How to Be Transparent About Money

Excerpt

“I wish we were more transparent about our finances.” For almost every problem congregations face, transparency is one proposed solution. Treasurers and business managers—who work hard to produce honest, accurate reports—often are surprised by the implication that they’re hiding something. Transparency is good, but flooding people with more data rarely solves the problem. True transparency requires a plan to give financial information to each of four distinct audiences. Rather than more data, people need more information—data framed so that it in-forms their thinking. Not everybody needs and wants the same information—it depends on their decision-making roles. Here are some suggestions about the information each group needs: Paid and unpaid managers People who manage programs, buildings, personnel, and cash flows need information that helps them control cost, monitor revenues, and achieve goals. Line-item budget spreadsheets are a good format for informing operational leaders how they are doing. Good communication goes both

GOVERNANCE & MINISTRY

by Dan Hotchkiss

How to Be Transparent About Money