Financial Policy
Biblical Basis: “Having land, sold it, and brought the money and laid it at the apostles’ feet.” Acts 4:37 (KJV) The financial responsibility of the church is to be a wise steward of the resources God entrusted to this fellowship. Ultimately, the church is responsible to God in the stewardship of its funds. If a financial conflict arises, the instruction in Matthew 18 should be followed as a guiding principle.
Stewardship Emphasis: Annually, the church needs to conduct an on –going stewardship emphasis. The emphasis can be through a special program, sermon series, or campaign. Unrestricted gifts: Members are encouraged to support the ministry of the church through regular gifts and offerings to the general and operating budget of the church.
Designated Gifts: Individuals can give designated gifts for the ministry of the church. However, the designated account must be established before the church receives the donation.
Establishing Designated Accounts: A designated fund must be established by the church before any income is received by the church.
Love Offerings: All love offerings must be pre-approved by the finance committee.
Memorial Funds: While the church believes in the
importance of memorial funds, the finance committee will make the final
decision in the usage of the memorial funds. The finance committee will respect
the intent of the donors, but the finance committee will not be legally bound by
the donor’s intent.
Budget Presentation: The finance committee will present a budget for adoption at least one month before January 1.
Fiscal Year: The church fiscal year shall begin January 1 and conclude December 31.
Financial Records: The church will be responsible for maintaining adequate financial records. All legal documents will be kept in the safe deposit box at the bank.
Financial Reports: Monthly financial reports of expenditures and receipts shall be made available. At least annually, a financial report should be given to the church in a business conference.
Review of financial Records: The financial records of the church shall be reviewed by the Finance Audit committee.
Fundraising Events: The normal practice of
financial operations of the church is for members to give their tithes and
offerings through the general budget of the church. The finance committee must
approve other fundraising events. Contribution credit will not be given for
items purchased at a fundraising event.
Mission Giving: The church believes in the biblical basis of mission giving as commissioned by the Lord Jesus Christ in Matthew 28:18-20. The church will commit to give a percent of its general receipts to mission causes through the Cooperative Program and associational missions. The church believes in supporting missions.
Mission Offerings: The church supports the national and state mission offerings promoted by the church.
Disbursement of Funds: The church treasurer and other designated individuals shall be responsible for the disbursement of church funds according to the budget adopted by the church. Likewise, funds shall not be disbursed without an adequate receipt or invoice being provided by the individual requesting the funds. Normally, requests for funds should be given at least one week in advance.
Contribution Statements: Contribution statements will be provided to each member of the church over twelve years old. Nonmembers will be provided contribution statements if they gave $250 or more annually, or upon request.
Church Bank Accounts: The church treasurer in consultation with the finance committee will be authorized to open and close church bank accounts under the control and authority of the church. Only bank accounts controlled by the church may be allowed to use the church’s federal identification number.
Reserve Funds: The goal of the church will be to maintain two months of reserve funds to be used in the case of emergency or temporary budget shortfall.
Property and Liability Insurance: The church will insure the church property at the fair market value. At least every two years, the building and grounds committee should review the church’s current liability and property coverage. Also, the building and grounds committee should conduct a church safety tour annually.
Church Credit Card Usage: Only approved individuals may use the church credit card with the finance committees’ approval.
Church Usage Fees: Church members and nonmembers can reserve the church facilities for personal use if the reservation is not in conflict with the church’s schedule. The finance committee will determine the fees for the usage.
Accountable Reimbursement Plan: The church will only reimburse business related expenses with receipts provided by the person seeking reimbursement.
Sexual Harassment Policy: Any person feeling they are a victim of sexual harassment should contact the personnel committee immediately.
DESIGNATED FUNDS POLICY
The First Baptist Church of Lead Hill, Arkansas adopts this policy in order to comply with legal standards of charitable contributions. Some examples of legal compliance are.
“The contribution is unconditional and without personal benefit to the donor.”
“The contribution is made to or for the use of the church.”
“The value of personal services is never deductible as a charitable gift.”
“No deduction ordinarily is allowed unless the church exercises full administrative control over the donated funds to ensure that they are being spent in furtherance of the church’s exempt purposes.”
Policy of the church:
1. Givers are strongly encouraged to support first and foremost the unified budget of the church with their regular tithes and other freewill offerings.
2. The church will receive designated giving only to areas which are church approved or are already part of the church approved unified budget. No designated gifts will be received until the church approves that fund.
3. All designated accounts will be under the control of the Finance Committee, to determine how the money is used, which will become part of the regular finance report to the church.
4. Each designated account must be general in nature(Mission trips, Missions offerings, Evangelism, Building Improvement, New Equipment, Benevolence, Ministry projects,etc.) and not specific in nature (a microphone fund, a rocking horse fund, a curtain fund, a hot tub fund, etc.
5. Members’ suggestions for its use may be considered, but the decision must be based on best use in the context of the church’s ministries.
6. If a designated gift that does not fit this policy, the donor will need to send their gift to that charitable organization or go purchase the item.
7. Non-cash gifts to the church will be acknowledged with a letter of appreciation which can be used by the donor along with proof of value to deduct it from their taxes. All non-cash gifts become property of the church and may be used or sold at the church’s discretion. The church reserves the right to either accept or refuse any non-monetary gift.
8. Any monies left over from a designated fund will go into the general fund.
BENEVOLENCE
FUND POLICY
First Baptist Church of Lead Hill, Arkansas adopts this policy, in order to comply with legal standards of charitable contributions. Some examples of legal compliance are:
“The contribution is unconditional and without personal benefit to the donor.”
“The contribution is made to or for the use of the church.”
“The value of personal services is never deductible as a charitable gift.”
“No deduction ordinarily is allowed unless the church exercised full administrative control over the donated funds to ensure that they are being spent in furtherance of the church’s exempt purposes.”
ACCOUNT
REIMBURSEMENT PLAN
First Baptist Church of Lead Hill, Arkansas hereby establishes an accountable reimbursement plan for all ministers and employees with the following terms and conditions intended to comply with all applicable tax rules.
*Ministry use of an automobile, up to the current IRS standard mileage rate;
*Ministry travel away from home:
transportation, lodging and meals on overnight trips
*Convention, conference and workshop expenses;
*Continuing education expenses;
*Subscriptions, books and tapes, if related to ministry or employment;
*Entertainment/hospitality expenses, if ministry connection requirement is met.
2. The minister or employee will account for each allowable expense in writing at least every 30 days. Documentation will include the amount, date, place, ministry purpose and ministry relationship of any person entertained for each expense. A receipt will accompany the documentation.
3. The minister or employee will return advances that exceed actual ministry expenses within 30 days.
4. Under this accountable arrangement the church will not report reimbursed amounts as taxable income on the minister’s or employee’s Form W-2. The minister or employee should not report reimbursed amounts as income on their federal income tax return.
CURRENT DESIGNATED FUNDS FOR First Baptist Church Lead
Hill, Arkansas
Designations can also be made to line items in the Church budget.
These policies and designated funds are being presented to the church for approval at this time, May 9, 2007
By the Finance committee. Deena Lawrence Treasurer, Nancy Dummer, Mark Methvin, John Taylor, David Thompson, Kaleb Moon.
Pastor at approval Bro. Rodney Fry
Date approved June 13, 2007
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