Let’s be honest, “financial policies manual” doesn’t exactly get people excited. But if you’ve ever wondered “Who’s allowed to spend what?” or “Why do we only find out about missing receipts three months later?” you already know why your church needs one.

A financial manual isn’t about red tape. It’s about intentionality. It’s your way of saying, “We want to steward God’s money well, on purpose, not by accident.” It gives your staff a structure to follow, your board a reference point, and future leaders a head start when today’s team eventually moves on (or finally takes that sabbatical).

If your church has never created one, or you haven’t touched yours in years, here are some ideas of what to include.

1. Who Does What (a.k.a. Roles & Responsibilities)

Start with the basics:

• Who pays the bills?
• Who enters the transactions?
• Who approves purchases?
• Who panics when the bank balance dips?

Jokes aside, defining roles helps everyone stay in their lane. And ideally, the person reconciling your bank accounts should not be the same person who’s writing checks or making purchases. A little separation of duties can prevent a lot of headaches.

2. How You Build (and Adjust) the Budget

Your budget should be more than “what we did last year, plus 3%.”

Include:

• When the budget is created (e.g., September–November)
• Who contributes (pastor, staff, finance committee)
• How mid-year changes are reviewed and approved

Example: If the youth pastor wants to double the snack budget, who says yes, and how is that tracked?

3. Spending Limits and Approvals

Clear limits protect everyone, both from overspending and from awkward conversations.

Outline:

• Spending thresholds (e.g., staff up to $250, board approval for $1,000+)
• Required approvals
• Receipt requirements (yes, even that $12 Chick-fil-A order)

And if you use credit or debit cards, clarify who can use them and how transactions are reviewed.

4. Reimbursement Process

Nothing creates tension faster than delayed reimbursements or fuzzy rules.

Define:

• What qualifies for reimbursement
• How and when to submit receipts
• Timelines for reimbursement (30 days is standard)

Set a time limit for submissions. 30 days is common. After that, sorry… it’s probably a donation.

5. Handling Donations and Income

Let’s not sugarcoat it: churches lose money every year because they don’t have clear systems for handling donations. And sadly, it’s often taken by someone inside the church, a trusted volunteer or staff member without proper oversight.

We’ve seen it happen more than we’d like to admit. That’s why this section is non-negotiable.

Include:

• Offering collection protocols — Always use two unrelated people to count offerings.
• Deposit timelines — Offerings should be deposited within 1–2 business days.
• Online giving access — Who can log in? Who pulls reports? Is access limited to those who need it?
• Designated funds — Track them separately. Use them only for the purpose given. Period.
• Year-end giving statements — Who prepares them, when they’re sent, and how they’re reviewed.

Strong systems in this area protect your people, your mission, and your integrity.

6. Bank Account Access

This section should answer:

• Who can view or move money online?
• Who’s authorized to sign checks or initiate transfers?
• Who reconciles accounts, and how often?

Pro tip: the person who reconciles the bank account shouldn’t also be handling transactions. That’s where fraud slips through.

7. Payroll and Staff Pay

Church payroll is a different beast. Your manual should cover:

• Housing allowance designation and documentation
• Who approves raises or bonuses
• Whether staff are employees or contractors (and how that’s decided)

Example: Paying your worship leader $600/month under the table might seem “simple,” but it’s not IRS-compliant, and it’s not good stewardship.

Need help with this part? That’s where our faith-based bookkeeping services can make a big difference.

8. Financial Reports and Oversight

Set expectations for financial reporting:

• What reports are created (e.g., Statement of Activities, Budget vs. Actual, cash flow)
• How often reports are shared (monthly, quarterly)
• Who reviews them and what happens when discrepancies show up

Also include whether you conduct internal financial reviews or engage an outside CPA, and how often.

9. Recordkeeping and Retention

No more “we think the receipts are in the back office… somewhere.”

Lay out:

• What records to keep (and how long):
  • Donations: 7 years
  • Payroll: at least 4 years
  • Bank statements: 7 years
• Where records are stored (e.g., cloud-based system, locked cabinet)
• Who has access to what (especially when handling sensitive donor or payroll info)

A quick chart of record types and retention timelines can be helpful here.

10. Conflict of Interest

Most churches include basic conflict-of-interest language in their bylaws, but your financial manual should take it a step further.

Include:

• What counts as a conflict (e.g., approving a payment to a relative, voting on your own salary)
• Who needs to disclose relationships
• How conflicts are documented and addressed
• Whether board/staff should sign an annual disclosure form (hint: yes)

Even if your team is full of saints, this protects everyone and promotes trust.

Optional (But Helpful) Additions

Depending on your church size and structure, consider including:

• Mileage & travel reimbursement policies
• Guidelines for large or capital expenses
• Restricted fund spending policies
• What tools your church uses for church bookkeeping (e.g., QuickBooks Online, Dext, bill.com)

How to Start (Without Losing Your Mind)

You don’t need to tackle this all at once.

Start with what you already have, maybe some budget templates, job descriptions, or financial policies buried in a shared drive. Build from there.

Ask your board for help. Review it once a year. Make edits as your team or needs change.

Remember: it doesn’t have to be perfect. It just has to be clear.

Free Resource: Build Your Manual with Confidence

Need a little structure to get started? We’ve created a simple checklist that walks through all the key areas we covered above.