Читать книгу Accounting and Money for Ministerial Leadership - Nimi Wariboko - Страница 6

Accounting for Ministers who are Afraid of Numbers

“Excuse me, what did you say, ‘money and ministry?’” There is always a double take when the two words are mentioned in a church or seminary. Many pastors or theologians think that the communal/spiritual ethos of the kingdom of God should not be mingled with the individualistic ethos of the market. They identify money and ministry as belonging to two mutually exclusive, separate spheres that are operating according to different principles. This thinking is faulty and anachronistic. The separate-sphere assumption conceals the deep connections between the two and also prevents seminaries from effectively training their students for ministry. More importantly, owing to this outdated assumption most pastors are often not as effective as they ought to be in church management and in providing leadership for economic justice matters in their communities.

Many do not even want to know the real financial situation of their church. My former Episcopal (Anglican) pastor once told me a story about his uncle, a parish minister. At the end of each month the uncle would ask the treasurer, how is the church doing? The treasurer would answer, “all bills paid.” The uncle would turn away and not ask further questions. This went on for decades and one day it was discovered that the treasurer was not only paying the bills of the church, he was lining his pockets with whatever was left.

Maybe this is not our own story, but we have been in finance committee and board meetings where financial reports are discussed and we do not understand what others, especially the chairperson of the finance committee or the treasurer is saying. As far as we are concerned they may just as well be speaking in a foreign language. We are not full, effective participants in meetings like this, and yet we are the leader of the church, its spiritual head and the chief executive officer.

Our discomfort seems to be compounded when we want to go beyond our church’s financial reports. We are at a loss in understanding the monetary systems of the modern economy. We have been given a lot of talks and theologies of money, but they have all been focused on stewardship of personal money, on how to spend our meager financial resources to further the kingdom of God. Not that this is bad, but we wish to understand the workings of the modern monetary system.

You may have searched for books that would offer a theological study of the nature and role of money in contemporary societies. You may have looked for some wisdom on the peculiar dialectics of the monetary structures and forces that frame existence and actively confront persons, peoples, classes, gender, races, and economies in a fallen world. You needed a book that would shine a bright theological-ethical light on the motion of money in both national and global spheres so as to highlight the serious ethical issues that pertain to the production, circulation, control, and use of money in the structures and organizations of economic life.

You do not detest the modern monetary system. You only want a book that will help you reflect on how to nudge the structure and organization of monetary life toward creating and maintaining an embracing economic community that brings unity-in-difference into perpetual play and also fosters more ethical relationality without stifling its creativity and galvanizing force. If there is such a book, you want it to also cover the knowledge gap that seems to yawn at you in your finance and board meetings. For you have long noticed that the knowledge gaps relating to accounting and the monetary system affect your ability to lead your church to accomplish its mission in today’s highly monetized and financialized economy that speaks in peculiar tongues.

This book that you hold in your hands is designed to bring you up to speed in the language of accounting and money in contemporary American society. This book will give seminary students and pastors practical resources for effective (not hands-on) management of church finances. Among others, it will offer training on basic accounting and budgeting, reading of financial reports, and elementary tax and legal issues in order to develop pastors’/students’ core competency in stewardship leadership.

After going through this book, most students and pastors should be able to read, exegete, and make sense of the financial reports that will be given to them by church accountants (treasurers, finance committees).

Specifically, this book is designed to provide seminary students and pastors with the necessary understanding of the place and function of money in ministry and church administration. Second, students and pastors will be able to interpret basic financial reports to enable them to contribute meaningfully to discussions on the financial administration of their congregation. Third, they will be able to interpret the economic signs of their parishes, effectively communicate them, lead or assist in organizing efforts to correct wrong signs or trends, and embody the ideals necessary for ethical/prudential management of their parishes’ financial resources.

Fourth, the book will help seminary students and pastors with no training in accounting to expand their core management competency and church leadership skills to include basic issues of finance and accounting. It will also provide pastors/ministers with financial management orientation to become better leaders/managers of their churches and organizations. In addition to the accounting and theological threads that run throughout the chapters of the book there is a managerial thread (chief executive officer, pastors are CEOs of their organizations).

