The issue
The apostle Paul considered financial accountability to be very important as shown in 2 Corinthians chapter 8. Whilst still focussed on mission he was very keen:
- To avoid criticism about the handling of giving
- To be seen to do “what is right in the eyes of man as well as God”
2,000 years later Billy Graham thought the same; he told his team “the very first on the list (of his priorities) was to maintain financial integrity”.
Charities are rightly coming under increasing financial scrutiny. Recent events at Kids Company and other charities have thrown a spotlight on charity finances. With the wisdom of Paul and the warning from others it is right we aim for the highest standards in our churches.
The ingredients
The key ingredients in building accountability are:
- Building a strong finance team
- Encouraging a culture of healthy challenge
- Openness and transparency
- Communicating financial information clearly
These develop a healthy culture which builds trust and helps to protect everyone involved in handling money. We will look at each of these in turn.
- Building a finance team
Most examples of abuse of church money come when finances are handled by a single person or a couple rather than by a team. Money is alluring and so brings temptation. Accountability is not about mistrust but is about wisdom. Building teams and internal accountability, along with introducing sensible processes, protects those involved.
This is especially important where cash (notes and coins) is involved, or where payments are controlled by one person.
2. Encourage a culture of healthy challenge
Accountability is best thought of as a culture rather than an action. Healthy challenge creates an environment which invites people (within and without the church) to question and to develop better understanding. So, as leaders, we need to be open and respond well to challenge, welcoming and positively reinforcing it.
3. Openness and transparency
It is important that decision-making is carried out in a culture of openness and transparency. Where decisions are made behind closed doors, perhaps even away from the trustees or others in church leadership, people fail to understand why things happen.
4. Communicate financial information
Where there is a void, people tend to fill it with speculation. Where churches don’t provide enough information then suspicion grows which can spread very quickly via social and other media.
Suspicion is not only limited to people outside the church. We spoke to two young church members who were becoming increasingly disillusioned with their church. They were continually being asked for money, but never explained how it was used. They became sceptical and generosity died.
So, provide financial information across the church among leaders and members. Ensure that your publicly available report and accounts shares information generously about the “what” and the “why” as this protects the perception of the church in the local community. (NB: remember to respect privacy!).
Conclusion
Accountability is more than systems and controls. It is an attitude of mind and an underlying culture which builds confidence deep within a church. Financial administration has its place (see part 6) but controls alone, without an attitude of accountability, is likely to come up short.
Free linked resources:
Raising the Standard – transforming the culture of money in the church
Financial Health Check for Churches
Communicating Financial Information
Financial controls in Churches and small Charities
When a Charity’s income is not its income
Training and advice
Free Advice for Church Treasurers
Written by Guest Writer, Stephen Mathews.