January 13, 2016
Financial dishonesty can happen anywhere. Churches and ministries are especially susceptible to issues of financial dishonesty involving theft from ministry accounts. Regardless of the size of your ministry, it’s always important to be aware of “red flags” and take steps to promote financial accountability at your church or ministry including the following:
Red Flag One: The one man show. Try to avoid having the same person count, record and deposit the money each week. Instead, split the responsibilities between more than one person approved to handle money on behalf of the ministry as a check and balances system.
Red Flag Two: The lone counter. Leaving one person in a room to count the money creates temptation. Carefully select two qualified people to collect and count the money in a secure room. Conduct a background check on each of the individuals you select. Don’t allow the money counters to bring in bags, purses, or briefcases while they count.
Red Flag Three: The charismatic do-gooder. Don’t assume that the person handling the money is trustworthy just because they enthusiastically do the record keeping and rarely require assistance. Instead reconcile bank statements by having the treasurer or another high-level person compare each month’s bank statement with the church’s records on tithing and deposits.
In addition to keeping an eye out for these red flags, consider these additional tips for minimizing financial fraud in your ministry.
Hold money meetings. Organize monthly meetings with church leaders to analyze financial statements. When everyone is up to speed on the church finances it is easier to spot inconsistencies.
Put a policy on paper. Document your church’s or ministry’s policy in writing to ensure consistency and eliminate the excuse of ignorance from a dishonest member.
Do your homework. Perform annual background checks and run annual credit reports on the people responsible for church funds. It might feel awkward, but individuals in charge of money need to be above reproach.
Require annual external audits. Bringing in someone from the outside to do an audit may help eliminate biased opinions on church finances.
For the second year, the Brotherhood Mutual Foundation is offering the Kingdom Advancing Grant to innovative Christian church programs that are transforming local communities through ministry.
Having insurance coverage specifically designed for long-term international missions helps protect your people and organization from the financial impact caused by injuries, lawsuits, property damage, and more.
With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.
As school is back in session, it’s important to make sure your school is equipped with the correct safety procedures. Thinking about your school’s physical security as a series of layers can help you find gaps in your plan. Transportation and volunteers are just two important aspects of your school safety plan to think about.
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Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
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Theft isn’t just an issue for banks and large companies. Sometimes the kind and caring nature of your ministry is exactly what makes you a target. Organizational Optional Theft Coverage helps to assure that, if a thief takes advantage of your institution, what’s lost can be restored.
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We’re right in the middle of hurricane season in Georgia and Tropical Storm Laura is strengthening and expected to make landfall next week. These storms bring high winds and flooding that can easily damage your ministry’s property. Take steps to prepare for this and other tropical storm threats.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.