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Responding to Financial Crisis

One crisis management consultant offers tips for churches to avoid bankruptcy.

Ken Philip, a financial crisis management consultant at Ark Builders, specializes in the turnaround of troubled churches and religious organizations. We asked him how churches get themselves into financial trouble, and how they can get out of it.

How do churches get themselves in financial trouble?

They get into trouble in two ways. First, they don't have an operational or financial plan. And the second way is by not creating good management reporting systems to monitor their operational and financial plans.

Should churches in trouble ever file bankruptcy?

They should almost never file–there could be a compelling reason that they need to. Maybe fraud. But bankruptcy doesn't work well for a lot of organizations. It can become very litigious, and it often takes a lot of money to get through it. Even if you're a $50 million or $100 million company, you might not be able to survive ...

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Posted:
  • May 20, 2014

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