Romans 3:23 (ESV) tells us that “all have sinned and fall short of the glory of God.”
As believers, we want to see the best in people. We want to look at other Christians and trust that they are doing everything in their power to follow biblical teachings and turn from sin.
But every one of us falls short and will struggle with temptation and sin for the duration of our earthly lives. There are believers who give in to temptation and wolves in disguise who deliberately target places of worship.
You never want to think that something as severe and costly as financial misconduct could happen in your ministry, but living in a fallen world means your church isn’t immune to fraud.
According to a 2021 study by Church Law & Tax, nearly a third of the surveyed church leaders had served in churches impacted by financial misconduct.
The study results went on to say that, “Two-thirds of survey respondents who said they weren’t aware of fraud in their churches also said they believe the problem is unlikely or ‘will never’ happen in their churches. Ironically, among those who endured misconduct, half said they shared a similar ‘it-will-never-happen’ sentiment before uncovering a case.”
If you haven’t intentionally put safeguards in place because you think it would never happen to you, you’re putting your entire congregation at risk.
So, whether you establish a new committee or utilize an existing board or leadership team, there are three important reasons to have a group dedicated to financial oversight and review.
Reason #1: A financial review committee ensures accountability.
When we choose to follow Christ, we are called to live above reproach, acting with integrity and being wholly trustworthy.
While you would hope that every person you trust with handling your church finances behaves in this manner, Paul instructs believers “never to put a stumbling block or hindrance in the way of a brother” (Romans 14:12-14 ESV).
Choosing not to implement policies and procedures for financial review opens opportunities for others to stumble.
If you have a financial review committee in place, you’re limiting the ability for someone to mishandle the church’s money, even unintentionally.
The review process creates a culture of accountability in your church by regularly verifying the accuracy of your financial data and correcting errors before they have the ability to cause harm.
With one in three churches falling victim to embezzlement and 6% of all giving lost to theft, putting a review committee in place holds every person handling your finances accountable, leaving no room for misconduct.
Reason #2: A financial review committee protects those handling your money.
False accusations have the potential to destroy lives.
When numbers don’t add up, it’s easy to point fingers, especially if your ministry has been the victim of misconduct in the past.
But financial mismanagement is a hefty accusation and shouldn’t be made lightly.
The hope is that having a financial review committee would prevent inaccuracies and misconduct from occurring in the first place.
But having set procedures to verify accuracy and processes for investigating suspected unethical behavior means those who are innocent or who have accidentally caused doubt can rest easy.
Those handling your money would know they’re protected from false accusations by diligent review and that any suspected misconduct will be investigated thoroughly and honestly.
Reason #3: A financial review committee helps carry the burden.
Properly managing your church’s finances is a heavy burden. Your congregation and church leadership trust you to act as a good steward of the money given to support your ministry’s mission.
Establishing a financial review committee helps you carry that burden by ensuring accuracy and protecting you from false accusations. And they also support you by giving you a way to separate duties.
If a single person is responsible for too much without assistance or review, the risk is that someone will accidentally miss something or intentionally misrepresent the numbers.
One of the best ways to protect your ministry from financial misconduct is to distribute tasks among multiple people so no one is in charge of the entire process. You don’t need extra staff to divvy up responsibilities; you just need a review committee that has already been tasked with verifying accounts and reports.
The writer of Ecclesiastes tells us that “two are better than one,” because they can help carry each other’s burdens and hold each other up (Ecclesiastes 4:9-12 ESV).
Having multiple people responsible for checking the accuracy of your financial data makes it harder for mistakes to slip through the cracks and for those who would act duplicitously to cause harm.
Conclusion
Every dollar given to your church is given with the understanding that it will be used to further the Gospel.
As a steward of that money, you are responsible for ensuring that that is exactly what happens.
You can take steps to protect your ministry from financial misconduct. Having a financial review committee in place ensures accountability, protects those handling your money, and helps carry the burden of good stewardship.
You aren’t meant to bear the weight of financial stewardship alone. Bring others alongside you who can give you peace of mind and work with you to protect your church from those who would seek to harm your ministry.
Your church isn’t immune to fraud, but you can put barriers in place to make it a whole lot harder to pull off. And that starts with a financial review committee.
NOTE: Nearly 70% of churches that have experienced financial fraud chose not to report the incidents to law enforcement. If you find your ministry has fallen victim to financial misconduct, choosing whether to make a police report is up to you.
Regardless of your decision to involve outside authorities, make sure you don’t harm your church further by failing to follow IRS protocols for reporting and tax purposes.
While you never want your church to suffer from mishandled funds, part of being a good steward is responding appropriately if the worst happens.
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