CHURCH BUSINESS AND FINANCE

INTRODUCTION

While the term "church business" sounds presumptuous, its selection for the
title of this course merely describes the processes by which Christians
exercise divinely prescribed responsibilities. In this course, the term
"church" should be understood as a local congregation of believers.
"Business or Management" should be taken to refer to the art of enabling
people to exercise faithful service to God and humanity.

To embark on a course of church business/ "management" suggests that the

church needs to be "managed." It needs to be regulated, assisted in
achieving its mission. To be sure, the church rests under the authority of
Christ, but it exists in a physical world where myriads of human, fiscal, and
physical elements need attention from human hands. Hence, we speak of
church business or management as a mandated task for Christian leaders.
Again, we are talking about making a local congregation of believers
productive in the ministry of the Lord.

Church Business/Management also indicates that influence or control is

exerted over a circumstance or over other people. As in any organized
group, order has to be established and procedures put into place to
guarantee a smooth operation of the church.

We shall assume that the church is a divine creation, the body of Jesus
Christ, who is its head. The New Testament defines the nature, mission, and
limits of the church. So, church management should be perceived as the art
of enabling the Christian community to live in keeping with its divine calling.
Much of the Theology of the Church shall be covered in Theology III but for
this course we will limit ourselves to the way church should be run.

WHY CHURCH BUSINESS?

1. We are stewards of God’s people and resources and that calls for
proper administration of the church.
2. Improper Church business has cost the church the energy for its
mission and vision and hence rendered it powerless in its task.
3. The nature of the 21st century ministry places a great demand for
proper administration of multiple gifts in the church in order to build a
unified vision.
4. The function of the local body mandates some sort of organization and
maintenance. The divine prescription for the church sets the agenda
for the local community. In doing so, it also restricts legitimate

1 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 operations. In other words, a local church is hardly free to do as it
pleases. Nevertheless, it is required to use common procedures to
fulfill its mission.
5. The church resembles human organizations to the extent that it
functions in time and space. As such, it is not exempt from
management principles.

IS THE CHURCH A BUSINESS?

Read the Article “ Is the Church a Business?” by Rodney Swontizer

The answer we give to this question:

1. Will determine in a great way your approach to ministry and even

whether you succeed or not.
2. Will depend on the definition that you want to adopt for ‘business’
3. Will demand that we have an understanding of all the aspects involved
in the subject.

If we see the church as a business in terms of worldly marketing thought and

ideas, then we will be forced to compromise our faith and convictions in
order to retain followers. We will also use draconian ways to attain numerical
and spiritual mileage. In that respect, we may say that the church is not a
business because it is not out to make profit, rather the church has a
business which is laid out in its mission and ministry.

THE BUSINESS/ORGANIZATIONAL SIDE OF THE CHURCH

Since the local church assembles and orchestrates its work through multiple
individuals, it needs some kind of organization. In most organizations, a well-
defined hierarchy identifies lines of authority and roles of responsibility. The
head of the church is Christ and the handbook that defines authority and
responsibility is the Bible. While there are similarities between human
organizations and the church, the nature of the spiritual body of Christ
makes true comparisons tenuous. The New Testament notes the presence of
apostles, prophets, evangelists, elders, teachers, and deacons. Once the
apostles died, elders appear as the primary authority within a local body of
Christians. The extension of rule to include bishops and a pope lie outside
the New Testament.

The "rule" of elders was confined to a local congregation. These servant-

leaders apparently held authority to "disfellowship" wayward Christians, but
2 Notes Compiled by B.K.Kimani. BA,BRS,MRS.
even here, it is clear that their actions were aimed at protecting the flock
and reclaiming the wayward member. It is safe to say that the elders were
entrusted with the care of a local community of believers. In today's world,
particular tasks have changed due to the cultural advances. Churches own
property and run complex ministries and programs.

Domains of Church Business

We are going to concern ourselves with three major areas that require our
attention in church business:

Worship: A first order of service is the care of public worship. Public worship
involves the entire congregation and demands attention be given to a place
for assembly, seating accommodations, lighting, audio and video
capabilities, communion preparation, participants, and other provisions.
There should also be a preaching program that helps you to see the life and
activities of the congregation over a period of time. This ensures that you are
not caught unawares.

Shepherding: This entails caring for the spiritual nurture of each individual
member and providing general oversight of the welfare of the congregation
as a whole. In large congregations, the pastor should delegate the tasks
while setting the boundaries for delegated responsibilities and providing
support for those entrusted with specific tasks. Details of this will be handles
in the course The Work of a Pastor.

Business Matters/Committees/groups: Business matters include

authority, roles, responsibilities, committee assignments, accountability,
policies, and procedures. Sub-categories of business are finance,
management, plant, research, insurance, and legalities. Committees and
groups may be appointed to conduct much of this business.

This is the area which requires most of a local church's attention. The
demands for time, money, and services can easily overwhelm a group. The
risk, of course, is distraction from the larger task of being a "spiritual" body.
But since we reside in the physical realm, physical matters cannot be
avoided or neglected. Practically, it is in doing the mundane that spiritual
qualities emerge. The way people go about their tasks, how they interact
with others, their motivations for performing or giving all reflect basic
character. God has made us to demonstrate spiritual character through
physical living. This is the area our course will mainly hinge on.

One of the things one will be required to do is to keep records of all church
Business Meeting. These records are called minutes. We now turn to how to
write Minutes.

3 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

The basic guidelines for writing minutes:

• Start with the logistics of the meeting: time, place, attendees and
presenters.
• Always have an introduction paragraph/section, where you detail
the reason for the meeting and the agenda discussed.
• Try to flesh out the most important points discussed, including
assignments of particular tasks for accountability
• Build your minutes around the pertinent information. Anything that
can be found in handouts from the meeting or similar formal
documents can be skipped.
• Note all motions along with a general discussion of ideas mentioned
in the meeting. If any decisions or conclusions were reached, make
sure to highlight them in your minutes.

