A. The purpose of this church is to foster the worship of God, to edify believers through the teaching of God's word and fellowship, and to make known to the lost the gospel of God's saving grace through Jesus Christ.

B. The purpose of this church is to maintain the continuance of the ordinances established by our Lord and his apostles, namely the baptism of believers and the communion of the Lord's supper.

C. The purpose of this church is to maintain the purity of the testimony of Jesus Christ through the exercise of Biblical church discipline.

A. We believe the Scriptures, both Old and New Testaments, to be the inspired Word of God, without error in the original writings, the complete revelation of His will for the salvation of men, and the Divine and final authority for all Christian faith and life.

B. We believe in one God, Creator of all things, infinitely perfect and eternally existing in three persons, Father, Son, and Holy Spirit.

C. We believe that Jesus Christ is true God and true man, having been conceived of the Holy Ghost and born of the Virgin Mary. He died on the cross a sacrifice for our sins according to the Scriptures. Further, He arose bodily from the dead, ascended into heaven, where at the right hand of the Father He is now our High Priest and Advocate.

D. We believe that the ministry of the Holy Spirit is to glorify God the Father and the Lord Jesus Christ, to convict men, to regenerate the believing sinner, and to indwell, guide, instruct, and empower the believer for godly living and service.

E. We believe that man was created in the image of God but fell into sin and is therefore lost and totally marked by corruption and evil. Only through regeneration by the Holy Spirit can salvation and spiritual life be obtained.

F. We believe that the shed blood of Jesus Christ and His resurrection provide the only ground for justification before God the Father and salvation for all who believe.

G. We believe that all who believe in Jesus Christ are regenerated, indwelt, baptized, and sealed by the Holy Spirit and so are secured for the day of redemption. We believe that those so secured will persevere in the faith of Jesus Christ and produce fruit evidencing their relationship to God.

H. We believe that the baptism of believers and the communion of the Lord's Supper are the two ordinances to be observed by the church during this present age. These ordinances, however, are not to be regarded as a means of salvation.

I. We believe that the true Church is composed of all such persons who through saving faith in Jesus Christ have been regenerated by the Holy Spirit and are united together in the body of Christ, of which Christ is the head.

J. We believe that only those who are thus members of the true Church shall be eligible for membership in the local church.

K. We believe that Jesus Christ is the Lord and the Head of the Church and that every local church has the right under Christ to decide and govern its own affairs.

L. We believe in the personal and bodily return of Jesus Christ to this earth to consummate the kingdom of God and that this truth has a vital bearing on the personal life and service of every believer.

M. We believe in the bodily resurrection of the dead, of the believer to everlasting blessedness and joy with the Lord, of the unbeliever to judgment and everlasting conscious punishment.

N. We believe that Satan is the adversary of Christ and the people of God, and that his destiny is everlasting conscious punishment.

O. ¹We believe God created only two sexes, male and female .^a We believe this foundational distinction between the genders pertains to their distinct reproductive roles and that God intends these distinctions to be maintained in family, church, and community roles^b and, relationships.^c

a. We believe that the term “marriage” has only one, legitimate meaning, and that is marriage sanctioned by God, which joins one man and one woman in a single, covenantal union, as delineated by Scripture.

b. We believe that God has commanded that no intimate sexual activity be engaged in outside of marriage as defined in (a) above. We believe that any other type of sexual activity, identity or expression that lies outside of this definition of marriage, including those that are becoming more accepted in the culture and the courts, are contradictory to God’s natural design and purpose for sexual activity.^d

c. We believe that God creates each person as male or female. These two distinct, unchangeable genders together reflect the image and nature of God, and the rejection of one's biological gender is a rejection of the image of God within that person.^e

A. Any person professing faith in the Lord Jesus Christ as his Savior, having submitted himself to believer's baptism, and agreeing with the doctrinal statement of Mountain View Chapel (Article III) may be received into membership of this church. Desire for membership and assent to the doctrinal statement shall be made to the elders verbally.

B. Anyone baptized by the elders or pastor of Mountain View Chapel shall be automatically received into the membership of the church.

C. Applicants for membership shall be received at a regularly scheduled service of the church. Reception shall be by the pastor or by an elder.

D. Members serving the Lord in other places (e.g., missionaries, students, those in the armed forces) retain their membership automatically.

