Financial Red Flags and Proactive Practices

Financial dishonesty can happen anywhere. Churches and ministries are especially susceptible to issues of financial dishonesty involving theft from ministry accounts. Regardless of the size of your ministry, it’s always important to be aware of “red flags” and take steps to promote financial accountability at your church or ministry including the following: 

Red Flag One: The one man show. Try to avoid having the same person count, record and deposit the money each week. Instead, split the responsibilities between more than one person approved to handle money on behalf of the ministry as a check and balances system.

Red Flag Two: The lone counter. Leaving one person in a room to count the money creates temptation. Carefully select two qualified people to collect and count the money in a secure room. Conduct a background check on each of the individuals you select. Don’t allow the money counters to bring in bags, purses, or briefcases while they count.

Red Flag Three: The charismatic do-gooder. Don’t assume that the person handling the money is trustworthy just because they enthusiastically do the record keeping and rarely require assistance. Instead reconcile bank statements by having the treasurer or another high-level person compare each month’s bank statement with the church’s records on tithing and deposits.

In addition to keeping an eye out for these red flags, consider these additional tips for minimizing financial fraud in your ministry.

Hold money meetings.  Organize monthly meetings with church leaders to analyze financial statements. When everyone is up to speed on the church finances it is easier to spot inconsistencies.

Put a policy on paper. Document your church’s or ministry’s policy in writing to ensure consistency and eliminate the excuse of ignorance from a dishonest member.

Do your homework. Perform annual background checks and run annual credit reports on the people responsible for church funds. It might feel awkward, but individuals in charge of money need to be above reproach.

Require annual external audits. Bringing in someone from the outside to do an audit may help eliminate biased opinions on church finances.

April 13, 2020
Beware of COVID-19 Cyber Scams
Beware of COVID-19 Cyber Scams

Ministries are creatively scrambling to continue their operations and safely engage their congregations with an array of online technologies during the coronavirus pandemic. Unfortunately, hackers are ready to take advantage of the confusion with scams designed to steal valuable data or siphon funds from your ministry. Learn how to keep your ministry safe from scams. 

Tags: liability, damages, protect, directors and officers, coverage
March 30, 2020
CARES Act: Churches Need to Apply Now
UPDATED: CARES Act: Churches Need to Apply Now

Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23. 

March 6, 2020
Coronavirus and Your Ministry: Tips for Prevention
Coronavirus and Your Ministry: Tips for Prevention

As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.

January 29, 2020
Hosting a Game Day Bash? Brush Up on Copyright Basics
Hosting a Game Day Bash? Brush Up on Copyright Basics

The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.

October 28, 2019
Are You Covered If You're Injured Overseas?
Are You Covered If You're Injured Overseas?

Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.

Tags: missions, insurance
September 1, 2019
IRS Announces More Church Audits Regarding ACA Compliance
IRS Announces More Church Audits Regarding ACA Compliance

Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.

Tags: ACA, IRS
August 15, 2019
Record Breaking Hailstorm Hits Colorado
Record Breaking Hailstorm Hits Colorado

On Tuesday, August 15, 2019, a record-breaking hailstorm struck multiple areas throughout the state of Colorado.

Tags: liability, damages, protect, directors and officers, coverage
July 3, 2019
Celebrate Safely This Independence Day
Celebrate Safely This Independence Day

July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.

Tags: liability, damages, firework safety
June 28, 2019
Insurance is one of those things we forget about until we need it
Insurance is one of those things we forget about until we need it

National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.

Tags: liability, damages, protect, directors and officers, coverage
June 24, 2019
June 23-29 is Lightning Safety Awareness Week
June 23-29 is Lightning Safety Awareness Week

Summertime across the country means barbecues, carnivals, sporting events, boating, hitting the beach and many other recreational activities. In short, summertime means a lot more people are spending time in the great outdoors. But summer is also the peak season for one of the nation's deadliest weather phenomena--lightning.

Tags: damages, protect, hail, weather emergency
May 8, 2019
Protect Your People & Property During Hailstorms
Protect Your People & Property During Hailstorms

According to the National Oceanic Atmospheric Administration (NOAA), hail causes about $1 billion in damage to crops and property each year. Prepare your ministry and people for hail this season.

Tags: damages, protect, hail, weather emergency
April 30, 2019
Measles Cases Reach Record-Breaking Numbers
Measles Cases Reach Record-Breaking Numbers

More than 700 confirmed cases of measles have been reported in the United States so far this year, making this outbreak the worst in decades.

Tags: liability, protect, health safety, risk management, measles
April 15, 2019
April 14 -20 is Severe Weather Awareness Week in Colorado
April 14 -20 is Severe Weather Awareness Week in Colorado

As winter turns to spring, we’re also in for a turn in weather. Lightning, strong winds, flash flooding, hail, or tornadoes could quickly strike your ministry. The National Weather Service has designated April 14-20, 2019, as Severe Awareness Week in Colorado.

Tags: damages, protect, weather emergency, weather, lightning
April 8, 2019
Vehicle Registration Guidelines for Ministries
Vehicle Registration Guidelines for Ministries

Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.

Tags: liability, vehicle safety, auto insurance
June 1, 2018
June Is National Safety Month - Week 1: Emergency Preparedness
June Is National Safety Month - Week 1: Emergency Preparedness

The National Safety Council has designated June as National Safety Month, so we want to make sure your ministry is doing everything it can to protect its people, property, and programs. Each week in June, we’ll tackle a different topic. Up this week: Emergency Preparedness.

Tags: disaster prep, fire prevention, lightning, medical emergency, storms, weather, weather emergency
April 18, 2018
Collect Online Donations? This New Scam Targets You
Collect Online Donations? This New Scam Targets You

There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.

Tags: finance, donations, cyber security, fraud
February 21, 2018
Remembering Billy Graham
Remembering Billy Graham

Beloved evangelist Billy Graham was called to his heavenly home on Wednesday, February 21, 2018, at the age of 99.

Tags: Billy Graham
February 9, 2018
Flu Is Widespread: Protect Your Congregation
Flu Is Widespread: Protect Your Congregation

For the first time in its 13 years of influenza monitoring, the U.S. Centers for Disease Control and Prevention is reporting that every state in the continental U.S. is seeing widespread flu activity. Get tips on how to keep your congregation healthy this flu season.

Tags: protect, risk, health safety, health, flu
June 19, 2017
Off-Site Youth Activities
Off-Site Youth Activities

Snow skiing. Camping. Whitewater rafting. A youth group trip can give students an exciting diversion from their weekly routines, as well as an opportunity to strengthen healthy friendships. Off-site activities may challenge your students to step outside of their comfort zones a bit, but this can bring about a positive result.

Tags: youth, insurance, safety
June 7, 2017
Insurance Protection Should Accompany Every Mission Trip
Insurance Protection Should Accompany Every Mission Trip

If you are in the process of planning a mission trip for your church group, make sure to think carefully about insurance, safety, and security as you hammer out the details. Extra preparation could minimize headaches when your group arrives on the mission field.

Tags: mission insurance, foreign travel, liability, coverage