Counting the weekly offering has to be the bane of every church treasurer’s existence. It is important because it constitutes the basic income for your church. It also represents the spirituality of each individual donor so each individual offering must be accounted for in a manner that assures proper credit to permit the tax deduction, but kept private as a matter of great sensitivity.
It is also a matter that can lead to tremendous pain if the offering is mishandled. If adequate internal controls are in place, mishandling in the form of embezzlement can be prevented. So what can you do to ensure your weekly counting procedures are adequate?
Written Procedures
There’s an old adage that states, “If it ain’t in writing, it didn’t happen!” Detailed written procedures or work instructions ensure that you have every employee or volunteer who works on the process doing the same thing the same way. Is this too anal? Perhaps, but it works. When everyone is following the same process, it is easier to notice when something is out of place. It is also easier to train new people.
Some people have difficulty following written instructions. Then give them pictures. Adding photographs to your written instructions make them easier to follow for those who are visual learners.
When preparing your written instructions, you must be very detailed and very basic in listing each step. For example,
- Two people bring the offering to the office after the service.
- The counters take the offering and separate the pledge envelopes from the cash and checks.
- The checks are reviewed to ensure they don’t belong to someone who pledges, but doesn’t use an envelope. If the check belongs to a regular donor who has made a pledge, put it in the pledge pile.
- And so on . . .
The purpose is to walk the counters through the process of counting in a straightforward way and eliminate questions of process.
Internal Controls
The written procedures for counters include the internal controls that prevent the temptation that some churches have experienced when people doing the counting remove some of the cash for themselves. Many times these are small amounts over a long period of time, and, in some cases, the perpetrator did it because of the temptation of the cash in front of them and not because they really needed the money. The following controls over counting the offering can help deter theft.
- Have at least two non-related adults count the offering each week.
- Ensure that they are trained on the procedures for counting the offering.
- People counting the offering cannot also be people who can sign checks or otherwise expend church funds.
- Change the pairs of counters periodically.
- If the weekly offering cannot be counted and deposited immediately, ensure that it is stored in a locked container.
- Photocopy all the checks as part of the counting process.
- Stamp all checks as “For Deposit Only” as soon as they are counted.
Potential Traps
There are several issues that can cause you serious problems if the counters do not correctly complete their task.
- Not properly recording the donations so that the donor receives the correct credit for their donation. Donors in the United States can receive deductions on their income taxes for their charitable donations, but the church has to be able to send them an acknowledgement of their donation.
- Counters will also have access to the donation information of their fellow church members. This information is highly sensitive and should never be discussed with others.
- Counters lacking the training to conduct the counting, or troubleshoot errors when the counting sheet does not match the actual deposit. Many of these errors are either an addition error or an input error (e.g., transposing two digits on an amount).
- Counters not counting the offering immediately after the service and depositing it in the bank.
Aids
I cannot write your work instructions for you. These are tailored for your specific situation. I can help with providing the counters with a counting sheet. I’ve included it on the Resource page. This is a form with a tab for each week of the year. Your counters only have to enter the amounts correctly and list whether the individual donation is cash or a check. The sheet totals everything up and provides you with the amount of your deposit.
Audits
You should ensure that your church has an audit annually. The audit should be conducted by an independent firm or by a team of volunteer auditors that includes people from outside the parish. The audit should include the counters to ensure that they adhere to their protocols. The audits, internal controls, and written procedures assure your congregation of your seriousness in protecting their donations and ensure that they are used appropriately. Most people appreciate the care an organization takes with their donations and will usually give more to that organization.
Disclaimer
As always this post does not substitute for the advice of your attorney or certified public accountant. Seek their advice before you implement work instructions. Use the Church Counting Sheet for 2019 at your own risk. The Mundane Church and its owner assumes no liability through your use of this site or its downloads.
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