E. Only members may serve in a leadership capacity in any ministry of the church.

F. Absence from regular services for three months shall be considered just cause for being dropped from the membership roll after review by the elders.

A. Sin in the congregation, including grievances and differences among believers, shall be dealt with in the manner outlined in Matthew 18:15-16:^f first, personal confrontation; second, confrontation with two or three witnesses; third, confrontation by the body (or the elders as representative of the body).

B. Any who refuse to hear the verdict of the congregational body are subject to excommunication.^g

C. Excommunication is an act of the congregation. The evidence of the sinning member's hard-heart and unrepentant spirit must be set before the members of the congregation in a public meeting. A member can be excommunicated only by a three-fourths vote of the congregation present.

D. Excommunication involves casting the sinning member out of the fellowship of the church II Thessalonians 3:14 into the hands of Satan in the hope that the sinning member will eventually repent.^h All membership privileges are revoked.

E. An exception to the procedure of Article V. A. is flagrant public sin, which is subject to immediate excommunication by the congregation at the discretion of the elders.ⁱ

F. Once excommunicated a sinning member may only be restored to the fellowship of the congregation upon repentance before the membership of the congregation. Only members shall participate in meetings of this nature. The repentant member shall be returned to the fellowship by a majority vote of the congregation and shall have all membership privileges restored.

G. Discipline of non-members who attend Mountain View Chapel on a regular basis is permitted in accordance with the discretion of the elders.

H. The leaders (elders, pastor, deacons) of the congregation may be disciplined by the congregation in the fashion noted above. Accusations against leader must be brought to the board by two or three witnesses.^j

A. This church shall remain independent, guided in all matters by the Scriptures and the wisdom given by the Holy Spirit through prayer and meditation on the Scriptures.

B. The church shall be governed by a board consisting of the pastor, elders, and deacons. The purpose of the board is to facilitate the government of the church by the congregation. It shall have supervision over all officers and committees of the church, and it may call any congregational meeting deemed necessary.

C. The church board shall instruct the church treasurer, secretary, and ministry leaders and committees within the church.

D. The church board shall have the management of all church property, and shall have authority to purchase, sell, or convey real estate for the church, subject to the approval of the membership, in accordance with Article VIII. B. of this Constitution.

E. Meetings of the board shall be held monthly on a date agreed by the board or at any time as announced by the chairman of the board. All members of the board must be notified of board meetings which are not regularly scheduled.

F. A majority shall constitute a quorum for all official meetings of the board. In case of a special meeting, every member of the board must be contacted, and his opinion obtained before a final decision may be made, and all decisions of the board shall be reached by majority vote.

G. In case a vacancy occurs in the board, the remaining members of the board may appoint someone to fill the vacancy. The appointee must fulfill the qualifications set forth for his office and shall be eligible for re-election at the annual business meeting.

H. The determination of the pastor's support is to be the duty of the board. The pastor is to be excluded from this determination.

a. An elder must profess that he has been born-again by the spirit of God.

b. An elder must meet the qualifications of the elder as set forth in I Timothy 3:1-7^k and Titus 1:5-9.^l

c. An elder must be in accord with Article III.

d. An elder must be a member of Mountain View Chapel.

e. A woman may not serve as an elder of this church.

a. There shall be a minimum of two active elders in service at a time.

b. Elders are to be appointed for a lifetime term and shall serve an active term of two years on the board followed by a year of inactive service.

c. Inactive elders may choose to remain inactive for age, health, or other reasons.

d. The existing elders of the congregation, both active and inactive, shall annually determine whether any of the members meet the qualifications of elder. If a majority of the existing elders agree that a member of the congregation meets the qualifications of elder, they are to approach him and ask him to consider accepting appointment to the office of elder.

e. Should the candidate accept the invitation to serve as an active elder, his name will be presented to the membership of the congregation. The candidate shall be accepted as an active elder if he is approved by a two-thirds vote of the congregation.

f. An elder's call shall be reaffirmed by a two-thirds vote of confidence upon re-entry into active service.

g. An elder may be dismissed for sinful behavior in accordance with

a. All elders are representative leaders of the congregation and as such represent the wisdom and prudence of the congregation.

b. The active elders are responsible for the oversight of the spiritual life and growth of the congregation and shall visit and counsel the congregation as they deem necessary and as their time permits.

c. The active elders are finally responsible for the oversight of the administrative affairs of the church and are finally responsible for the teaching ministries of the church, including the appointment of teachers.

