1. Introduction to Finance
Basic information about the money side and what that means for you
Welcome to ISI and more specifically Finance.
We have prepared a series of videos for your review, so you may learn all about our department, what we do for you, and what we need from you as a member of the ISI team.
Please consider all of us in Finance as resources for assistance in understanding of all the financial requirements and responsibilities put before you as either staff or a ministry representative for ISI.
If God has led you to ISI, then we know he will continue to support you through your journey to reach out to International Students in the unique ways he has gifted you with. We are so excited to have the opportunity to partner with you in this amazing experience.
Please keep in mind as you view these videos, Finance is here to help while at the same time maintaining all the rules and regulations applicable to all non-profits in the US, so even though we must be the gatekeepers, we are committed to doing so in a way that honors Christ and all of you.

2. Finance Does What Exactly?
Payroll including taxation and report processing
Reimbursements
Accounts Payable (including vendor payment requests)
Accounting for the Online Store
Financial reporting for company and individual levels
Donation accounting for financial reporting
Budgeting
Financial accountability to the Board of Trustees
Annual audit participation
Now let’s get started with some basic information.
Finance is responsible for the following processes within the organization:
Payroll including taxation and reporting processes
Reimbursements
Accounts Payable (including vendor payment requests)
Accounting for the Online store
Financial reporting for company level and individual levels
Donation accounting for financial reporting
Budgeting
Financial accountability to the Board of Trustees of ISI
Annual audit preparation
So what does this mean for you?…if it involves money it will likely involves us.
The first steps in your employment with ISI will involve Partnership Development. By now you have probably received lots of information on what this means and how ISI will support you through the fund-raising process.

3. Deputized Fund-Raising
The contributor’s intent in making the donation was to benefit the ministry itself rather than the individual.
The ministry has full control of the donated funds and discretion as to their use, so as to ensure that they will be used to carry out its functions and purposes.
Now onto how the IRS makes it possible for ISI to operate the way we do and what that means for you.
The IRS allows for a type of fund-raising called deputized fund-raising. This means that the money raised by staff can be attributable to the organization so your donors are eligible to receive a tax-exempt statement for the money given. Without deputized fund-raising, the donors who participate in supporting the ministry of ISI would not be eligible for any special tax treatment in connection with their gifts and ISI as an organization could not exist in the same way we do now and have the same impact.
For ISI to qualify for the deputized fund-raising program, 2 key criteria must be met.
The contributor’s intent in making the donation was to benefit the ministry itself rather than the individual.
The ministry has full control of the donated funds and discretion as to their use, so as to ensure that they will be used to carry out its functions and purposes.

4. What Does Deputized Fund-Raising Mean for Me?
ISI controls all funds
Donor Responsibility
Staff member is free from personal financial liability
Under the umbrella of the ISI family for outreach
ISI can reach all corners of the globe simultaneously
ISI must be accountable to all donors and the IRS to make sure the funds are used in the proper manner, so this does not fall on the staff member.
So in a nut shell this means that even though each staff member must raise the support used for his/her salary and reimbursements, the mechanism in which this is done keeps the control of the funds under ISI as an organization.
This gives you as a staff member freedom from personal liability in terms of financial management of donated funds, allows you to be under the umbrella of the ISI family when connecting with students, donors, volunteers, and others in your area, and allows ISI to reach out to all corners of the globe simultaneously and with the same message of Christ’s love for all.
This also means you as a staff member have the unique opportunity to help insure funds are available to maintain your employment should economic conditions change and mean uncertainty for other organizations based on a more traditional model of income generation.
Job Security
Each staff member directly influences ISI’s financial health

5. How Does the Home Office Get Funding?
Each donation received under the deputized fund-raising structure is assessed a staff service allocation fee (SSA).
SSA funds are used for ISI’s daily business operations in order to maintain departments like Donor Services and Finance.
All the business structure for ISI is maintained here at the Home Office, but in order for that to happen, funds must be set aside for that purpose.
This is why a percentage of funds raised in ISI’s name must be set aside for our National Ministry Fund which covers expenses incurred for the company’s daily business operations along with other funds given specifically to the general fund. This allocation is specified as a staff service allocation, or SSA, in our financial statements.
Without you there would be no ISI, so we in Finance are very appreciative of each one of our amazing field staff and want to do the best job we can for you, so you can continue to do your best as well for all of our students.

6. Now a Word About Payroll…
Standard payroll processing within the deputized fund-raising limitations.
Each staff member has a unique department code, so as funds are raised, money is tracked under the unique code. This also means no money…no payment.
Short pay is tracked and will be paid if Finance can, considering all other policies and procedures.
Now a word about payroll
Our payroll system is operated in the same way as any other non-profit, with the exception of deputized fund-raising and how that affects payroll distributions.
Basically, if the money isn’t there, we can’t pay it to you.
All funds that come into the organization for your ministry account are tracked with a unique account number. As your fund balance grows, your opportunity to receive a full salary grows as well. We will pay out whatever we can as soon as we can while abiding by all the policies and procedures we must follow in Finance. We do keep track of any payroll amount we could not pay due to insufficient fund balances and will pay those amounts once funds are available in accordance with all our rules of operation.

7. Now a Word About Budgets…
Budgets are submitted as a part of the hiring process.
Budgeted salary determines payroll salary.
Changes to budgets are tracked and are reflected in the next payroll cycle if changes to salaries have occurred.
For each staff member, a budget must be submitted, which all of you were required to do as a part of your entrance into the company.
The budget is one of our founding documents when we in Finance interact with you and your financial information.
We need to know what goals you have set for yourself so we can give you an idea of how your are doing in comparison to those goals. The budgeted salary is what we use to set up your payroll. If you make adjustments to your budget, we in Finance are notified and we will adjust your salaried amount accordingly.

