--- title: "Church Bookkeeping: Offerings, Designated Funds and Pay" description: "Count offerings safely, track designated gifts and building funds, handle pastor compensation and give accurate giving statements." url: "https://mcc-solutionsnj.com/bookkeeping/guides/bookkeeping-for-churches" --- Bookkeeping guide · Updated October 12, 2026 # Church Bookkeeping: Offerings, Designated Funds and Pay Churches handle cash, checks, online giving and designated funds, usually run by volunteers who care deeply about stewardship. A few clear routines protect the congregation and the people handling the money. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** For a church, have at least two unrelated people count cash and checks together, sign a count sheet and send the deposit to the bank promptly. Rotate the counters, and match the deposit slip to the count sheet. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) · [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) · [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) **Free tools:** [What should I charge per hour?](/bookkeeping/freelance-hourly-rate-calculator) · [Depreciation schedule calculator](/bookkeeping/depreciation-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## Count offerings with two people Have at least two unrelated people count cash and checks together, sign a count sheet and place the deposit in a bag that goes to the bank promptly. Rotate the counters. The sheet should show the date, the total of cash, the total of checks and any envelope-designated gifts. A deposit slip that matches the count sheet creates a trail anyone can follow. ## Designated and restricted gifts When a member writes missions or building fund on a check or envelope, the church has accepted a commitment to use it that way. Track those gifts by fund, using classes or separate accounts, and report balances to the finance committee. If the church wants to move money from one fund to another, record the board decision. Using designated money for general bills is a common cause of trust problems. ## Online giving and giving statements Reconcile online giving platform payouts against the donation report each month, since fees may be deducted or donors may cover them. Members expect an annual statement of their contributions. Statements should only list gifts, and should note whether any goods or services were provided in return, with the wording your tax adviser recommends. Keep records for each giver, but protect them from casual access. ## Pastor and staff compensation Clergy have special tax rules that differ from ordinary employees, including how housing allowances and self-employment tax are handled. Make the housing designation in advance in the way your governing body requires, and ask a CPA experienced with churches to set it up. Do not guess. Other staff members are normally treated as employees with standard payroll, and secular tax filing rules for payroll still apply. ## Budgeting, reports and oversight Prepare a budget at the start of the year, and give the board or finance team a monthly report showing income, spending and fund balances. Add loan payments, insurance, utilities, and benevolence to the plan. Have someone outside the check-writing process review the bank statements. Churches often qualify for special filing treatment with the IRS, but that differs by organization, so confirm with a tax professional what applies. Also remember that the building and the vans are assets with insurance and upkeep costs that belong in the long-range plan. ## Benevolence, loans and the building Money given to help individuals in need should follow a written policy approved by the leaders, with a record of the date, amount and approver, while protecting the privacy of the person helped. If the congregation has a mortgage, record interest and principal correctly and keep the loan schedule in the minutes. Capital campaigns should have their own fund and a regular report so givers can see progress. These habits build trust far more than any software does. Once a year, have someone outside the finance team review the books, the count sheets and the bank statements. Report the results to the congregation in plain language, including income by fund, spending by ministry and the balance of each designated fund. ## Common questions **Should the pastor handle the money?** It is better when the pastor is not the only person who sees and approves the finances. Shared oversight protects everyone. **Is a church automatically tax exempt?** Not automatically in every sense. Confirm your status and filing obligations with a tax professional or the agencies involved. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online) More guides - [Bookkeeping for Photographers and Videographers](/bookkeeping/guides/bookkeeping-for-photographers) - [Freelancer Bookkeeping: A Simple System That Works](/bookkeeping/guides/bookkeeping-for-freelancers) - [Bookkeeping for Airbnb and Short-Term Rental Hosts](/bookkeeping/guides/bookkeeping-for-airbnb-hosts) - [Bookkeeping for Daycares and Child Care Providers](/bookkeeping/guides/bookkeeping-for-daycare-centers) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Church Contribution Statement Maker Log the offering all year, then print every donor's statement in January. [See what's inside ($25)](/toolkits/church-contribution-statements)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)