INCOME STATEMENT ON DEMAND
One of the ECFA's biggest members is the Illinois-based Willow Creek Community Church, which draws 21,000 regular weekend worshipers to its main headquarters and a few smaller regional affiliates.
Its CFO, Brian McAuliffe, willingly released a copy of its latest audited financial statement -- in keeping with ECFA standards.
Its combined financial statement for 2006 and 2005 details investments and assets held for endowment (over $12.6 million in money market funds, certificates of deposit and government securities -- safe, conservative investments).
Revenue in 2006 included almost $37 million from contributions alone with a total flow of over $45 million.
Expenses show where the money went, with $22 million being spent on worship and programming, which includes staff and operating costs for services plus amortization for buildings and equipment.
"If you look at the size of this church and its complexity you see the need for this approach," McAuliffe said.
Indeed, churches that choose to eschew openness can find themselves in hot water with members eager to keep a handle on how their donations are spent.
In Kansas, the evangelical First Family Church, which has about 5,000 members, has seen some members and employees leave because of questions about a lack of financial transparency and an appearance of lavish spending on homes, trips and cars by senior pastor Jerry Johnston.
The church's failure to comply with the ECFA standards also led a leading Christian radio network in July to drop the Rev. Johnston's daily program from its lineup.
Finding transparency has paid off for troubled churches.
In the town of Euless, north of Dallas, the huge First Bapist Church was found to be insolvent in October of 2004.
Administrative pastor Gary Phillips said one of the first reforms he introduced was accountability.
"We began to communicate weekly to the members what the financial conditions were," he said.
"Once the people were confident that their money was going where they intended it to go they began to respond by giving at a whole different level," he said.
As a result the 9,000-member church managed to pay off a $6.5 million debt in 30 months and get back in the black.
