News from ParishSOFT, we quite frankly admit, pales in comparison with the resurrection of our Lord as we celebrate this Easter season. Nonetheless, the Holy Spirit continues to guide our labors through all seasons; and so this e-issue of ParishSOFT Offerings includes timely updates on 2007 tax law changes for charitable giving, news on the latest ParishSOFT technology updates and tools, and information on protecting parish and diocesan finances from embezzlement.

By nature, we tend to be a trusting people. We drop cash into church collection baskets, Salvation Army buckets, and animal rescue donation jars feeling good about helping the less fortunate. But when yet another person in an organization we support embezzles funds, the harsh snap of wallets resonates across the land. The waters of charitable contributions dry up, and God's less fortunate suffer.

For Catholic parishes and dioceses, where their existence relies on such contributions, the effects can be devastating. Contributors feel betrayed and shocked to see such sin happening in the very church where they turn for faith formation. Ministries and outreach programs suffer from the drop in funding. God's less fortunate pay the price in fewer resources and services.

Don't think it can happen at your church or diocese? Think again. As Villanova University researchers found in their recent study Internal Financial Controls in the U.S. Catholic Church, 85 percent of Roman Catholic dioceses discovered embezzlement of church money over the last five years. Eleven percent of those thefts were more than $500,000.¹

Use Standardized Business Processes and Software within your Organization. When organizations use standardized accounting practices, software, and reports, audits are simpler and inconsistencies are easier to detect. Software designed specifically for church organizations, like ParishSOFT's Ledger & Payables and Payroll modules, make it simple to implement standard accounting practices while accommodating the unique needs of church organizations. Visit www.parishsoft.com for a free online Ledger and Payables demonstration.

Protect Access to Your Financial Data. Parish and diocesan software like ParishSOFT's provide controls that limit what data users within their organizations can access. Staff and volunteers have access only to the records that administrators allow them to see, so administrators should grant access rights appropriately. For example, a user who manages your ministry scheduling should not have access to any contribution, pledge, or family banking information. Just uncheck the boxes to remove access rights to Contributions/Pledges (as shown here) and access to those records will be blocked.

Protect Parishioner Account Information. Handle confidential family information with appropriate security, including any internal reports, contribution statements, and family banking information (i.e., bank account numbers, and credit card information). This entails locking files that house such records and shredding, not recycling, any unneeded reports or documents.

Post Contributions Using Batch Controls. In ParishSOFT applications, once a batch is closed, no subsequent edits can be made to posted transactions. Legitimate adjustments are tracked through new batches to preserve an audit trail.

Don't Be Too Trusting. Case after case shows parishioners and staff members who never suspected that the embezzler with whom they worked could be capable of any theft.

Use a System of Checks and Balances in the Management of Assets and Financial Data. As Villanova University researchers report, "Oftentimes, embezzlements occur when trusted employees have access to both assets and financial records. Not-for-profits often have small accounting departments which presents two problems. They have difficulty separating duties and employees often have little supervision by a qualified financial manager. A fundamental tenet of internal accounting controls is to keep the financial recordkeeping duties separate from those individuals that have access to assets, especially cash."¹ Practical recommendations include:

• Have multiple money counters or pledge at each parish at any given time.
• Have a qualified financial manager supervise the bookkeeping.
• Use an independent auditor to review church finances on a regular basis.

Make Your Policies Clear regarding accounting practices, regular audits, and fraud. People are less likely to be tempted if they know someone is watching and what the consequences are.

Encourage Electronic Contributions to reduce the opportunity for cash to disappear. Electronic fund transfers using ParishSOFT's ACH Electronic Giving Module can offer a convenient alternative to contributors who wish to simplify the logistics of giving. Deposits are routed directly to your organization's bank account and posted automatically.

Run the Business of Your Church or Diocese Like a Business. Responsible business management allows spirituality and missions to flourish, earns and maintains the trust of contributors, and ensures that your organization will satisfy audit requirements and IRS documentation regulations.

Background Screen All Staff and Volunteers Who Have Access to Financials. ParishSOFT offers the Safe Environment Manager to make it easy to manage all of the screening requirements and results for various positions in your church in compliance with your diocesan policies. Simple checks can quickly identify high-risk individuals and avert potential theft risks. Require staff and volunteers to read and sign an agreement to abide by your policies and expectations.

Prevention is truly the best measure in protecting the time, talent, and treasure that members of the Catholic Church entrust to their parishes and dioceses. For more information on how ParishSOFT can help secure your time, talent, and treasure, please contact us at (866) 930-4774 or online at www.parishsoft.com.

Connect and collaborate with ParishSOFT and with other registered parish and diocesan staff across the U.S. via convenient ParishSOFT User Forums. Forums promote the free exchange of ideas, questions or concerns with respect to using the product, and answers—all posted in a searchable and secure online environment.

Available Forum "public" topics include ParishSOFT News, and Announcements and Product and Service Questions and Answers for prospective customers. In addition, we offer "private" topics (for registered users), where parishes and dioceses can post information and questions regarding management, communication, and other issues. To participate, visit us at www.parishsoft.com/forums and register using the following steps:

1. Click the REGISTER HERE FOR END-USER FORUMS! link.
2. Agree to the Terms and Conditions and click the Register button.
3. Add your username, email, and password.
4. Enter the Verification code (provided to you on the screen)
5. Click the Submit Registration button.

Tax-deductible contributions to any charitable organization in any amount now require one of the following documents:

• Bank record or credit card statement listing the charity's name, date of contribution, and contribution amount.
• Receipt from the recipient organization that lists the charity's name, date of contribution, and contribution amount.

You can also make it more convenient and simplify the process for documenting contributions by offering the ACH Electronic Giving option to your parishioners. ACH collections eliminate the scramble through purses and wallets at Offertory time by letting parishioners contribute electronically via bank account or credit card. The contributions are simple to process and they post automatically, making reporting and documentation a non-issue. Not to mention, ACH saves you time and guarantees contributions, regardless of parishioner attendance at Mass. For more information on ACH processing, please contact us at (866) 930-4774.

3.5.33 Update Now Available
For complete update installation instructions, enhancements, and release notes, please visit www.parishsoft.com/support. Log in and click the User Guides link (on the right). Scroll down to Update Guides and locate the version 3.5.33 file appropriate for your installation. Enhancements include the following:

Please note that ParishSOFT applications are not yet compatible with Windows Vista™. We estimate that we will have a Vista-compliant version in the next few weeks and will notify you when this is ready.

We have worked closely with the Bannon Associates organization and their Offertory Program and Time, Talent and Treasure Program to promote increased offertory giving and improve volunteer recruitment in your church. If your parish uses these Programs, then you are aware of the reports and letters required to keep these programs performing throughout the year and at renewal time.

Your job just got a lot easier because Bannon reports and letters can now be used with ParishSOFT Church Management Software to completely automate your offering, volunteer and pledge monitoring processes!

Interested? Let ParishSOFT help you:

• Pledged Families
• List of Non-Respondent Families
• List of Non-Pledge Giving Families
• 1st Monthly Reminder Letters
• 2nd Monthly Reminder Letters
• Variable Date or Quarterly Reminders.