Church Conflict of Interest Policy Template

Part of the Well-Ordered Church Policy Pack · For small Baptist and Reformed churches

A plain process for spotting, disclosing, and stepping aside from conflicts of interest, so church decisions stay above reproach.

What this policy is, and why a small church benefits

A conflict-of-interest policy says what to do when a leader, or someone close to them, could benefit from a church decision: hiring a relative, buying from a member's business, or renting property from an officer. The person discloses it, steps out of the decision, and the rest of the leaders decide.

In a small church, nearly everyone knows everyone, so conflicts are normal and not a sign of wrongdoing. What matters is handling them openly. A written process keeps relationships healthy, protects the people involved, and shows the congregation that decisions are made fairly. Scripture calls leaders to be above reproach (see 1 Timothy 3:2) and to provide for what is honorable in everyone's sight (2 Corinthians 8:21).

What the template covers

Each delivered document follows this outline. Sections that don't apply to your answers are left out, and every page carries a draft notice for your attorney and accountant.

1. Purpose and Foundation. Why the church handles conflicts openly, with Scripture references linked to esv.org.
2. Who This Policy Covers. Officers, finance roles, and the reviewer, plus any staff or ministry leaders you choose to add.
3. What Counts as a Conflict. Plain definitions and an examples table matched to your church's officer titles.
4. Duty to Disclose. When and to whom disclosures are made: yearly, on election or hiring, and whenever a conflict arises.
5. Recusal and Decision Process. How the conflicted person steps aside and how the rest decide, including comparable quotes.
6. Prohibited Transactions. Insider deals that are never allowed, and your choice on other related-party transactions.
7. Gifts, Hospitality, Favors. A gift limit for vendors and others doing business with the church.
8. Compensation. Included only if the church pays staff or a pastor: how pay is set fairly.
9. Violations. What happens if the policy isn't followed, without setting any church discipline process.
10. Records and Review. How disclosures are kept and when the policy is reviewed.
11. Adoption. Adoption line and signature block.
Appendix A: Annual Disclosure Statement. A blank form each covered person signs every year.

What the questionnaire asks

You answer a few shared questions once for the whole pack (church name, country and region, size, how your church is governed, officer titles, fiscal year, currency, and who adopts the policies). For this policy, it also asks:

Who is covered beyond the officers and finance roles (for example, paid staff or ministry leaders with a budget)
The ownership share that makes a related business count
How often disclosures are made and who receives them
Whether related-party transactions are allowed with safeguards or prohibited, and how many quotes are required
Your vendor gift limit
Whether the church pays staff or a pastor

Every number has a suggested starting point you can change. Your answers are placed into wording we reviewed in advance; no AI writes your document when you order, nothing is uploaded, and your finished, editable drafts are ready right after payment. Names are optional and default to blank lines.

Frequently asked questions

Does a church need a conflict-of-interest policy?

Many churches find one helpful because it gives leaders a clear, fair process before a sensitive situation comes up. Some lenders, insurers, grantmakers, or regulators may also ask about one. Your attorney can advise on what applies to your church.

Is having a conflict of interest wrong?

No. In a small church, conflicts are common and often unavoidable. The policy is about disclosing them and stepping aside from the decision, not about assuming bad motives.

Can our church do business with a member?

That is your church's choice. The questionnaire lets you allow related-party deals only with disclosure, recusal, comparable quotes, and a fairness finding, or prohibit them. Certain insider deals are prohibited either way.

Does the policy set up a church discipline process?

No. It covers disclosure and decisions about church business only. Church discipline is a matter for your elders and your own governing documents.

Will our disclosure forms include names?

No. The annual disclosure statement is always delivered with blank lines, to be filled in and signed by hand.

Get started

The Conflict-of-Interest Policy is one of four coordinated documents in the Policy Pack, which share the same terms, signers, and thresholds so they don't contradict each other.

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Other policies in the pack

Templates are drafts for review by an attorney licensed in your church's jurisdiction (state, province, or country) and your CPA or accountant. They are not legal, tax, or investment advice. Your church's leaders are responsible for anything they adopt, and your church's own constitution or bylaws control wherever they differ. See our Disclaimer.