What is church financing?
It is no secret that all institutions require money to run smoothly. Whether it is a school or a library, everybody needs money to help keep their business going. So it should not come as a surprise to know that, even churches require money to run smoothly.
A church is a place where people come to pray and seek answers to their problems. It is said to be the one place that is free from sin and help those in need attain peace. But what if the church has to close down owing to not having enough finances to run? What will happen to those who need to pray but have no place to go to?
The only way that the church can sustain itself is if it receives money from the church goers apart from donations that it gets from influential people.
This money goes towards the upkeep of the church and the money that needs to be paid to the church staff and clergymen. Most churches are nonprofit organizations, which mean that they do not make money out of their service. They dedicate their lives in the service of god and their main aim is to provide to people an ideal place to worship.
In order for that to happen, it is important that the church plan out its finances and only receive whatever that it needs.
The money comes to the church in the following ways:
Tithes refer to 10% of a certain sum. As per the bible, people owe of god 10% of what they earn. So depending on how much a person makes, they must contribute 10% of it for the service of god. This can be done directly to the church and some people give their banks standing instructions to pay to the church a certain amount of money. This practice is said to have originated during ancient times and since there was no social security back then, the churches would collect 10% and then donate it for a good cause like an orphanage. These days, this money goes towards the upkeep of the church.
This money can be different from the money that people are required to pay when a basket or bag is passed around church for people to contribute and is better known as an offering. You can learn more about it here.
Donations refer to the bulk money that is paid by influential people to their churches. They donate the money for the upkeep and also for the church to be able to meet any unforeseen expenditure. Many times, celebrities end up donating huge sums of money to the service of god and the church can use this money to either pay off any mortgages or renovate it to give it a different look or have a certain aspect added to it like a belfry or a spire on top of it. The church pastors generally take a joint decision on it.