Church savings account??

I was told that since our church is non profit that at the end of the year we have to have a zero balance .. And that any money left on our savings account has to be spent. Is this correct? Thanks!

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Aug 20, 2015
Church savings account?
by: Lewis in NC

Low collections fund may be needed; I worked for a church for 5.5 years with $300,000+ budget, and never heard talk that all savings had to be dissolved at the end of the year. The fact was, we had some savings for rainy days, and they do prove to be needed from time to time. Month to month income doesn't always exactly match month to month expenses--even in the church.

Nov 05, 2015
Church Savings Account
by: Kevin in South Bend

No, you do not need to zero out your bank accounts at the end of the year. Non-Profit does not equal no-cash.

You are able to carry cash balances for next year's budget, future projects and rainy day funds.

A church is able to carry as healthy a bank account as they see fit into their next fiscal year to carry out the mission of that church.

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If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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