I am a new treasurer at Faith Baptist Church and they tell me I have to keep all sorts of records, but I don’t understand why? We are just a church not a business.
Basically, a public charity must maintain books and records to show that they are in compliance with tax rules. The charity must be able to document sources of receipts and expenditures reported on form 990 Return of Organization Exempt from income tax, and form 990-EZ, Short form Return of Organization, and Form 990-T, Exempt Organization Business Income Tax Return.
To learn more about keeping records and why, read more.