Understanding Benevolence from a Good Stewardship Perspective

Benevolence is a concept deeply rooted in compassion, kindness, and charity. Churches, with their strong sense of community and mission, are well-positioned to fulfill the needs of individuals in times of hardship. However, it is crucial for churches to strike a balance between generosity and financial responsibility. 

Benevolence programs aim to provide crucial financial assistance to individuals in need.  This may include help with rent, utilities, medical bills, food, transportation, counseling services, and job training. However, it is important to encourage recipients to explore other available resources and support groups to avoid solely relying on the church. 

While benevolence may be an essential aspect of a church's mission, it is crucial not to neglect other important activities. Allocating a significant portion of the budget to benevolence may hinder the church's ability to fulfill its broader purpose. Striking a balance between benevolence and other ministries ensures a holistic approach to fulfilling the vision, mission, and purpose of the church as a whole. 

Churches must prioritize financial sustainability and responsible stewardship of resources. Being too generous without considering long-term implications can lead to unsustainable programs and enable dependency on the church. It is essential to establish clear guidelines for the approval and distribution of benevolence funds, as well as mechanisms for measuring the effectiveness of the benevolence program.

Establishing a Benevolence Program:

To ensure the success and sustainability of a benevolence program, churches should focus on these seven pillars of good stewardship when establishing their program:

  • Stewardship of Purpose: Clearly define the purpose and goals of the benevolence program and its alignment with the church's overall mission.

  • Tithes and Offerings: Determine if the church will allocate a portion of the church's budget and/or establish a way for donors to give to a separate fund designated for benevolence.

  • Employees and Workers: Consider the impact of the program on church staff and volunteers.  Maintain anonymity of the approval committee from staff and prospective recipients.

  • Wisdom-Driven Finances: Set up procedures for tracking and reporting the use of funds and prioritize long-term sustainability of the church as a whole.

  • Accountability: Establish a workable approval process that seeks to create a balance between generosity and responsible stewardship of resources.

  • Risk Management: Identify and mitigate potential risks associated with the program including compliance with IRS guidelines, possible compensation reporting, and enabling dependence.

  • Donor Communication: Understand and adhere to the rules governing deductibility of donations and foster open communication with donors.

Benevolence programs are a powerful way for churches to demonstrate compassion and support their communities. Striking a balance between generosity and responsible stewardship is key to creating a lasting impact.

Is your church looking to develop a sustainable and impactful benevolence program? At The Good Steward Church Academy, we provide the guidance and resources you need to balance generosity with responsible stewardship. Join our community to learn how to establish a program that aligns with your church’s mission and supports your community effectively.

Visit GoodStewardChurchAcademy.com to explore our tools and resources for creating a benevolence program that makes a lasting difference. Together, let's practice compassion with wisdom and purpose!

Barbara L. Starley, CPA

Barbara is a best-selling author and trainer who uses her extensive QuickBooks(r) knowledge and professional expertise to serve primarily churches and related not-for-profit organizations. She is the founder of the Good Steward Church Academy, a member-based community of like-minded bookkeepers, pastors and treasurers who desire to honor God with their church finances.

As your On-Call Controller, Barbara bridges the gap between your in-house staff (maybe that's you) and your outside advisors. Her goal is to empower you to do what you can do yourself and to understand why you need to do it. You also have Barbara "on-call" for quick question support, further training, and troubleshooting, if your books get messy.

Churches, as a subset of all not-for-profits, are often under-served. Barbara believes that she has been called to change that. Integrity is a core value in how she trains and advises her clients. Having a clean set of books that tell a story and allow for wise-decision making is paramount to the success of any organization. She loves to see the light bulbs go on for her clients in the area of accounting and financial reporting and she looks forward to working with you!

https://www.goodstewardchurchacademy.com
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