d. If the Scriptures or the Constitution do not directly address a situation which arises in any aspect of the life of the church, the active elders shall decide the manner in which the situation should be handled, or they may call for a meeting with the inactive elders for counsel before a final decision.

e. Each active elder shall have a vote on the board.

a. The pastor must profess that he has been born-again by the Spirit of God.

b. The pastor must meet the qualifications of the elder as set forth in I Timothy 3:1-7^m and Titus 1:5-9.ⁿ

c. The pastor must be in accord with Article III.

d. A woman may not serve as the pastor of this church.

a. The elders shall act as a pulpit committee whose responsibility it shall be to fill the pulpit with candidates or supply pastors as they see fit.

b. Before the name of anyone shall be presented to the congregation to be voted upon, he shall be examined by the elders concerning his doctrinal position. The candidate shall be approved for presentation to the congregation by a three-fourths vote by the elders.

c. A two-thirds vote of the congregation shall be required to approve the calling of a candidate to the pastorate.

d. At the annual business meeting of the church following his call, the pastor shall again be approved by a two-thirds vote. However, should the call precede the annual meeting by less than six months, the pastor's reaffirmation shall be deferred to the next annual meeting.

e. The pastor's call shall be reaffirmed by a two-thirds vote of confidence every three years.

f. The pastor may be dismissed for sinful behavior in accordance with Article V.

a. The pastor is to be considered primarily as a teaching elder and is to labor in word and doctrine.^o

b. The pastor shall oversee the pulpit ministry of the church and shall be responsible to see that the pulpit is filled during any temporary absences (e.g., vacations) on his part.

c. The pastor shall be primarily responsible for the administration of the ordinances of baptism and the Lord's supper in church.

d. As an elder, the pastor shall share the general oversight of the spiritual life of the congregation with the elders, including counseling, visitation, and administration of the ministries of the church.

e. The pastor shall be a member of the church board and may act as a moderator in the meetings of the church if so, requested by a majority of the elders.

f. The pastor shall have a vote on the board.

g. Whereas Christianity has always taught that marriage is an institution to be entered into by members of the opposite sex; and whereas American societal consensus agreed with this Christian value and therefore marriage as a purely heterosexual institution never needed to be explicitly stated in public documentation but was the assumed case in matters legal and religious; and whereas American legal institutions in 2013 began to change the legal definition of marriage to include marriages between members of the same sex as legal and proper – the elders and congregation of Mountain View Chapel hereby state that Mountain View Chapel has, since its founding, adhered to and continues to adhere to the biblical and traditionally Christian viewpoint that marriage is to be entered into only by members of the opposite sex – one man and one woman and to affirm that the pastors and elders of Mountain View Chapel will only officiate and solemnize marriages contracted between one man and one woman.^p Therefore, the pastors and elders of Mountain View Chapel will neither officiate nor solemnize any marriages contracted between members of the same sex or marriages involving any transgendered person, including (but not exclusively limited to) any person who believes himself or herself to be a member of a sex or gender other than that dictated by his or her physical genitalia or one who has undergone surgery to physically alter their genitalia and physical or psychological makeup for the purpose of altering sex or gender in personal, private, or public perception.²

a. A deacon must confess that he has been born-again by the Spirit of God.

b. A deacon must meet the qualifications of the deacon as forth in I Timothy 3:8-13.^q

c. A deacon must be in accord with Article III.

d. A deacon must be a member of Mountain View Chapel.

e. A woman shall not serve as a deacon in this church.

a. Deacons shall submit nominations as a Deacon Board for candidates to join the board as deacons.

b. Elders shall review the nominations submitted by the deacon board, determine eligibility, and select the candidates for presentation to the congregation in the annual congregational meeting.

c. The congregation shall vote to confirm, or not confirm, the deacons that have been selected by the elders.

d. Candidates that have been confirmed by majority vote by the congregation are announced as having been “Confirmed”.

e. Deacons shall be limited to a maximum of 3 consecutive 2-year terms (6 years total), and then a mandatory leave of 1 year.

a. The deacons of the congregation possess only that authority which shall be delegated to them by the elders.

b. The deacons shall be responsible for the oversight of the physical plant of the church.

c. The deacons shall be responsible for counting all offerings and for preparing signed statements of the amount of offerings for the treasurer's signature.

