The Bible says that the Law and the Ten Commandments were like a tutor or guardian. They helped keep us out of trouble and helped us live well. Financial Policies are similar. If you don’t set the rules for how the church manages money, everyone will setup their own rules. Everyone that touches money or keeps financial records will just do what they think is best. Often this is going to work out fine…until it doesn’t.
No matter the size of church you have, you need to decide, and put it in writing, the following:
- How we care for donation? Do you count money right away after the service or do you lock it up? What about all those donations dropped off at the office or received through the mail? How should it counted?
- How do we approve expenses? If the treasurer gets a bill, how does the treasurer know if it’s okay to pay or not? Also problems come up around payroll and church credit cards.
Those are the main things to think through although there are some other things most churches will need to consider as well. I have some templates below.
- Financial Policies Template 1: https://www.dakotasumc.org/media/files/CONFERENCE/5_Conf_Finance_Benefits/Finance/finance_policies_v1.docx
- Financial Policies Template 2: https://www.dakotasumc.org/media/files/CONFERENCE/5_Conf_Finance_Benefits/Finance/facility_policies_v2.docx
- Church Audit Post: https://jctaccounting.com/2021/01/15/finance-the-audit/
- Counting Offering Post: https://jctaccounting.com/2020/10/02/how-should-my-church-count-the-offering/