 |
|
|
| |
 |
|
|
The Church has a foundational role to play in the development of ethical awareness. It is shocking to learn that often churches and congregations make ethical decisions in relation to their finances that none of the individuals involved would think of doing personally. Here are some of the ethically questionable practices that parishes often drift into.
1. They set up a building fund, or a separate fund of some kind, from which they pay parish utilities, repairs and maintenance. The purpose is to avoid apportionment and hide both income and expenditures from their general parish statements.
2. Monies which are used to pay general parish expenditures are collected as special appeals or special funds to be hidden from apportionment. All givings used for normal parish expenditures are subject to apportionment.
3. Although parishes may give receipts for gifts in kind, this should be shown in their income and a payment cheque issued. If the donor wishes to return the cheque and receive a receipt, that is acceptable. Large receipted gifts in kind require the proper income tax procedures. We need to be very careful about giving receipts for gifts in kind, as many lay people offer their professional services to the parishes without expectation of payment or receipts.
4. Trust funds given for specific purposes must have those purposes scrupulously observed. Because the Diocese is legally incorporated, it has ultimate responsibility for seeing that trust funds are properly used and accounted for. Parish officers who misuse trust funds could be held personally liable by the insurance company concerned or by the government trust officers.
5. Gambling activities and raf~les often are used for fund-raising purposes in parishes and parish groups, contrary to the policies of the Synod. Parishes should be phasing out trivial gambling activities and actively prohibiting any gambling for fund-raising purposes. Parishes often understate their income by having groups and individuals pay their bills directly.
7. Many parishes and organizations have undeclared deposits and funds that do not show up in the financial statements. Sometimes by holding these deposits, other indebtedness is left unpaid, or other forms of assistance are requested.
The Incumbent and the two Wardens are the officers of the parish. By the Canons, they have the duty to see that Synod policies are carried out and that high ethical standards are maintained. Treasurers are appointed by and are accountable to the parish officers. The Advisory Board is "advisory" to the officers, and any advice that is contrary to Synod policy or acceptable ethical standards should not be followed. When these practices have been going on for many years, it will take real courage for the Incumbent to challenge them. The Incumbent and the Incumbent's Warden , however, have two of the three votes of the parish officers. The Incumbent can change the ethical climate by appointing a Warden who will uphold high standards. When parishes wander into these practices, often everyone sheds responsibility. The ethical standards are the responsibility of the Incumbent and the two Wardens.
Item XXV
©1999 Ronald C. Ferris
... back to "Resources for effective parish leadership" main page
|
|
|
 |
