What is the church foundation?
The Endowment Church is financed by the Ministry through assets of earnings held in eternity. The churches build the main part of the foundation through links, grants and gifts. They may name the staff to control it, or they can close it to an experienced investment manager. Congregations can expect liability in the form of periodic reports of the state of the foundation and how it is used to ensure that funds are responsible. Any selections come from investment earnings and therefore do not exhaust capital or assets available for investment activities. The fund can be limited for specific purposes, especially in the case of a large reference that can be provided with financial activities such as the repairs of the Church. In other cases, the Church officials can decide how to use money and may have MISET statistics and a set of principles for use in decision -making.
Several management problems can occur with the church foundation unique to this type of organization. The first may be pressure to investin a socially responsible way. Churches do not want to invest in economics sectors they consider harmful, such as weapons or society manufacturers known for pollution. Concerns about the longevity of the Church may also be a problem, because people can discuss how the foundation should be handled if the church breaks down.
The appropriate use of funds can also the topic of the debate. Money from the church foundation can pay staff, replace tools and robes and finance activities such as repairing and buying inventory. Some churches use their money to engage in community activities and could offer scholarships, food aid and other benefits to members of the choir or larger community. It uses the Church Foundation can depend on the size of the fund because churches want to be sure that they have income when they need them for emergencies.
According to tax laws, churches can get separatelyTreatment for their non -profit and religious missions. In order to avoid the operation of the regulations, the Church can cooperate with an accountant and a lawyer to establish a church foundation and properly manage it. For example, churches may be forbidden to provide political contributions, and it is therefore certain that they documented expenditures to show that income from the foundation was not used to finance the campaign.