Church Finance

Definition and Meaning

Church finance refers to the work and systems by which a church manages its income and expenditures. Income consists mainly of offerings, which are divided into categories such as tithes, thank offerings, and building fund offerings. Expenditures include honoraria (salaries) for ministers; costs for worship, education, missions, and relief; and building maintenance. Recording and organizing the books is called church accounting. Making budgets and financial statements known to members or to outside parties is called financial disclosure.

Biblical and Historical Background

The early church shared what its members possessed and distributed to those in need (Acts 4:32-35). It also appointed seven men specifically to oversee relief (Acts 6:1-6). While gathering a collection for the church in Jerusalem, Paul wrote that he was "avoiding this, that no man should blame us in this abundance which is administered by us: providing for honest things, not only in the sight of the Lord, but also in the sight of men" (2 Corinthians 8:20-21). This passage is frequently cited as a basis for financial transparency.

In keeping with the self-support principle of the Nevius Mission Plan, the Korean church is known to have sought from its earliest days to sustain itself through the offerings of its members rather than through missionary funds.

Practice in Korean Churches

The body that makes financial decisions differs according to a church's form of government.

• In Presbyterian churches, the session often prepares the draft budget, and the board of officers is responsible for carrying it out. The budget and year-end financial statements are generally approved by the congregational meeting, the assembly of all members.
• Churches that follow congregational polity (in which the whole membership makes decisions), such as Baptist churches, often decide financial matters in a business meeting that functions as a general assembly of members.
• Methodist, Holiness, and other churches follow the bodies and procedures set out in their denomination's church constitution. The names and authority of these bodies differ from those in Presbyterian churches.

Day-to-day work is handled by a finance committee, and officers such as deacons often serve as treasurers and auditors. Some churches print offering records or lists of contributors in the church bulletin, while others do not, citing privacy.

Korean courts generally regard a church as an unincorporated association, and they treat church property as chongyu, a form of collective ownership held by the membership as a whole. As a result, when a church splits, disputes over property sometimes lead to litigation.

With the implementation of taxation of religious workers in 2018, the need for proper accounting, including the reporting of ministers' honoraria, has grown. Organizations such as the Christian Ethics Movement of Korea have called for external audits and financial disclosure. Others, however, hold that financial administration should be left to the autonomy of each church.