On a global scale, churches lose roughly $50 billion annually to internal crime, comprising 7 percent of total giving to Christian causes. Yet, broaching the topic of fraud, waste, and abuse within houses of worship is comparable to violating an ethical code of honor. Fear of being ostracized from the community leaves many well-intentioned parishioners holding the charitable giving bag when embezzlement occurs. Perhaps even more frightening is the possibility of erroneously accusing innocent people of misappropriating donation funds.
“I am sending you out like sheep among wolves. So be as wise as snakes and as harmless as doves.” Mt. 10:16 (NIV)
With a projected 168 million Americans scheduled to file individual tax returns with the Internal Revenue Service (IRS) this year, discrepancies in charitable giving receipts receive special attention from auditors. Thus, remaining meticulous with your transactions, donation statements and personal records is the best strategy to ensure philanthropic veracity. Steadfast bookkeeping also doubles as the launching pad for skepticism or alleviation within a quantifiable archetype.
Through the nursing profession, an age-old adage rings true, “If it wasn’t documented, it wasn’t done.” In the vein of accountability, I’ve developed an easy, step-by-step blueprint designed to take the angst out of tracking benevolence while empowering church goers with the tools to address fraud head-on.
1. Keep Your Receipts
Thanks to the evolution of web-based giving software, maintaining a digital record of monthly donations is easier than ever! Store a record of receipts in a centralized location and consider using a simple template to track these five main categories:
Often times, basic clerical errors can cause a discrepancy between your record and the official giving statement. Detailed personal bookkeeping affords a space for conversation versus accusation, and I suggest quarterly consultations with the pastoral staff to review financial transactions. However, a word of caution is due in this scenario, "where there's smoke, there's fire."
Date | Giving Category | Receipt No. | Donation ($) | Church Record ($) |
January | Tithes & Offering | 5549833 | $28.00 | $28.00 |
February | Benevolence | 8333452 | $98.00 | $.98 |
March | Tithes & Offering | 5548433 | $114.00 | $114.00 |
2. Trust, But Verify
Sketchy donation receipts are a red flag for IRS audit specialists and skilled financial bookkeepers. The next step in the blueprint entails learning to recognize the main features, or lack thereof, of an official giving statement with the following examples:
3. Call In The Experts
If the accounting books have been checked (twice) and your concerns have fallen upon deaf ears, it may be time to consider contacting the professionals. According to the IRS website, the organization strives to "provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all." The IRS complaint process for tax-exempt organizations is readily available online with the option for anonymous submission:
The beauty of numerical data is the lack of bipartisanship or personal biases. Presenting the information in a logical format will remedy most snafus while empowering you toward self-advocacy. Now, share this post with a friend to start the conversation!
I'm concerned about fraud at my church.
A. Honestly, I am.
B. No, our church reports finances regularly.
C. What is a giving statement?
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