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Harvest Bible Chapel releases financial records review exposing misuse of church funds

By Brandon Showalter, Opinion writer and social commentator Tuesday, November 26, 2019

A legal and financial review of Harvest Bible Chapel's records has revealed that their founding and now former pastor James MacDonald was paid over $1 million annually, amid other instances of malfeasance.

Earlier this year, MacDonald was ousted from his leadership post at Harvest Bible Chapel, a church he founded over 30 years ago. His termination ultimately came about as a result of lewd comments he made on a hot mic that were aired on a local radio station amid controversy over allegations that he had presided over an abusive church culture and had mishandled church resources while living an opulent lifestyle.

The review looked at financial statements from January 2016 through mid-February of this year, according to The Daily Herald.

During that span of time, MacDonald's spending included $170,851 on hunting and fishing trips; $139,502 on meals and entertainment; the installation of an internet service tower and security equipment at his house near the church's campus in Elgin, Illinois, and over $94,000 for clothing and eyewear. The report revealed that the church maintained two private checking accounts that gave MacDonald $3.1 million during those three years and two months.

Forensic accountants were reportedly unable to tell in some cases how much MacDonald's spending or spending done on his behalf could be linked to actual church operations because the expenditures were either not documented or there were no receipts.

MacDonald also gave away two motorcycles, each worth around $16,000.

Servants of the Church Are:

1. Earnest

2 Corinthians 8:16 NASB95

16 But thanks be to God who puts the same earnestness on your behalf in the heart of Titus.

2 Corinthians 8:17 NASB95

17 For he not only accepted our appeal, but being himself very earnest, he has gone to you of his own accord.

2. Proven

2 Corinthians 8:18 NASB95

18 We have sent along with him the brother whose fame in the things of the gospel has spread through all the churches;

3. Recognized

2 Corinthians 8:19 NASB95

19 and not only this, but he has also been appointed by the churches to travel with us in this gracious work, which is being administered by us for the glory of the Lord Himself, and to show our readiness,

Deacons? These seemed to be deputy church servants

4. Accountable

2 Corinthians 8:20 NASB95

20 taking precaution so that no one will discredit us in our administration of this generous gift;

2 Corinthians 8:21 NASB95

21 for we have regard for what is honorable, not only in the sight of the Lord, but also in the sight of men.

Proper safeguards can prevent fraud from taking place.

By following recommended prevention methods, the risk of fraud happening can be drastically reduced. Having safeguards in place demonstrates a church is serious about being a good steward of God’s money. Some procedures can be implemented to help prevent any one person from having the opportunity to commit a fraud. These are internal controls:

Segregation of duties and transaction authorization.

Make sure more than one person is responsible for the collection of the offerings, counting the money, depositing the money in the bank, and reconciling bank statements. Although segregation of duties can sometimes be difficult with a small staff, it’s crucial to have at minimum a second individual to help perform duties. Church Mutual Insurance Company, America’s leading church insurer and partner of AGFinancial, recommends the following:

Two individuals should be required to sign larger checks, more than $1,000 for instance. All major purchases should require approval by the board and/or congregation. It’s not recommended to use stamps with the pastor’s signature.Transfer of large sums into or out of different accounts should not be permitted without written consent of two people.Banks statements and other statements of accounts should be verified independently of the person(s) who have check-writing or other account authority.Create a standardized form to document any cash handling, requiring all cash withdrawals to have two signatures.Do not allow the same person to count the offering each week. Set up a rotation of two or more different individuals each Sunday.Deposit cash as soon as possible after services, using your bank’s night depository. If none is available, use a safe. Stamp checks “For Deposit Only.” Cash should never go to anyone’s home.

Physical safeguards.

It's a good idea to stow petty cash in a safe. Establish a procedure for its use and disbursement, minimizing access and treating it like a bank account with regular audits and reports. In addition, limit the handing out of church credit cards. To increase building security, assign a unique code to each church employee for keypad entrances. Establish a procedure for the use, distribution, and collection of keys. Keep a list of who is given a key, when, and for what activity. Also consider posting security cameras in both conspicuous and hidden areas.

Annual CPA reviews or audits.

These can be expensive, but not detecting fraud is far more costly. Present the results to your governing body. Prepare and review monthly reports as well. At a minimum, engage a CPA firm to perform reviews of high fraud risk areas such as cash management and assessments of internal controls.

5. Diligent

2 Corinthians 8:22 NASB95

22 We have sent with them our brother, whom we have often tested and found diligent in many things, but now even more diligent because of his great confidence in you.

6. Reflective

2 Corinthians 8:23 NASB95

23 As for Titus, he is my partner and fellow worker among you; as for our brethren, they are messengers of the churches, a glory to Christ.

Believer’s Bible Commentary D. Three Good Brethren to Prepare the Collection (8:16–24)

The expression the glory of Christ is certainly an exalted description of these men. It is because they are deputies of the churches that they are so called. They make the work of the Lord shine before the eyes of men. They are a credit to the Lord and reflect His glory.

2 Corinthians 8:24 NASB95

24 Therefore openly before the churches, show them the proof of your love and of our reason for boasting about you.

The Corinthian church was eager to give and had the means to give graciously for this collection. Paul had been telling all the other churches how motivated the Corinthian church was to give. This was their time to shine and prove Paul was right to boast in this way.

He was using this to motivate the Corinthian church to do what they said they would do. If Corinth hadn’t show interest in this project and Paul boasted about them in this way, he would be manipulating them. But, here is holding them accountable and giving them positive incentive to accomplish their goals.

The church leadership and servants should inspire confidence in the saints of Christ’s church to give generously. They do this by being transparent and open with the saints. And, When the saints have confidence to give generously, they are free to prove their love