Operational Metrics for Churches Ideas to monitor the health of your Church

Rebecca M. DaVee, CPA Tammy Bunting DaVee Consulting – Owner DaVee Consulting – Owner

Glen Strack, CPA DaVee Consulting - Senior Intacct Specialist

CPE Sponsor: Ratliff & Associates

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Today’s Agenda

Housekeeping Items Introduction of Speakers Learning Objectives 1. Why do we measure 2. What should we measure 3. How do we present results

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Housekeeping

• Webinar will last approximately 55 minutes • Important for Participants to be “mute” during presentation, to

eliminate echo. However at the end we will have “open microphone” for questions/comments

• As we cover the various material, please post your questions in the chat box of our GTM electronic platform and we will answer questions as they come up during the presentation

• Sign in/ Evaluation Form • 1 Hour CPE Credit - you must answer the questions included in the

evaluation form, plus verify your attendance, sign and submit your form in order to receive credit from Ratliff & Associates.

• Any questions?

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Introductions

Rebecca DaVee, CPA Tammy Bunting Glen Strack, CPA DaVee Consulting DaVee Consulting DaVee Consulting DaVee CPA

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Definition of Metrics

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A “standards of measurement” by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed.

The Bible and Numbers?

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:

• 6—the number of days it took for creation • 40—the number of days and nights it rained

during the flood • 500—the number of years Noah lived before he

became the father of Shem, Ham, and Japheth • 3,000—the number who accepted the message

and were baptized on the Day of Pentecost

The Value of Metrics? KPI = Key Performance Indicators

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:

• What gets measured, gets managed…… • A church isn’t just about numbers – but they do

account for something…performance...meeting or exceeding visionary goals?

Question Time

• What is KPI?

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People Metrics

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:

Members / Attendees Turnover Headcounts By Age

Volunteers Volunteer to Staff ratio

Small Group Involvement First Time Guests Baptisms

People Metrics – Impact On Total Mission

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:

First Time Givers Large Givers Staff Full to Part Time Ratio Benefits – Health Care Costs/Retirement

Financial Metrics - Comparisons

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:

Attendance vs. Giving Is the Back Door Wide Open? Seasoned Givers?

Financial Metrics

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:

Giving Units By Contributor By Year

Question Time

• How do we determine what to measure?

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Financial Metrics – Trends and Changes Over Time

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Financial Metrics – Restricted Funds

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:

Capital Campaign

Financial Metrics

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:

Budgets Actual vs. Budget - by Location/Ministry/Fund

Financial Metrics - Cash

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:

Cash Position Trends

Financial Metrics - Cash

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:

Cash Position Months of Cash 15 Months?

Question Time

• You should always have 15 months of cash? – True or False

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Financial Metrics - Seasonal

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:

Year End Giving

Financial Metrics – Other Operations

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:

School Bookstore Gross Profit Percentage Inventory

Metrics – Presentation

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:

Graphically presented so that reader can understand

Key Decision Makers

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:

Track It and Understand It! • Financial leaders have better control when they can spend time analyzing

business information instead of simply trying to process transactions and manage the daily aspects of the accounting department

• As churches continue to grow, they not only need to keep track of the data they capture but they need to understand it

• If a church leader could see all key ministry indicators, not only the data, but the relationship and trends over time, he would have the ability to make educated operational decisions that enhance the churches mission

• Take the time to understand your reporting needs and realize that you can achieve your reporting goals if you have the right tools. The result would be easy to read and reliable data viewed from a dashboard.

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Question Time

• Yes, No, or Kind Of – Do you present metrics in a manner

that can be understood by your decision makers?

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Questions/Comments

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PLEASE EMAIL YOUR EVALUATIONS DIRECTLY TO: BECKY@DAVEECPA.COM

Evaluation/Attendance

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