Accounting in a NonProfit Organization
Saddleback Church
By
Christine Stroh
Laguna Hills High School
Externship Goals
When I approached this Externship, my
goals were to:
 Learn about the overall accounting procedures of
a Non-Profit organization such as Saddleback
Church.
 Observe the daily routine of staff employees so
as to better relate ‘on the job’ tasks to my
students.
 Understand the skills and abilities required to be
successful in the accounting field.
 Research the education and work experience
necessary to enter a career in accounting.
Saddleback Church
 Saddleback Church was started over 30
years ago and has grown into one of the
largest churches in our nation.
 Churches are non-profit organizations
which makes them tax exempt.
 Profit and Non-Profit organizations must
follow the same Generally Accepted
Accounting Procedures (GAAP).
 Non-Profit organizations are organized and
have the same accounting departments as
Profit organizations.
Overall Organization
Each of the following areas of the church is handled as a
separate business for accounting purposes:
Building
Designated Giving
Resources
Conferences
Regional Sites
Building
Resources
Conferences
Designated Giving
Accounting
Employees/Departments
 Comptroller
 Financial Director
 Accounts Payable
 Accounts Receivable
Contributions/Tithes
 Payroll
(There are 475 employees in the
church. They rely on volunteers
for many tasks.)
Comptroller
Top level management
 Responsible for organizing, directing and controlling the work of the
accounting personnel.
 Directs budget and cost controls and accounting practices.
 As a member of the top management team, helps develop forecasts for
proposed projects of the organization.
 Measures actual performance against operating plans and standards and
interprets the results of operations for all levels of management.
Saddleback Church--Comptroller
Background and Experience
 Attended the University of Washington--Business/Accounting/Finance.
 Worked as a temp during summer in accounting and found she had a
gift for this career.
 Aptitudes/Abilities: Is very organized, likes to work with numbers. Must
have critical eyes to keep aware of everything that is taking place. Good
communication skills to be able make sure non-financial personnel
understand reports.
 Has a mindset that Comptroller's job is to make the company succeed.
 Worked her way up in Accounting field and is now in top level
management.
Financial Director
Peace Plan
 Directs financial activities of organization and
prepares reports which summarize and forecasts
company business activity.
 Establishes, or recommends to management, major
economic objectives and policies for company or
subdivision.
 Directs preparation of budgets.
 Advises management on desirable operational
adjustments.
Saddleback Church--Financial Director
Background and Experience
 Attended California State University, Fullerton
 Worked as Certified Public Accountant for 10 years starting as staff
employee and moving through Audit Manager to Senior Audit
Manager—major responsibilities were in the area of auditing local
businesses.
 Aptitudes/Abilities: Enjoys strategic planning and is able to design
systems to work with the needs of the organization. Ability to project
cost and cash flow for future endeavors.
 Must have good people skills since working with managers and staff
is a major part of the position.
Accounts Payable
Daily Routine
 Generates all checks
 Verifies invoices
 Handles customer care/services
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involved in ordering resources
for church
Uses industry standard software
Reconciles bank statements
Uses Excel spreadsheet to
organize payables and then
download into General Ledger
software
Handles Point of Sale reports
from designated giving
Education and Experience
Saddleback Church—Accounts
Payable Staff Employee
• California State University, Fullerton
bachelor’s degree in Business Management
• Needs to be very organized and exacting
• Needs to be trainable; knowledge of Word,
Excel and 10-key calculator a must
• Must have good ‘people’ skills
Accounts Receivable
Resource Revenue, Contributions
and Tithing
Daily Routine
 Records all revenue from church
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resources from point of sale and online
sales
Accepts daily receipts from the bank;
verifies for accuracy
Records all designated contributions
Records all receipts generated from
seminars and conferences
Organizes volunteers who work weekly in
the ‘counting room’ organizing and
batching tithing from services
Oversees the recording of all contributions
to individual member’s accounts
Education and Experience
Saddleback Church—Accounts
Receivable Staff Employee
• On the job training at Ralph’s Grocery
store—30 years
• Volunteered in the ‘counting room’
• Works very closely with volunteers
Payroll
Daily Routine
 Uses industry standard software
 Utilizes Excel software to organize
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employee time cards
Forty-five percent of employees are
salaried; Pastors get a special tax
status
Verifies employees time cards, tallies
hours, verifies break time, checks
work permits, etc.
Checks that supervisor has approved
employee time cards
Soon will have online time card
software!
Education and Experience
Saddleback Church—Payroll
Employee
• Washington State—bachelor’s degree
in Hotel and Tourism
• Worked in Accounting and just loved it;
it was exactly the right field for her
• Must have knowledge of Word and
Excel and 10-key calculator
Skills Necessary to Succeed in
the Field of Accounting
 Attention to detail
 Knowledge of Word, Excel and 10-Key
 Enjoy working with numbers
 Good communication skills; writing and
listening
 Enjoy working with people
 Ability and willingness to learn new
procedures
 Must be a team player
Education for
Accounting Career
Educational Requirements
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Entry level job opportunities require a
community college certificate and work
experience.
Most accountant and auditor positions require
at least a bachelor’s degree in accounting or a
related field.
Some employers prefer applicants with a
master’s degree in accounting, or with a
master’s degree in business administration
with a concentration in accounting.
Job Outlook
 Strong growth of accountants and
auditor jobs over the 2006-16
decade is expected to result from
stricter accounting and auditing
regulations, along with an expanding
economy.
 The best job prospects will be for
accountants and auditors who have
a college degree or any certification,
but especially a CPA
Salary
 Median annual earnings of wage and
salary accountants and auditors were
$54,630 in May 2006.
 The middle half of the occupation
earned between $42,520 and
$71,960.
 The top 10 percent earned more than
$94,050, and the bottom 10 percent
earned less than $34,470.
Thank you
I would like to thank everyone at
Saddleback Church who took time out of
their busy schedule to help me with my
project.
My students will greatly benefit from the
insight I gained from all of you. Thank
you so much.