Good churches need good manuals – Finance Manual

2016-11-november-24-6

 

A finance manual is critical. Church finances require the utmost level of trust from the donors and members toward the pastors and finance staff. A finance manual establishes the policies by which the church’s money will be governed and used. Parts of this document are a legal requirement but most of it is designed to ensure confidence in the handling of funds.

 

If a church does not have a finance manual, it can create the appearance of lack of integrity and a haphazard attitude towards donated money. That is not the biblical standard. Paul tells the Corinthians to do all things in their church “decently and in order.”

 

A good finance manual will address accounting, banking, record-keeping, software and hardware, document retention, communication with donors, accounts payable, financial reporting, audits, gift acknowledgement, and too many other things to list here. These policies ensure that even though staff may come and go, the practices within the Finance Office remain constant and completely above-board.

 

A personnel manual is a living document – it must be reviewed every year and updated at least every other year. Not doing that minimal step is a failure by management. Most policies will remain the same such as contribution processing, payroll, or accounts payable. But as times change, new policies must be written and old policies changed to address changes in the law or accounting standards regarding overtime, designated funds, and PP&E (property, plant, & equipment).

 

The finance manual template at www.churchbestpractices.org has

  • A Gift Acceptance Policy to help the church know what gifts can be accepted without question versus those which require research
  • A policy for using church-issued credit cards and reporting the expenses charged on the card
  • Fundraising ethics standards to ensure the church abides by IRS rules

 

This manual is only $30. It is updated annually to ensure its compliance with the latest legal and tax changes.  This manual is a great starting point for churches needing to develop a manual scratch or to update their current one. It will save hours of research and writing. By using this manual, a church will need only to add sections that are specific to their situation and/or remove non-legal policies which don’t apply to them.