It's not surprising to hear you're getting these types of requests. At first glance, it seems the most convenient to let each group have an account so that they can tap into their budgeted money when needed. But such an approach isn't advisable. The conventional wisdom in the church finance world is for churches to limit the number of bank accounts the church uses. Ideally, a church should use only one or two. The logic is generally based upon the following five issues:
- The more accounts created, the easier it is for someone to disguise and/or mask fraudulent activity;
- The more accounts created, the more administrative work required to monitor, oversee, and reconcile accounts on an ongoing basis;
- The more accounts created, the greater the likelihood of having funds erroneously deposited or withdrawn from the wrong accounts;
- The more accounts created, the more chances created for outsiders to steal account numbers that can be used for electronic fraud; and
- The more accounts created, the more checkbooks created, and the harder it will be to track and to secure blank checks.
CPA and senior editorial advisor Vonna Laue also advises churches to regularly check with their banking institutions to make sure groups haven't quietly opened accounts on their own. "Oftentimes, a missions committee or ministry group has obtained the tax identification number for the church and opened an account. The church is ultimately responsible for those funds and ought to make sure that none exist—or if they do, to make sure that controls are in place to oversee the activity," Laue says.