Posts Tagged church financial security
The Vatican recently reported finding hundreds of millions of dollars “tucked away” off the official balance sheet. This is only one dimension of the Roman Catholic Church’s need for financial accountability. In the United States, theft, fraud and embezzlement occur at every level, with parishes alone losing millions of dollars each year from Sunday collections.
Catholic Church reform movement Voice of the Faithful® is urging parishes and dioceses to adopt simple security procedures that can protect weekly collections, which are the primary source of income for most parishes, and has developed a simple test to assess the effectiveness of current security procedures.
A 2007 Villanova University survey found that 85 percent of the responding Roman Catholic dioceses had discovered losses and theft of church money in the previous five years, with 11 percent reporting that more than $500,000 had been stolen. A 2014 study of small businesses by the University of Cincinnati found that 64 percent of small businesses say they experience employee theft; although only 16 percent report them. Parishes closely resemble small businesses in size and number of employees.
A few headlines from the past seven years continue on that theme: “Priest indicted for nearly $700,000 church theft,” “Deacon sentenced to jail for stealing $120,000,” “Pastor gets five years in prison for stealing $200,000 from parish,” “Catholic priest pleads guilty to at least $100K collection plate theft,” “Ex-pastor accused of taking $83,000 from parish,” “Religious education director and maintenance worker charged with stealing collection cash,” “Former priest avoids prison and repays stolen parish funds,” “Cops charge usher with swiping cash”—the list goes on.
Additionally, National Catholic Reporter reported in 2012 that, “according to the most modest estimates, at least $89 million donated each year by the people never gets to the intended Catholic cause or recipient due to theft.”
But those losses can be cut. Parish and diocesan finance councils, which Church Canon Law requires, “would do well to assess the adequacy of their Sunday collection procedures and make necessary changes to secure the collections,” says Michael W. Ryan, the author of Nonfeasance: The Remarkable Failure of the Catholic Church to Protect Its Primary Source of Income, who has conducted a 25-year crusade to convince the U.S. Conference of Catholic Bishops to adopt simple security procedures that protect cash collections.
“The level of this protection varies widely from parish to parish and diocese to diocese, and the quality of that protection ranges from good, to marginal or poor, with the latter being highly susceptible to weekly losses due to theft,” Ryan says. “This is why it is absolutely critical to positively secure the collections at the first opportunity—when the ushers meet to consolidate their baskets—and to maintain that level of security throughout the process, up to and including the deposit of all monies into the parish account.”
But “Ryan’s attempt to help the church clean up the loose security policies that drain funds has met with such deep-seated disinterest that he has virtually despaired of getting anywhere,” the NCR article cited above said.
As a first step toward better security, VOTF has developed a simple self-test, with Ryan’s help. He is a retired federal law enforcement official experienced in the conduct of financial audits and security investigations and serves on VOTF’s board of trustees. The test may be downloaded from VOTF’s website by clicking here. Consisting of 10 true-false questions, this test quickly and easily provides any finance council or interested Catholic a general sense of how well or how poorly their parish or diocese’s collections are protected.
As a second step, those who take this self-test and find that their collections are not as secure as expected may download appropriate guidelines from VOTF’s Parish Financial Accountability web page by clicking here. According to Ryan, these guidelines will help ensure that every dollar placed into the collection baskets each weekend is, in fact, properly deposited into the parish account.
As evidence of their efficacy, Ryan says, the guidelines were codified and implemented by the Archdiocese of Chicago in 2005. Subsequently, National Leadership Roundtable on Church Management adopted them as the best practice for handling collections. NLRCM is a respected organization of laity, religious and clergy working together to promote excellence and best practices in management, finances and human resources within the Catholic Church in America.
Also of interest: Calls grow for reform in Catholic Church financial affairs