Reasons for change in fiscal year from December 31 to August 31
- Ministry is planned from September to July/August. Having our financial year to match our ministry year will bring our planning and budgeting processes in sync with each other. This should make our budgeting more accurate.
- Moving our largest giving month (December) away from being the last month of the fiscal year will ease the uncertainty of how the fiscal year will end. It also gives time (eight months) for adjustments to the budget (up or down) based on the generosity of the largest giving month of the year.
- January to March is already quite busy within the finance team without considering the financial year-end and audit. The calendar year-end is busy enough with donation receipting, T4’s, HST reporting, CRA reporting, and EHT reporting. To move the financial fiscal year-end away from this same time will create capacity within the Finance Team to be able to focus on these other calendar year priorities.
- Currently, our Christmas Offering is received in one Fiscal Year and then spent in another Fiscal Year. The change in year-end will allow the receiving of the Christmas Offering and the distributing of it to happen in the same fiscal year which will eliminate some of the accounting confusion.
Because we have this transition year without our largest giving month of December the weekly need/budget will be adjusted taking into account the new eight-month fiscal year.
To facilitate this change in fiscal year-end, Hope Bible Church will have a shorter eight-month year from January - August 2020. This will be known as our “transition year”.