CONGREGATIONAL DISCRETIONARY FUND GUIDELINES
AUGUST 17, 2009
1.SUMMARY: The Congregational Discretionary Fund (CDF) provides a suitable way for the congregation to minister to persons in need of financial aid. It would apply to non-members coming to the church seeking aid for a personal situation which may be addressed through short term financial and emotional support. Funds for the CDF are part of the operating budget, but may also come from several sources including grants from the Christian Service Commissioner (CSC) and contributions from the congregation. A member of the Christian Service Commission, appointed by the CSC, will act as the congregational liaison to persons in need of financial aid. The Pastor will act as an advisor in all cases.
2.GUIDELINES:
Funds may be disbursed for assistance to individuals/families that come to the church requesting such aid. The Christian Service Member determines the extent of the assistance, based upon the needs of the person seeking aid and the guidelines established in this document:
- The Christian Service member is always encouraged to refer individuals/families seeking assistance to the appropriate local, county or state agency as a first or additional resource.
- No individual/family is to receive assistance more than two times within any fiscal year.
- Where an assistance request(s) would exceed $250 for any individual/family in a fiscal year, the member of the Christian Service Commission and the CSC must jointly determine the extent of the assistance. The amount shall not exceed $500 without voting approval of the Christian Service Commission.
- If a situation requires a third expenditure, or exceeds an amount of $500 in a fiscal year, the member of the Christian Service Commission must refer the person/family to the CSC for further action and decisions. The Christian Service Commission will discuss the situation during a regularly scheduled meeting, or during an emergency meeting if needed to determine the best course of action. Determination will be made by a vote of the commission under simple majority rules.
- Funds should be placed in a separate-from-the-church account with checks to be signed by the Christian Service member or the CSC. A running up-to-date balance must be kept at all times in the check register. The Christian Service Commission will be responsible for any charges from the bank..
- This account is not to be used at any time for personal expenditures or for expenses that should legitimately be charged against other line items of the Congregation’s budget. In no case should checks be written to “cash” or as this could lead to the appearance of impropriety.
- Checks shall not be written to the individual/family applying for assistance. Checks to a utility, pharmacy, landlord, insurer, etc. are considered acceptable use of these funds.
- The Christian Service Commission member and the CSC will ensure that the account is properly maintained as follows:
1)The Christian Service member will establish a logbook for the account in a three ring binder. Due to the sensitive and personal nature of the information in the log, the Christian Service member will maintain the records in an appropriately locked location. The logbook will have the following two sections:
a)Balance Sheet – This will be a log of transactions similar to a check register. The purpose of this sheet is to maintain a running up-to-date balance. All incoming and outgoing transfers will be logged with the date, amount, brief description of the purpose, and the current balance. This should match the balance kept in the checkbook register, but the description will be more substantial.
b)Supporting Documents – This section of the log will maintain the supporting records needed for auditing purpose. For each outgoing transaction, the Christian Service member will record (at a minimum) the date, amount, purpose, and recipient’s name. Additional identifying information may be added. Stapled to this piece of paper will be a copy of the bill/invoice, and a copy of the receipt for payment from the CDF. If payment is made to an individual or an entity that would not ordinarily provide a customer receipt, then the Christian Service member will have the person sign a handwritten receipt indicating the date and amount of the transaction.
2)The CSC will meet with the Christian Service member once a quarter to justify the account with the financial report and review the logbook and checkbook entries.
- An audit by independent persons (not on Pastor’s staff or involved in the Christian Service Commission) is mandatory at least once each fiscal year:
1)All records are to be turned over to the auditors. If privacy is necessary, last names may be blanked out or the auditors informed of such.
2)If the audit finds no discrepancies, then the account will be audited again the next fiscal year.
3)If the audit uncovers discrepancies in the recordkeeping of the account, then the account must be audited again in two calendar months.
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