What we advocate?
What is Responsible Stewardship/Good Corporate Governance?
Responsible stewardship/Good Corporate Governance is the work done by an organization's board of trustees/directors acting collegially in pursuit of a common purpose. It is about faithful administration of God's work in the world through Governance, Obedience, Discipleship to Jesus.
Responsible stewardship/Good corporate governance involves the stewardship of our relationships with God, ourselves, others and the whole creation that is built and founded on trust and faithfulness and involves collaboration among all stakeholders, who accept and own their responsible stewardship roles, that eventually results in the flourishing of human beings and development of creation.
Responsible stewardship/Good corporate governance is about doing what's right, and doing it consistently well, all for the glory of God.
Our history...continuation of His Story
Our beginning is rooted and inspired by ECFA and its strong biblical mandate to enhance trust in and among its member organizations in the United States and its partner organizations in many parts of the world.
When CCTA was organized one of its first moves is to organize the standards of responsible stewardship which almost mirrored ECFA's Seven Standards of Responsible Stewardship™. These standards which were drawn from Scripture, are fundamental to operating with integrity.
Accountability to God is vital, but people form their impressions of both people and organizations by looking at the outward appearances (1 Samuel 16:7).
The basis for establishing ECFA and developing Seven Standards of Responsible Stewardship™ is stated clearly by the Apostle Paul in 2 Corinthians 8:21 (NIV):
"For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of men."
Or, as the New American Standard puts it in verses 20 and 21:
"taking precaution that no one should discredit us in our administration of this generous gift, for we have regard for what is honorable, not only in the sight of the Lord, but also in the sight of men."
The ECFA standards are infrequently changed, providing members a steady baseline for consistent application of the standards to members. The standards have been described as simple but not simplistic. The brief statements included in the standards have significant implications for organizations that pledge to follow these standards. They are not standards that allow for grading on the curve. Rather, they are pass-fail standards. ECFA members must comply with all of the standards.
With this background information and pattern for developing CCTA's standards of responsible stewardship we were able to come up with our 7 Standards of Responsible Stewardship which are discussed in some detail below:
7 Standards of Responsible Stewardship
CCTA subscribes to and advocates the following 7 standards of responsible stewardship among Christ-centered organizations that wish to become part of the peer accountability group:
Standard 1 – Espoused beliefs and ideas
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.
Standard 2 – Governance and leadership
Every organization shall be governed and led by a responsible board of not less than five individuals, a majority of whom shall be independent, who shall meet at least semi-annually to establish policy and review its accomplishments.
Standard 3 – Financial Oversight
Each organization shall prepare complete and accurate financial statements. The board or a committee designated by the board 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.
Standard 4 – 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.
Standard 5 – 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 has sought or is seeking gifts.
Standard 6 – Related Party Transactions and Conflicts of Interest Situations
Every organization shall address related-party transactions and conflicts of interest situations in a manner that demonstrates integrity and propriety in conformity with generally accepted policies and practices on related-party transactions and conflicts of interest situations.
Standard 7 – Stewardship of charitable gifts
7.1 Truthfulness in Communications.
In securing charitable gifts, all representations of fact, descriptions of the financial condition of the organization, or narratives about events must be current, complete, and accurate. References to past activities or events must be appropriately dated. There must be no material omissions or exaggerations of fact, use of misleading photographs or any other communication which would tend to create a false impression or misunderstanding.
7.2 Giver Expectations and Intent.
Statements made about the use of gifts by an organization in its charitable gift appeals must be honored. A giver’s intent relates both to what was communicated in the appeal and to any instructions accompanying the gift, if accepted by the organization. Appeals for charitable gifts must not create unrealistic expectations of what a gift will actually accomplish.
7.3 Charitable Gift Communication.
Every organization shall provide givers appropriate and timely gift acknowledgments.
7.4 Acting in the Best Interest of Givers.
When dealing with persons regarding commitments on major gifts, an organization’s representatives must seek to guide and advise givers to adequately consider their broad interests.