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Determining Financial Policies for Your Church

How to identify the policies needed for sound financial management.

Determining Financial Policies for Your Church

Does our church need a whistleblower policy? Is our conflicts-of-interest policy adequate? Determining which policies to create—and appropriately crafting them for a specific church—is an exercise that requires discernment. A policy that is not appropriate for a particular church, or a policy that is poorly drafted, may create more problems than it solves.

In determining whether a church’s board should adopt a particular policy, the church should consider several factors. Among them are:

  • Whether the policy would be helpful in ensuring compliance with the law,
  • Whether the policy could help protect the church or its constituents,
  • Whether the policy will enhance the effectiveness of the church in carrying out its mission and purpose, and
  • Whether the policy fosters confidence and trust on the part of congregants or members.

Additionally, many key areas of day-to-day financial operations ...

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Michael (Mike) E. Batts is a CPA and the managing partner of Batts Morrison Wales & Lee, P.A., an accounting firm dedicated exclusively to serving nonprofit organizations across the United States.

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Posted:
  • April 25, 2019

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