Question: Our church plant has not survived the first couple of years. Unfortunately, it received contributions towards a future facility. What are we legally to do with those funds now?
Answer: This question is disappointing on several levels. It breaks my heart when for any reason a church can no longer continue. It is also sad when an individual believes in and contributes toward a vision (in this case a building) that will not come to pass.
Donations designated for a specific purpose can only be used for that purpose. This church will need to ask each contributor to the fund where they would desire to redirect their amounts.
In a continuing church simply redirecting the donations to another area of ministry is the simplest and often preferred choice. However the funds can be redirected to any other charitable organization.
The donor could also request that the funds be returned. There is no reporting required to the donor or the government for the refund. The donor would not receive a 1099.
Blog Author
- C. Paul Glenn
- is the Executive Director of Finance & Operations at Grace Covenant Church in Cornelius, NC. He is also Chairman of Harvests of Hope Int'l. He has an accounting degree from Oral Roberts University and has been married to Susan since 1989. They have two children. Prior to ministry Paul packed a wealth of experience into his career path which includes positions as a public accountant, a financial analyst, a controller and CFO, as well as a management consultant. His pastor’s heart guides a passion to oversee the business aspects of ministry to (1) see the lost find Christ and (2) to allow other pastors and leaders to more freely shepherd their congregations. He regularly consults churches regarding his unique insights on church construction and is also coaching and mentoring over 120 churches in aspects of administration. Working with a team to found Harvests of Hope Int'l he now has the privilege as its Chairman to bring hope to families affected by HIV/Aids throughout Africa.
Monday, April 4, 2011
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