Sample Template for a Meeting-Minutes Report

Group name, date, and place (if it changes)

Present
Axxxx(Chair)
Bxxxx
Cxxx
Dxxxxx*
Exxxx
*Absent

Agenda
• Xxxx xxxxx xxxxxxx xxxx
• Xxxxxxx xxxxxxxxx xxxx xxxx

Preliminaries

Reading and Confirmation of Previous Minutes

Discussion, decisions, assignments

First agenda item. (Min1/1/10)-Start with no.of item, month and
year)

Second agenda item. (Min 2/1/10 REF Min 100/12/09).

Additional items…

Tentative agenda for the next meeting

• Xxxxxxxxxxxxxxx Xxxxx Xxxxxxxxxxx
• Xxxxxxxxxx Xxxxxxxxxxxx
A.O.B.
4 Notes Compiled by B.K.Kimani. BA,BRS,MRS.
Adjournment
Approved:
Chairman Secretary
(Name, Signature and Date) (Name, Signature and Date)

Management as it Relates to the Church.

DEFINITION

It is to forecast and plan, to organise, to command and to control1.

Management2 involves four things:

Planning

An activity that involves decisions about ends (aims/objectives), means

(plans), conduct (policies) and results based on the organisation’s
environment, strength and weaknesses3. It can be long term or short term.
The pastor should seek God in prayer and Meditation and understand his
people, their needs in order to plan for them. He should also seek for the
empowerment of the Holy Spirit.

Organising

Detailed coordination of tasks and human and material resources needed to

carry out the plans once they have been put into operation. In this,
opportunities must be made for people to exercise their gifts.

Motivating

These are process, which aim for the satisfaction of basic drives, perceived
needs, and personal goals, which trigger human behaviour4. People should
be encouraged to serve in their own way and sphere.

1 H.Fayol as Quoted in Cole, Management Theory and Practice,p.6

2 The word Leadership will be used interchangeably with this word in these notes to refer to management especially
in the church setting, which is our main centre of interest in this course.

3 ibid.,p.11

4 ibid.,p30

5 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Controlling

These are processes aimed at establishing the standards of performance,

measuring the actual performance against those standards and taking
corrective actions where appropriate.

JESUS’ PHILOSOPHY OF MANAGEMENT.

Jesus’ philosophy of management is based on servant hood:
1. Servant hood involves humility, lowliness and meekness. Matthew
20:20-28
2. Peter learnt this lesson from Jesus (John 13:1,1 Peter 5:1-11)
3. Service for God’s servants has no limit.
4. The greater the task, the greater the service in God’s kingdom.
Rehoboam is a poor example of management.(I kings 12:1-19)

TYPES OF MANAGERS (LEADERS).

1. Charismatic leaders
They gain influence through the strength of their personality e.g.
Napoleon, Hitler
2. Transitional Leaders
Their position is hereditary. Assured by birth.
3. Situational Leaders
Can only be effective by being in the right place at the right time.
4. Appointed Leaders
Leads by the power of position.
5. Functional Leaders
Leads by what they do or have done not by who they are.
6. Principle Centred Leaders
Approach leadership through moral and ethical principles, say, equity,
justice, honesty, earnestness, fruit of the spirit etc.
7. Autocratic Leaders
Removes himself from other people and complains how lonely leadership
has become.
8. Ideographic Leaders
Concerned with the needs of the individual.
9. Laissez Faire Leaders
Do not give any direction but are there only to agree. “Yes” men.
10.Democratic Leaders
They are facilitators; they guide the group and invite questions/teamwork.

RESOURCES AVAILABLE FOR MANAGEMENT.

1. People.

These are the most valuable resources in any organisation. They give
valuable ideas and they should be recognized.
Ten Ways to Manage and influence people.

6 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 This is how you should manage and influence people in your church
business and other areas too5:

I. Have Integrity With People.

Integrity is becoming an outdated idea just everywhere you look: TV

preachers fall morally, mothers drown their children, professional athletes
are found with drugs and prostitutes in hotel rooms…the list keeps growing.
However, the need for integrity is still needed to manage people.
Integrity is about the small things.
• If you cannot be trusted at all points, you can’t be trusted at any point.
• Anytime you break a moral principle, you create a small crack in the
foundation of your integrity.
• Character isn’t created in crisis, it only comes to light.
• Don’t do what you cannot be comfortable reading tomorrow in the
papers(John Weston)

Integrity is an inside job.

• It is not determined by your circumstances or background.
Circumstances are responsible for your integrity as a mirror is to your
looks.
• It is not based on credentials for credentials are transient but it is
permanent. Credentials can only get you in the door but only integrity
will keep you there.
• It should not be confused with reputation. William Hersey Davis6
compared the two this way:
-Reputation is what you are supposed to be but character7
is what you are.
-reputation is a photograph but character is the face.
-reputation is what you have when you come but character
is what you leave when you go away.
-Reputation is what men say about you in your tombstone
while character is what angels say about you before the
throne of God.
You succeed momentarily by what you know, temporarily
by what you do but permanently by what you are.
Integrity is your best friend.

5 I am indebted to J.C.Maxwell in the development of this section. His tapes, seminars, books and resources that
have influenced my life for years have been used extensively. I especially encourage every serious people manager
to get a copy of Becoming a Person of Influence byJ.C.Maxwell and Jim Dornan. I also recommend that one can
read The Character of a Leader by Gregg Johnson.

