Help! My Church is a Mess

By Raul Rivera

Every day, pastors and church leaders across the country come to the conclusion that the administrative and business sides of their church are a mess.

Take Jordan for instance.

He recently took over the 22-year-old church his father started in Linthicum Heights, Maryland. The church initially started in the basement of their home when Jordan was 9 years old. His father was a great, faithful, and honest man. He always placed the well-being of the church before his own interests. Although he was retiring as the pastor, he was not retiring from ministry.

With great eagerness, Jordan took on the task of pastoring the church that his father had started.

The congregation loved Jordan as the new pastor that would continue the vision of his father. However, there was an important difference between Jordan and his father. His father was “old school” when it came to church finances and IRS compliance. Salaries were not properly reported, love offerings were treated as gifts, board meeting minutes were rarely taken, and he had full control of the checkbook as the pastor. 

While Jordan trusted his father, he knew that if the church was audited, the IRS would not have mercy on it.

"Help! My Church is a Mess"

Also, Jordan had concern because the church building was deeded in the name of his father when it was purchased 16 years ago. For the first 5 years of paying the church mortgage, his father made all the payments of $2,900 per month out of his own pocket. Afterwards, the church made all the remaining mortgage payments from year 6 until the present. 

Jordan knew that his father gave far more to the church than he ever took from it. However, he still had an unsettling feeling about the administrative and business sides of their church. As he contemplated about what he should do, Jordan thought to himself, “I love this church, but it is a mess!” 

The ugly side of ministry

When you think about the administrative and business sides of your ministry, what feelings or emotions does that evoke?

Do you cringe a little? Do they make you feel guilty for remaining on the “back burner”? Have they become the elephant in the room that no one wants to address?

(Recommended reading: “How to Start a Church the Right Way”)

Perhaps you started your church or ministry with the intention of doing things right. However, as time went by, your church’s administrative and business sections became the ugly side of your ministry that you hope no one ever sees.

When you think about the administrative and business sides ministry, what feelings or emotions does that evoke?

So, if you feel like your church is a mess, what can you do to fix it?

(Recommended reading: “How to Protect Your Church Before It’s Too Late”)

Is it time for your church to start over?

Thankfully, Jordan and his father had a great relationship. After attending a conference on the topic of church compliance, Jordan knew exactly what to do. He would tell his father about what he learned at the conference. He would explain how the church could reincorporate, obtain 501(c)(3) status as a successor organization, and establish a brand new corporate structure. 

Since his church was in need of a fresh start, it was important that very precise and orderly steps be taken in order to ensure a smooth transition. 

Below are the seven steps that Jordan learned for his church to start new:

1. Create the new corporation using precise language in the purpose clause. The name has to be a little different from the previous church.
2. Get a brand new tax ID number (EIN). It is important that the number be the correct one for either a church or ministry.
3. Open up a new checking account in the name of the new corporation.
4. Create brand new bylaws that reflect your church’s disciplines of faith, and make sure to include the prohibited activities clause and proper membership documentation.
5. Start the 501(c)(3) process of the new corporation. It is in the 501(c)(3) process that the church must properly document the church’s disciplines of faith to best protect the church’s First Amendment defense. This is critical because the legislative culture of our land is becoming increasingly hostile to churches. 
6. Transfer the assets of the old church to the new church as a donation. It is important that the transfer be approved through a meeting of the board of directors. Things to transfer are cash, equipment, chairs, computers, automobiles, and real estate. 
7. Properly dissolve the old corporation. It is necessary to dissolve the old church according to state law. 

(Recommended reading: "Does a Church Need to be 501(c)(3) Approved?")

What is the next step for you?

At StartCHURCH, we meet many pastors who are in a similar situation as Jordan. However, do not think that you have to start over every time you feel that your church is out of compliance or is a mess. There are steps that you can take to correct your church’s path without having to start over.

For instance, our Bookkeeping Service provides you with the necessary tools to assist you in keeping track of your church’s finances and giving statements. Additionally, our KeepRight Program is designed to help you keep up with state and IRS compliance annually. 

If you are wondering how these services can benefit you and your church, call our office today at 877-494-4655. One of our knowledgeable staff members will be happy to answer your questions.

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