ChurchSafety

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When Fred Meyers was elected treasurer of First Community Church, it didn't take him long to realize something wasn't adding up with the church's finances. After scouring the church ledger and consulting a private CPA, Meyers informed church leaders that First Community had been the victim of embezzlement.

Church leaders soon discovered that, over the past several years, an usher had been directing offering money into his own pockets. Overall, nearly $10,000 of tithes and offerings never made it into the church's account.

In the business world, embezzlement is the most common financial crime in the nation. Unfortunately, it's also a frequent crime against churches and not-for-profit ministries. And, unlike other crimes against religious organizations, embezzlement is perpetrated by a trusted person from within.

Most church leaders don't want to acknowledge the likelihood of one of their own parishioners or employees committing a crime against their organization. But, although these types of crimes may not be widespread, they are common enough—and costly enough—to warrant preventive measures.

Develop a comprehensive written policy governing the handling of your ministry's finances. This policy should clearly spell out the procedures for handling church finances, making deposits and withdrawals from church accounts, accessing financial records, and conducting other financial business.

Having procedures in writing and explaining these procedures to employees and volunteers will promote consistent handling of your organization's finances. Written guidelines let everyone know what's expected of them. And, they discourage dishonest employees from using ignorance of proper procedures as a defense of their criminal actions.

In addition to a written policy for handling finances, it's helpful to have written position descriptions for all employees and volunteers. Position descriptions can eliminate confusion over who has access to certain financial documents and who's authorized to perform certain financial functions.

Document all financial transactions clearly and immediately. Record deposits, withdrawals, loan payments, payroll, and any other financial transactions. Keep these records (and duplicates, if necessary) in a safe place. By documenting all financial procedures, your organization can detect discrepancies quickly, protect honest employees from unwarranted accusations, and gather necessary evidence to identify criminals in the event of a financial crime.

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