Churches must disclose their finances

entities given the fact that their upkeep is dependent largely on generous donations by their membership.
And like what became of all other organisations after the demise of the local currency, the multi-currency dispensation brought relief to church organisations, and today churches are among the few organisations that are thought to be benefiting “big time” from the dollarised economic environment.
Church organisations in the country have also not been immune to allegations of corrupt tendencies that include perpetration of unscrupulous and underhand financial dealings involving church funds by those in church leadership positions.
Allegations of church leaders abusing church funds for personal gain have become a common phenomenon in the country, and in some cases church leaders have been arraigned before the courts to answer to charges of embezzlement of church funds.
These concerns have brought to the fore the debate over whether churches as recipients of public funds should not disclose church finances through periodic financial reports as is the case with other not-for-profit organisations.
In Zimbabwe, churches as faith-based organisations currently enjoy their right to privacy and are not compelled at law to disclose their finances, and church members have no voting powers to demand such disclosure.
Competent church boards appointed mostly on a voluntary basis run church organisations in the country.
Yet, it is an open secret that management of church funds remains a guarded and secretive area with board members being the only ones in the church who have access to this vital information.
Apparently, not many churches have had the courtesy to avail financial information to their membership through periodic financial disclosures, and the finger is pointed mostly at those in the Pentecostal genre.
Best practices in financial management demand disclosure of financial information through periodic financial statements to key stakeholders, who in the case of churches include their membership upon whose benevolence and generous donations the churches sustain their operations.
Present-day churches are now able to mobilise large sums of money from their membership which may run into hundreds of thousands, or millions of dollars, and to think that such funds are spent without the expenditure records being disclosed to the fund donors at some point defies any logic.
Through financial disclosures churches are bound to be the ultimate winners because regular financial reporting will provide church members with vital information they need to guide them in deciding how much they should donate to the church particularly in times of difficulty when the church cannot finance its overheads.
This is also critical when the church has other urgent projects to finance. Disclosures will also help to deter churches from engaging in needless deceptive interpretations of the scriptures on giving when they want to raise more money.
Yes, church organisations are exempted from paying tax, and are not required by law to disclose their financials.
But by disclosing church financials once or twice a year as a gesture of goodwill and a sign of moral uprightness, church leaders will by so doing enhance membership trust and confidence in the management of church funds.
They will also boost the credibility of church organisations in the eyes of the general public. Churches are public institutions financed by “public funds” and their right to privacy should not become a justification to disregard the use of openness and standard accounting practices in the administration of church finances.
Financial disclosure will improve transparency and accountability in the church.
It will also help to eliminate public misconceptions that have tended to maliciously insinuate that church leaders are schemers who sweet-talk their congregations into parting with their money, which they then misappropriate for personal gain.
Church organisations should move beyond dismissing public criticism as “judgment devoid of understanding spiritual things” to embrace financial management processes benchmarked on international standards in order to erase any traces of public doubt and distrust.
They must introduce in church business regular audit functions that include engaging external auditors to perform annual audits on financials to be presented to members during annual general conferences.
Societal moral development is a phenomenon that the community has traditionally surrendered upon the stewardship of the church.
Public distrust and suspicion on the use of church funds raises serious ethical questions on the part of church leadership that may destroy the reputation of well-intentioned church organisations.
Disclosure on financial matters will provide material information vital for informed decision-making by every member of the church.
Disclosures even motivate members to donate more allowing churches to build up reserves that can be invested in income-generating projects.
Nevertheless, it is without doubt that suggestions of this nature tend to whip up emotions and sensationalism in the church.
It is common to hear church members say, “zvaMwari hazvinzwarwo”, meaning to say doing so is tantamount to bringing into the church worldly means of curtailing theft and abuse of church funds when God already has his divine way of dealing with thieves of church money.
Such posturing, naïve as it is, obviously fails to notice the apparent role played by transparency and accountability as building blocks for any esteemed church reputation besides curtailing embezzlement and abuse of funds.
If churches can adopt governance and administrative structures such as boards, and departmentalisation of functions to improve efficiency and effectiveness in church business, then why would they not adopt standard practices in financial accounting and management?
Transparency and accountability through financial disclosures cannot be read as alien to the wisdom of God because these are the palpable pillars of good governance in every organisation where more than one person is involved be they spiritual or secular.