6 As quoted in Dornan and Maxwell’s Becoming a Person of Influence.

7 This can also mean integrity.

7 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

It helps you stay on course when you want to make shortcuts. It allows you
not to hit back when you are unfairly criticized, learn, and grow when you are
fairly criticized.
Integrity is your friends’ best friend.
When people know you are a person of integrity, they will support you.
They’ll need to know:``Do you bring something on the table to benefit them
or do you put them on the table to benefit yourself.
Integrity earns you trust.
It allows people to trust you without which you can do nothing
How to become a person of integrity:
• Commit yourself to honesty, reliability and confidentiality.
• Decide ahead of time that you do not have a price.
• Major in the minor things: Little things make or break us and great men
are known by how they treat little people.
• Each day do what you should do before you do what you want to
do.``when you do the things you have to do when you have to do
them, a time will come when you will do the things you want to do
when you want to do them”(Zig Ziglar)

I. Nurture other People.

A nurturer is a giver.
• Give them love for without it there can be no connection future or
success together. Everyone needs to feel loved and appreciated.
• Give them respect for people respond to respect. They can do anything
for you when they know that you respect them
• Give them a sense of security so that they do not feel vulnerable when
they are with you.
• Give them recognition and appreciate them for what they do and are.
This will give them a sense of belonging, Better perspective of
themselves, feeling of significance and hope.
How to Become a Nurturer.
• Commit yourself to people
• Believe in people
• Be accessible to people
• Give with no strings attached
• Give them opportunities
• Lift them up to a higher level. There are 3 kinds of people: Well
prisoners who stomp and discourage your creativity, Lawn Mowers
who think only of themselves (mow their own lawns) and can’t help
you and Life enhancers who lift and inspire you for excellence.

I. Have Faith in People.

Facts about Faith in People.

• Most people don’t have faith in themselves: they believe they will fail,
even when they see light at the end of the tunnel, they are convinced
it’s a train. They see difficulty in every possibility.

8 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 • Most people don’t have someone who believes in them.
• Most people can tell when someone has faith in them.
• Most people will do anything to live up to your faith in them.
It is incumbent upon us to BELIEVE in people which means that we:
Believe in them even before they succeed.
Every person has seeds of greatness within him even if they may be dormant
now. When you believe in them you water those seeds and give them chance
to grow.
Emphasize their strengths.
Maximize on their strengths and minimise on their weaknesses.
List their past successes.
The past can be a stepping stone to a major victory e.g. David and Goliath
case study.
Instil confidence even when they fail.
Each of us even the most successful have their share of foils and failures.
Show them success as a journey and not a destination8.
Experience some wins together.
Winning is motivating. When people sense victory:
• They sacrifice to succeed.
• They look for ways to win.
• They become energized.
• The follow the game plan.
• They help other team members.
However, when people sense defeat:
• They give as little as possible.
• They look for excuses
• They become tired
• They forsake the game plan.
• They hurt others.
Give small opportunities for small successes for it is in the small
opportunities that great enterprises begin.
Visualize their future successes.
Cast a vision for others and paint a picture of future success, build
motivation in them, give them reasons to keep going. It has been said that a
person can live 40 days without food, 4 days without water, 4 minutes
without air but only 4 seconds without hope.(Laboratory Rat illustration)
Expect a new level of Living.
Help them see beyond today and dream big dreams. Expand their horizons.
We have the same sky but different horizons. Work for their change of
attitude.

I. Listen to People.

Benefits of listening.
Listening shows respect.
Listening builds relationships.

8 I’d encourage that one reads John Maxwell’s fine book The Success Journey.

9 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

You can make more friends in 2 weeks by becoming a good listener than you
can in 2 years of trying to get people interested to you. (Dale Carnegie)
Big people monopolize the listening, Small people monopolize the talking.
(David Schwartz)
Listening Increases Knowledge.
A deaf ear is an evidence of a closed mind.
Listening generates ideas.
Consistent listeners never suffer for ideas. You never know how close you are
to a million dollar idea unless you are willing to listen.
Listening Builds Loyalty.
Listening is a great way to help others and yourself.
How to Develop Listening Skills
• Look at the speaker
• Don’t interrupt-people who interrupt others:
a. Don’t place enough value on the other persons mind.
b. Want to impress others by showing how smart or intuitive they
are
c. They are too excited by the conversation to let others finish
talking. Examine your motives and change.
• Focus on understanding- listen to the message and the message
behind the message. What they are saying and not saying.
• Determine the need of the moment- why are they speaking to you.
Persuasion? To vent? Comfort? Nervousness? Understand and meet
that need.
• Check your emotions
• Suspend your judgement-don’t respond before they have finished
talking. Hear the whole story.
• Sum up at major intervals and comment meaningfully e.g.``that
sounds very important to you”
• Ask questions for clarity: if you show people how much you care and
ask in a non-threatening way, you’ll be amazed at how much they tell
you.
• Always make listening your priority no matter how far you rise or how
busy you become.

I. Understand People.

Understanding people gives success and pays great dividends.

Why people fail to understand others:
Fear, Selfcenteredness, Failure to appreciate the differences and failure to
acknowledge the similarities.
What you need to understand about people.
• Everybody wants to be somebody.
• Nobody cares how much you know until he knows how much you care.
• Everybody needs somebody-those who try to do things alone often get
into trouble.
• Everybody can be somebody if somebody believes in her.
• Anybody who helps somebody influences a lot of bodies.

10 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

How to understand others
• Possess the other person’s perspective.
• Possess personal empathy.
• Possess a positive attitude about people.
I. Enlarge people.
This means you have to mentor people. Mentorship involves offering people
the opportunity to turn their potential into reality and their dreams into
destiny. They impact eternity. Their influence never stops. Enlarging others
is an investment. Mentoring:
• Raises people’s level of living.
• Increases their potential for success.
• Increases people’s capacity for growth.
• Increases the potential of your organisation.
Make yourself an enlarger:
You can teach what you know but you can only reproduce who you are.
The great secret of success lies in going through life as a man who never
gets used up.
Carefully choose people to enlarge.
• Select people whose philosophy of life and ministry is similar to
yours.
• Choose people with potential that you genuinely believe in.
• Select people whose lives you can positively impact.
• Start when the time is right.
When Enlarging People:
• See their potential.
• Cast a vision for their future.
• Tap into their passion and show them how it can help realize their
dreams.
• Address character flaws.
• Focus on their strengths.
• Put resources into their hands.
• Expose them to enlarging experiences.
• Teach them to be self-enhancers. Place them in a position to succeed.

