Two pastors were having coffee one afternoon when the subject of church finances came up. The Baptist and Methodist pastors were comparing notes as they contemplated the increased costs of insurance for their churches.
While they talked, the Methodist pastor mentioned that their church treasurer was bonded. That was a new concept for our friend Paul, and he wasn't sure if he should be looking to have a treasurer surety bond or not. So he began to ask questions.
Paul trusted the church treasurer completely, but he was curious if this is something that every church did or not. What did it mean to be bonded? Who pays for the bond? Should a church have something like that?
A Surety Bond Protects The Church
The first question Paul asked was who the bond protects. He learned that a bond protects the church rather than the treasurer. A fidelity or surety bond, sometimes called an employee dishonesty bond, helps the church or nonprofit organization recover money if someone misuses funds or steals.
No one wants to believe that something like that could ever happen in their church. But Paul knew stories from other places where it had. Even honest people can make mistakes, and sadly, some people take advantage of their position and funnel church funds into their own hands.
Having a bond didn’t mean they were expecting trouble. It just meant they were prepared in case something went wrong.
It Shows Good Stewardship to the Congregation
The more the two pastors talked about it, the more they realized something else. Bonding their treasurer wasn’t just about protection. It was about two way trust between the church leaders and the congregation.
Church members give their offerings with faith that those gifts will be used wisely. When the church leadership puts protections in place, it sends a message to the people in the pews. It shows that the church is watching over its finances and being responsible with every dollar.
For Paul's church in Lubbock, that matters a lot. The church board wanted their members to know they were doing everything they could to guard what had been given.
It’s Affordable and Sometimes Required
As Paul began a discussion with his board of directors, one of them asked how much a bond cost? Their Methodist friend had told Paul it was cheaper than most people think. Fidelity bonds don’t cost much, especially compared to the risk of losing thousands of dollars to theft or fraud.
The church board was really surprised when Paul informed them that the Methodist church said bonding the treasurer was actually required by their denomination. That caught the Lubbock group off guard since that wasn't a requirement of every religious organization. The Baptist church hadn’t looked at their own bylaws in a long time, and wondered if their church had a similar rule.
This caused them to decide to take a closer look at their bylaws. Paul also reached out to Insurance For Texans to talk to someone who could walk them through the next steps.
Why Working with a Church Insurance Specialist Matters
It was clear that bonding the treasurer wasn’t something they didn't want to figure out alone. They were looking for an expert who understands how churches work and could help them protect their finances the right way. That is why they reached out to Insurance For Texans.
True Texas Church Insurance is a plan that helps churches and religious organizations find the insurance coverage that they need based on their specific ministries and activities. They start by asking Paul and the church board a series of questions to determine the best way to cover them.
The church didn’t just get a bond. The church insurance expert also found gaps in the rest of their insurance and helped the church make some small changes that gave them better protection all around. And the bond was the icing on the cake.
Protect Your Church’s Finances with Help from True Texas Church Insurance
At Insurance For Texans, we work with churches of all sizes across the state. The True Texas Church Insurance program helps ministries find the right protection for buildings, liability, and finances. If your church has a treasurer handling money, it is a great time to talk about bonding.
Click the button below to speak with a church insurance specialist who can help you figure out if a bond is right for your church.