Church Investment Policy Template for Small Church Reserves

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

A written framework for how your church sets aside and oversees its reserves: who decides, what safeguards apply, and how leaders report. It is educational and recommends no investments.

What this policy is, and why a small church benefits

An investment policy explains how a church holds money it doesn't need right away: an operating reserve, savings for a building project, and, for some churches, a long-term ministry fund. It names who oversees those funds, what kinds of holdings are off limits, and how decisions are reported.

Even a small church with modest savings benefits from writing this down. Reserves are often the largest sum a church holds, and decisions about them can outlast the leaders who made them. A written policy keeps those decisions careful and visible, and protects the church from well-meant but risky ideas. Scripture commends faithfulness in handling what is entrusted to us (see Luke 16:10-11).

This page and the template are educational only. We are not a registered investment adviser, we don't recommend any investment, fund, or provider, and any numbers in the template are illustrative starting points for your leaders and their advisers to set.

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. Our Foundation. Why the church stewards its reserves carefully, with Scripture references linked to esv.org.
2. Purpose and Legal Framework. The funds this policy covers and the charity or trust law that applies, marked for your attorney to confirm.
3. Fund Pools. Operating reserve, an optional capital-project pool, and an optional long-term ministry fund.
4. Who Decides. Which body oversees the funds and who approves changes, matched to your polity.
5. Money-Movement Safeguards. Dual control and other safeguards for moving money between accounts.
6. Integrity and Outside Review. Outside review options and a rule against insider deals.
7. Investing and Spending. Included only if you have a long-term fund: prudence wording and an annual distribution rule.
8. Reporting and Review. How often the overseeing body reports and the yearly policy review month.
9. Adoption. Adoption line and signature block.
Appendices A–G. Money-movement controls, an approval matrix, fund pool targets, long-term fund guidelines, donor-restricted gift wording (US, where it applies), outside review and integrity, and a table of Scripture references linked to esv.org.

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:

Your operating reserve target, in months of normal expenses
Whether you set aside money for capital projects or a long-term ministry fund, and the time horizons
Optional long-term fund settings, which you can leave blank for an adviser to set
Whether to include a faith-based screening clause (blank lines only, for your church's own screens)
Who oversees the funds and whether you use an investment adviser
Your outside review option and reviewer rotation
Whether you have any donor-restricted or endowment gifts

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

Should a small church have an investment policy for its reserves?

If your church holds savings beyond a month or two of expenses, a written policy helps leaders handle them consistently and transparently. Your own leaders, attorney, and financial advisers should decide whether and how to adopt one.

Does this template tell us what to invest in?

No. It recommends no investments, funds, or providers. Reserve pools are limited to insured deposits and short-term government securities, and a fixed list of prohibited holdings (such as leverage, derivatives, and cryptocurrency) can't be removed. Anything else is for your leaders and a qualified adviser to decide.

Can we include faith-based or values-based screens?

Yes, if you choose. The template offers a clause with blank lines for your church's own screens. We don't supply a list of screens or make doctrinal judgments about investments.

We only have an operating reserve. Is this still useful?

Yes. The capital-project and long-term fund sections are included only if you say you have them, so a church with a simple reserve gets a short, simple policy.

Do you need our balances or bank names?

No. The questionnaire asks only for targets, choices, and roles. We never ask for account numbers, balances, or bank names.

Is this investment advice?

No. It is an educational draft template for review by an attorney licensed in your church's jurisdiction and your CPA, accountant, or qualified financial adviser.

Get started

The Investment 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.