I. Navigate for other people.

This means helping people go through a potentially unpleasant situation and

life’s difficulties. A leader is one who sees more than others see and who
sees before others do-Leroy Elims
As a Navigator:
Identify their destination.
To do that you need to identify the following:
• What do they cry about? Passion/compassion.
• What do they sing about? Enthusiasm/potential.
• What do they dream about? Vision.
Plot the course.
Show them where they need to go, tell them what they need to know and
plan for their growth.

11 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Think ahead
Prepare them for what they are going to face since you have been there
before. Help them understand:
• Everybody faces problems.
• Successful people face more problems than unsuccessful ones.
• Money does not solve problems-people with money tend to be less
content and have additional problems. Financial problems are usually a
symptom of other personal problems so you should teach problem-
solving skills.
• Problems provide opportunities for growth. Strength grows through
struggle(Napoleon Hill)
Make course connections
Help people to get back on course when they get off course. You can do this
when you:
• Teach them not to listen to doubting critics
• Coach them not to be overwhelmed by the challenges.
• Encourage them to seek simple solutions
• Instil confidence in them
Stay with people-take the trip with them.

I. Connect with People.

Nine steps of connecting with people.

a. Don’t take people for granted.
b. Possess a make a difference mindset.
c. Initiate the movement towards them.
d. Look for common ground.
e. Recognize and respect differences in personality.
f. Find the key to their lives: what is important to them?
g. Communicate from the heart.
h. Share common experiences-don’t build walls between you but bridges
i. Once connected,move forward.

I. Empower People.

This is working with and through people to enable them reach their highest
potential in their personal and professional development. It involves sharing
your influence, position, power and opportunities to invest in their lives so
that they can function at their best. Becoming an empowerer requires that
you have a position, relationship, respect and commitment.
How to empower people
• Evaluate them
• Model for them
• Give them permission to succeed
• Transfer your authority to them: when they fail, take the blame, when
they succeed give them the credit.
• Publicly show your confidence in them

12 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 • Supply them with feedback: address to them privately their mistakes,
missteps and misjudgements.
• Release them to continue on their own: I do it as we watch, we do it
together, you do I as we watch….and the cycle continues.

I. Reproduce other influencers.

This is handing over the baton, which raises your influence, multiplies your
resources and ensures a future for your ministry or organisation.
Awakening the reproducer in you.
• Lead yourself well.
• Look continually for potential leaders and recruit the best.
• Put the team first.
• Commit yourself to developing leaders not followers through
mentorship.

DIFFERENT KINDS OF PEOPLE YOU WILL MEET IN PEOPLE

MANAGEMENT9.

There are 12 kinds of people and you need to know how to manage them:
I.The Critic
He constantly complains and gives unwanted advice. Communicate care by
listening to him. Warn your to leaders of the danger he may cause. Invite
him to solve problems people bring up.
II.The Martyr
Feels like a victim and swims in a pool of self-pity. Make them aware that
moodiness is a choice. Expose them to people with real problems to give
them perspective. Never reward self-pity.Prov 27:5-6
III.The Wet Blanket
Always pessimistic and is a drain to the relationship. Don’t let them dampen
your enthusiasm. Point to past successes they thought would fail. Be honest
with them.
IV.The Steam Roller
Rolls over others and enjoys intimidating people. They are aggressive and
cant be hostile. Consider their influence before you act. Try to reason with
them and expose them to their insensitivity. Take a stand when it’s a right or
wrong issue.
V.The Garbage Collector
Surrounds himself/herself with negative people and they spread rumours
that poison. Challenge their statements with objective truth. Confront them
with people about whom they are talking. Allow exposure to destroy their
credibility.
VI.The Control Freak
He is unable to let go and trust God or people. They have to be in control.
Don’t give them highly visible positions of authority. Remind them of the

9 Maxwell, Million Leader’s Mandate: Notebook Six,pp.20-23

13 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

scriptural command to trust God and others. Review with them God’s
intervention in their own lives in the past.
VII.The Maverick
He frustrates others by living in his own world oblivious of the needs of
others and the big picture. Don’t evaluate yourself with them. Don’t give
them positions in team leadership. Discover their motivation and encourage
them to see the big picture.
VIII.The Back Stabber
Two faced and hypocritical. His message changes with the crowd. Confront
them with specific examples of hypocrisy. Involve others involved in their
ways for concrete evidence. Don’t give them authority till they change.
IX.The Cold Shoulder
Disengages and avoids contact. Don’t reward childish behaviour by running
after them each time they distance themselves. Meet with them and ask
them if you’ve hurt them. Dig deep to know the real issues involved. Don’t
endorse their behaviour.
X.The Volcano
Explosive, unpredictable, unapproachable. Remove them from the crowd.
Remain calm when dealing with them. Ask them to report details excluding
hearsay and exaggeration. Give a soft answer. Hold them accountable.
XI.The Sponge
Constantly in need but give nothing back. They are users. Set limitations on
your ability to help. Don’t let them manipulate you. Challenge them to the
maturity of giving and receiving. Don’t feel obligated to meet their needs.
You are not their God!
XII.The Competitor
Always want to beat others and feel that life is unfair. Remind them on the
need to “complete”others not compete with them. Inform them of others
who have lost more than they have. Inform them that keeping a score
always will lead them to a life of misery.

1. Time

We all have 24 hours a day,168 hours in a week and we need to utilise our
time well.

Managing the Clock10

Basic facts on time management.
• We all waste time.
• We cannot change time.
• We must accept that time is the most important resource to mankind.
• We cannot do anything to increase the quantity of our time.
• We can only steward time
• We can do anything but we can’t do everything.
• We must accept the fact that we all procrastinate.
Timely advice about time.

