The first concept is Bookkeeping and it “refers to the methods and systems by which financial transactions are recorded” (Worth 330). Bookkeeping essentially how an organization records financial transactions, anytime someone purchases something, makes a donation, does recurring donations, or the organization itself purchases something is considered bookkeeping. Bookkeeping impacts the Church because it ensures that the organization has all donation records of its congregation to send out for tax refunds/other tax purposes, it ensures that the Church has a full record of all non-taxable items (tax exemptions in certain states with sales tax), and a record of all purchases within the Church. This ensures that proper accounting can be handled. This concept of bookkeeping is a Biblical concept as well. In the Bible oftentimes people would hire someone to “steward” their money and keep track of all of the finances. Luke 16:1-2 describes a scenario of just this however the steward was unjust and did not keep track of the money correctly.
The second concept is Financial Accounting which “deals with the financial information published for use by parties outside the organization” (Worth 330). Financial accounting essentially is the handling of money for the purposes of outside parties. This type of accounting impacts the Church because it helps the congregation understand where money is going and how the Church’s money is being handled. Most Churches send financial reports out to its members which go over the entirety of the Churches financials.____ says, “The ultimate success of nonprofit executives depends on an understanding of some important financial concepts.” (Haines 1988).It is important that nonprofits such as the Church has a good understanding of how finances and financial concepts such as accounting work. This is a Biblical principle in the sense that the Bible commands us that we are good stewards of finances. In the Church, this means that as a Church we must steward donations and other Church finances in a healthy manner through accounting. Paul tells us, “Moreover, it is required of stewards that they be found trustworthy.” (1 Cor. 4:2 ESV).
The third concept is Financial Management which “usually involves the analysis of various financial ratios that may provide indicators of trends and the organization’s financial wealth.” (Worth 330). This is the idea that managers within an organization manage the financials within the organizations and use these trends to help the organization function better. Financial Management impacts the Church in major ways and is a necessity for the Church to do. Churches can utilize financial management by using previous year donation trends to manage spending on events, ministries, and day-to-day Church functions. Churches can use financial management to better utilize donations for paying staff members and spending money giving back to the community, as well as set goals for upcoming events. Piotr Bialowolski and associates claims that “financial management is an important emelement of household public goods production process, while a combination of financial knowledge and skills can be perceived as a domain-specific form of human capital.” (Białowolski 2020). Financial management reflects God’s purpose and design, especially in the Church. Jesus tells us, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” (Luke 14:28 ESV). It is important that as a nonprofit organization to count the cost of what it takes to do the work whether it be donations, projects, or giving back to the community it is important to properly manage the finances.
There are quite a few concepts that could have been chosen for the studied chapters, but the three best I believe are most important is Philanthropy, Grants and Financial Management. All of these concepts are key to the success of any non-profit organization. You can find these concepts located on pages 330 (Financial Management), 366 (Philanthropy) and 431 (Grants).
The first concept I would like to talk about is grants. A grant is an award of money made by the government with the hope that a public purpose will be achieved, but the services are not provided by the government (Worth, 2020, pg.431). The first Tee program could benefit greatly from grants by using the money to provide better education and facilities to the children they are impacting
The second concept I believe is so important is Philanthropy. According to Christou and Farmaki (2019), philanthropy can be described as the habit of doing good (par. 1). The first tee does this well in my opinion. The first tee uses the concepts of golf to build character. The program uses golf and curriculum to empower kids and build inn strength, self-confidence, and resilience. The final concept is the most important by far. Financial management takes all other concepts and ensures they all work together and ensures the most good will and can be done. According to Worth (2020), financial management relies on accounting statements for data, but it focuses on the meaning of those figures (pg.330). According to Shon and Zhang (2020), in recent decades, the operating environment for many nonprofits has become increasingly challenging, which complicates nonprofits’ operations to advance their missions (par. 31). This makes Financial Management that much more important.
The bible is very clear on managing God’s resources. Matthew 25:29 says, “For to everyone who has will more be given, and he will have an abundance. But from the one who has not, even what he has will be taken away” (King James Version, 2022).”