Essential Tips for Sending Out Church Financial Statements (+ User-Friendly Templates!)

Most church leaders don’t get into ministry to spend their time managing church finances, but accurate church financial reporting is one of the most crucial tasks a church can pursue to stay healthy! From church financial reports to end-of-year giving statements, here are a few need-to-know tips about church financials. 

What Are Church Financial Statements?

Church financial statements are essentially a snapshot of a church’s finances. (Take a look at the church financial report examples below for a clearer picture!) These reports usually include a balance sheet that tracks what the church owns and owes, an income statement that shows what’s coming in and going out over a specific period, and cash flow statements that keep tabs on cash movements. They're super important for keeping the church’s finances on track and healthy!

What Are Church Giving Statements? 

Church giving statements are a bit different from general church financial reports. They specifically detail the donations made by each person in your church. While some churches might send these giving statements along with the broader financial reports, it's not a must to pair them up. 

Do Churches Have to Provide Members with Financial Reports? 

As a church leader in the United States, it’s important to understand when your church is required to provide a church financial report to the congregation. So, do churches have to provide members with financial reports? Generally, churches are exempt from the obligation to publish detailed financial reports like other non-profit organizations. There are certain exceptions to this, however. 

When your church offers goods or services in exchange for donations, it triggers a requirement for disclosure if the value of what’s received exceeds $75. This is known as a quid pro quo contribution. For example, if a donor gives your church $300 to support a teen’s trip to youth camp and receives three youth camp sweatshirts in return that are worth $80 total, the IRS mandates that you provide the donor with a written statement. This statement should clarify that only $220 of their donation is tax-deductible. (To see this in action, check out the Church Financial Report Template for Goods and Services Over $75 below.)

This rule is crucial not just for donor clarity, but also for ensuring compliance with IRS regulations. The arrangement allows donors to accurately claim their tax deductions and ensures your church maintains its financial integrity.

Should Churches Send Out End-of-Year Giving Statements?

If you’re wondering whether or not your church needs to send out giving statements at the end of the year, the answer is a resounding yes! While there may be no legal requirement to do so, people expect to have access to their tithing records for both personal tracking and tax purposes. 

Sending a giving statement, along with a pastoral note of appreciation and a copy of the church's financial report, enhances transparency and builds trust within your congregation. It also reminds donors that everyone is working together toward the same financial and ministry goals.

This may sound like a lot of administrative work, but it doesn’t have to be! With Tithe.ly’s easy-to-use giving statement feature, it’s simple for you to download and distribute giving statements to your congregation! By following the church financial statements examples below, it should take very little time to organize and distribute your own church financials!

You can then send a physical copy to each donor in the mail or send a digital copy via email. 

When Should You Send a Church Financial Report to Your Congregation?

If you do decide to send out end-of-year giving statements, it's a great opportunity to include a copy of your church's financial report. Ideally, these should be sent out between January 1st and 31st to account for any year-end donations.

As compared to a yearly report, many churches opt to release their financial statements quarterly. This regular update keeps the congregation informed about the church's financial status. Some churches choose to enhance transparency by posting these quarterly statements on their website, while others prefer to include them in church bulletins or send them through the mail.

Additionally, some churches host biannual meetings where they present the financials and open the floor for questions and answers. This practice fosters a sense of accountability, transparency, and community involvement.

No matter when you choose to distribute your church financial report to the congregation, it's always a beneficial practice!

Free online giving tools for your church

Tithely provides the best online tools to help you increase generosity, manage your church, and engage your church members.

Sign Up Free

Church Financial Statements Examples

Looking for church balance sheet examples or sample church financial statements? Here are three examples to help you visualize how these documents can look:

Church Financial Report Template for Goods and Services Over $75

Dear [Donor's Name],

Thank you for your generous support of [Church Name]'s Youth Camp! We are grateful for your commitment to our youth programs. Below are the details of your contribution for your records and tax purposes.

