The finance side of running a church is an area that I've slowly learnt about. I am not trained in business nor in finances nor in accounting. But I've discovered that good systems, a willingness to ask someone for help and a decent dose of calm logic can be very empowering.

I remember hunting high and low on the Web for a Finance Policy we could adapt when we were trying to establish a new one. In the end I drew on a range of different ones and created one that our Finance Group reviewed, and then we brought it to the PCC. I offer it you as an example to adapt (I warn you some of detail will not be relevant to you but it gives you a taster of the type of thing).

Finance Policy and Procedures Template- for use and editing

The sections we included in our finance policy are:

• Finance Records and Accounts (a summary of your accountability and legal checks)
• Banking (what accounts you hold, has access and how signatories are checked)
• Accounting and reporting (a summary of how we will monitor our accounts)
• Responsibilities and Roles (the roles and groups delegated with responsibilities)
• Budgeting (an outline of our budget categories and how the budget will be reviewed)
• The Financial Year (when it begins and ends, and how opening balances will be handled with regards to )
• Income (the main ways money is received and how it processed)
• Fundraising and Grant Applications (a summary of how approval should be sought, and a comment on National Lottery grants)
• Expenditure (how receipt of spending will be evidenced and stored)
• Authorisation of spending (who should authorise different levels of spending)
• Staffing and salaries (the process for paying, reviewing and changing salaries)
• Tithing (the agreed approach to calculating and paying the church's tithe)
• Reserves policy (how much the church will hold in reserve)

You'll find the example policy here. 

Important: As with all the resources on Practical Foundations, please remember to check the guidelines of your national church or diocese, for example the Treasurer's Handbook for the Church of England. Also note that the rules of the Charity Commission must be followed if you are a registered charity. 

And remember your Finance Policy must be approved by your PCC