Safeguarding Your Church's Money

Every year millions of dollars are donated to churches in hopes to make the world a little better place. Surprisingly even this money is subject to fraud. Below are some guidelines on how to protect not only your churches resources, but the church clerks as well.

(1) Donations should only be accepted by two trusted church leaders.

Remind church members often that they should only be giving checks, money, or other donations to these specific people. Also, ensure that the other church leaders direct all donations to the entrusted individuals. This may be a hard change to make at first, but once the congregation is used to it, things flow very smoothly.

(2) Use Accounting Software designed for Churches/Non-Profits

This type of software will not only make life easier on the church accountants, but it will help prevent fraud. Most church accounting software is designed to make sure that two or more people sign off on donations. This means that two individuals would have to collude for theft to take place. Collusion is nearly impossible to stop, but fortunately most church accountants don't want to risk seeing if someone else wants to collude with them.

(3) Have two trusted leaders deposit the money in the bank.

This step will help the church leaders be honest. It is much easier to be honest when someone else is watching your every step. Although this guideline may be dramatic, most fraud experts agree that given the right incentive, opportunity, and rationalization even the most honest people will fall. Don't give them the opportunity!

These rules may seem strict to church leaders. The truth is that these rules will bring a lot of safety to the leaders that implement them. If the money was somehow lost by the bank, the church accounting software would show that two trusted leaders signed off on it. In addition, the two entrusted leaders who deposited the money at the bank would be able to vouch for one another.

Take these controls seriously and you will be able to better protect your church's resources (humans and money a like).