10 Maxwell, Million Leader’s Mandate: Notebook Six,pp.14-17

14 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 a. Become time conscious.
b. Have a “to do” list.
c. Identify major time wasters and eliminate one per week
d. Place value on each activity.
e. Be result-oriented rather than activity oriented.
f. Understand the vale of planning
g. Stay on your agenda
h. Place deadlines on yourself
i. Delegate wisely

1. Money/Cash

•Don’t waste or misuse Gods money, it should be safeguarded to

accomplish a more effective ministry. Cf. Matt.25:14-30.
• We are called to Christian Stewardship of church finance.
• Have a church account and don’t spend everything at source. When
finances are used well, the potential for a higher income is greater.
• Each church should utilize their cash flow so as to make up in times
when giving slumps
• Be a man of integrity. Remember Finances bring down many men of
influence. Guard yourself.
• Pay all dues at the right time.
• Never allow counting of money to be done by one person. When two
people count, there is less likelihood of errors of count, theft or
judgement.
• Possibly the counting process should involve the tellers, and the
treasurer who records all the transactions of the day before
ensuring that the money goes to the bank account. The counting
should be done immediately after the service and at the church.
• Fill your monthly or weekly report.
1. Land and Buildings
• Renovate them and don’t procrastinate on repairs.
• Make them useful to the glory of God and propagation of his
kingdom.
• Decide how best you can use them
• Solve any litigations and obtain necessary documents e.g. Title
deeds etc
• Manage the proceeds that come from them.

TEAMWORK.
It is teamwork, which makes the dream work. A team develops from a group,
so it is important to understand group dynamics. Every group goes through
several stages11:
Forming Stage: everything relies on the leader.
Storming Stage: internal conflict and resistance surfaces.

11 Cole,Op.Cit.,p.63

15 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Norming Stage: conflicts are settled, cooperation is developed.
Performing Stage: Teamwork is achieved.
Adjourning stage: Tasks are completed, adjourning to other tasks.

Traits of Healthy Teams12:

Trust: they build trust through community, celebration, communication and

conflict.
Empower: through gifts and passions, defined responsibilities, teachability,
delegation and accountability.
Assimilate thorough ministry application among others
Manage through strategic plans, SMART goals, Systemic Administration and
Result Evaluation
Serve through heartfelt prayer, discernment of need, fulfilment of call and
transformation of life.
Healthy and Sick Group: Characteristics and Comparison.
Healthy Sick
1. All members speak up about what 1. A few members do all the talking.
they think.
2. Decisions are worked through till a 2. Most members mumble under
general consensus of agreement is chairs
reached.
3. Members contribute in the areas of 3. Members sit silently.
their knowledge.
4. A member’s value is judged by the New people with good ideas are not
merit of his idea listened to.
5.The whole group handles questions Decision making is quickly referred to
relating to the whole group committees
6. Major issues get major time Minor issues get major time
7.Major issues evoke mature Minor and simple issues make people
approach to change boil.
8.Minor issues are settled with the Major issues are passed over.
attention they deserve
9. Decisions reached through The same subject supposedly settled
thorough participation are final keeps coming up again.
10. Members understand one Quick judgments are passed on
another’s ideas, plans and proposals issues people do not understand.
11.Members objectively center on Members subjectively talk about
one another’s ideas, plans and people in scapegoat fashion.
proposals
12. Proper performance of tasks and Accomplishes little in the absence of
achievement of goals the chairperson.
13.Works goal wise towards change Afraid to change.
14. Rewards and Criticism are shared Rewards and criticisms are centred
on a few.
15. Information is fed back into the Little is told to the group

12 Macchia, pp.182-83

16 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

group
16. Action is God Related Action is Self Centred.

Expectation of Group Members

Attendance: repeated absence should be avoided.

Affirmation: learn to disagree without being disagreeable.
Confidentiality: keep the secrets of the group.
Learning: through reading and asking questions so that they can learn what
the group is supposed to achieve and how they can help in it’s achievement.
Responsibility: serious and committed group members find themselves
saying frequently: ``I’ll take care of it”.
Avoid Defensiveness: Do not link a person to her idea. Stop being personal
or personalizing issues.

ROADBLOCKS TO EFFECTIVE GROUP WORK.

Forgetting the Individual

Safeguard and encourage each member’s viewpoint. Lift them up
(encouragement), Look them over (Recruitment), Let them in (Commitment),
Line them up (Equipping) and Let them out (Ministry).
Expecting too much from group dynamics
Unreasonable expectations may give birth to the death of traditionalism (we
tried it and it didn’t work).
Letting group dynamics become an activity of the flesh
The entire group should yield it’s corrective mind to the Holy Spirit.
Handling Problem people
Know how to deal with them. This is the idea of confrontation. Have the right
spirit.

BUILDING AN EFFECTIVE TEAM

There are four types of teams13:

The Undeveloped Team
Feelings are avoided, objectives are uncertain; the leader takes all decisions.
The Experimenting Team
Issues are faced openly, listening takes place, they are temporary
introspective.
The Consolidating Team
Personal interaction on cooperative basis happens, tasks are clarified,
objectives agreed, and tentative procedures implemented.
The Mature Team
Open feelings, various options are considered in decision-making. Has
contributory leadership and the individuals are flexible.

13 Cole,Op.Cit.,p.64

17 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

How to enlist and empower the right people for the Task.
(DELEGATION)
Acts 6:1-4.
Select people who are:
• Known from their sphere of influence-“seek out from among you”
• Fellow Believers-“brothers”
• Able to serve in a team-“Seven Men”
• Trusted-“of good reputation”
• Empowered for the task-“full of the Holy Spirit”
• Competent and intelligent-“full of…wisdom”
• Responsible-“whom we may appoint over this business”
Look for people who are:
Gifted- they have abilities in the areas where you have needs.
Influential- they have influence in their circles.
Fruitful- they get the results and do what it takes to get the job done.
Trustworthy-they are men of integrity.
Serving –they have a servant heart.
How do we develop others while we delegate the ministry14?
• Know yourself.
• Know the person you wish to develop.
• Clearly define the assignments
• Discuss their growth process as you go.
• Spend relational time with them.
• Allow them to watch you minister
• Hold them accountable
• Give them the freedom to fail
• Debrief and affirm regularly
Why leaders fear to delegate
1. Insecurity.
2. Fear of failure
3. Self-centredness
4. Low resources especially when the person will result being paid
more.
5. Workaholism.
6. Low belief in people
7. Lack of knowledge of training leaders
8. It is easy to lead followers than leaders.
Advantages of delegation
1. Eases work
2. Increases efficiency
3. Develops Leaders
4. Frees the leader to do other important things
5. Stimulates creativity and commitment
6. Demonstrates the leader’s trust and confidence in people
Dangers of not delegating
1. Burn out