Donation Details:

• Date of Donation: [Date]
• Total Donation Amount: $300
• Purpose of Donation: Supporting Youth Camp

Gift Received:

• Item(s) Received: Three Youth Camp Sweatshirts
• Total Fair Market Value of Gifts: $80

Tax-Deductible Contribution:

• Total Donation: $300
• Value of Gifts Received: -$80
• Tax-Deductible Amount: $220

Please retain this statement as your receipt for IRS tax purposes. The deductible amount of your donation is $220, after accounting for the value of the sweatshirts you received. This ensures compliance with IRS regulations regarding quid pro quo contributions.

Impact of Your Donation:

Your donation will directly fund the costs associated with our upcoming youth camp, helping provide a meaningful and engaging experience for all attendees. Your generosity enables us to offer these enriching programs that make a significant difference in the lives of our young members.

Need More Information?

If you have any questions about your donation or require further information, please feel free to contact our office at [Church's Contact Information]. We are here to help!

Thank You!

Your support is invaluable to us, and we are deeply appreciative of your generosity. Thank you for playing a crucial role in nurturing the spiritual growth and development of our youth.

Warm regards,

[Your Name]
[Your Position, e.g., Treasurer]
[Church Name]

Quarterly Church Financial Report Example

Grace Church Quarterly Financial Update - March 2024

Hello Grace Church Family!

Here's a quick look at our church's finances for the first quarter of this year. We want to keep everyone in the loop and make sure you know how we're using the funds you generously contribute.

What We Brought In:

• Total Money Received: $75,000some text
  • From our regular services (Tithes and Offerings): $45,000
  • Special donations: $15,000
  • Money from fundraising events: $10,000
  • Rent from church property: $5,000

What We Spent:

• Total Expenses: $65,000some text
  • Staff salaries: $30,000
  • Helping out in our community and missions: $10,000
  • Fixing and maintaining our building: $15,000
  • Office and other admin costs: $10,000

Our Savings:

• Started With: $20,000 in cash
• Added This Quarter: $10,000 (Income minus Expenses)
• End of Quarter: $30,000 in cash

Big Stuff We Own:

• Our church buildings and equipment are worth $500,000 after accounting for use and age.

Debts We’re Paying Off:

• Mortgage for our buildings: $300,000
• Other bills due soon: $5,000

Cash Flow Details:

• Cash we used for daily activities: $12,000
• Spent on new office equipment: $2,000
• No new loans or debt payments this quarter

Looking Ahead:

We're in a good financial spot as we step into the next few months. We’ll keep watching our spending carefully and plan to boost our fundraising to support more community projects and missions.

A Note from Our Treasurer:

We’re thankful for the strong start to the year, thanks to your amazing support. We promise to keep managing our finances wisely to help our church and community grow stronger together.

Sample Church Balance Sheet 

• Assets:some text
  • Cash: $30,000
  • Building and Property: $1,000,000
  • Other Assets: $20,000
• Total Assets: $1,050,000
• Liabilities:some text
  • Loans: $300,000
  • Other Liabilities: $50,000
• Total Liabilities: $350,000
• Net Assets: $700,000

Sample #2: Church Income Statement

• Income:some text
  • Tithes and Offerings: $200,000
  • Fundraising: $50,000
  • Other Income: $10,000
• Total Income: $260,000
• Expenses:some text
  • Personnel: $100,000
  • Operations: $50,000
  • Missions and Outreach: $80,000
• Total Expenses: $230,000
• Net Income: $30,000

Note: This church balance sheet example is just one of many ways to distribute financial information to your congregation. Graphs are also a very reader-friendly way to communicate income, spending, and savings. 

Tying It All Together

By tying together the sample church financial statements and the church balance sheet sample above, you can create a solid church financial report to send to your congregation!

Are you looking for more ways to simplify financial reporting at your church? Tithe.ly’s online giving tool is used by 37,000+ churches, and it has no monthly fees! Sign up for free today!

‍