Simple Tips for Securing Your Church Finances
Learn how to prevent and respond to financial crimes.Brotherhood Mutual Insurance Company | posted 2/06/2009
No church leader wants to believe that trusted ministry personnel would take advantage of the church. The truth is that it happens, but you can be proactive in taking steps to prevent embezzlement and other financial crimes. By following a few simple tips, you can reduce both the temptation and the likelihood of a financial crime occurring.
PreventionProtect your offerings. Offerings should be immediately counted in a secure room with two or more individuals present. If that is not possible, secure the funds so that no individual has private access to the offerings.
Conduct an annual audit. A regular audit by a CPA firm will point our weaknesses or holes in your church finance security practices. It can also serve as a deterrent to anyone contemplating a financial crime.
Cash, check, or charge. Remember that all funds are vulnerable to theft. While crimes involving cash present accountability challenges, checks and charge information are often targeted for crimes.
Protect your staff. Don't put trusted staff in the position of being solely accountable for funds. Separate the functions of record keeping and cash handling. This will limit temptation and reduce the risk for unfounded accusations.
ResponseConfront the suspect. If you have clear evidence that an individual has embezzled funds, confront them in a private setting with at least two church leaders present. Carefully determine what action to take next.
Consider the consequences. Next steps include conducting a CPA audit, reporting the crime to the police and the IRS, requiring restitution, and removing the suspect from access to church funds.
Proceed with caution. Avoid making an accusation without a thorough investigation. If an embezzler is dismissed, proceed carefully in discussing the situation with your congregation.
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THE CHURCH I AM A MEMBER OF FOR THE LAST 40 YEARS IS COMPLETELY OUT OF ORDER. OR PASTOR FOR 42 YEARS RETIRED IN NOVEMBER 2009 A NEW PASTOR WAS ELECTED BY A SMALL MAJORITY OF THE MEMBERSHIP HE HAS DEVIDED THE CONGREATION, AND SCATTERED THE SHIP. ALMOST ALL THE YOUTH ARE GON ARE HAVE BEEN REMOVED FOR ACTIVE DUTY. WILL NOT ATTEMP TO RESOLVE CONCERNS FROM THE FEW REMAINING MEMBERS. WE HAD A CHURCH MEETING ON THE PAST SATURDAY. COMPLETE DIASTER.FINANCIAL REPORT NOT COMPLETE AND WILL NOT ANSWER QUESTION ABOUT WHAT THE FINANCIAL CONDITION OF THE CHURCH IS. HAVING BEEN CASHING BONDS WITHOUT BRINGING THE PROPOSAL BEFORE THE CHURCH MEMBERSHIP. AS STATED IN OUR BY-LAWS AND CONSTITUTION. WHAT CAN WE DO. WE SUSPECT MIS HANDLING OF FUNDS.HOW DO WE GET PROOF.
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