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Situation
Beginning in 2008, cHb Advisors was engaged by a faith-based organization navigating economic pressure, membership shifts, and mounting operational complexity. Declining giving and recurring staff turnover strained financial stability, while a catering business, day care, learning center, and thrift store franchise each added further layers of financial complexity to manage alongside the organization’s core religious and educational programs.
Staff turnover every two to three years left the organization without consistent institutional knowledge, and each transition reset progress on basic financial housekeeping. Six years of unfiled payroll tax returns had accumulated penalties that put the organization at real compliance risk.
Existing financial systems and reporting practices were not strong enough to support day-to-day operations or the organization’s long-term plans with full confidence. Leadership needed a partner who could resolve the immediate compliance exposure while also building the disciplined processes required to keep the organization on stable footing going forward.
Challenges – What We Did
Challenges
- Recession-related pressure: Membership losses and a decline in building campaign giving strained the organization’s finances at a time when reserves were already thin.
- Operational complexity: A catering business, day care, learning center, and thrift store franchise each carried distinct financial and reporting demands beyond core operations.
- Chronic staff turnover: Turnover every two to three years reset institutional knowledge repeatedly, making it difficult to maintain consistent financial processes.
- Unfiled payroll tax returns: Six years of delinquent Form 941 filings and accumulated penalties created significant compliance risk and financial exposure.
- Untracked fixed assets: Without a complete fixed asset listing or depreciation schedule, leadership lacked an accurate picture of the organization’s long-term asset base.
Our Solutions
- IRS negotiation & penalty resolution: Negotiated directly with the IRS during a payroll tax audit to have penalties tied to unfiled Form 941 returns removed, resolving a major source of financial and legal exposure.
- Delinquent filings completed: Brought six years of delinquent Form 941 filings current and established disciplined procedures to promote timely filing and deposits going forward, closing the door on further penalty accumulation.
- Fixed asset system built: Developed a complete fixed asset listing with depreciation, giving leadership an accurate, ongoing view of the organization’s long-term asset base for the first time.
- Ongoing staff coaching: Provided continuous coaching for accounting staff on a range of financial and operational matters, building internal capability rather than relying solely on outside support.
- Continuity through transitions: Supported administrative transitions with additional bookkeeping services beginning in 2013, preserving continuity through leadership changes and repeated staff turnover.
- Capacity for mission priorities: Freed leadership to focus on educational programming and broader organizational initiatives rather than day-to-day financial firefighting.
- Long-term advisory relationship: Remained engaged well beyond the initial compliance work, providing steady guidance as the organization’s programs and financial needs continued to evolve.
Results
- Payroll tax compliance resolved: Six years of delinquent filings completed and related penalties removed, eliminating a significant source of risk.
- Dependable accounting system: Reliable financial reporting established for the first time.
- Administrative strain reduced: Giving leadership more time to focus on mission-driven priorities and capital planning.
- Long-term stability strengthened: Through ongoing bookkeeping support and staff coaching that outlasted the initial engagement.
Why This Engagement Matters
This engagement reflects our ability to resolve urgent compliance issues while building the systems an organization needs for the long run. Rather than treating the payroll tax issue in isolation, we addressed the underlying processes, staffing, and reporting practices behind it, including the staff coaching needed to keep progress from unraveling with the next transition.
For mission-driven organizations, financial stability is what allows the mission to continue. This is the model of support we provide: practical, hands-on guidance paired with lasting systems and continuity that help organizations resolve complex financial issues and focus on what matters most.
Nearly two decades later, the organization continues to rely on the systems and support established during this engagement, a testament to the durability of the work and the trust built along the way.
