Simple Tips to Responding to Embezzlement
Six steps to handling theft at your church.
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One of the biggest challenges of embezzlement in a church setting is determining how to respond when theft is discovered. Here are six steps that may help you navigate the disturbing discovery that your church has been embezzled:

  1. Identify the amount of the loss. The church's first priority is to deal with the embezzled funds and to understand the details of the loss. Ask questions like: Was only one person involved? What's the time frame for fraud—did it occur long ago, or is it still going on? Is the embezzlement limited to a petty cash fund? Do we have a way to determine how much has been embezzled? Once you know the details of the loss you are in a better position to decide whether you need outside help or if church staff can handle the situation.
  2. Insurance coverage. Determine if the organization has any insurance to cover the loss. If so, the question of legal action may be in the hands of the insurance carrier.
Posted: July 19, 2011

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