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 North Carolina court ruled that a pastor who also served as an officer for a Parent Teachers Association (PTA) was guilty of embezzlement for using corporate funds for personal purposes.
An investigation of improper use of funds
A pastor of a local church (the “defendant”) served as president of an elementary school’s PTA from 2011 to 2013. As the defendant's term concluded, allegations arose of improper use of PTA funds by the defendant. As a result, a CPA and the local county sheriff instituted an investigation into the receipts and expenditures of the PTA.
The investigation unearthed spending and disbursements by the defendant and other PTA officers that apparently exceeded ...
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2021 Church & Clergy Tax Guide (Book)
Church Finance
Internal Controls for Church Finances
