Church Financial Policies (Summary)

Purpose & Authority

These policies provide biblical guidance, legal compliance, financial accountability, and conflict prevention in managing church resources. They are adopted and amended by majority vote at a church business meeting and are not part of the constitution or bylaws. Legal counsel is recommended before implementation.

Stewardship Principles

The church is accountable to God and its members to manage financial resources with integrity. Ongoing stewardship education is encouraged.

Types of Funds

The church may establish and administer approved funds, including:

General (Unrestricted) Fund – Supports the overall ministry budget.
Designated Funds – Must be approved before receiving contributions; purpose and procedures must be documented.
Benevolence Fund – Assists individuals in need; distributions are at the discretion of the church.
Building & Grounds Fund – Maintains facilities and equipment.
Property Fund – Supports major repairs, expansion, or construction.
Missions Fund – Supports local and global mission efforts.
Ministry Fund – Supports specific church ministries.
Love Offering Fund – Provides financial gifts (taxable to recipients).
Memorial Fund – Honors deceased individuals.

All funds are administered at the discretion of the appropriate committee, and contributions are non-refundable. If a fund is closed, remaining balances revert to the general budget.

Budget & Fiscal Oversight

Fiscal year: January 1 – December 31.
Annual budget presented at least one month before the new year.
Monthly financial reports; quarterly congregational reports; annual summary report.
Annual financial review by an appointed committee (outside accountant if needed).
Two signatures required for fund disbursement with proper documentation.
Finance Committee approves fundraising events and budget overages.

Banking & Records

Only authorized church-controlled bank accounts may use the church’s tax ID.
Financial records are maintained on-site and available upon valid written request.
Contribution statements provided upon request.

Mission Giving

The church commits 13–15% of unrestricted gifts to mission causes and supports denominational mission offerings.

Insurance & Reserves

Property insured at fair market value; reviewed regularly.
Goal of maintaining two months of reserve funds.

Credit Cards & Reimbursements

Church credit cards require approval and are for ministry use only.
Receipts and timely statements are required.
Reimbursements follow IRS accountable plan rules (documentation required; excess advances returned).

Facility Use

Church facilities may be reserved for personal use if approved and not in conflict with church activities. Usage fees are set by the Finance Committee.

Download Church Financial Policy Template  HERE