Like any other institution, religious institutions also need financial planning. However, greater need of sensitivity and care is required while dealing with religious institutions. Since religious institutions have a mission, values and an understanding by which they abide, it is important to act carefully. Financial planning in religious institutions consist of the following:
Financial Statement Audit
Financial audit is extremely important in financial planning. Just as in any other institution, even in a religious institute it is important to have a team of financial experts who deal with financial statement audit. This not only helps in addressing specific issues, but also uncovers any unique feature which pertains to the not for profit characteristic of these institutions.
Real Estate Advisors
Many a time, in case of a religious institute, new construction, buying or leasing of property etc. is involved. In such cases, real estate advisors are required to estimate the long and short term real estate valuations.
Organisational and Operations Reviews
There are several kinds of costs involved in conducting day to day activities. In addition, there is income in the form of donations towards religious institutions. Hence, it is important to have organisational as well as operational reviews which would help in bookkeeping of income and expenses.
Along with looking after the current expenditure it is necessary to assess the income and expenses which would accrue in the near future. As in the case of a religious institute, the income and expenses may come from some unaccounted and unknown sources. Therefore, it becomes even more important to account for them and figure the sustainability of the funds.
Tax implication affects all institutes. Therefore, it is essential to calculate the tax on income received from various sources.
With time, there has been an improvement in technology which has helped everyone from all walks of life. With the advent of better technology, obsolete tools and products need to be replaced. Therefore, it is not viable to use outdated equipment. It should be replaced with modern technological tools.