See ¶258.4 in the Book of Discipline of the United Methodist Church, 2008. But if you’re looking for an alternative that offers you a more personal experience, what is a carrying amount consider opening a church bank account. Church banks have been around for centuries and offer a unique set of services and products not found elsewhere.

Neither the pastor nor any other member of the church should have the authority or ability to withdraw church funds or incur church debt without the approval of the Board of Stewards or the Board of Trustees. (3) Are the persons with authority to write checks and make withdrawals the persons duly authorized by the church’s constitution, bylaws, or pertinent board or congregational resolution? If you are looking to start a church, it is important to have an account with the bank. Opening an account will help you store your donations and track your finances. There are different ways to open a church bank account, so be sure to research which method is best for you.

A pastor is a person who leads the congregation in worship and prayer. They are responsible for the spiritual well-being of their congregation. In order to do this, they need access to the church’s finances. They may also want to make purchases that are not related to the church’s mission or purpose. In these instances, they should be able to access their personal account on the same bank account as their church’s account.

Safeguard the Church Treasury

The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings. The subject of church finances and the pastor’s involvement has long been a topic of discussion and controversy. Opinions and practices vary as to whether the spiritual leader of the congregation should be allowed unrestricted oversight, be completely uninvolved, or work with a board/advisory committee in the monetary business of the church. In rare cases there are those who have in place a “finance committee” that is independent of the pastor and/or the board. Who is responsible for the oversight and management of the church’s finances? Should the pastor, being the spiritual leader, have input into the financial matters of the church?

• In this situation, it is recommended that the pastor should not be listed on the church’s bank account or have direct access to the funds.
• You will get your EIN within four office days if you faxed your application, but mailed applications can take up to five weeks before being issued EINs.
• Each church has its own way and point of view on how to manage finances since the Word of God does not establish an official method.
• They should be extremely careful to manage the assets of the church in the same manner as they do in the home.
• In these instances, they should be able to access their personal account on the same bank account as their church’s account.

For more resources, you can visit our church management page here. This designation could also go to an elder or deacon who has been chosen by the whole congregation as being trustworthy and honest before God’s people. Vital coverage of critical developments, news, insights, and resources about legal and tax matters affecting churches, clergy, staff, and volunteers nationwide. No person, no matter how high or prominent he may be in the church, may dispose of the church’s finances for his personal use. If any pastor has incurred this offense, he is subject to the scrutiny of those who criticize the use and misappropriation of funds, even if the cause seems to justify the use of the funds. This is a very controversial topic since it is known that there are churches in which the pastor is the one who, in turn, disposes of the congregation’s money and serves as treasurer.

Contribute Your Church Accounting FAQs, Helpful Answer, Comments, or Tips

The former pastor claimed that he had not been asked to approve the board’s attempt to change the church bank accounts, and therefore the board’s action was legally invalid. The bank asked a court to determine who controlled the church’s accounts. This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. “From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.” Due to the nature of the U.S. legal system, laws and regulations constantly change.

Mistake 2: The pastor uses church funds for personal expenses.

Is a bank required to honor a change in signature authority on church accounts if the change failed to comply with the church’s constitution? A church’s bank accounts stated that all checks and withdrawals had to be approved by the senior pastor. A dispute arose in the church, and the congregation was divided over the issue of whether or not to retain their pastor. The church board held an “emergency meeting” at which it removed the pastor and replaced him with another pastor.

Information on this site is provided for informational purposes. This site is meant to be used as a reference work only,
which may or may not help you make informed decisions concerning your church or ministry. It is not to be used in replacement of or as a substitute for a lawyer or CPA. As always,
you should seek the counsel of a competent lawyer or CPA. The authors and/or publishers are
not responsible for any legal repercussions, adverse effects, or consequences resulting from
the use of any of the information discussed on this site.

Comments for bank account signatures

Giving should be to the Lord, not in relation to where the money is spent. Nonetheless, congregants may give less if they lose faith in how church leaders are spending money. Your annual conference treasurer will help you disburse funds to the correct accounts and to complete reports.

Changing Signature Authority on Church Bank Accounts

These simple steps will help you effectively organize the community money invested and avoid unnecessary expenses. © 1995–2024 All correspondence and questions should be sent to Send inquiries regarding the operation of this Web site to Gary Beam is pastor of the United Church of God congregations in Tupelo, Mississippi, along with Huntsville and Birmingham, Alabama. Before applying for your EIN, be sure that all the information is accurate, as filling inaccurate information can cause delays.

Handling Money in the Church

This is true for elected church leaders as well as church staff. The Book of Discipline of the United Methodist Church is specific about handling money. The people who receive and count funds should not be related to people who disburse the funds.