AG Financial Solutions

In the not-too-distant past, church leaders seldom had to worry about locking the doors of the church and securing valuables. Most criminals simply would not steal from God’s church and God’s people, but times have changed.

Several factors may be contributing to the increase in thefts from churches and church members. First, fewer criminals have any respect for authority anymore, including churches. Where churches were formerly off limits, criminals now see opportunity, fueled by naïve church members and leaders.

Second, instead of just choir robes and hymnals, many churches now have expensive sound and electronic equipment in their sanctuaries. There is also a great deal more cash on hand at many larger churches due to increased attendance and additional services.

Finally, there is the human element. Even within their own ranks, members, leaders, and those who handle finances may be tempted and take advantage of member generosity and inadequate safeguards to protect church finances.

If those who want to steal are operating by different rules, why aren’t we? Let’s not confuse taking precautions and minimizing risks as being unfaithful. Protecting the assets God has entrusted to our care is a faithful act of stewardship.

Several areas within the financial arena can become easy targets for those intent on robbing the church. Considering those vulnerabilities, taking action and having practices and procedures in place will go far in reducing the possibility of someone stealing money that should be used for God’s work.

Personal Finances

Churches should educate their members and staff about safeguarding their finances and valuables. Keeping purses with them or locked in a classroom, not leaving money or valuables in coat pockets, and being alert for suspicious people can help reduce theft.

Ushers and Collections

Ushers should be trained to be alert for suspicious people moving around during the worship service. They may be there to worship, or they may have other motives in mind. Ushers should collect and secure the offering as soon as it is received. It is no longer a safe practice to leave money on the altar during the service. Instead, two ushers should take the money to a locked room and secure the funds immediately after the collection is taken. In addition, it is suggested that funds be stored behind at east two locks (door and cabinet) or in a safe.

Securing Funds

Some churches count the funds immediately after a service. Others will wait until the following day. From the time the funds are collected, secured, and deposited, two unrelated adults should be with the funds at all times. No one should ever be alone with church funds or be allowed to take money home. Also, any collection boxes or loose funds around the church should be collected and secured daily.

Counting

Churches count their funds in a variety of ways. In whatever manner the money is counted, two or more people should always be present. Counting should be conducted in a locked room, preferably without windows. Once the count is completed, those counting should verify the figures by signing off on a form with time and date. One copy should stay with the money and another should be kept in a separate location.

Depositing

Again, for the safety of the person making the deposit, it is best if two people go together to make the deposit. If not, a locked bank bag should be required, and the person making the deposit should not have the key. Further, placing the bank bag into another bag will keep anyone from knowing that you are carrying the deposit. Finally, it is a prudent practice to alternate those depositing the money and which route they take to the bank.

Internal Controls

There should be clear lines of separation among those who collect, count, and make the deposit, as well as the treasurer, and financial secretary. Never should the same person count, make the deposit, write checks, and provide the financial statement. It is not that they are not to be trusted, but by giving each individual an individual task, you provide a more solid defense should an accusation ever be made. Further, it is best to require two signatures for checks exceeding a specified amount (e.g., $100, $500, or $1,000).

Special Funds

One area of concern relates to special funds. These funds come from events such as bazaars, concerts, meals, or other events where funds are generated. The same basic rules apply as with a collection. Secure the money as soon as possible, have at least two people count and verify it, and make a deposit using at least two people. Again, these funds should not be taken home or counted alone.

Financial Workers

It is good to have alternating teams count and deposit the funds. By doing so, it prevents the same person or team from being able to take advantage of the system. By alternating people, it provides you with another layer of checks and balances. It is also wise to conduct a financial check and bond those people who handle funds on a regular basis.

Audits

Some churches conduct their own internal audits. While this should be done, it is still wise to have an outside person or firm conduct an audit every two to three years. This raises the level of accountability and keeps a potentially illegal activity from going on for a long period of time.

Purchases

Any purchases by staff and volunteers should be conducted through a voucher system. At minimum, all expenditures should require a receipt and should be rectified and audited on a regular basis. Good record keeping for even the smallest item should be a part of your system. All reimbursements and credit card accounts should be reconciled on a monthly basis.

Detecting Problems and Responding to an Allegation

We all hope and pray that no one ever steals funds meant for ministry, but it does occur. Often, it is done by the person least suspected. Looking for unusual behavioral patterns or unclear or changed entries in the books could be a sign of financial misconduct. If there is a suspicion or even allegation, it is important to respond quickly, have an audit completed, and attempt to restore integrity as soon as possible. It will be your choice as to whether to press charges and demand repayment; each case is different. But remember, you may also owe it to the members who contributed those funds to provide a complete disclosure and accounting.

By considering these vulnerable areas and proactively taking steps to guard against potential theft, your church can feel good about its finances and move forward using those funds for the glory of God and the good of others.

There are a wide variety of forms used to count and reconcile the offering. Some churches use a separate sheet to record cash and checks only. Others will include the various fund categories that donors can designate their giving. Some have a place to record the envelope number. Some larger churches have counting machines or do everything on the computer.

Regardless of what form you may use, the following practices should be followed:

1. All forms should be dated. If there are multiple services, you may choose to separate or combine the collections.
2. There should be a place to reconcile the checks and cash separately.
3. At least two (three preferred) should always count the offering, reconcile the totals, and sign off that they have done so.
4. A copy of the sheet should be kept with the deposit, and another copy should be kept separately (in case the funds are stolen or come up missing. This additional copy is also handy for use when conducting an audit).
5. Counters should rotate periodically.
6. A spot audit should occasionally be done on the counter’s forms.

The highway of the upright avoids evil; he who guards his way guards his life.
Proverbs 16:17 (NIV)