As I scrolled through the daily news articles on my phone, a headline caught my attention and made me pause: “Bookkeeper Sentenced to 33 Months in Prison for Embezzling $580,000 From Church.” Due to weak controls, the church bookkeeper stole money from the weekly collection, wrote unauthorized checks to herself, and used the church credit card for personal expenses.

Unfortunately, this is a common occurrence which I see all-too often in my audit and consulting work. In fact, according to Church Law & Tax, nearly 1/3 of U.S. churches have experienced some form of financial misconduct, such as fraud or embezzlement.

To keep this from happening in your congregation, let’s explore some best practices for protecting the financial integrity of your church.

Why Internal Controls Are Important

Internal controls aren’t the most glamorous part of church life, but they are one of the most important. Internal controls are simply systems and processes that help ensure money is handled properly.

These controls prevent mistakes, reduce the risk of fraud, and create transparency. They include preventive measures (like dual approvals) and detective measures (like monthly reconciliations). Strong internal controls are necessary to protect the church, its leaders, and its reputation.

Churches operate on trust, volunteer labor, and a shared mission — which is beautiful, but it also creates blind spots. Churches are vulnerable when they rely on a small number of people handling large responsibilities with little oversight.

I often see small or part-time bookkeeping staffs struggle with segregation of duties or leaders bypass policies for “expediency.” The result is weakened accountability that damages trust, ministry effectiveness, and reputation.

Healthy ministries put simple internal controls in place not because they expect wrongdoing, but because they understand how easily mistakes, misunderstandings, and temptations can arise when roles overlap.

In fact, the goal of internal controls is never suspicion — it’s protection of the mission, the resources God has entrusted to us, and the integrity of the people who serve. When leaders frame controls as care rather than distrust, they strengthen the ministry’s witness and create an environment where everyone can serve with confidence.

Recent cases illustrate the devastation when controls are weak or missing. In the past 18 months: A church financial secretary was arrested for stealing over $570,000 via personal credit-card charges; A synagogue bookkeeper embezzled $350,000 for three-and-a-half years by forging checks and altering records; A church treasurer admitted to $200,000 in theft after sole control of accounts; A longtime bookkeeper received 27 months in prison for $875,000 in check fraud; A priest diverted at least $155,000 for personal use by making 220 ATM withdrawals.

Church leaders are entrusted with tithes, offerings, and donations to advance the mission of the gospel. Yet financial fraud threatens this sacred trust.

Studies by the Association of Certified Fraud Examiners (ACFE) consistently show that churches and religious organizations lose approximately 5% of their revenue to fraud each year — equivalent to throwing away three weeks of Sunday offerings. For the average church, this can mean the difference between healthy reserves (typically only 2% of budget per Christianity Today data) and scrambling to cut ministry programs.

The ACFE 2024 A Report to the Nations determined religious and charitable organizations face a median loss of $76,000 when fraud occurs, which disproportionately affects smaller organizations. Fraud often lasts 12 months before detection, and 87% of perpetrators are first-time offenders — trusted volunteers or staff members.

Internal controls are not about doubting people’s character; they protect faithful servants from suspicion and the church from harm. As the apostle Paul wrote, “For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of man” (2 Corinthians 8:21). Controls safeguard assets, ensure accurate reporting, and allow your team to focus on ministry.

Core Internal Controls Every Church Should Implement

Here are some of the more common internal controls weaknesses I find in churches: one person counting and depositing offerings; blank checks signed in advance; credit-card statements paid without reviewing or requiring receipts; no review of bank statements and reconciliations; one person controls the online giving platforms; and church leaders bypassing approval policies “for expediency.”

By weaving accountability into the fabric of your church, you protect the mission, honor biblical stewardship, and position your ministry for long-term fruitfulness and trust.

To counteract these weaknesses, below are five foundational controls that will dramatically strengthen your financial house.

Segregation of duties. No single person should handle custody of assets, authorization, recording, and reconciliation. The person who counts offerings should not record them or reconcile the bank deposit. The bookkeeper who prepares checks should not sign them or reconcile accounts. This is the bedrock control cited in nearly every fraud study and church finance best-practice guide.

