The Church's Bottom Line

A lack of business savvy and accounting can haunt a church when fraud happens. After a 1988 fire destroyed All Saints' Episcopal Church in Homewood, Ala., the trouble was compounded when a senior warden embezzled and spent $313,000 in insurance funds intended for rebuilding. The church did not press charges against the warden.

In July, the Presbyterian Church (USA) fired its treasurer, who admitted embezzling $102,000 in church funds. In 1995, the Episcopal Church fired treasurer Ellen Cooke, the wife of a priest, and sued her for embezzling $2.2 million in church funds.

Church business administrators warn that safeguards must be in place.

People almost expect a lack of ethics and financial impropriety in business; in church, it's inexcusable, said Gunn, the administrator at Shades Mountain Baptist. "We answer to a higher standard."

Following accounting procedures means nobody is ever alone with money, and different teams check it at different stages, Gunn said. One team counts money, another team makes a second count and still another team makes the deposit. The administrator has accountants backing him up.

"I need somebody behind me, so none of us are in a position to commit fraud and cover it up," Gunn said, adding, "It keeps you from being falsely accused."

When churches run their budgets with integrity and provide facilities that promote spirituality and support for ministry, churches are able to do more of God's work, Gunn said. "Out of that growth, people give," he said.

"We work very carefully to make sure we are in compliance with good management techniques," said the Rev. Gary Fenton of Birmingham's Dawson Memorial Baptist Church, which has a $7.2 million annual budget. "People have a right to expect the money and time they give to the church will be used in a way that glorifies God and helps humanity."