The methodology of the book is to first teach each accounting topic on its terms and later open it up for theological and ministerial leadership reflections. All of the reflections and discourses are designed to enable students to get some theological perspective on money and monetary systems and their roles in the modern economy. Information and ideas in each chapter are presented in such a way that the reader does not only gain training in the technical matters of accounting and money (economics), but also in theological-ethical understanding of social issues relating to the disciplinary fields and practices of accounting and monetary economics. Every chapter will have a discussion of an idea or practice, showing that the intersection of accounting/money with lived social life is important for theological-ethical reflection. Unlike some of the leading books on accounting and money for pastors, which put the technical knowledge of finance and theology of money in separate silos, this book integrates them from the beginning. The theological reflections (“theology in motion”) offered in each chapter flow from the discussions of the chapter and are integral to the whole conception of ministerial leadership in the age of finance.

Indeed, this book combines accounting and theology of money in a way that no other book in the market does. This work is not necessarily one of critique but of presenting and understanding the “Spirit and letter” of accounting and money. So in all the sections, genuine empathic understanding of the subject matter precedes the critique. This approach draws from my uncommon experience and expertise.

I have brought my expertise as a seminary professor who has written a book and essays on theology of money, as a former business school professor who has taught accounting and finance courses and has published books in these areas (my first book on accounting came out in 1993), as an ex-investment banker on Wall Street, and as a pastor of a major church in Brooklyn, New York for nearly ten years to elucidate the subject matter. The goal is to make accounting and theological dimensions of money and the monetary system simple, approachable, and digestible for students and pastors who have no formal training in accounting and economics of money.

In addition, as a professor in a seminary I had the opportunity to classroom-test the manuscript in my course on “Money and Ministry.” I decided to write a book for students to use for the course because of the inadequacies of existing textbooks in the market. This book combines accounting, financial management, and theology of money in a way that no other book in the market does. Actually, there are only two or three good books in this area and they do a poor job of embedding the discussions and analyses of accounting and financial issues within a consistent, systematic theological framework. In addition, none of them provides a sound sociological understanding of money to underpin the accounting and theological dimensions of financial management of churches and ministries. But this book does with its notion of money as a social relation.

Overview of Chapters

This book begins with an “Introduction,” a discussion of accounting as an integral dimension of ministerial leadership. Today, an understanding of the basic concepts and tools of accounting is essential to function as a competent pastor, who is the chief executive officer of her church. The introduction provides the pastor with basic knowledge and perspective on business management, financial administration, and the accounting profession; the kind of knowledge required to increase her chances of making decisions that will strengthen the financial health of her church and improve her overall stewardship of the resources committed into her hands.

The chapter ends with a discussion on the intersection of accounting/money with lived social life. It argues that the boundaries of the monetary issues that confront a pastor do not end at the front of the church, but extends to the larger society. Thus, the minister who wants to properly grasp the financial well-being of her church and congregation should lift up her gaze to see how the monetary policies of her country influence the financial health of her congregants and affect the productive and reproductive work in her community. Theology of money and accounting is not only about the church, but also about the whole society. This tone of our study is set right from this opening section with a discussion of the “rituals” of the making of monetary policy in the United States.

Chapter 1 introduces the reader to the basic terms and ideas of accounting: the basic accounting equation of asset = liability and the key principles of accounting. It also provides clear and simple definitions of key accounting terms. In addition, it introduces the reader to the neoclassical economic definition of money, which is the unit of measurement and recordkeeping in accounting. The integrated theological part of the chapter (“theology in motion”) hints at a different definition of money and also points to the connection between the operation of monetary systems and the vexing issue of environmental pollution. In this way, the key definitions and principles of accounting and money are immediately situated within larger theological-ethical discourses that have always been in the ambience of ministerial leadership and social justice in the United States.

Who is a minister? What is a church? Chapter 2 answers these questions within the interpretative framework of the Internal Revenue Service. The IRS is not particularly concerned with religious beliefs and practices of a church, but for the purposes of its work it has defined church and minister in its own way. It is crucial that the pastor understands the definitions as they will structure not only her church’s relations with the government, but also with accountants and financial institutions.

In the “theology in motion” section of this chapter, I provide philosophical-theological analysis of the IRS definitions of minister and church. The overall effect of these definitions on a minister’s leadership style will depend on her stance on how church and money (monetary system) should be related. To help the minister evaluate her position, I retrieved and pressed into service Richard Niebuhr’s five models of “Christ and Culture” to describe models of church and money. So we have (1) church against money, (2) Church with money, (3) church above money, (4) church and money in paradox, and (5) church the transformer of monetary culture.

