Chitwood & Chitwood

Supporting missionaries across borders requires more than sending funds: it requires clear documentation and careful reporting.

Churches and ministries should maintain accurate records of:
• Support paid directly to or on behalf of missionaries
• Receipts and substantiation for ministry-related expenses
• Travel, housing, allowances, and other reimbursements
• Foreign accounts, banking activity, and contribution records

Depending on the facts, foreign banking reports and other information filings may apply. Incomplete records or missed requirements can create avoidable compliance concerns for your organization.

Are your missionary support and foreign contribution processes organized, documented, and ready for review? Chitwood & Chitwood provides specialized accounting and compliance guidance for churches and ministries.

Reach out before questions become costly problems.

Missionary support can cross borders: but your financial records should remain clear, consistent, and well documented.

Use this practical checklist for your church or ministry:

• Record contributions designated for missionary support accurately and consistently.
• Document direct payments for ministry expenses, travel, housing, and allowances.
• Maintain receipts and written records for reimbursements under an accountable plan.
• Review foreign bank accounts and international banking activity for potential U.S. reporting obligations, such as FBAR requirements.
• Continue reviewing foreign account and information filings with a qualified advisor as circumstances change.

Clear documentation protects both the ministry and the missionary. It supports responsible stewardship, strengthens internal controls, and helps prevent costly compliance problems.

If your church or ministry supports workers internationally, now is a good time to review how those funds and expenses are recorded. The right financial systems make cross-border ministry easier to manage with confidence.

Church leaders: worker classification is not just a paperwork detail: it affects payroll, reporting, and your ministry’s financial stewardship.

Before paying staff, ministers, contractors, or volunteers, review each role carefully:

1) Evaluate the relationship using IRS considerations: behavioral control, financial control, and the nature of the working relationship.

2) Obtain a completed Form W-9 before paying any contractor.

3) Issue Form W-2 to employees and Form 1099-NEC to qualifying independent contractors.

4) Document volunteer roles and process reimbursements under a properly established accountable plan. Be cautious with stipends or other payments, which may affect classification.

5) Confirm that payroll tax deposits and reporting match the worker’s correct classification. Ministers may have special tax considerations, so do not assume every ministry role follows the same rules.

Misclassification can lead to back taxes, penalties, interest, and trust fund exposure. When the facts are unclear, document your analysis and seek qualified guidance before making payments or filing reports.

A thoughtful classification process protects your church, supports accurate reporting, and strengthens trust with your staff and congregation.

Who is authorized to sign for your church: and are those limits clearly documented?

A strong financial control system should define:

• Board authorization limits for contracts, checks, loans, purchases, and other commitments
• Specific individuals designated to sign on the church’s behalf
• When electronic signatures are permitted and how they are verified
• How temporary or ongoing delegation is approved and recorded
• Which transactions require multiple approvals or dual signatures

Without clear documentation, a well-intentioned staff member or volunteer could create an unauthorized obligation for the church. That can lead to confusion, disputes, financial loss, and compliance concerns.

Review your bylaws, board resolutions, banking authorizations, and internal policies regularly: especially after leadership transitions. Make sure delegated authority is written, approved, communicated, and kept current.

Need help strengthening your church’s financial management systems? Chitwood & Chitwood provides specialized accounting and advisory services for churches and ministries.

A worship service can be spiritually meaningful: and still create legal and financial exposure if music and media use isn’t properly licensed.

Use this practical checklist:

1. Confirm active licenses. Review CCLI, CVLI, or other licenses and verify exactly what each one covers.

2. Check streaming rights. Make sure your permissions include online worship services, livestreams, archived recordings, and any clips shared afterward.

3. Document special permissions. Obtain written approval for curriculum, videos, music, presentations, and special events when required.

4. Establish written media-use rules. Staff and volunteers should know what may be copied, displayed, recorded, streamed, or posted: and what requires prior approval.

5. Track renewal dates and retain records. Keep licenses, invoices, permissions, correspondence, and usage documentation organized and ready for review.

A licensing gap creates real liability. Media use should be intentional, authorized, and documented as part of responsible ministry stewardship.

Is your church’s licensing process current, clear, and audit-ready? Chitwood & Chitwood helps churches and ministries strengthen financial management and compliance systems.

Before your church launches a raffle, bingo night, or fundraising event, make sure compliance is part of the plan: not an afterthought.

Ticket pricing, prize values, gaming rules, and event operations can affect your state and local requirements. Depending on the activity and location, your church may need permits, registrations, specific disclosures, or detailed records.

