Preventing embezzlement starts with the pastor. Yes, that’s a little extreme, but pastors are the leaders that bring change. They are the overseers, protecting the flock from spiritual and real harm.
There is a saying in the financial world that goes, “The only people who can steal from you are people that you trust.” They’re not talking about bank robbers with black hoods, but that person with an honest face that counts your money and makes deposits – and steals from your church.
People you trust should be open to scrutiny, oversight, sharing the responsibility, and wanting to avoid any impropriety.
Brotherhood Mutual says that church fraud will total $60 billion by 2025. And 80 percent of fraud goes unreported.
In addition to our association, I know of at least two other churches in CABA who have suffered the disgrace of embezzlement. Here are ways to avoid embezzlement:
Do an internal audit every year. Don’t let the current financial person do it, either. The financial person should have oversight.
Access to banking accounts should be available to at least two people.
Church business meetings should have written minutes stating who the financial people are and their duties. This can be used at the bank to update access to checking accounts should one person be updated.
Change out your financial people every few years.
Use accounting on a computer owned by the church that stays in the church office.
Counting donations should be done by two unrelated people. They should immediately stamp each check, “For Deposit Only.” If the deposit can’t be made immediately, then it should go into a bank bag stored in a locked safe.
Buy a large safe that stays locked in the church office that has a locked door.
Give every person a credit card that spends the church’s money. Each credit card invoice comes with a listing of spending on each credit card. If someone buys something outrageous, then it will be on that report for that specific credit card that is unique to that person who spent it.
Use two check signatures on every check. The person doing the reconciling should be someone different.
No person in your church should be given the total responsibility for counting, banking, reporting, and investing.
One of my biggest concerns is for the small church in which the pastor does all things financial—counting money, making deposits, and doing financial reports. Their integrity can be questioned at any time and no financial accounting can be made by individuals, especially those who have already given into temptation and know how to doctor giving reports.
After one church discovered embezzlement, their church’s secretary said that she was not going to take home the nickel jar used for benevolence, so that she could count it. Instead, she said she was going to leave it the church’s safe and find someone to help her count it. The pastor agreed and said, “We’ve got to make significant changes!”
The 8th Commandment, Exodus 20:15 says, “Thou shalt not steal.” Not every bandit wears a mask.
--Mark Snowden serves as director for the Cincinnati Area Baptist Association
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