Budget Accoutability

[B7403]

Hello. I am a deacon in our church. We approve a church budget that is developed by our stewardship committee each year. Then we present it to the church for there approval and vote. Our budget is set up so that 2% of all money given is designated for the benevolence fund. This year the deacon body found out that the stewardship committee has not been putting all the money in the benevolence fund for the past three years. The money was used to pay our building note and meet other budget short comings as our budget has been very tight the past few years. The deacons and stewardship committee has decided not to go back and fund this account for the past three years. The problem I have with this decision is that we told the congregation how we would spend the money that they gave to the church and we did not spend the money as we told them we would. I feel like we have lied to the congregation and misused the money we were trusted with. I have two close friends on the deacon body that has told me that I am making to big of deal out of this and that I should just let it go. But I just feel like this is a violation of trust to our congregation. Am I wrong?

 

[Hammster]

I think the church should be informed.

 

[SaintJoeNow]

Hello. I am a deacon in our church. We approve a church budget that is developed by our stewardship committee each year. Then we present it to the church for there approval and vote. Our budget is set up so that 2% of all money given is designated for the benevolence fund. This year the deacon body found out that the stewardship committee has not been putting all the money in the benevolence fund for the past three years. The money was used to pay our building note and meet other budget short comings as our budget has been very tight the past few years. The deacons and stewardship committee has decided not to go back and fund this account for the past three years. The problem I have with this decision is that we told the congregation how we would spend the money that they gave to the church and we did not spend the money as we told them we would. I feel like we have lied to the congregation and misused the money we were trusted with. I have two close friends on the deacon body that has told me that I am making to big of deal out of this and that I should just let it go. But I just feel like this is a violation of trust to our congregation. Am I wrong?

Integrity matters. It might cause a church split, but it needs to be brought out in the open and anybody who lied about money going into a fund when it did not go into that fund need to explain if not apologize for not being upfront and honest in the matter. The promise to the congregation to put 2 percent into the benevolent fund to me seems to be the same as making a vow to God. People who take that lightly, even though it is only 2 percent and there was a need to redirect the funds, probably should not be on the deacon board. There is no good reason they could not have told everybody of the change in the benevolent funding the first time they thought necessary to take the money out of the benevolent fund. They should have told the church they wanted to do that before they did it since they had already promised the money would go in the benevolent fund. If I was a member in that church, it certainly would be brought out in the open in front of everybody. I might have to wait until an orderly time in a business meeting to say it, but I sure would say it.

Seen too many thieves on the boards of too many churches, tens of thousands of dollars gone...too many affairs with office workers. And a lot of blind people thought those crooks and fornicators were dear friends. Red flags are red flags, and I'm seeing serious red flags in your church there. Those red flags need to be looked into, not brushed under the carpet where they are likely to grow into red snakes.

 

[B7403]

Thanks for your help. Your response reinforces my thoughts.

 

[USCGrad90]

I would also review your Bylaws to determine if the committe and Deacons have any discretion in this matter that allows them to make this decision or not. The proper thing would have been to inform the congregation in a business meeting because it is deviation from the approved plans. If members find this out later on their own, they will feel much more betrayed than if it is freely revealed to them now.

 

[Striver]

Well, first things first, I definitely agree that in the interest of transparency the issue needs to be brought to the church congregation. If the only extent of this is that money was appropriated from the benevolence fund to running the church out of necessity, then that is one thing and it's an apology and correction away from more or less being fixed. If it's an issue of fuzzy accounting or mismanagement, then that also needs to be addressed with a bit more seriousness. I would definitely say look hard at bylaws and covenants to see if there are any issues of integrity or process that were violated.

When you say 2% of a church budget, that could be a couple grand or upwards of much more. Depending upon the amount of money, you may want to look into some sort of audit to ensure that other funds did not end up elsewhere. I do not know the size of your church, but there are plenty of accountant services out there that can safely (and affordably) audit things to ensure that there are no other issues (IE: money taken out of another area which these funds were used to replace).

Unfortunately, I was part of a church where a staff member was siphoning off funds and leaving some bills unpaid by hiding them or using some creative accounting. I'd really try and nip this in the bud to get out in front of a split issue, and to restore trust in the church if nothing was terribly amiss.

 

[USCGrad90]

I have been in 3 situations, where accountability over finances was addressed.

1) At one church, offerings were down and the Pastor went to the bank and arranged to extend the loan, even though he was not authorized to do so. This resulted in a very heated debate in business meetings and strained relationships between the Pastor, Deacons, and Trustees of the church. I moved shortly after this and did not see the details of what happened, but I found out not long after I left, the Pastor resigned to take another position.

2) At my current church, we had a no-interest loan fund that would provide $500 to students pursuing a seminary degree. The fund was established from designated funds from the will of a deceased member. The intent would be that the students paid it back after they graduated. A number of students took the loan but few repaid it and the committee at the time did not oversee the fund well. Eventually, the committee and fund were dissolved and we rewrote the Bylaws to note that if a designated fund is not established in business meeting by the church, then any funds submitted for a non-approved designation would be applied to the general budget of the church. This change was submitted to and approved by the congregation.

3) In recent years, when offerings were down, a recommendation was made to reduce the % of undesignated funds that is allocated to the SBC Cooperative program. Almost unanimously, the congregation voted to keep giving at the same percentage and find other ways to reduce expenses. This resulted in members stepping up to help with grounds and maintenance, providing supplies for nursery and children's need, and eventually offerings came up to a higher level. Other churches in the Association did make the same decision, but we felt it was important to keep funding missions work.

The last case was the only one where discussion was held before an individual or committe took action - AND it turned out to have the best result in terms of honoring our commitments and maintaining peace inside membership.

 

[Yekcidmij]

Hello. I am a deacon in our church. We approve a church budget that is developed by our stewardship committee each year. Then we present it to the church for there approval and vote. Our budget is set up so that 2% of all money given is designated for the benevolence fund. This year the deacon body found out that the stewardship committee has not been putting all the money in the benevolence fund for the past three years. The money was used to pay our building note and meet other budget short comings as our budget has been very tight the past few years. The deacons and stewardship committee has decided not to go back and fund this account for the past three years. The problem I have with this decision is that we told the congregation how we would spend the money that they gave to the church and we did not spend the money as we told them we would. I feel like we have lied to the congregation and misused the money we were trusted with. I have two close friends on the deacon body that has told me that I am making to big of deal out of this and that I should just let it go. But I just feel like this is a violation of trust to our congregation. Am I wrong?

The members ought to know if the money they give isn't being spent in the manner that was voted on or the manner that was originally disclosed to them.

Someone may need be fired/replaced if serious mismanagement occurred.

Of course, we necessarily only have your side of the story, but it sounds like this should be a big deal - you're talking about the mismanagement and mis-allocation of the church's resources.