Church Financial Health Check

This checklist is designed to help pastors, boards, and finance committees assess the health, clarity, and sustainability of the church's financial systems. Unchecked items do not imply misconduct — they highlight areas where structure, capacity, or support may be strengthened.

1. Financial Transparency & Reporting

0/5

Monthly financial reports are prepared and shared with leadership

Reports include budget vs. actual comparisons

Cash balances and reserves are clearly shown

Restricted funds are reported separately from operating funds

Reports are reviewed and discussed, not merely distributed

2. Budget & Cash Flow Management

0/5

An annual budget is approved before the fiscal year begins

Actual spending generally aligns with the approved budget

Cash flow is monitored (not just income and expenses)

Seasonal giving patterns are understood and planned for

Projected deficits are identified early

3. Reserves & Financial Stability

0/4

Operating reserves are maintained

Reserve targets are defined

Reserves are used intentionally, not routinely

Debt obligations are reviewed annually

4. Accounting Controls & Safeguards

0/5

At least two unrelated individuals count offerings

Different people handle counting, recording, and depositing funds

Two approvals are required for checks or electronic payments

Receipts are required for reimbursements

Donor-restricted funds are never used for general expenses

5. Governance & Oversight

0/5

An active finance committee meets regularly

Roles and responsibilities are clearly defined

The pastor understands the church's current financial position

An annual audit, review, or outside financial check is conducted

Financial policies are documented and reviewed

6. Volunteer Capacity & Sustainability

0/5

Finance roles are adequately staffed

Roles rotate periodically to avoid burnout

No single individual holds multiple finance roles long-term

Volunteers receive orientation or training

New volunteers are welcomed into financial oversight