14 Maxwell, Million Leader’s Mandate: Notebook two ,pp.16-17

18 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 2. Inefficiency
3. Stagnation
4. Damages the ministry
Sharing your vision with team members
Team members catch your vision at different rates. Here are different ways15:
1. Word Smart
They catch the vision by hearing the leader describe it verbally so you need
to teach and preach about it.
2. Visual Smart
They catch the vision through pictures and images so you may want to use
visual aids to explain them.
3. Logic Smart
They catch the vision by receiving statistics and facts about it so you may
want to use facts and figures.
4. Music Smart
They catch the vision by hearing a song about the theme of the vision. A
team member may write one.
5. People Smart
They catch the vision through small group interaction so you may host small
group discussions on it.
6. Self Smart
They catch the vision through personal thinking and reflection so you may
create a devotional guide for them to reflect on the vision.
7. Body Smart
They catch the vision kinaesthetically through experiences and movement.
Host an experience such as walking on the new property.

PLANNING.

It has been said that Proper Prio Planning Prevents Poor Performance. Show
how and when the goals you have will be implemented. Trust not in the plan
but in God. Make SMART plans.

DECISION MAKING

This is an essential part of your leadership. The acid test of a pastor lies in
teo questions:
1. Can he make and follow through on a difficult decision?
2. Will he make and follow through on a difficult decision?
In ability to make decisions is a principal reason why executives fail. The
greatest difficulty in making decisions is NOT knowing the right decision but
in making it.
In Decision Making:
1. understand God’s will. Jer 29:11,Ps 32:8,25:12
2. Listen to God’s voice John 10:27

15 Maxwell, Million Leader’s Mandate: Notebook Six ,pp.26-27

19 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 3.
Listen to advice from friends.
4.
choose to do what is right even when it goes against popular belief.
5.
place the interest of others before your own.
6.
choose to swallow the pride and admit: I have found the problem…it’s
me.(EGO)
Ten Helps in Decision Making16.
1. Accept it as a requirement of your leadership.
2. Do your homework, Make research and don’t leave any parts of the
puzzle.
3. Set a deadline. Do not procrastinate.
4. Make sure the timing is right
The wrong decision at the wrong time is a DISASTER.
The wrong decision at the right time is a MISTAKE.
The Right decision at the wrong time is UNACCEPTABLE.
The right decision at the right time is a SUCCESS.
5. Seek counsel from the right people
6. Make your decision based on your principles and values
7. Establish systems to help you make decisions
8. Understand the emotions involved: that you can suffer for your
decision yet choose to retain your decisive ability.
9. Understand your part and God’s part
10.Pray for discernment and courage.

CHURCH FINANCE.
We will deal with:

• Finances in the church.

• Funding the church programs and projects.
• Dealing with a financially troubled Christian ministry.
• Things that some ministries do when they are financially troubled.
• Steps towards eliminating financial problems in your ministry.
• Guidelines for project proposals
• Marketing a project proposal
• Problems associated with funding proposals.
• Approaching a donor.
• Developing a Christian philosophy of Fundraising
• Using the Bible as a guideline for fundraising.
• Handling the financial accounts of the church and exploring the terms
that are used in Church Finance:Ledgers,Balance
Sheet,Cashbook,Petty Cash Voucher, Salary Voucher etc.

FINANCES IN THE CHURCH

16 Maxwell,Op.Cit.,pp.10-13

20 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Billy Graham, the famed evangelist once said`` the Kingdom of God cannot
be founded on money but can’t run without it”. Financing the vision that
God has given you is key to the fulfilment of your ministry.

Money will be the wheels God is going to use to take the gospel to all the
ends of the earth and so an understanding of how to manage the resources
that God gives us is very essential. You cannot underestimate the role
money plays in the running of the church and in the fulfilment of the Great
Commission.

FUNDING THE CHURCH PROGRAMS AND PROJECTS

Sources of Church Finance

• Tithes
• Offerings
• Church projects e.g.Matatu/Bus,School,Clinic,Printing Press etc.
• Donations and grants
• Faith Promise Plan/Pledges
• Money from project proposals
• Other sources

DEALING WITH A FINANCIALLY TROUBLED CHRISTIAN MINISTRY

There are several signs that show that a ministry has a serious problem with
finances:

Signs that show that a serious problem exist

1. If income from donations is becoming less and less every year.

2. If the organisation is withholding payroll occasionally due to lack of
funds.
3. If you are behind in paying your debts more than 60 days.
4. If you are borrowing against a line of credit, in order to pay operational
expenses.
5. If you are delaying purchases of essential goods and services.
6. If you are postponing needed repairs and maintenance.

Three fundamental questions

In such a case, we need to ask three fundamental questions:

1. Should this ministry continue to be in existence?

2. Is it still fulfilling its mission statement?
3. Has this ministry faithfully used its finances?
Things that some ministries do when they are financially troubled

1. Close down.

21 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 2. Merge with others.
3. Redirection of emphasis to other areas e.g. from pulpit ministry to
street children ministry etc.
Steps towards eliminating financial problems in your ministry.

1. Maintain Credibility
Maintain integrity with your donors, suppliers and employees.

2. Control the flow

Cash flow is a major factor in the health of an organisation therefore it is
important to move fast to close the payables versus the receivables shortfall.
It is important to make payments to the following creditors:

• Those who provide vital goods and services

• Those threatening to blow your house down
• Late payments which threaten the creditors survival(i.e. to stay
with you)
3. Freeze hiring
No one should be added to your staff since you want to control your cash
resources and spending. Fire if you must.

