Jump directly to the content

Benevolence Funds and Money Laundering

Key point 7-21. Embezzlement refers to the wrongful conversion of funds that are lawfully in one's possession. Embezzlement is a common occurrence in churches because of weak internal controls.

A Florida court affirmed a pastor's conviction for grand theft and money laundering as a result of his use of a church benevolence fund to pay more than $100,000 in personal expenses. The pastor served as pastor of a local congregation from 1995 until 2009. The church received donations from various sources, and the donations were divided among four bank accounts: the mortgage account, the operating account, the scholarship account, and the benevolent account. Parishioners could designate which account their contributions should be deposited, and each account had a dedicated use. As to the benevolent account, the funds were to be used solely to help those in need in the community, and the church gave ...

Log In For Full Access

Interested in becoming a member? Learn more.

Related Topics:
  • August 19, 2015

Related ResourcesVisit Store

Benevolence Fund Basics
Benevolence Fund Basics
Help your church develop a tax-compliant benevolence ministry.
Internal Controls for Church Finances
Internal Controls for Church Finances
Learn how to protect your church's money.
Essential Guide to Money for Church Boards
Essential Guide to Money for Church Boards
Church board members should have a basic understanding of these financial issues.