Returned Check Policy (Sample)
The Returned Check Policy (Sample) for churches or nonprofit organizations is available free to download, customize and print for your church administrative office, Human Resources Dept...
What a returned check?
A check that is not paid by the bank on which it is written or drawn. Often the reason a check is not paid is that the account on which the check was drawn did not have sufficient funds. In that case the check is returned as "Non-sufficient (or no) Funds".
Churches and nonprofit organizations are limited on these type of policies so to ensure your within your legal rights you need to consult with your organization's lawyer to approve your policy for returned checks before putting them in place or approving them before your board, etc.
Often churches ask if they should ask for reimbursement of the bank fee for the returned check and the simple answer is to go by your organization's policy on returned checks. Most nonprofit organizations and churches have a local bank that knows them and will not charge a bank fee for the returned check. If bank fees do incur, some churches will ask for any bank fees if the check was written for goods and services but they do not ask if it was a tithing or offering check but, again, this solely depends on what is in your Return Check Policy and Procedure because you will have to adhere to your policy.
The sample church policy below for returned checks can be used as a tool or guide to create one for your church. This policy includes:
- Church Name
- Policy Title
- Policy - [Church Name] will follow the procedures below if a check is returned from the bank marked "Non-sufficient (or no) Funds".
- Procedure - If the check is a tithe and/or offering check: 1. Make a copy of the check for your church records. 2. Reverse or delete the check from the individual's tithing record. If a new check or the returned check to redeposit is issued later then that check will be recorded in their tithing record at the time of deposit. 3. Return the original check with a letter of explanation. Attached the copy of the check to a copy of the letter and file it under "Returned Checks".
- Procedure Continued - If the check was for goods or services such as a church fundraiser: 1. Make a copy of the check. 2. Send the copy of the check and a letter requesting another check. 3. Make a copy of the letter and attach the returned check to it for your church records.File it under "Returned Checks".
- Signatures - Senior Pastor and Church Treasurer's Signature
- Revised Date (Date of the policy revision.)
There are also two samples of Return Check Letters available to use as a guide to create letters for your church to send when needed just click the link below.
Click on the link to download the church returned check policy below:Returned Check Policy (Sample)
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Note: These sample forms are meant to serve as example forms and should not be construed as legal documents. Please contact a legal professional for legal language for your specific organization.
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Return to Church Policy Manual from Returned Check Policy (Sample).
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