Steward Giving with Internal Controls

Develop Written Donation Tracking Policies And Procedures

No matter your size, be sure you have systems in place to track gifts and all staff and volunteers are trained on the procedure. Fraud is a common issue in churches, so even if you trust individuals completely, it is important to have everyone above reproach and not in a position to be tempted or falsely accused. Key to this process is using more than one person at each step and having a written record of each step. This not only prevents errors, but also improves accountability and internal controls.

Here’s a sample workflow for cash control,
efficiency, and financial integrity.

1. Two people count cash and check gifts received on a Sunday and creates a written record of the total.
2. One person processes receipts, makes appropriate copies, etc. and enters all gifts into the CRM (not into the accounting system).
3. That person batches up the receipts in the CRM to create a deposit.
4. A second person, acting as a check/balance, counts the cash and double checks the report.
5. When the cash is reconciled with the report, it’s off to the bank. The reconciled summary of the batch (by fund or GL code) is entered or imported into the accounting system.
6. Everything matches, and the data entry errors and conflicts are eliminated. The CRM acts as a “subsidiary ledger” and provides all the supporting documentation to explain any entry in the general ledger. If you reconciled your cash with your deposit report, the accounting system will always be in perfect sync.

Homework: Find and review your church’s donation tracking policy. Are there any gaps in internal controls? Do all people involved know and understand the policy?