“4 Tips to Prevent Fraud at Faith-Based Organizations”…
… is the title of a great article by James B. Jordan to help churches and other faith-based charities protect their contributions from theft and protect volunteers from temptation.
Setting up internal controls is difficult in small organizations, even more so for local churches. The place churches routinely have the most difficulty is keeping control over contributions between the time gifts go into the collection plate until a deposit is ready for the bank.
Mr. Jordan’s tips:
- Ensure that at least two people are with the money at all times
- Separation of duties by design and not by happenstance
- Treat all opportunities for giving the same as collection plate giving
- Provide oversight and reconciliation of online giving
His first point is the key area where churches struggle most – making sure there are two people with the money from the time the offerings are collected until the count team begins their count.
Check out the full article for more detail.