Timothy has been officially recognized as a member of the ECFA. This is the single highest endorsement in the non-profit world for business principles and financial accountability. A quick review of the membership on the ECFA website will prove that this is a rare accomplishment! Timothy is excellence-driven in every way, and we take the business side of things very seriously around here. This achievement is awarded through a highly transparent and scrutinized process conducted by a third party/objective expert opinion.
"This is the "blue ribbon" for non-profits as it relates to business, finance, and fundraising. It lends the highest level of credibility to the way we conduct business."
Here is an abbreviated summary of their Seven Standards. There are comprehensive details within each standard. Click on the links within the website to learn more.
- Doctrinal Issues: Every organization shall subscribe to a written statement of faith clearly affirming a commitment to the evangelical Christian faith or shall otherwise demonstrate such commitment, and shall operate in accordance with biblical truths and practices.
- Governance: Every organization shall be governed by a responsible board of not less than five individuals, a majority of whom shall be independent, who shall meet at least semiannually to establish policy and review its accomplishments.
- Financial Oversight: Every organization shall prepare complete and accurate financial statements. The board or a committee consisting of a majority of independent members shall approve the engagement of an independent certified public accountant, review the annual financial statements, and maintain appropriate communication with the independent certified public accountant. The board shall be apprised of any material weaknesses in internal control or other significant risks.
- Use of Resources and Compliance with Laws: Every organization shall exercise the appropriate management and controls necessary to provide reasonable assurance that all of the organization’s operations are carried out and resources are used in a responsible manner and in conformity with applicable laws and regulations, such conformity taking into account biblical mandates.
- Transparency: Every organization shall provide a copy of its current financial statements upon written request and shall provide other disclosures as the law may require. The financial statements required to comply with Standard 3 must be disclosed under this standard. An organization must provide a report, upon written request, including financial information on any specific project for which it sought or is seeking gifts.
- Compensation-Setting and Related-Party Transactions: Every organization shall set compensation of its top leader and address related-party transactions in a manner that demonstrates integrity and propriety in conformity with ECFA’s Policy for Excellence in Compensation-Setting and Related-Party Transactions.
- Stewardship of Charitable Gifts: (there are 5 separate bullet points under this section)
In summary, this is incredibly validating and reaffirming of our work here at Timothy. Thanks to Tyler Vanderbrug (CPA) and Bob Venhousen (MBA) for pursuing this and doing the heavy lifting for the application. This was a very comprehensive and exhaustive process.