d. The deacons shall arrange annually for the audit of the treasurer's books.

e. The deacons shall have authority to sign legal documents and papers for the church without incurring personal obligation.

f. Deacons may be called upon to assist the elders in the spiritual affairs of the church.

g. Deacons may be called upon to vote on issues in a board meeting at the request of the elders.

a. The treasurer must profess that he/she has been born again by the Spirit of God.

b. The treasurer must be a member of Mountain View Chapel.

a. The treasurer shall be nominated by the elders and approved by a majority vote of the congregation.

b. The treasurer shall serve for three years and shall be eligible for reelection.

a. The treasurer shall have charge of all funds.

b. The treasurer shall bank all funds and pay out all funds as instructed by the church board and shall keep a record of all receipts and disbursements, make monthly reports to the church board, and shall present an annual report to the membership at the annual business meeting of the congregation.

c. The treasurer shall be responsible for all moneys of the body and shall make all payments by check.

a. The secretary must profess that he/she has been born-again by the Spirit of God.

b. The secretary must be a member of Mountain View Chapel.

a. The secretary shall be nominated by the elders and approved for office by a majority vote of the congregation.

b. The secretary shall serve for one year and shall be eligible for reelection.

c. The secretary is not a member of the church board.

a. The secretary shall make and keep records of all business meetings of the board and congregation and shall have all such records approved by the board.

b. The secretary shall be custodian of the church seal.

c. The secretary shall care for all official church correspondence.

1. Should need arise in the life of the church for additional non-paid positions, (e.g., Sunday School superintendent, DVBS supervisor, et al) the elders may create such positions with qualifications and job descriptions to be entered into the minutes of the board.

2. Should need arise for additional paid staff, (assistant to the pastor, assistant pastor, youth pastor, minister of music, et al) the elders may obtain and maintain such staff in accordance with Article VII.B.2 of this constitution. The elders shall create job descriptions for such additional staff.

1. Any member who is an endorser of a note or who has made himself financially liable for Mountain View Chapel must be consulted before any increase can be made in the corporate indebtedness and his consent obtained.

2. This church shall be supported by the freewill offerings of those who are led by the Holy Spirit to contribute to its ministry.

3. Upon the dissolution of the corporation the board of elders and deacons shall, after paying or making provision for the payment of all of the liabilities of the corporation, dispose of all the assets of the corporation exclusively for the purposes of the corporation in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes as shall at the time qualify as an exempt organization or organizations under section 501(C)(3) of the Internal Revenue Code of 1954 (or corresponding provision of any future United States Internal Revenue Law), as the board of elders and deacons shall determine. Any such assets not so disposed of shall be disposed of by the Court of Common Pleas of the county in which the principal office of the corporation is then located, exclusively for such purposes as said Court shall determine, which are organized and operated exclusively for such purposes. – (Added to the Constitution on June 23, 2002.)

a. A majority shall constitute a quorum for all official meetings of the congregation.

b. Unless otherwise noted by this Constitution, a majority vote of the congregation shall result in approval of an action.

c. Only members 18 years of age and older may vote.

d. Voting shall be by written ballot unless otherwise determined by the elders of the congregation.

a. The annual congregational business meeting shall be held in the month of January or at a date within but not beyond the first quarter of the year as determined by the elders.

b. Roberts Rules of Order shall prevail on any point of order not established by this Constitution.

a. These articles may be amended by a two-thirds vote of the quorum at the annual business meeting, or at any special business meeting called by the elders, provided that the church board has had the proposed amendment in writing and the same has been posted for two weeks prior to the scheduled business meeting. 

b. Article III (Doctrinal Statement) may be amended only by a 2/3 majority vote of the active voting members at any business meeting, provided that the church board has had the proposed amendment posted for two weeks prior to the scheduled business meeting.

1. Therefore, the pastors and elders of Mountain View Chapel will neither officiate nor solemnize any marriages contracted between members of the same sex or marriages involving any transgendered person, including (but not exclusively limited to) any person who believes himself or herself to be a member of a sex or gender other than that dictated by his or her physical genitalia or one who has undergone surgery to physically alter their genitalia and physical or psychological makeup for the purpose of altering sex or gender in personal, private, or public perception.

