Accounting in a Non-Profit Organization

1. Accounting in a Non-Profit Organization Saddleback Church By Christine Stroh Laguna Hills High School

2. Externship Goals When I approached this Externship, my goals were to: • Learn about the overall accounting procedures of a Non-Profit organization such as Saddleback Church. • Observe the daily routine of staff employees so as to better relate ‘on the job’ tasks to my students. • Understand the skills and abilities required to be successful in the accounting field. • Research the education and work experience necessary to enter a career in accounting.

3. Saddleback Church • Saddleback Church was started over 30 years ago and has grown into one of the largest churches in our nation. • Churches are non-profit organizations which makes them tax exempt. • Profit and Non-Profit organizations must follow the same Generally Accepted Accounting Procedures (GAAP). • Non-Profit organizations are organized and have the same accounting departments as Profit organizations.

4. Overall Organization Each of the following areas of the church is handled as a separate business for accounting purposes: Building Designated Giving Resources Conferences Regional Sites Building Resources Designated Giving Conferences

5. Accounting Employees/Departments • Comptroller • Financial Director • Accounts Payable • Accounts Receivable Contributions/Tithes • Payroll (There are 475 employees in the church. They rely on volunteers for many tasks.)

6. Responsible for organizing, directing and controlling the work of the accounting personnel. Directs budget and cost controls and accounting practices. As a member of the top management team, helps develop forecasts for proposed projects of the organization. Measures actual performance against operating plans and standards and interprets the results of operations for all levels of management. ComptrollerTop level management

7. Saddleback Church--ComptrollerBackground and Experience • Attended the University of Washington--Business/Accounting/Finance. • Worked as a temp during summer in accounting and found she had a gift for this career. • Aptitudes/Abilities: Is very organized, likes to work with numbers. Must have critical eyes to keep aware of everything that is taking place. Good communication skills to be able make sure non-financial personnel understand reports. • Has a mindset that Comptroller's job is to make the company succeed. • Worked her way up in Accounting field and is now in top level management.

8. Financial DirectorPeace Plan • Directs financial activities of organization and prepares reports which summarize and forecasts company business activity. • Establishes, or recommends to management, major economic objectives and policies for company or subdivision. • Directs preparation of budgets. • Advises management on desirable operational adjustments.

9. Saddleback Church--Financial DirectorBackground and Experience • Attended California State University, Fullerton • Worked as Certified Public Accountant for 10 years starting as staff employee and moving through Audit Manager to Senior Audit Manager—major responsibilities were in the area of auditing local businesses. • Aptitudes/Abilities: Enjoys strategic planning and is able to design systems to work with the needs of the organization. Ability to project cost and cash flow for future endeavors. • Must have good people skills since working with managers and staff is a major part of the position.

10. Accounts Payable Daily Routine • Generates all checks • Verifies invoices • Handles customer care/services involved in ordering resources for church • Uses industry standard software • Reconciles bank statements • Uses Excel spreadsheet to organize payables and then download into General Ledger software • Handles Point of Sale reports from designated giving • Education and Experience • Saddleback Church—Accounts Payable Staff Employee • California State University, Fullerton bachelor’s degree in Business Management • Needs to be very organized and exacting • Needs to be trainable; knowledge of Word, Excel and 10-key calculator a must • Must have good ‘people’ skills

11. Accounts ReceivableResource Revenue, Contributions and Tithing Daily Routine • Records all revenue from church resources from point of sale and online sales • Accepts daily receipts from the bank; verifies for accuracy • Records all designated contributions • Records all receipts generated from seminars and conferences • Organizes volunteers who work weekly in the ‘counting room’ organizing and batching tithing from services • Oversees the recording of all contributions to individual member’s accounts • Education and Experience • Saddleback Church—Accounts Receivable Staff Employee • On the job training at Ralph’s Grocery store—30 years • Volunteered in the ‘counting room’ • Works very closely with volunteers

12. Payroll Daily Routine • Uses industry standard software • Utilizes Excel software to organize employee time cards • Forty-five percent of employees are salaried; Pastors get a special tax status • Verifies employees time cards, tallies hours, verifies break time, checks work permits, etc. • Checks that supervisor has approved employee time cards • Soon will have online time card software! • Education and Experience • Saddleback Church—Payroll Employee • Washington State—bachelor’s degree in Hotel and Tourism • Worked in Accounting and just loved it; it was exactly the right field for her • Must have knowledge of Word and Excel and 10-key calculator

13. Skills Necessary to Succeed in the Field of Accounting • Attention to detail • Knowledge of Word, Excel and 10-Key • Enjoy working with numbers • Good communication skills; writing and listening • Enjoy working with people • Ability and willingness to learn new procedures • Must be a team player

14. Education for Accounting Career Educational Requirements • Entry level job opportunities require a community college certificate and work experience. • Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. • Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting.

15. Job Outlook • Strong growth of accountants and auditor jobs over the 2006-16 decade is expected to result from stricter accounting and auditing regulations, along with an expanding economy. • The best job prospects will be for accountants and auditors who have a college degree or any certification, but especially a CPA

16. Salary • Median annual earnings of wage and salary accountants and auditors were $54,630 in May 2006. • The middle half of the occupation earned between $42,520 and $71,960. • The top 10 percent earned more than $94,050, and the bottom 10 percent earned less than $34,470.

17. Thank you I would like to thank everyone at Saddleback Church who took time out of their busy schedule to help me with my project. My students will greatly benefit from the insight I gained from all of you. Thank you so much.