Fundraising proceeds may also receive different tax treatment depending on how the activity is conducted and whether it relates to your organization’s exempt purpose. Keep organized documentation for ticket sales, donations, expenses, prizes, winners, deposits, and required state or IRS filings. Certain prizes or gaming activities may create additional reporting obligations.

A well-planned event protects your ministry, supports transparency, and helps prevent avoidable penalties or compliance concerns. Before tickets go on sale, review the rules with qualified church accounting and tax professionals.

Is your church prepared for its next fundraising event? Chitwood & Chitwood helps churches and ministries navigate accounting, tax, and compliance needs with confidence.

Clear financial reporting builds trust and encourages generous, faithful giving. When churches share timely, board-approved summaries with the congregation, they demonstrate faithful stewardship and help members see how their gifts support ministry.

A practical transparency checklist for church leaders:
✅ Publish a budget-vs-actual summary on a regular cadence (monthly or quarterly)
✅ Report year-to-date giving and progress toward ministry goals
✅ Present restricted funds separately : clearly identifying gifts designated for a specific purpose
✅ Show a simple cash position and reserve summary members can understand
✅ Obtain board review and approval before public distribution
✅ Protect donor privacy : never publish individual giving details
✅ Invite questions and provide a clear channel for members to request more detail

Transparency is more than good practice : it reinforces financial peace of mind for leaders and givers alike. Chitwood & Chitwood helps churches and ministries build reporting systems that are clear, consistent, and compliant.

Need help strengthening your church's financial reporting? We're here to help.

If a fire, flood, ransomware incident, sudden staff loss, or banking disruption affected your church tomorrow, could essential payments and financial operations continue?

A financial continuity plan helps your church recover with less confusion and greater peace of mind. Make sure your plan includes:

✅ Secure, regularly tested backups of accounting, payroll, contribution, insurance, and banking records
✅ A current list of critical contacts, payment deadlines, vendors, and financial institutions
✅ Alternate approval authority if a pastor, treasurer, trustee, or administrator is unavailable
✅ Protected access credentials and a documented process for transferring access when needed
✅ Preserved copies of insurance policies, bank records, leases, and key financial documents
✅ A written recovery sequence for payroll, bills, deposits, contributions, and reporting
✅ Periodic testing so your team knows what to do before an emergency occurs

This is more than cybersecurity. It is operational preparedness: making sure your church can keep serving its congregation while financial systems and responsibilities are restored.

Chitwood & Chitwood helps churches and ministries build sound financial systems and continuity practices tailored to their needs. Contact our team to discuss how prepared your church is for the unexpected.

Pastors and ministry leaders: Donor-advised fund gifts require careful attention to timing, documentation, and stewardship.

For most DAF contributions, the donor’s charitable deduction is tied to the date the sponsoring organization receives and accepts the contribution: not the date your church or ministry receives a grant. Year-end deadlines may vary by sponsor and by asset type, so donors should plan ahead.

Proper substantiation matters. Donors should retain the acknowledgment or receipt from the DAF sponsoring organization. Contributions of noncash assets may require additional documentation, including an appraisal or Form 8283, depending on the circumstances.

When your organization receives a DAF grant, record it as a contribution from the sponsoring organization. Do not issue an individual charitable-contribution receipt to the donor who recommended the grant. Instead, acknowledge the grant promptly, document any stated purpose or restrictions, and provide meaningful updates about how the funds support ministry.

Clear records and thoughtful stewardship protect compliance while strengthening donor trust. If your church or ministry needs help reviewing contribution procedures, Chitwood & Chitwood can help you build a sound financial process.

Actual ministry needs can change: and when they do, your church budget should change through a documented approval process, not an informal conversation.

Use this practical checklist:

1. Identify the variance. What changed from the approved budget, and why?
2. Explain the ministry impact. Connect the requested change to the ministry need or opportunity.
3. Document the proposed amendment. Include the affected accounts, dollar amounts, funding source, and financial impact.
4. Obtain approval before committing funds. The authorized board or committee should approve the amendment according to your church’s governing documents and financial policies.
5. Update the accounting system. Make sure the amended budget is reflected in your reports and financial software.
6. Retain the documentation. Keep the board minutes or written resolution with the approved budget records.

This is more than a general mid-year financial check-up. A formal budget amendment creates clear governance, authorization, and accountability: helping protect your church and provide peace of mind for pastors, treasurers, and ministry leaders.

Need help strengthening your church’s budget amendment and approval process? Chitwood & Chitwood provides specialized accounting support for churches and ministries. Send us a message to discuss your needs.