Following is an article from Ken Sloane at umcdiscipleship.org. Next week we will follow up with 5 additional policies!
Article by Ken Sloane
Some people equate the word “policy” with “bureaucracy,” and that’s not hard to understand – both have to do with decision-making. As we discuss policies for churches, we focus on what decisions can be made ahead of time that will guide the church in times of crisis or difficulty and that might keep the church out of a difficult situation. Here are just a few examples:
What do we expect from church staff, and what can they expect from us?
How do we avoid a gift that the church doesn’t need, without the donor taking it personally? How do we guide leaders in the appropriate use of donor gifts so that expenditures are not questioned after the fact?
How do we manage endowments and bequests so that they support the church’s growth in its mission and not a congregation becoming lazy in stewardship and generosity?
The inspiration for this article comes with my gratitude from author and stewardship strategist Bonnie Ives Marden, and her excellent book, Church Finances for Missional Leaders (Wesley Foundry Books, Nashville, 2019,) and is used with her permission. The first seven policies and descriptions are part of Bonnie’s list. I’ve added three more at the end that I think are also worthy of your church’s consideration. I’ve also provided links for each that will give you examples or ideas.
Life will be so much easier for your church if you have policies in place before you need them, instead of being confronted with a problem or a decision and trying to create a policy that gets you out of a tough spot. Let me also add that your policies may not be perfect the first time around, so do your best and then tweak them based on the wisdom gained in the navigation. Finally, remember that your policies often have a shelf life. We all know how fast technology can change, and your policies will need review and possible updating on a regular basis.
1. Building use policy
When a group uses the church property, a building use policy clarifies expectations about access to the property and the use of facilities. It should address such subjects as food preparation, sound systems, worship space activities and supplies, setup and cleanup expectations, safety, and insurance verification. Information on fees, keys, and emergency contacts are also important policy elements. Any property use needs to align with the church’s missional purpose. Groups using the property need to provide a binder documenting appropriate insurance coverage. Uses that are not missional could trigger taxes for unrelated business income. Property use may generate significant income, and careful attention to nonprofit regulations and legal considerations will reduce potential risks.
Sample Building Use Policy (PDF)
2. Endowment policy
The language contained in your endowment policy should include a description of committee membership, the purpose of the endowment, an investment policy, and guidelines for amending the policy. Also known as a charter, the policy defines the goals, framework, and identified priorities for an endowment in your mission. Because of the legal responsibilities and financial accountability for managing invested assets and endowments, the policy contains language similar to language used in bylaws. Legal counsel is recommended to ensure that this policy complies with state laws impacting investments, endowments, and charitable giving by nonprofit organizations.
3. Finance policy
These policies provide instructions for creating the budget, opening bank accounts, managing transactions, record-keeping, and other aspects of financial management; your finance policies orient leaders to mission procedures and expectations. While roles and responsibilities for financial management may be defined by denominational guidelines, these policies provide supplemental guidance for local operations.
Financial Controls Policy (PDF)
4. Gift acceptance policy
This policy offers donors and committees guidance about the types of gifts accepted and how different types of gifts are stewarded, including how to refuse certain gifts. Especially appreciated by major donors, the policy provides helpful guidance about whether valuable items or property could be donated to your mission. This policy helps your mission avoid gifts it can’t use.
5. Memorial fund policy
Memorial funds receive gifts honoring a person’s life. The memorial fund policy describes the purpose and stewardship of gifts, appropriate uses, and local traditions. Input from family members may be invited; however, the church retains the right to adopt or reject suggestions. Since families and members cannot create new designated funds, their input does not supersede the church’s authority to make the final decision. Affirm the life and values of the people honored by having a plan and avoid accumulating memorial funds without a clear plan or process.
Stay tuned as we pick up with five additional policies in next week's Focus.
Article by Ken Sloane at umcdiscipleship.org Read the full article here.
Photo by Edwin Andrade on Unsplash