There are good reasons why churches need to receive offerings and donations in cryptocurrency

Theft and misappropriation of funds in the church has spawned disruptive discussions that necessitate the use of disruptive technologies such as blockchain to solve the numerous problems that have arisen as a result. But, before we get into the meat of this article, here’s a true story to get you started.

Before my father died when I was about 15 years old, I grew up knowing him as the church’s financial secretary. Because of his extensive accounting education and experience, he held this magnificent post for many years and for two more branches of the same church. I recall vividly how I and my two older children helped him count the coins and paper bills while he logged the collection data in a book before submitting it to the church treasurers for safekeeping.

However, as time passed, my father was forced to stop my elder siblings from participating in this activity since he began to discover certain shortages. He could see that the figures confirmed in the church frequently clashed with the figures when they arrived at the house. So, what exactly may have happened? I’m sure you’re well aware of the backstory.

The context of this wall of words revealed in the above actual life tale highlights the concerns with a lack of accountability.

Pilfering and misappropriation have remained one of the biggest issues throughout the years, cutting deep into the fabric of the church and other religious groups that rely on both offerings and intentional donations to carry out their purpose and reach out to global communities.

Following in the footsteps of some non-profit organizations throughout the world, the church has gained the trust of donors and cheerful contributors who donate to fund kingdom expansion as well as humanitarian concerns.

Charitable giving has long been a tradition for many people around the world, particularly for relief purposes. Many people seek ways to aid in crises such as the COVID-19 pandemic and the war in Ukraine by donating, but the most practical method for them to demonstrate their compassion was realistically in cash and non-monetary products, whereas other givers prefer to offer the same charity anonymously. As a result, giving get difficult for them. Even if the giver’s intention and heart are good, misappropriation of this gift always raises serious concerns.

When it comes to offerings and donations, there are always givers and donors who respond to the church’s requests for specific purposes and projects; however, most of these churches and ministries end up in a messy situation of misappropriation of the collected funds, as we saw in our opening story of pilfering from my older siblings.

While many Christians still believe that fraud could never happen in the church, the truth is that no church is immune to such heinous deeds, not even during Jesus’ earthly ministry, since the Gospel of John characterizes Judas Iscariot as untrustworthy while working as Jesus’ treasurer (See John 12:4–6).

I’ve seen and heard of church ushers and accountants stealing from offering boxes by failing to disclose all amounts. And it has been observed that such fraud often occurs over a long period of time, which is owing to those involved in embezzling church money doing so in little amounts stolen frequently throughout time. With that pattern, it’s difficult to notice.

Most people who steal from the church purse do so for a variety of unjustified reasons, one of which is their continued accessibility to cash in an uncontrolled system.

Many of the problems encountered by these churches may have been avoided if blockchain technology and cryptocurrencies had been used. The traceability, transparency, and real-time transactions enabled by blockchain empower us with accountability. We can rely on this technology to provide a quick, secure, and dependable method of accepting offerings and gifts from anybody, anywhere, and at any time.

Because of the immutability of the blockchain, all provided transaction records become tamper-proof. And, with so many other obvious benefits, preventing pilfering can be surprisingly straightforward. If implemented, this innovative escape route could help the church’s goal.

It is important to keep in mind that contributors want to have numerous options for donating, and as a result, we should expect to see not only an increase in giving but also an increase in accountability for the monies received.

The cryptocurrencies giving technique is a new digital strategy to keep up with the way donors and givers would like to make their donations, particularly with the younger generation, since statistics reveal that millennials account for a substantial portion of cryptocurrency users. As a result, the method will provide them with a yet another way to contribute through a convenient and trustworthy system.

My Final Thoughts

Now that we understand the potential of blockchain, how it may increase generosity and ensure safety while maintaining a high data security standard of received funds against misappropriation of the church’s finances, regulation is an important issue to note.

Make sure to research your country’s cryptocurrency legislation and tax rules, depending on where your church is located. Understand how cryptocurrencies are classified as assets and whether or not they are tax deductible.

I’m keeping my eyes peeled for big actions by the church on this, and if invited, I can’t wait to get my hands dirty working with your team to make this a reality.