Most churches will want to know how to solve their budget deficit.
The Roman Catholic Church doesn’t use budget financing but has, throughout its history, encountered the problem that it is not possible to safely count the proceeds of the collection. Because if they counted the money after the service, every thief in the surrounding area would hear about that very quickly. To prevent theft, they store proceeds of the collection in a treasure chest or safe storage immediately after the church service.
To carry out its activities without suddenly running out of money, for 2000 years already, the Roman Catholic Church has based its accounting on a conservative estimate of the proceeds from the collection.
There is an approximate correlation between the size of the municipality, the proceeds of the collection, and the cost of maintaining the church building and staff costs. But because the Church assumes a conservative estimate of the proceeds of the collection in its accounts, it regularly experiences a budget deficit and has to cut back. When cutting back at the end of a year, money is left over that should be used to close the deficit. But that doesn’t happen. Instead, they send this money to Rome.
The Roman Catholic Church could solve these problems by giving each municipality its own bank account, store the proceeds of the collection in the bank account and leaving the accounting to the bank.
Smart savings make companies healthy
- The real cause of unemployment and business losses
- Cause and solution of business losses
- How big can business losses get?
- The accounting method of the Dutch guilds
- Mistakes when cutting back and the cause of high unemployment
- Healthy and unhealthy companies
- Dutch money management
- Entrepreneurs and CEOs’ salaries after cutting back
- The director’s crisis
- Personal income of a million dollars or more
- Fair methods to calculate salaries
- Cover budget deficits
- How slavery causes business losses
- America and the problems of the former colonies
- The budget deficit of the Church
- About the author