Highland Baptist Church – Donor Restricted Gift Policy
Spending of funds is confined to Highland Vision & Leadership approved programs and projects. Each contribution directed toward an approved program or project will be used as restricted with the understanding that when the need for such a program or project has been met, or cannot or should not be completed for any reason as determined by the Vision & Leadership Board, the remaining restricted contributions will be used where most needed.
Rationale for having a Policy:
- Churches should ensure that gifts or donations received that are restricted for the support of a particular ministry or intended to be used for a particular program or project are used solely for such purpose or purposes.
- To avoid receiving funds that are not pertinent to the church’s current vision and mission, the church should also have a policy that states that donations will not be accepted for projects or purposes outside of the church’s objects or approval.
- Occasionally, using funds as restricted becomes impossible. Consider the example of a church holding a special offering to raise $7,000 for a new piano.
- The offering raises $10,000. What happens to the other $3,000?
- In this case, the church is legally prevented from either using the funds in another program or returning them to the donor, without making application to the courts. This can be an expensive and time-consuming exercise.