How much ministerial debt is too much debt?
Lenders use a formula called the Debt Coverage Ratio to determine whether a ministry’s debt is reasonable or too high. The Debt Coverage Ratio compares the borrower's annual net income (excluding mortgage interest and depreciation) to the annual debt payments. Basically, lenders like to see the ministry’s annual net income be anywhere from 10% to…
Don't throw away your bank and credit card statements.
OMG! I've seen this one too many times. Here's the scenario. The pastor or other board member receives all the monthly bank statements and credit card statements. They look over the statements, everything looks good, no errors, no fraudulent transactions. What next? They throw the statement away or better yet, they shred the statement. Why…