10 Biggest Financial Mistakes Churches Make
10. Accepting designated gifts without exercising adequate control as to how the gift is disbursed.
9. Providing donor receipts for material (in-kind) gifts or services. (You can receipt but put NO $ value on it.)
8. Failure to issue a proper receipt (including the fair market value of any goods or services provided for the donation) when a payment of $75 or more is received.
7. Inadequate internal controls over disbursements to protect the church from embezzlement.
6. Inadequate internal controls over revenue, e.g. the Sunday offering to protect the church from embezzlement.
5. Failing to file Form 1099-MISC for contractors paid over $600 in a calendar year.
4. Failing to properly classify paid workers as W-2 employees vs. contractors.
3. Deducting FICA tax from the wages of a qualified pastor.
2. Improperly paying employee benefits.
1. Inadequately documenting reimbursements