Enjoy This Article

Have you ever had a an issue with the Financial report not balancing or have you notice a drop in income and you know it not reported correctly? It could be that there is some embezzlement occurring in your Church! No one likes to admit that there is a thief in their Church but circumstances may have cause a good person to do a bad thing. Here are a few simple steps that you can take to protect your church finances.

1. Have a double check signing system. Checks need to be sign by at least two people before they can be cashed. This protects the treasurer and financial secretary from fraud.
2. Have at least two or three assigned to the counting committee to verify the offerings each week. Never let just one person count the collection.
3. Screen the people who handle the money in some ways background check may be necessary.
4. Bond people who handle the funds.

How do you respond to allegations of embezzling?

1. Confront the person that is likely the embezzler, but not by yourself.
2. Hire a CPA to prove the crime.
3. If there is no confession, contact the local prosecutor.
4. If there is a confession, the church must decide what to do.

Unexpected problems with embezzlement!

1. Felony conviction
2. Tax evasion with the IRS.
3. If money used to purchase items, such as gifts, they are recovered.
4. Lawsuits from insurance company over the bonding.

If an embezzler confides in a minister, confession style, about his actions they might be classified as “privileged communication”. You would need written permission to tell anyone if you do. It does not stop you from independent investigation about embezzlement occurring, so long as you don’t disclose the confession.

(Some information was obtained from Dan Jordan former legal consultant of the Arkansas Baptist Stae Convention)

Site Designed & Hosted by Ark Web Design