Offering collection safeguards. Require at least two unrelated people to count every offering (rotate teams weekly to prevent collusion). Count in a secure room with no interruptions. Use tamper-evident bags or pre-numbered envelopes. Deposit funds within 1–2 business days. Reconcile counts to donor records and bank deposits. For small churches, volunteers from the finance committee can rotate in.

Bank reconciliation procedures. Reconcile every account monthly by someone who does not handle cash or write checks (ideally a board member or volunteer). Review cleared checks, deposits, and unusual items. Compare online giving reports directly to bank deposits. (If the person who writes checks also performs the reconciliation, then another person needs to review the reconciliation and bank statements very carefully.)

Expense approval workflows. Require written approval before purchases. Use a three-way match: approved purchase request, proof of receipt/service, and valid invoice. Never sign blank checks. All disbursements need supporting documentation. For credit or debit cards, require original receipts (statements alone are insufficient for accountable reimbursement plans) and board-approved spending limits. Adopt a formal accountable reimbursement plan so reimbursements remain tax-free.

Physical and digital security. Lock up cash and blank checks or use your bank’s secure night-drop boxes. For online giving, banking, and financial software, require multi-factor authentication. Work only with PCI-DSS-compliant and SOC 1 Type 2 online giving and credit card processors. Set up notifications for any bank account or routing changes (sent to someone outside bookkeeping). Limit access to online giving portals and review user logs regularly.

Solutions for Small Churches With Limited Staff 

Small and mid-size churches (which include most of us) face the greatest challenge: limited personnel. Yet creative solutions abound. For example:

No-cost ways to separate duties. Assign a board member or qualified volunteer (unrelated to staff) to perform bank reconciliations and review monthly reports. Have a board member or finance chair pre-approve all checks over a certain threshold. Use dual online banking approvals for wires or large transfers.

Use volunteers wisely. Recruit retired accountants, business owners, or CPAs from your congregation to help with financial processes or reviews. Provide adequate training for offering counters and require background checks of anyone who works with money. 

Rotate responsibilities. Rotate counting teams, check signers, and reconciliation reviewers on a regular basis. This prevents familiarity from breeding opportunity and protects everyone’s reputation.

Leverage technology. Modern church management software allows role-based access: Counters enter totals only; Bookkeepers post; Board members view reports. Enable positive pay with your bank to flag unauthorized checks. Cloud-based tools with audit logs provide built-in oversight even with one staff person.

Review Your Processes

Another low-cost solution for churches of all sizes is to schedule an internal review of your financial processes on a regular basis. For small churches, a committee of qualified volunteers works well. Larger churches may engage a CPA for agreed-upon procedures. Here are some key areas to review for verifying that controls are operating effectively:

• Bank and investment reconciliations for the full year. 
• Contribution records vs. deposits and donor statements. 
• All disbursements for proper support and approval. 
• Credit/debit card activity and receipts. 
• Payroll (classification of ministers, timely deposits, W-2s). 
• Online giving platform access logs and bank-change notifications. 
• Fixed assets and petty cash. 
• Budget vs. actual reports and restricted fund usage. 

Use a simple checklist or spreadsheet to document your results and note any exceptions, corrective actions, and who is responsible for following up. For a comprehensive, but easy to use audit program, see Appendix B in my book Integrity at Stake: Safeguarding Your Church from Financial Fraud, available at MyHealthyChurch.com.

If internal expertise is lacking, red flags appear, or your bylaws require it, hire a local CPA or CFE. An independent review every three years (or annually for larger churches) helps provide credibility and peace of mind.

The Return on Investment

Implementing stronger internal controls is not bureaucracy — it is biblical protection. Proverbs 11:14 (KJV) reminds us, “In the multitude of counsellors there is safety.” Strong processes safeguard resources, shield leaders from false accusation, and demonstrate to donors that the church honors God with every dollar. The cost of inaction is far greater: lost missions funding, eroded trust, legal exposure, and diverted focus from ministry.

You do not need a large staff or expensive solutions to begin. Start small: implement dual counting this Sunday, assign a volunteer to next month’s bank reconciliation, and draft one written policy this quarter. Take the first step today.

By weaving accountability into the fabric of your church, you protect the mission, honor biblical stewardship, and position your ministry for long-term fruitfulness and trust.

This article appeared in the Spring 2026 issue of Called to Serve.