8. Now a Word About Taxes…
As an employee, W2 statements are issued in January for the previous tax year.
ISI does not give personal tax advise…seek your own professional advisor in your area.
Since you are an employee of the company, you will receive a W2 for each tax year you are employed with ISI which will give pertinent information to use when filing your individual tax return.
ISI does not give tax advise, so any question in regards to filing individual tax returns should be directed to your personal tax professional in your area.

9. Reimbursements…How Does That Work?
Reimbursements are paid in accordance with an IRS accountable plan
Accountable Plan must include:
The expense reimbursed was business related in nature.
The expense was fully accounted for and in a timely manner.
Any excess funds received were returned in a timely manner.
Speaking of taxes, we will now briefly review reimbursements and how the IRS treats these payments for your individual situation and for ISI as a whole.
Reimbursements are paid in accordance with an IRS accountable plan.
Basically what this means is, if we are paying you back for an expense you incurred, the expense was business related, was accounted for fully and in a timely manner, and any excess funds that you received were returned in a timely manner.

10. Reimbursements - Business vs. Personal
If the expense is not business in nature, accounted for fully and timely, and any excess funds returned – accountable plan is not satisfied.
No accountable plan – Taxable income instead.
ISI’s discretion as to whether or not a payment will be made and if it cannot be made under an accountable plan, if it can be made as taxable income instead.
NOT ALL EXPENSES ARE REIMBURSEABLE – Personal expenses are not reimbursable and should be covered by your salary instead.
Without the 3 required qualifications being met, the reimbursements cannot be treated as such and would be considered taxable income instead. ISI does maintain discretion when a question of applicability is brought up in terms of a payment being made as an accountable reimbursement or as taxable income.
We want you to receive as much in reimbursements as you are eligible for; however, keep in mind that not all you spend your money on will be reimbursable.
Just like any other employee of any other company, you have expenses that are personal and are meant to be covered by your salary and not treated as business expense if they do not qualify as such.
Since the main requirement for an accountable plan requires we determine if the expense is business related or not, most of our questions to you about reimbursements we get, will be from that perspective.

11. Remember – You Are Valued
Finance respects all the amazing work you are doing…we just need to get all the relevant data.
If we say no…it isn’t personal. We just need to follow the rules as our Christian calling leads.
Disallowance may happen…ISI’s reputation depends on our adherence to the process.
Please remember that we in Finance already think highly of you and never mean to imply any judgement or any ill will towards any of our staff when we must ask questions to make sure we have all the information we need.
We want to be able to tell your story to anyone who interacts with ISI and show how much amazing work is being done for God’s Kingdom with International students, so from time to time we may need to ask more questions to get all the details of your story.
We may also need to disallow some expenses on reimbursements if they are not in compliance with our policies and procedures, including a determination for business purpose. This too in no way is personal, we just need to make sure that ISI is above reproach in all financial matters both by internal and external inspection.

12. Evangelical Council for Financial Accountability (ECFA)
ECFA’s mission is to enhance trust in Christ-Centered Churches and ministries.
ISI is a member of ECFA.
ECFA’s standards must be adhered to by ISI.
Financial oversight is key.
- Outside CPA firm must review annual financial data and determine if ISI was a good steward of God’s resources in view of all legal, ethical, and non-profit business standards (annual audit).
To help us in that endeavor, ISI is also a member of the Evangelical Council for Financial Accountability (ECFA).
The mission of ECFA is to enhance trust in Christ-Centered Churches and ministries. In this way, ECFA has 7 standards that must be met so we can maintain our membership in the organization.
One of those standards involves financial oversight. As an organization, we must hire an outside CPA firm to review our annual financial statements and make sure ISI was a good steward of all that God provided in the view of all legal, ethical, and non-profit business standards. Because our financial integrity is so important, Finance must make some hard choices sometimes in terms of what ISI funds can or cannot be used for.

13. ECFA – Stewardship of Donations
Another ECFA standard is stewardship of charitable gifts.
Qualifications to meet the standard:
Truthful in all communications.
Meet all intentions for donor gifts as stated by the donor.
Acknowledge all gifts in a timely manner.
Never put pressure on any individual or company to give outside its means.
Never give commission-based payments to outside consultants or employees.
Another standard that is very important to ISI is that of stewardship of charitable gifts.
To meet this standard ISI must be truthful in all communications, meet all intentions for donor gifts as stated by the donor, acknowledge all gifts in a timely manner, never put pressure on any individual or company to give outside of its means, or give commission-based payments to outside consultants or employees.
We will do everything we can to make sure these standards are meet and in so doing communicate the great appreciation we have for our donors and give each one the assurance that the dollars he/she has entrusted to ISI are being used in the best way possible.

14. Conclusion Finance = money Money = responsibility
Responsibility = service
Accountants = head in the numbers…
Christ Follower = WE LOVE YOU AND WANT TO SERVE
We love questions and are always here to do our best to answer them.
Don’t forget to go to our website at
To wrap up:
Finance means we do the money part and we do it to best of our ability to satisfy all the requirements placed on the company and our department.
We appreciate each one of you and want to serve as best we can.
We must tell your financial story to many internal and external folks, so we will do our best to make sure the story is complete and in compliance with the standards we are held to.
We are accountants, so even though we may need to have our heads in the numbers most of the time, we love you as our brothers and sisters in Christ and want the best for each one of you every day.
Thank you for your time in watching this introduction to Finance video and please feel free to always reach out to any one of us at any time when you have questions or concerns for our department. We thank you for your decision to join ISI and we hope you are richly blessed in this endeavor both now and for many years to come.