Financial Principles for the Ministerial Trust
"The love of money is the root of all kinds of evil." 1 Tim. 6:10 (ASV)
Nothing flows through our hands more rapidly or unpredictably than
money. It is the most common cause of marital strife, divorce, and many
other difficulties with family, friends, and business. It effects and
reflects upon every area of our being; our physical, mental, emotional,
and spiritual condition is greatly impacted and often measured by money.
How we handle our financial affairs, whether conservatively or
liberally, is our own personal business, yet every managing agent of a
Ministerial Trust must understand and follow the basic guidelines
outlined below. The successful operation of a Ministerial Trust depends
on faithful adherence to these sound financial stewardship principles.
Violation of these principles will likely compromise the integrity of
the ministry and may constitute mismanagement, malpractice,
misappropriation of funds, or embezzlement.
- Understand Stewardship
"Study to show thyself approved." 2 Tim. 2:15
Each managing agent is an executive officer of an assigned
Ministerial Trust. The Manager is an agent of the trustee and
the Chief Executive Officer (CEO) of the ministry. An Assistant
Manager, also an agent of the trustee, is to aid the Manager
in administrative duties and to take over those duties as delegated by
the Manager. This delegation of authority is not to supersede
the line of succession established by the most current Performance
Contract incorporated as part of the original Trust Agreement.
Other managing agent positions are Traveling Missionary Evangelists
and Overseer/Directors of the corporation sole trustees. Even when
appointed for life, managing agents maintain their positions only
through faithful performance of duty. These high-level administrative
positions require careful due diligence. Strict conservative economy
will assure a sufficient debt-free increase for the charitable,
educational, scientific, and religious purpose of the ministry.
- Remain Debt Free
"The borrower is servant to the lender." Prov. 22:7
The Ministerial Trust is not to go into debt under any circumstances.
Debt is simply owing more than you can pay. If you have the money, or
some other means to make a fair exchange without a lingering
obligation, then pay it. If you do not have adequate funds or other
valuable consideration to exchange, then don't make the purchase. That
would be a debt. A loan or a pledge may be made if it is backed by
uncommitted security as collateral. That is not a debt, it is an
investment. Over-commitment on collateral is called pound breach and is
A Promissory Note or Performance Contract, with terms acceptable to
both parties and supported by sufficient security to satisfy the
exchange, is a form of just compensation, and not debt. The terms of
the note, contract, or agreement must be consistent with all other
principles of faithful stewardship. Any form of exchange involves a
contract, whether written, verbal, or implied. A contract is an
agreement where one party gains at the advantage of another. Fraud is
where one party gains at the loss of another. A Ministerial Trust may
not engage in fraud.
- Show an Increase
"Behold, I have gained
beside them five talents more." Matt. 25:20 In the parable of the
ten talents, two of the servants increased their money by 100% while
the third servant did nothing with his. He didn't even try. Because of
their wise investments, the two were entrusted with even greater gain,
position, and influence. The one with no increase at all was stripped
of what little he had and cast out.
Change is inevitable, but growth is optional. If we do not grow
consistent with the changes around us, we will automatically decrease
by comparison. No decision is a decision to do nothing. Do not bury the
resources that are available to you. Put them to work wisely for the
increase of the church to the advancement of the work of God that it
may be said of you, "Well done, thou good and faithful servant. . .
enter into the joy of thy lord." Matt. 25:21.
- Be Charitable
"Let all your things be done with charity." 1 Cor. 16:14
"The Lord loveth a cheerful giver." 2 Cor. 9:6. "It is more blessed to
give than to receive." Acts 20:35. "Ye cannot serve God and mammon
(trust in money as God)." Matt. 6:24. "In tithes and offerings. . . ye
have robbed me. . ." Mal. 3:8, 9. "Let him that stole steal no more. .
. give to him that needeth." Eph. 4:28. If God can give through you, He
can give to you.
"Come, ye blessed of my Father, inherit the kingdom prepared for you
from the foundation of the world: For I was an hungered, and ye gave me
meat: I was thirsty, and ye gave me drink: I was a stranger, and ye
took me in: Naked, and ye clothed me: I was sick, and ye visited me: I
was in prison, and ye came unto me. . . Inasmuch as ye have done it
unto one of the least of these my brethren, ye have done it unto me."
Matt. 25:34?36, 40.
With every financial transaction all Elements of Commerce shall be
followed and not one of the Reasons an Agreement May Be Void should
|Essential Elements of Commerce||
Reasons an Agreement May Be Null & Void|
- Grace (extra time)
allowing more than is deserved
- Mercy (relief from judgment)
requiring less than what is just
- Clean Hands Doctrine
avoid the appearance of evil
- Fair Business Practice
fair play and reliability
- Just Compensation (win/win)
- Full Disclosure (discovery)
materially complete information
- Equal Protection of the Law
due process for all
- Duty of Care (due diligence)
fiduciary duty to check it out
- Good Faith Action (relevance)
- Under Duress
unwelcome outside pressure
- Coercion (torture)
to force or compel against one's will
- Intimidation (implied threat)
sufficient cause to fear lawlessness
- Threat (groundless warning)
an unreasonable ultimatum
- Fraud (win/loose)
one party gains at the loss of another
- Lack of Informed Consent (being
lies, half-truths, innuendos, info.
- Under the Age of Majority (not of
any minor not yet emancipated
- Otherwise Incompetent
while drunk, insane, retarded, or asleep
- Undue Influence (wrongful
any unwarranted imposition
Financial Principles: Remedies at Law
© 5/1/2002 (Rev. 5/25/2002)