Have you ever read a story in the news about a church dealing with fraud or financial allegations and thought to yourself, “That could never happen at my church”? Unfortunately, mismanagement of funds can happen to any church. However, as church leaders, there are specific things we can do to protect our ministries.
Four simple ways to protect your church from financial mismanagement
Do you have precautions put in place that not only protect your church from having funds mismanaged but also protect your staff from accusations of such? Consider implementing these simple tips to help keep things in check.
- Delegate authority with financial accountability to your church staff. For example, "As long as it is within your budget, you can approve spending up to $500 per transaction, up to $2,000 in a month. Anything beyond that needs a signature of the executive pastor."
- Create transparency by communicating how funds are used in the church. At one time, people cared about what the weekly offering totals were, but increasingly people want to hear how their funds have made an impact for the Kingdom.
- Segregate financial duties to provide extra measures of accountability. The person who enters invoices should not be the same person who signs the checks, etc.
- Institute financial accountability when analyzing and reviewing contributions. Always have multiple people present at all times to count the money.
Money can be a sticky subject, but with the right systems and processes in place it doesn’t have to be a cause for disaster. To learn more about how to protect your church from this risk and many others, download the free resource Are You Putting Your Church At Risk?
Do you have any standards already in place to help safeguard against financial mismanagement?