Warning Signs
Signs Your Church Might be Vulnerable to Financial Misconduct
Note: no single one of these warning signs necessarily means that your church is vulnerable. (Some of these signs describe things that are good in themselves, e.g. "trust.") Pay close attention if any of these warning signs seem pronounced in your church community or if your church exhibits two or more of these warning signs.
Shadows....Darkness
A climate of secrecy shrouds communication about congregational finances. "We don't want to share too much financial information with ______________ (our members, our staff, "the synod").
Hyper-Sensitivity
A person with financial responsibilities is hyper-sensitive about his/her job performance or resists constructive feedback. A variation on this sign is the financial staff person or volunteer treasurer with a "martyr complex."
Too Much Trust
Every church needs to cultivate trust, of course. But is your church community SO trusting that you neglect accountability?
Lifetime Terms
Your church fails to "turn over" financial responsibilities to new leaders from time to time.
Financial Ignorance (especially when tolerated among congregational leaders)
Beware of parish leaders who sigh, "Financial reports make my eyes glaze over....I'm just no good with money, etc."
Nepotism in All its Forms
Responsibilities for handling congregational finances or decisions about finances are continually lodged with members of the same family.
Messiness, Incompetence
....could provide a smokescreen for financial misconduct.
Never Auditing the Books
Failing to regularly have "outside eyes" review parish financial records.
Multiple Bank Accounts/Multiple Treasurers
In addition to becoming unwieldy, having multiple bank accounts could mask misappropriation of funds.
Giving One Person Too Much Responsibility
Be on guard whenever only one person is handling certain aspects of parish finances. Worst example: having just one person count and deposit the offering after a worship service.
Lack of Printed Financial Policies and Procedures
Because congregations regularly experience transitions in leadership, it's critical that financial policies and procedures be described in writing and reviewed periodically by the congregation council.
Lackadaisical Recruitment of Leaders
Congregational leaders, whether staff or volunteers, should be "vetted" in suitable ways (including submission to background checks) before beginning any work with parish finances.