2. ⁷Marriage ceremonies performed in any facility or space owned, leased, or rented by Mountain View Chapel will be only those ceremonies sanctioned by God, joining one man with one woman as their genders were determined by anatomy at birth (and not subject to change). Whenever there is a conflict between the church’s position and any new legal standard for marriage, the church’s statement of faith, doctrines, and biblical positions will govern.^s

1. Interested Person: Any director, officer, or member of a committee with governing board-delegated powers who has a direct or indirect financial interest.

2. Financial interest: A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:

a. An ownership or investment interest in any entity with which the church has a transaction or arrangement.

b. A compensation arrangement with the church or with any individual or entity with which the church has a transaction or arrangement; or

c. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the church is negotiating a transaction or arrangement.

d. A financial interest is not necessarily a conflict of interest. A person who has a financial interest may have a conflict of interest only if the board of directors decides that a conflict of interest exists.

3. Compensation: Direct and indirect remuneration as well as gifts or favors that are not insubstantial.

4. Board: The board of directors of the church. The pastor and board will determine procedures for determining a possible conflict of interest.

1. Duty to Disclose. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the board and, if applicable, members of committees with governing board-delegated powers considering the proposed transaction or arrangement.

2. Determining whether a Conflict of Interest Exists. After disclosure of the financial interest and all material facts, including any presentations by and discussion with the interested person, he or she shall leave the board or committee meeting while the determination of a conflict of interest involving the transaction or arrangement is discussed and voted upon. The remaining board or committee members (as applicable) shall decide, by a majority vote, if a conflict of interest exists. 3. Procedures for Addressing the Conflict of Interest

a. The chairman of the board shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

b. After exercising due diligence, the board or committee shall determine whether the church can obtain, with reasonable efforts, a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.

c. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the board shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the best interests of the church, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, it shall make its decision as to whether to enter into the transaction or arrangement.

4. Violations of the Conflict-of-Interest Policy

a. If the board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.

b. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the board determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

1. The minutes of the board shall contain the names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the board or committee’s decision as to whether a conflict of interest in fact existed.

2. The minutes of the board also shall contain the names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.

1. A voting member of the board or any committee who receives compensation, directly or indirectly, from the church for services rendered may not vote on matters pertaining to that member’s compensation.

2. A voting member of the board or any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the church, either individually or collectively, are not prohibited from providing information to any committee regarding compensation.

1. Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's-length bargaining.

2. Whether partnerships, joint ventures, and arrangements with management organizations conform to the church’s written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, or an excess benefit transaction.

Upon the dissolution of the corporation the board of elders and deacons shall, after paying or making provision for the payment of all of the liabilities of the corporation, dispose of all the assets of the corporation exclusively for the purposes of the corporation in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes as shall at the time qualify as an exempt organization or organizations under section 501(C)(3) of the Internal Revenue Code of 1954 (or corresponding provision of any future United States Internal Revenue Law), as the board of elders and deacons shall determine. Any such assets not so disposed of shall be disposed of by the Court of Common Pleas of the county in which the principal office of the corporation is then located, exclusively for such purposes as said Court shall determine, which are organized and operated exclusively for such purposes. – (Constitution so amended on June 23, 2002.)

Whereas Christianity has always taught that marriage is an institution to be entered into by members of the opposite sex; and whereas American societal consensus agreed with this Christian value and therefore marriage as a purely heterosexual institution never needed to be explicitly stated in public documentation but was the assumed case in matters legal and religious; and whereas American legal institutions in 2013 began to change the legal definition of marriage to include marriages between members of the same sex as legal and proper – the elders and congregation of Mountain View Chapel hereby state that Mountain View Chapel has, since its founding, adhered to and continues to adhere to the biblical and traditionally Christian viewpoint that marriage is to be entered into only by members of the opposite sex – one man and one woman and to affirm that the pastors and elders of Mountain View Chapel will only officiate and solemnize marriages contracted between one man and one woman (Genesis 1.27 cf. 2.18-25; cf. Matthew 19.4-6 // Mark 10.5-9). Therefore, the pastors and elders of Mountain View Chapel will neither officiate nor solemnize any marriages contracted between members of the same sex or marriages involving any transgendered person, including (but not exclusively limited to) any person who believes himself or herself to be a member of a sex or gender other than that dictated by his or her physical genitalia or one who has undergone surgery to physically alter their genitalia and physical or psychological makeup for the purpose of altering sex or gender in personal, private, or public perception.

a. Deacons shall submit nominations as a Deacon Board for candidates to join the board as deacons.

b. Elders shall review the nominations submitted by the deacon board, determine eligibility, and select the candidates for presentation to the congregation in the annual congregational meeting.

c. The congregation shall vote to confirm, or not confirm, the deacons that have been selected by the elders.

d. Candidates that have been confirmed by majority vote by the congregation are announced as having been “Confirmed”.

e. Deacons shall be limited to a maximum of 3 consecutive 2-year terms (6 years total), and then a mandatory leave of 1 year.

