One of the most uncomfortable church situations I’ve experienced involved a deacon that insisted on counting the offerings each Sunday. He proclaimed this was his way of serving the pastor and church.
Offerings suddenly seemed down, and the pastor became suspicious. The pastor asked me to come in before church one Sunday. He wrote down the serial numbers on two twenty-dollar bills, and then put a small red “X” in the corner of each. I was his witness.
The pastor put those two bills in the offering plate during service. The deacon took the money into the office to count.
The two twenties never made it into the bank deposit.
Confronting this long-term church member was ugly and painful. He angrily denied any wrongdoing, and his entire family never came to church again.
I’ll never know for sure if he took the money, or how much might have been stolen over time. The only thing I do know is that the marked bills disappeared and there were obvious signs that should have been noticed early on.
What actions might suggest that someone is stealing from your church?
This is a sensitive topic, but it’s wise stewardship for a pastor to be alert. Most financial issues in churches don’t start with bad intention, they grow out of weak systems, and too much trust is placed on one person.
Here are some common warning signs pastors should watch for:
1. One person controls everything
If a single individual handles receiving donations, recording them, making deposits, writing checks, and reconciling the bank account, that’s a major red flag.
Even the most trusted, long-tenured staff or volunteer needs accountability. People can make poor decisions or even feel justified in taking what is not theirs.
2. Resistance to oversight or questions
Watch for defensiveness when financial questions are asked:
- “Why do we need another signature?”
- “We’ve always done it this way.”
- “You don’t trust me?”
Transparency welcomes questions. Secrecy avoids them.
3. Delayed or missing financial reports
Consistent excuses for why reports are late, incomplete, or confusing can signal a problem, especially if the numbers don’t seem to match giving trends or cash flow.
4. Unexplained cash shortages
Cash giving declining faster than attendance, frequent “deposit errors,” or deposits that don’t match count sheets should be investigated promptly.
5. Lifestyle changes that don’t align with income
Sudden upgrades—new vehicles, expensive vacations, or major purchases—don’t prove wrongdoing but combined with other warning signs they warrant closer attention.
6. Poor documentation
- Missing receipts
- Checks made out to “cash”
- Vague expense descriptions (Cash, check, or credit cards)
- Handwritten changes on financial records
Good records protect both the church and the individual handling the money.
7. No vacations or insistence on “being indispensable”
Someone who never takes time off or insists no one else can do their job may be trying to prevent others from seeing the books.
8. Vendor or reimbursement irregularities
Look for:
- Payments to unfamiliar vendors
- Reimbursements without receipts
- Multiple reimbursements just under approval thresholds
9. Bypassing established policies
Consistently ignoring financial policies, especially approval processes—is a serious warning sign, even if the person is otherwise trusted.
10. Payroll
Periodically review payroll reports.
We are aware of instances in which bookkeepers gave themselves significant unauthorized pay increases or even created non-existent employees whose pay was deposited into their personal account.
11. Lack of external review
Churches with no annual review, audit, or outside bookkeeping oversight are far more vulnerable to fraud going undetected for years.
Being alert doesn’t mean being suspicious or untrusting. Strong financial controls protect people, relationships, and the testimony of the church. In many cases, clear systems prevent temptation before it ever becomes an issue.