International Graduate School of Leadership

Steve Hobson

Church Health
Assignment Guide E-1

Guide for Doing Financial Management Case Study

Evaluation and Write Up Paper - Due _____
Personal money management and ministry money management sooner or later overlap. In this assignment you will
read a story about First Fellowship Church and the two pastors there Pastor Jun and Pastor Manny. You will read
a hand out Financial Integrity Principles for Healthy Ministry and a photocopied article called A Budget
Primer. You will then analyze the story, applying the principles in the two readings to the story and writing a short
paper suggesting how the situation needs to be changed.
To get the most out of this assignment and to do it most efficiently, we suggest you do the following:

1. Prepare to read the handouts with Bible, note paper and pen handy to jot down thoughts.
2. Read this one page guide first so that you fully understand the assignment. Keep the questions in this
guide in mind as you do the following reading.

3. Read the case second looking for answers to the following questions. For your own help, jot down any
other thoughts and observations you have about story on this first reading. (not for paper yet)
a. What are you impressions about the financial health of First Fellowship?
b. What is Manny doing right in managing money? What are his motives?
c. Where is Manny getting into trouble? What are his motives?

4. Read the hand outs Financial Integrity Principles for Healthy Ministry and A Budget
Primer relating them to the case study about First Fellowship. As you read, jot down observations about the
case in light of the principles. Look back at the case as needed.

5. Write up a short analysis paper apply the principles of financial integrity. You will be analyzing the case
in light of the principles sheet (evaluating the actions, digging deeper for underlying values/motivation/feelings,
and proposing solutions). As you write your analysis, be sure you address the following questions. Do not repeat or
summarize the case in your paper, or simply list problems. Do refer to specifics of the case in your evaluation. And
be sure you refer to the two other readings properly citing them as sources. Include footnotes or end notes.
BEWARE PLAGIARISM!!
a. Introduction Is this case typical of the kinds of pressures and issues faced in your region/country?
(If not how is it different?) Discuss.
b. How is the current financial health of First Fellowship a result of Pastor Juns leadership? Of the elders
leadership? What should Pastor Jun and the elders be doing to strengthen the church financially?
c. What is Manny doing right in managing money? What are his heart attitudes in this?
d. What is Manny doing that is getting him into trouble? What are his underlying motives? In what ways
are these motives helping and/or hurting him?
e. When discovered, how should Manny be handled (fired, disciplined for stealing church money,
instructed, forgiven, or . . . )? What specific help does Manny need (as well as other pastors & staff
need) from his church (training, policies, procedures, support) so he can be a better servant-steward
leader for his family and for his ministry in terms of financial leadership? Give specifics.

Due ______ About 3-4 pages long. More if you really want to.

Use only the handouts, the case, your

Bible, and, if you want to, Servant Steward Leadership class notes on personal financial management.
Please note how long the assignment takes you and record that at the end of the paper.

International Graduate School of Leadership

Steve Hobson

Church Health
Ministry and Money Management

Financial Management Case Study

Manny is the well liked youth (college and young professionals) pastor of a local congregation, the First
Fellowship Church. He has been on the church staff for five years and is respected for his pleasing personality, his
creativity, his speaking ability in youth settings, and his effectiveness in personally discipling youth. He has led
many to Christ and has seen them grow into leaders in the ministry. He met his wife Bel at Bible college and
married her soon after graduation. They have a baby girl and are expecting another child soon.
1.

First Fellowships senior pastor, Jun, is a seminary graduate and has been at the church three years. He is
known as a solid Bible preacher and makes that the major focus of his ministry. This is the second church he has
pastored. He has great vision but is weak in administration. Most of the church elders are more care and support
oriented which complements Pastor Jun. But they are not administrators either. Pastor Manny likewise is weak in
administration. The lack of administrative leadership is seen in the off again, on again record keeping of the church.
2.

The church has several part time employees, and many volunteer workers. First Fellowship seems healthy
overall and has a steady, slowly growing attendance. But the area has been hit hard by financial instability and
people have struggled for ten years. The church struggles along financially, unable to upgrade the facility with the
sound system and LCD projector they want.
3.

The elders of First Church have urged Pastor Jun to preach more about money and tithing, but Jun is
hesitant. He was never taught about money in seminary and has questions about whether the preaching about
money will turn people away. Once a year on Stewardship Commitment Sunday he does gather up his courage to
preach about tithing form Malachi 3:6-12 and about not robbing God. The elders silently cheer him on hoping the
people will become more committed financially to the church. Manny always feels uncomfortable during that
Sunday because he is not certain if he tithes, though he does give, what seems to him, generously to the Lords
work in various ways.
4.

Manny first agreed to come to the church as a new Bible School graduate knowing that he would only
receive partial support. The church leadership provides a small budget for the youth ministry and allow him to raise
funds for the youth work. Bel has part time employment and Manny has taken opportunities to speak at other
churches or ministries where he gains income through love offerings and honoraria. Bels relatives are believers
and they give them gifts periodically, knowing that they are serving the Lord. When they are in a real financial
bind, Manny and Bell can approach their relatives for help. (Manny, however, never feels completely right doing
that.) By Gods grace they are surviving. The leaders at First Fellowship have been impressed with Mannys
resourcefulness in providing for his family.
5.