These articles may be amended by a two-thirds vote of the quorum at the annual business meeting, or at any special business meeting called by the elders, provided that the church board has had the proposed amendment in writing and the same has been posted for two weeks prior to the scheduled business meeting.

Article III (Doctrinal Statement) may be amended only by unanimous vote of the congregation.

O. We believe God created only two sexes, male and female.^t We believe this foundational distinction between the genders pertains to their distinct reproductive roles^u and that God intends these distinctions to be maintained in family, church, and community roles and, relationships.^v

i. We believe that the term “marriage” has only one, legitimate meaning, and that is marriage sanctioned by God, which joins one man and one woman in a single, covenantal union, as delineated by Scripture.

ii. We believe that God has commanded that no intimate sexual activity be engaged in outside of marriage as defined in (a) above. We believe that any other type of sexual activity, identity or expression that lies outside of this definition of marriage, including those that are becoming more accepted in the culture and the courts, are contradictory to God’s natural design and purpose for sexual activity.^w

iii. We believe that God creates each person as male or female. These two distinct, unchangeable genders together reflect the image and nature of God, and the rejection of one's biological gender is a rejection of the image of God within that person.^x

The purpose of this conflict-of-interest policy is to protect the church’s interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the church or might result in a possible excess benefit transaction. This policy is intended to supplement but not replace any applicable state or federal laws governing conflicts of interest applicable to nonprofit and charitable organizations.

1. Definitions

f. Interested Person: Any director, officer, or member of a committee with governing board-delegated powers who has a direct or indirect financial interest.

g. Financial interest: A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:

i. An ownership or investment interest in any entity with which the church has a transaction or arrangement.

ii. A compensation arrangement with the church or with any individual or entity with which the church has a transaction or arrangement; or

iii. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the church is negotiating a transaction or arrangement.

iv. A financial interest is not necessarily a conflict of interest. A person who has a financial interest may have a conflict of interest only if the board of directors decides that a conflict of interest exists.

h. Compensation: Direct and indirect remuneration as well as gifts or favors that are not insubstantial.

i. Board: The board of directors of the church. The pastor and board will determine procedures for determining a possible conflict of interest.

2. Procedures

a. Duty to Disclose. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the board and, if applicable, members of committees with governing board-delegated powers considering the proposed transaction or arrangement. 

b. Determining whether a Conflict of Interest Exists. After disclosure of the financial interest and all material facts, including any presentations by and discussion with the interested person, he or she shall leave the board or committee meeting while the determination of a conflict of interest involving the transaction or arrangement is discussed and voted upon. The remaining board or committee members (as applicable) shall decide, by a majority vote, if a conflict of interest exists.

c. Procedures for Addressing the Conflict of Interest

i. The chairman of the board shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

ii. After exercising due diligence, the board or committee shall determine whether the church can obtain, with reasonable efforts, a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.

iii. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the board shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the best interests of the church, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, it shall make its decision as to whether to enter into the transaction or arrangement.

d. Violations of the Conflict-of-Interest Policy

i. If the board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.

ii. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the board determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

3. Records of Proceedings

a. The minutes of the board shall contain the names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the board or committee’s decision as to whether a conflict of interest in fact existed.

b. The minutes of the board also shall contain the names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.

4. Compensation

a. A voting member of the board or any committee who receives compensation, directly or indirectly, from the church for services rendered may not vote on matters pertaining to that member’s compensation.

b. A voting member of the board or any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the church, either individually or collectively, are not prohibited from providing information to any committee regarding compensation.

5. Periodic Reviews

To ensure the organization operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:

a. Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's-length bargaining.

b. Whether partnerships, joint ventures, and arrangements with management organizations conform to the church’s written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, or an excess benefit transaction.

6. Use of Outside Experts

When conducting the periodic reviews as provided for in 5, the organization may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the board of its responsibility for ensuring periodic reviews are conducted.