3rd Party Checks

Should a church cash or deposit checks made payable to an individual or another institution?

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Aug 14, 2012

3rd Party Checks
by: Anonymous in NC

The church should not make it a practice to ever "cash" a check for anyone (either a 2nd party or a 3rd party check)--that is a banking service.

All checks received by the church should be deposited into the appropriate church bank account. As with all checks that are accepted by a church for whatever reason and then deposited, the church runs the risk of accepting a "bad" check. For obvious reasons, it is extra hard for the church to collect on a returned check. Our church (as a general rule) makes it a policy to accept 2-party checks only and if it proves to be "bad", we make one phone call and then drop the matter. Hope this helps.

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