4. Get usable Information

Examine the information you are getting from your departments:

• Accounting information need to be timely.

• Donor records should be accurate and up-to-date.
• Get rid of useless reports to the organisation, which may be consuming
a lot of time.
• Prepare reports in summary.
1. Communicate the situation to the employees
Call a meeting of your key people, department heads and explain to them
the problem the organisation is going through. Ask them what they can do if
they are in your position and ask them the best things the organisation has
done.

2. Adopt a Motto.
Develop a slogan or motto that is positive and timely. This will serve as an
inspiration e.g. MOVING ON WITH THE HELP OF THE LORD!

GUIDELINES FOR PROJECT PROPOSALS

A project proposal.

This is a well-written document by an applicant seeking funds from donors

and other grant making agencies to increase or improve the applicant’s
services and products to the target group.

A few questions need to be asked:

22 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 1. What need are you attending to that you feel you cannot meet alone
and need to be helped by your partners?
2. Who among my donors will be sympathetic to my situation: each donor
organisation has its own set of priorities, which you cannot easily
change.
Three things that are important to know the priority of a donor
organisation:

1. Establish the profile of donors: their history and what they do.
2. Be true to yourself: avoid appearing as if your proposal is written to
please the donor: they will know!
3. Talk to your donors and find out how and if their priorities may be
changed to your favour.
A well-written proposal:

A well-written proposal is-

• A concept paper
• A plan of action
• A possible contract
• A demonstration of capability
• A design of self-evaluation.

Benefits Derived From Project Proposal Writing.

1. Funds from donors and other grant making agencies.

2. articulation and formulation of clear and tangible objectives
3. increased knowledge and ability in the program area
4. better project implementation and evaluation
5. improved record keeping and control system

The most important question to start with before writing your proposal is:

What needs are you attending that you feel you cannot meet alone, and you
want your partners and donors to assist you? This will enable you to choose
carefully those partners who will consider your situation.

Things to find out about donor agencies before writing a project

proposal

1. Obtain information on how this donor agency works.

2. Identify its special features e.g. financial year, yearly deadline for
accepting proposals etc.
3. Establish when other information e.g. endorsement by national
organisations are required.
4. Know if the application must be submitted through another
organisation. Donors tend to accept the most relevant and best
proposals especially if they don’t know you personally.

23 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Who should write a proposal?

They should be written by the organisation’s Decision Maker.

Proposal Writing:

These are the steps involved:

a) Title of the project

Every project must have a title, which should be as precise as possible.

b) Introduction and background

Here you describe the background, legal status, present size and experience
of your organisation in similar work. Explain the importance of the project
and how the assistance required will be utilized to fulfil a particular need,
which cannot be met from other sources.

c) Project objectives
They should be stated specifically and they should be SMART. (Specific,
Measurable, Attainable, Realistic and Time bound) with a clear work plan.

d) Strategies for achieving objectives(Methodology)

Show very clearly how the objectives will be achieved. Clarity and
justification is a basic requirement here. Some project or programmes may
need to be done in phases such as construction Phase, Furnishing Phase,
and Implementation Phase.

e) Project Budget
This is an estimate of what it will take/cost to undertake the project or
program. Depending on the size and scope of the project, the following areas
need consideration when drawing the budget:

• Land and construction

• Equipments and other facilities
• Operating or working capital
• Personnel
• Fellowship/Training.
• Miscellaneous
f) Own contribution
Use what you have in your hand then seek assistance. No donor is willing to
give funds for a project to which the owner has not committed his or her own
resources. A project, which depends wholly on the goodwill of the donors, is
doomed to fail eventually.

A clear statement should be given showing that the applicant expects to

contribute towards the realisation of the project both in cash and in other
ways.
24 Notes Compiled by B.K.Kimani. BA,BRS,MRS.
 g) Plan of action for implementation
A good plan should answer what, who, when and how each aspect of the
project will be implemented.

h) Inputs to be provided from external assistance.

State all the external requirements, expert services (personnel) if needed-
external or internal training programme.

EXECUTIVE SUMMARY OF THE PROPOSAL

AFTER writing your proposal, you should make a brief summary of what you
have written in one or two paragraphs. Though prepared last it should be on
top of the proposal.

The Importance of the executive Summary:

• It may be required by the funding agency.

• It may be all that is read.
• It might be the first thing that they read.
• It forms the proposal, it is required.
Covering Letter.

When sending a proposal to any donor, it is important it goes with a covering

letter signed by the Bishop or another higher authority of that organisation.

Donors will support a project/organisation that:

• Squarely addresses the systematic issues not addressed by others.

• Show creative initiative.
• Convey transferable concepts.
• Have teamwork
• Integrated: evangelism and church planting plus holistic development
• Distinguishes application of capital giving from operational income.

Marketing a project proposal

A good project proposal should take into account the needs of the donor and
where possible incorporate these inputs when writing a proposal:

1. Each donor has its own requirements spelt out in the proposal forms
and guideline and should be met.
2. It should be a feasible project, which shows a good return on
investment and potential for a good impact.
3. A realistic and balanced budget with a good phasing out strategy
indicating reduced overheads and administrative costs.
4. A good plan for sustainability and own contribution during the start up
and implementation phase to ascertain ownership and commitment.

25 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

 5. Whenever possible, it is important to present project proposals to
donors personally in order to explain the project and respond to issues,
which may not be included in the project.

Problems associated with funding proposals.

1. A project may require funding by many donors. Each of the donors may
have their own requirements, which may create conflicts.
2. Unless properly monitored, the implementation of projects funded by
many donors may cause accountability to be undermined. It is
important for all the donors to know their individual contributions and
how the effects are being monitored.
3. Inflexibility of designated funding. During implementation, certain
realities may require modification in the use of funds, which may be
done without express permission from the donors
4. Some donors withdraw or reduce their funding before the project is
completed. This may have adverse effects on the running of the
project.

