Five Ways to Prevent Conflict Over Church Finances

Orginally published on Wednesday, October 17, 2007 at 7:12 AM
by Todd Rhoades

Keith Hamilton has a great article over at Lifeway.com on the subject of church finances. Keith writes: "In my work with churches I have seen great spiritual and emotional damage done by conflicts over finances. I even know of one visitor who committed suicide after attending a heated church business meeting. There is a better way to handle the church financial matters that can reduce church conflicts and prevent short and long-term spiritual and emotional damage. The church needs to address at least some of the following issues to help reduce church financial conflicts..."

Here are five recommendations from Keith on how to prevent conflict over church finances…

1. Move from monthly to quarterly business meetings.
If a church needs to meet on a special business matters between quarterly business meetings, then the church can call a special conference. Of course, monthly financial reports should be available to church members. Many churches struggle to fill the agenda for monthly business meetings. The lack of agenda items allows room for unnecessary and, sometimes, unkind discussions and remarks.  (Obviously written from a Baptist perspective, but there is value in the overall idea here).

2. Empower committees and program leaders to make financial decisions.
Churches approve annual budgets. Committees and church leaders should be given the authority and power to spend money within a budget line item without church approval. For instance, if the church budgeted for new windows, then the building and grounds committee should have the authority and power to spend the money for installation of new windows without having to come back to the church for a vote on what kind of windows to install. The church budget is used to empower church committee and leaders.

3. Develop realistic budgets based on past giving trends.
All budgets need to have a “faith” element but the faith element should not be unrealistic or overwhelming. If the church budget is realistic, then a lot of unnecessary discussion will be eliminated concerning the availability of funds. Some churches have used a purchase order system to help the church financial leadership plan future major expenditures. Realistic budgets will make a difference in reducing church financial conflicts.

4. Develop church financial policies.
Oral traditions of spending church funds are good if a member knows the oral tradition. Written church financial policies are better. Church members will know the church expectations concerning designated giving, fund raisers, and other important financial traditions. Church financial policies help eliminate the guess work of church financial matters.

5. Highlight the importance of practicing Matthew 18 teachings in dealing with church financial conflicts.
Church financial leaders should model the teaching of Christ when they have something against their brother. The Scriptures teach that a believer must go to the offended party privately first. If this principle were practiced, a lot of church financial conflicts will be reduced or eliminated altogether.

Read more here, with some other great links on finances and stewardship.

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