But with the new baby on the way, Bel is getting worried about finances. She begins to raise the question
with Manny repeatedly. You know with the new baby coming we need more income. Im not sure I can keep
working. Manny, also beginning to worry, wants to reassure Bel and maintain his leadership in their marriage.
Hiding his true feelings, he says, Everything will be alright. Lets trust God and pray more about this. He will take
care of us like He always has. Manny decides to secretly fast during meals he would normally eat outside the
house and ask God to provide for them the security of financial stability. In his spare time, he starts to read
Christian books about the Bible and money, especially the popular ones that talk about the secrets to Gods
abundant financial blessing.
6.

Mannys concern for Bel and their situation finally prompts him to go to one of the older members of the
church that has been his personal prayer partner for years. He asks to borrow money from Mr. Cruz just to help
with the cash flow. Ill be able to pay you back in a month or so. Mr. Cruz insists that Manny take the money as a
gift. But Manny wants to save face. I dont want to complicate our prayer partnership with money gifts. Lets just
make it a loan. His friend reluctantly agrees to loan Manny an amount of money at no interest and no set schedule
of repayment.
7.

Manny also prays and looks for more speaking opportunities outside the church to supplement their
income. Invitations to speak soon come his way. Manny realizes he needs to prepare some new material for his
outside seminars so he finds ways to work that into his schedule. Someone donated a used computer to the church
8.

with Power Point software on it so Manny spends hours learning to use the program. Then he begins designing
creative presentations he can use when speaking at churches with LCD projectors and computers. A small
investment in a flash drive to carry his presentations on, and he is ready to upgrade his seminars! In fact, Manny
gets more invitations to speak thanks to his creative visual presentations!
Meanwhile the youth ministry at First Fellowship gets more and more busy. Mannys well trained youth
leadership team begins planning new outreach events. Their faith has never been greater! But the church budget for
the youth ministry has never seemed less. In the past, youth leaders have counted on Manny and others in the
ministry to make up for the shortfall with personal gifts. Manny has been generous to do so, but now cant help. So
Manny goes to the elders to ask for more church funding for his ministry. He shares all that God is doing and the
need, but Pastor Jun and the elders, while warm and friendly, say they cant give more.
9.

Instead, one newer elder asks for a record of how Manny spends the money he does receive. Manny feels
hurt, Dont they see the way God is moving? he thinks to himself. Instead of helping me they want to start
controlling and restricting me! But after calming down, he shares how busy he is and I never find time to keep up
with the paperwork. I do need to keep better records. The elders appreciate his attitude and one long time elder
comes to Mannys rescue. He notes how Mannys strengths are in creative design, not in management or book
keeping. We trust Manny. We know him. Lets just ask God to send financial help for the youth ministry. The
newer elder is temporarily silenced. But Manny walks away from the meeting reluctant to mention money to the
elders again.
10.

Things seem to be going well for Manny & Bel until she has complications with her pregnancy and their
baby girl gets sick. More doctors visits & medicine are required. Bel soon has to stop her work so doctors bills only
pile up higher and higher. One night, after an evening youth meeting, Manny is about to leave the church when he
remembers that he is supposed to bring home much needed medicine for Bel and for their daughter. Checking his
wallet, he realizes he does not have enough money. Desperate, he feels a worried panic boiling up in his heart.
11.

Manny then remembers that the petty cash fund for the youth ministry might have enough in it to meet the
need! It is his responsibility to manage that money. So he gets the key and opens the petty cash container, counts
the money, and with a sigh of relief finds it is enough! I will only borrow this until my next paycheck. Bel really
needs the medicine, and anyway it is only for a few days. Manny takes money from the fund and heads out the
church door relieved he can provide for his family. He intends to record the loan the next day, but forgets. Time
goes on and it slips his mind. Eventually he forgets all about it. There are so many money details, he just cant keep
track.
12.

About a week later a donor leaves an envelope on Mannys desk. In it is a cash gift with a note saying it is
for a new guitar for the youth ministry. This has been a long standing prayer request, so Manny sees it as an answer
to prayer! But Manny also knows that there is a major training event coming the youth planned by faith, and they
need up-front cash immediately. They are inviting other churches to participate and plan to take an offering that
night. Based on past experience, that offering should be enough to cover the expenses. Manny decides to use a
major portion of the designated gift money for the training event need, knowing that in a few days, there should be
funds to replenish the designated gift money.
13.

Manny also starts to apply principles he learned from his reading about trusting God to bless him through
others. He focuses his prayer and faith on believing God for the needed money. One wealthy member of another
church, Mrs. Santiago, takes a liking to Manny after her daughter is impacted by one of his seminars. She offers to
give to Mannys personal/ministry needs on a regular basis. Manny is thrilled! What a great answer to prayer!!
14.

Not long after her commitment to Manny, Mrs. Santiago sends her first support gift with the promise of an
additional, much larger one-time gift she is preparing to send. Manny is stunned with her generosity and the
additional amount she commits to send! In the letter that comes with the gift, she says that the special additional gift
is her normal tithe for the month redirected to him. Manny is humbled and grateful. Now he will be able to pay the
doctors bills he has been putting off so long!
15.

Soon an invitation comes from Mrs. Santiago for Manny to be with her family at a family gathering to
pray for the family, to mingle with younger generation building relationships and to share Christ. Manny happily
agrees to come, despite Bels initial questions about his going. Manny assures her, This is all kingdom work
anyway! Manny is feeling better than ever that he is finally able to meet his familys needs.
16.