When it comes to the church finances, a lot of it is kept under wraps. Not many people know of what is happening apart from the pastors. They are mostly the sole authoritarians of the finances and they decide where the money goes. Since they are the only ones who know, they end up having the freedom to do what they want with it.
After setting aside some money for the church, they can use it for their personal gains. This is what causes all the discrepancies and brings the intentions of the church under fire. However, all said and done, it is not possible for 100% of the churches to undertake such fraudulent activities. It is not possible that all pastors think alike and that there aren’t some good ones.
There can be a lot of churches that still operate the traditional way and do not indulge in such materialistic practices. And owing to the bad reputation that these big and corrupt churches have earned, they end up causing the small churches to lose out on donations and offerings. So much so that they do not even have the money for their upkeep and this causes the church to shut down.
Apart from this, there can be pastors who might not be corrupt but also not be good at managing finances. They might not know what to do with the money they have and where it needs to go.
Here are a few mistakes that most pastors might make:
There are some who will try to do everything by themselves. They will take it on themselves to collect the money, put it in the bank, keep records and also give it away to people in need. However, doing all this requires people to be alert and attentive and dedicate a lot of their time in making sure that the money goes to all the right places. Instead of doing it all by themselves, they can hire an accountant who will do the job for them. That way, there will be no wrong calculations and no money will be lost.
There are some who might associate their real work to be managing the finances of the church and forget that their real job is to praise the lord. Some pastors might get carried away and think that by not taking care of the finances effectively, they are only going against the wishes of the lord. This is absolutely not true and the pastor need not do anything more than sing the praises of the lord and support those in need.
One other mistake that pastors might make includes not planning out a certain ceremony with a set budget. They start out without putting thought into the budget that they will require to organize a feast and end up over shooting the budget. So before any donation is collected, it is best that the pastor aim for the budget and put out a board clearly stating how much money will be required and how much is to be contributed by the churchgoers.
More on this can be read here.
It is obvious that not all churches will be subjected to the kind of money that is enough to support a small city. There are some that receive lesser amounts and even then, it is important that these be manages effectively. In order for that to come about, the church must first be transparent in all its transactions. If the church has something to hide, then they will prefer to keep its operations under cover and not make public the various transactions that it makes. This only further pushes it towards a downward spiral and does not give it an opportunity to rise above and make amends financially.
The church should at any time be in a position to show the detailed list of incomes and expenditures and produce it to the members of the church.