Chapter 3 discusses the key financial reports and indicators of the financial health of a church. Here we learn about the importance of generally accepted accounting principles (GAAP) in framing the accounting milieu of churches. GAAP is what defines what is right, good, and fitting in all financial statements and in the church’s accounting-data relationship with the society. In the accounting world, to a large extent, GAAP sets the moral agenda and ethical issues. While the pastor is learning to use accounting as a tool of her ministry, it is necessary that she does not limit her focus to the mastery of the techniques of accounting and money, but should widen it to grasp the whole of meaning of money in human existence. How will this be? What paradigmatic framework should guide her search for meaning?

In chapter 4, we begin to grapple with how to understand the meaning of money within the global meaning of personhood, being-in-communion (theological anthropology). Specifically, this chapter attempts to forge an understanding of the meaning and role of money in contemporary American society in terms of enabling persons to become both the agents and beneficiaries of their flourishment.

Chapter 5 treats issues relating to the preparation of a church budget. The chapter provides a simple discussion of the budgeting process and the various techniques used by accountants. The goal is to enable the pastor to understand the work done by the treasurer or the finance committee and to engage with the budget process theologically. The chapter sets the discussion of budget—the fulcrum of the management of the finance of a church—within the larger framework of the vision of the parish and the mission of Christ and also within a theological-ethical understanding of the workings of monetary systems of the United States. Thus the discussion quickly moves into how pastors should go beyond any theology of money that is restricted to stewardship, and begin to understand money as a flow, the production, circulation, and control of money, which actually determine who gets what quantity, when, and how. The notion of money as a flow is very useful in teaching us to comprehend how a country’s monetary system impacts the economic well-being of its citizens and also impinges on the meaning-making framework of its citizens.

For many pastors the time of budget announcement in the fall is the only time they talk about money in the pulpit and seriously consider procedures relating to handling financial information of the church with the whole congregation. But the management of the financial information of a church should be a year-round affair, with utmost care given to accuracy and transparency. A one-time release of budget information followed by appeal for pledges is no longer considered as the proper procedure for handling the financial information of a church in this day and age.

Chapter 6 discusses the proper procedures for a pastor to handle the financial information of her church. It highlights the importance of transparency and clarity in the management of church finances. It then shows the pastor how to institute rigorous and comprehensive internal control systems to effectively record and efficiently manage transactions, safeguard the assets of the church, prevent frauds and financial irregularities, make fraud detection easier, and protect the reputation of ministers against unfounded accusations of financial impropriety. For theological reflection, this chapter attempts to develop a pastoral philosophy of internal control within the rubric of philosopher Alasdair MacIntyre’s notions of goods internal and goods external.

The principles of internal control are about stewardship of resources, about what an organization does with them, and what management and staff are to become (honest or fraudulent). It is about preserving and promoting the practices of excellence that serve the goods internal of the organization and its form of activity. The internal goods are those that can be realized only by participating in the virtue-dependent form of processes and procedures as well as judged by the standards of GAAP, organizational goals, and pastoral excellence. When internal goods are realized they belong to the whole community, further improving its practices of excellence. The improvement of excellence in all departments of the church brings with it certain benefits, among which are safeguards against legal and financial liabilities.

Chapter 7 begins with a simple overview of the potential legal and financial liabilities that a church faces due to commissions or omissions of its pastors, trustees, and staff. The goal of the discussions in this chapter is to raise the awareness of clergy so they would seek advice from lawyers, accountants, and qualified members of their churches and also to communicate better with such professionals. The discourse of this chapter is set within the context of compliance with GAAP, tax laws, and governmental rules and regulations that guide the operation of churches in the United States.

The middle part of chapter 7 provides a comparative analysis of compliance in the secular world of legal and financial liabilities and in the religious sphere. This will help the pastor not to see compliance as a burden, but as a way of life crucial for ministerial leadership. Compliance points to the need for scrupulous observance of accounting-tax-managerial “ritual” practices in the leadership of the church. Compliance is an expression of her commitment to the sacred oath of safeguarding the assets and liabilities of the church and ordering relationship between the world of the church, its publics, and God.