Approaching a donor.

How should you approach a donor?

1. Work within existing relationships.

Accounts of fundraising in the bible most often occur in the context of
existing ministry relationships i.e. partners or fellow workers (Phil 1:5., Phil
4:3). A good relationship requires effective communication and that involves
the total person (Emotions, intellect and will)

2. Emphasize opportunity not just needs.

In the light of divine ownership and human stewardship, the responsibility of
the fundraiser is to provide opportunity for the people to give. It is never a
question of figuring out how to get their money.

3. Seek involvement and Commitment.

Programs and efforts should focus on developing long-term relationships with
supporters who are involved and committed to what the organisation is
doing.

4. Realize the giver is more important than the gift.

The gift is secondary to concern for the individual. Never should a potential
donor be viewed as “an expendable name” on a list or someone to be
pressured for gifts.

5. Realize that the donors are giving a part of their treasure.

26 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

A gift should be seen as a piece of one’s heart. Proper acknowledgement is
important.

6. Never exploit sacred trust.

Never exploit or manipulate a donor. You betray your trust and you miss
them!

Developing a Christian philosophy of Fundraising

1. Determine the balance between Faith and works

Don’t continue praying when it is time to take a step of faith. Prayer is not
a basis for excusing ourselves from doing what God has enabled us to do.
Therefore there are three great essentials in supporting a Christian
ministry or course:

• It must be worth supporting in prayer.

• It must be worth supporting financially.
• It must communicate effectively what it is accomplishing.
2. Affirm your right to solicit funds
I Cor 16:1-3

In the case of Paul addressing the Corinthian church about the needs of
the church in Jerusalem,the apostles wrote that they should take
collection for the Lord’s people on the first day of the week and save it so
that there would be no collection when Paul arrives. Hence, it is biblically
approved but should be asked in the right manner.

3. Be sure the organisation is worth of financial and prayer

support.
Are you worth supporting? What have you done with the support of the
past?

4. Develop a divine constituency and effective communication

plan.
Issue letters at reasonable times and intervals which bring the individual
up to date on what is happening and at the same time reporting the
financial situation. This gives a good response.

5. Realize that all donors are not treated alike

Some want detail while others do not.

Using the Bible as a guideline for fundraising.

1. Relief of the Saints in Jerusalem

This is seen in 2 Cor 8 and 9. The principle that stands out in these two
chapters is that of 8:20-21 where Paul shows that people also need to
demand more proof of honesty, therefore Paul handled this by sending
three persons to handle collection, taking care of their credentials.
27 Notes Compiled by B.K.Kimani. BA,BRS,MRS.
 2. Paul’s Personal Support
I Corinthians 9:7

3. The funding of the Disciples

Christ supported them.Lk 8:1-3.

There are other examples too. Fundraising hence is a biblical principle

and it is a ministry to those from whom funds are raised.

FINANCIAL ACCOUNTING.

Terms Used in Church Finance

Assets

These are properties of all kinds owned by the church.e.g. Church van, land,
furniture, A system, buidings, cash etc. They are two types: Fixed and
current. Fixed assets are those expected to last for a long-time and not
intended for resale e.g. Land while current assets are those expected to last
for a short period e.g. cash at Bank

Liabilities

This is what the church owes to others e.g.loans, goods bought on credit,
utilities, and salaries unpaid etc. They are two types: Long-term and short-
term. Long-term liabilities are those, which are not expected to be settled in
one year e.g. a three-year loan. Short-term liabilities are debts payable
within one year e.g. bank overdraft.

Capital: this is what the church can claim ownership especially what may be
contributed by someone to sustain it.e.g.Grace Celebration Centre might
have received 1 million to start a school. Their capital is 1 million for it is
what sustains that school by now.

Book Keeping Equation:

Assets = Capital + Liabilities

Capital = Assets – Liabilities

Liabilities = Assets – Capital

Debtors: These people owe money to the church.

Creditors: The church owes money to these people.

Balance Sheet: This is a statement showing the financial position of a

church as at a particular date as far as its assets, liabilities and capital are

28 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

concerned. It is always prepared after a certain period say monthly or yearly
or quarterly depending on the church’s requirement it should have the name
of the church, its name and the date at the top.

Example:

Grace celebration centre closed the month of December 2006 as follows:

Cash at Hand 4,000

Tithes 10,000

Furniture 7,000

Creditors 5,000

Long term Loans 20,000

Premises 50,000

Debtors 2,000

Bicycle 3,000

Capital 51,000

Here is their Balance Sheet:

Grace Celebration Centre

Balance Sheet

As at 31st December 2006

Fixed Assets Capital

51,000

Premises 50,000 Long Term liabilities

Furniture 7,000 Loan 20,000

Bicycle 8,000 60,000 Current Liabilities

Current Assets Creditors 5,000

Tithes 10,000

29 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

Debtor 2,000

Cash at Hand 4,000 16,000

76,000 76,000

Cashbook: This is the ledger that contains cash and Bank accounts only.

Ledger: This is the book of account where the transactions that take place
are recorded. It has the debit (DR) side which is in the left and the credit (CR)
side, which is on the right.

Rules for transactions in a ledger.

An increase in assets is recorded on the DR side while a decrease is credited

(CR)

An increase in Liability is credited (CR) while a decrease is Debited (DR)

An increase in capital is credited while a decrease is debited

This is how a ledger account looks like:

Dr Title

Cr

Dat Particulars Folio Amoun Date Particul Folio Amoun

e t ars t

Bibliography.

Cole, G.A., Management Theory and Practice, Bedford, Thompson,

2004.

Dornan, Jim., Maxwell J.C., Becoming a Person of Influence.

Maxwell, John C., Million Leader’s Mandate: Notebook 2, 3, 6

New International Version of the Bible.

30 Notes Compiled by B.K.Kimani. BA,BRS,MRS.

31 Notes Compiled by B.K.Kimani. BA,BRS,MRS.