The local church has a great responsibility to manage its resources effectively and the Evangelical Council for Financial Accountability (ECFA) hopes to assist through Church Initiative, a program to help churches of all sizes improve their financial stewardship.
“Fraud is on the increase in churches, and a lack of accountability continues to be a black eye to the gospel,” said Dan Busby, president of ECFA. “ECFA’s new Church Initiative is essential for leading churches to faithfully demonstrate their commitment to established standards in financial accountability, fundraising and board governance.”
Busby said that financial mismanagement has marred the witness of some churches around the country and that the media is often quick to highlight the negative actions of a few churches or pastors.
“The positive ministry of most congregations across the country is overlooked,” he said.
“But when congregations place a high focus on accountability, transparency and integrity, there is a stronger likelihood of sound practices that will uplift the name of Christ,” Busby said.
Under the Church Initiative, a new fee schedule makes the accreditation process more affordable for local church congregations. Smaller congregations unable to take advantage of accreditation services can subscribe to ChurchWise, a three-tiered subscription service that provides access to information on church-related governance, finances and stewardship, as well as webinar training.
In addition ECFA’s website has been revamped to make it simpler for churches to access the information they need to be more accountable to their members and to the public. Non-accredited churches also can register with ECFA to receive a free monthly electronic newsletter and informational briefs regarding IRS and government changes in tax law and other issues affecting churches and nonprofits.
Though no Alabama Baptist churches are currently ECFA accredited, many nonprofit organizations in Alabama are, including The Baptist Foundation of Alabama (TBFA) and Alabama Baptist Children’s Homes & Family Ministries (ABCH).
TBFA President Barry Bledsoe said adherence to ECFA’s high standards of financial accountability are part of TBFA’s testimony of “doing things the right way.”
“There’s certainly a need in the church world for that,” Bledsoe said.
There are no concrete numbers on how much money churches around the country lose annually due to internal theft. Bobby DuBois, associate executive director of the Alabama Baptist State Board of Missions (SBOM), said his office often follows cases of church theft that have made national news. Since Alabama Baptist churches function autonomously, he said the SBOM would only know of cases in Alabama if legal action was taken by the church and the facts of the case became public.
Still DuBois said the SBOM continually encourages churches to implement stronger internal controls to guard against theft and misappropriation of church money.
“In many churches, especially smaller churches, you have one person who will take the money from the offering plate, count the money, make the deposit and report to the church,” DuBois said. “There is no auditing or internal control of the finances.”
DuBois said churches that lose the trust of their members and community will lose financial support as well, and without financial support, he said, most churches would not exist.
“If a church gives the appearance that money is not being handled wisely, giving will dry up, and it will have an adverse impact on the church in terms of its stewardship,” DuBois said.
While not all churches may benefit from accreditation, the goal of Church Initiative is that churches both small and large can benefit from ECFA’s experience and knowledge in the area of financial accountability.
Ultimately, said ABCH vice president for ministry development Bob Dewhurst, ECFA encourages organizations to uphold a biblical standard of Christian stewardship in order to maintain the public’s trust.
“It’s God’s money, God’s resources and God’s people,” Dewhurst said. “As Christian organizations, it’s our responsibility to manage all of it well.”
For more information about ECFA, visit www.ecfa.org or call 1-800-323-9473.
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