This theological discussion of compliance within the dual contexts of accounting/law and religion/ethics opens a path to investigating what kind of personhood is presupposed in the discourse of accounting and money. In order to adequately understand accounting as expressed through compliance and to grasp money we must make a serious attempt to comprehend their underlying ontology of personhood. And to craft a theology of money, we must either side with the accounting-and-market-based ontology of personhood (homo economicus) or develop an alternative vision. The chapter ends with a discussion of a form of theological anthropology (relational personhood) as a premise for fashioning a theology of money in chapter 10, which is the last chapter of this book. It begins a search for theological ideas that can undergird (inform, reshape) the operation of economic and monetary systems. But before we reach there as the culmination of our study of accounting and money, we need to do some bush clearing so that the light of analysis in chapter 10 will shine brighter and its persuasive power enhanced.

First, in chapter 8, we will show that theological ideas have for centuries undergirded the operations of the global monetary and financial systems. This historical perspective is necessary to show that subjecting economic systems to theological critique and crafting theological-ethical principles to inform their operations is not the invention of this study. This writer is only following a tradition well worth preserving.

In chapter 9, I offer an elaborate theological critique of accounting, the fundamental accounting equation of asset = liability. The critique is designed to do two things. First, it will deepen the student’s understanding of the fundamental accounting equation. Second, the subtle analyses of chapter 9 will show that accounting carries a heavy theological-philosophical freight. The equation is not merely a mathematical expression but a neat and discerning summation of a worldview, a perspective of human relations that does not always fit with the biblical view of human sociality. The moral orientation implicit in the accounting equation cannot serve as an effective guide for a theology of money and monetary policy aimed at creating or undergirding an inclusive and embracing economic community.

In chapter 10 we will lay out the kind of monetary policy that can create and maintain an embracing economic community. In this chapter, we will highlight mutuality as the key category for understanding the nature of money, work, and monetary policy. The accent of mutuality is on comprehensive inclusiveness; that is, to include all groups, classes, sectors, and regions to participate fully in the economy so as to create flourishing lives for themselves. The significance of monetary policy is nurturing, fostering the social practices of money to fragmentarily approximate the mutuality of the triune Godhead. An ethical monetary policy, as we will demonstrate in this book, is about the continuous proper ordering and balancing of economic powers (potentialities) in community or communities to sustain harmonious relationships, reduce injustice, and acknowledge the worth of all persons. The ultimate meaning of monetary policy is its capacity to point to the trinitarian communion even as it helps to create a vibrant embracing economic community.

In the introduction and all ten chapters, technical issues of accounting are intertwined with theological-ethical issues of money. Both within the core of the technical accounting discourses and in the heart of “theology in motion,” each chapter examines the thickly social and relational nature of money.1 Each discussion is designed to provide students and pastors with the language and understanding to intervene in issues pertaining to economic injustice that are rooted in national and global monetary systems. Such know-how enables students and pastors to relate to the injustices of the monetary system at the affective and imaginative registers. This understanding will enable them to embody the social-justice teaching of their churches.

The various discussions of the theological aspects of money and accounting are designed not to distract the pastor/student from acquiring competence in the management of church finances. In the same vein, the provision of technical accounting and economic knowledges is also fashioned so as not to distract them from the social and theological context of the church or ministerial leadership. The two perspectives or strands of knowledge are well integrated to provide a vision—not a di-vision—of ministerial leadership. The combination of technical accounting knowledge and theological interpretation as provided in this book provides pastors and seminary students with the necessary understanding of the place and function of money in the ministry and in the wider economies in which they live, move, and hope to develop and strengthen their pastoral commitments to social justice. They will be able to interpret the economic signs of their parishes, effectively communicate them, lead in organizing others to resist injustices in the monetary systems, and embody the ideals necessary for a more just and egalitarian local-global economy. There is plenty in this book pertaining to accounting, money, and ethics to animate ministerial leadership and theological reflection for all those working toward creating a flourishing, inclusive, and embracing community in the United States.

1. The “theology of motion” section is not in chapters 4, 8, 9, and 10, which are more theological in orientation than technical accounting. To include it in these four chapters would be repetitive of the theological discourses that are already contained in them.