Global Christianity. Gordon-Conwell Resources.
Christ, U. C. (2010). A Church Finance Handbook For Church Treasurers and Finance Committees. Massachusetts Conference UCC. . Framingham: United Church of Christ.
Council of Elders. (2010). Legon Interdenominational Church Constitution. Council of Elders. (2010). Legon Interdenominational Church Financial Accounting Policy Document.
Council of Elders. (2015). Annual General Meeting. Accra: Crafts Concepts Ltd.
Council of Elders. (2017). Annual General Meeting. Accra: Crafts Concepts Ltd.
Council of Elders. (2018). Annual General Meeting. Accra: Crafts Concepts Ltd.
Council of Elders. (2019). Annual General Meeting. Accra: Crafts Concepts Ltd.
Cowan, A. (2006, July 9). Before the Downfall of a Priest, a Fondness for the Good Life. The New York Times.
Davis, J. H., & Donaldson, L. (1991). Stewardship Thaeory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management 16(1).
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain financial management on Church administration. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of financial management on Church administration
Summary
This study was on financial management on Church administration. Three objectives were raised which included: To examine the cash management system of New Life Gospel church, to examine the impact of financial management on church growth and survival and to determine the investment management system in church administration in Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from New Life Gospel church in Osun state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
As a religious, the level of organization and consistency is exemplary. The church has much strength such as the incorporation of corporate or secular standards that promotes efficiency in all facets of the organization, professionally trained staff and volunteers, a corporate governance system (COE) who guide and monitor all activities, a good recordskeeping culture and a good brand name with regards to its integrity in all of its dealings. However, they face a few weaknesses; the lack of a functional manual and the nature of appointment unto the COE. There also seems to be an information gap where some significant is unknown to key personnel due to time lapse. The church is furnished with the technologies, opportunities and resources needed to achieve high FM standards. It has the resources to take advantage of opportunities that would enhance the framework. For instance, the use of cloud servers and other technological advancements, stable cash flows and little intervention from political and other regulatory authorities. The main threats are the political and economic variables that could affect operations or standards. The presence of this wealth of resources and proven track record which far exceed the weaknesses and threats are enough to conclude that New Life Gospel church is indeed a church with good financial management.
Recommendation
The church needs a contemporary manual which incorporates the current systems and guidelines suitable for a religious of its nature. The new manual should be comprehensive and incorporate the various segments of finance instead of trying to create a manual for each segment, which has failed in the past. This will limit the degree of subjectivity employed in the performance of duties. church can create cross-sectional sub-committees for each financial segment with specialized personnel for more frequent and relevant input and review. This would be aimed towards reducing the burden on the entire group whilst minimizing the bureaucracy so issues do not have to wait till it is addressed at the COE meetings. Smaller units could even hold ad hoc meetings to address burning matters. The basis for COE election should be reviewed to incorporate the strategic needs of the church. This is not to do away with spiritual growth standard, but to act as an additional requirement or criteria.
References
- Acheampong, B. O. (2017). Planning and Management in the Missional Agenda of the 21st Century Church: A study of Lighthouse Church International. Verbum Et Ecclessia, p. 38 (1).
- Agyei, A., & Kusi, R. (2006). Financial Reporting by Non-Profit Organisations in Ghana: A Study of Church Organiations in Ashanti Region. unpublished.
- Agyei-Mensah, B. (2016). Accountability and Internal Controls in Religious Organizations: A Study of Methodist Church Ghana. African J. Accounting, Auditing and Finance 5 (2).
- Ahiabo, G., & Mensah, C. (2013). Effectvieness of Internal Control on the Finances of Churches in Greater Accra, Ghana. p. 4 (13).
- Ahortor, C. (2009). Financial Management Issues in Church Organizations. Seminar on Finanacial Management and Retirement Planning. Accra. Biblica Inc. (2011). New International Version.
- Biema, D. (1997, August 4). Kingdom Come. Times’ Magazine. Boateng, R. (2016). Research Made Easy. CreateSpace Independent Publishing Platform.
- Booth, P. (1993). Accounting in Churched; a Research Framework and Agenda,. Accounting, Auditing Accountability Journal, 6, 37-67.
- Braun, V., & Clarke, V. (2016). Thematic Analysis. The Journal of Positive Psychology 12(3), 297-298. (2015). Center for the study of Global Christianity. Gordon-Conwell Resources.
- Christ, U. C. (2010). A Church Finance Handbook For Church Treasurers and Finance Committees. Massachusetts Conference UCC. . Framingham: United Church of Christ.
- Council of Elders. (2010). Legon Interdenominational Church Constitution. Council of Elders. (2010). Legon Interdenominational Church Financial Accounting Policy Document.
- Council of Elders. (2015). Annual General Meeting. Accra: Crafts Concepts Ltd.
- Council of Elders. (2017). Annual General Meeting. Accra: Crafts Concepts Ltd.
- Council of Elders. (2018). Annual General Meeting. Accra: Crafts Concepts Ltd.
- Council of Elders. (2019). Annual General Meeting. Accra: Crafts Concepts Ltd.
- Cowan, A. (2006, July 9). Before the Downfall of a Priest, a Fondness for the Good Life. The New York Times.
- Davis, J. H., & Donaldson, L. (1991). Stewardship Thaeory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management 16(1).
