CPA's & Consultants Providing Business Insight To Churches & Ministries

Giving USA 2009 Released

Posted Fri, 06/19/2009 - 09:45 by Daniel Skerbitz

The Giving USA Foundation released its Giving USA 2009 report on June 10, 2009. Charitable giving in the United State estimated at $307.65 billion in 2008. It is the first decline in giving since 1987 and the second decline since Giving USA began publishing in 1956. For full details on the 2009 report, please check out http://www.givingusa.org/press_releases/gusa/GivingReaches300billion.pdf

New Technologies infiltrate Churches and Ministries

Posted Mon, 05/11/2009 - 15:23 by Justin Moore

Many of the popular social networking sites today such as Twitter and Facebook are being used by churches, ministries, and those that work with them more than ever to reach followers. This is one of the many new ways the younger generation communicates and churches and ministries have taken notice. Blogs have become popular over the last few years as well.

http://www.telegraph.co.uk/scienceandtechnology/technology/twitter/52740...

http://www2.ljworld.com/news/2009/may/02/faithbook-lawrence-religious-gr...

403(b) Plan Phone Forum

Posted Thu, 04/16/2009 - 15:22 by Daniel Skerbitz

Certain 501(c)(3) organizations, including churches, may establish section 403(b) tax-sheltered annuity (TSA) plans for their employees. Under the final 403(b) regulations, plan sponsors were required to have a written plan in place by January 1, 2009. Under Notice 2009-3, published on December 11, 2008, sponsoring organizations were granted relief from the written plan requirement for the 2009 calendar year. The IRS is sponsoring a phone forum to discuss the new written plan requirements and the postponed effective date.

Economic Impact on Nonprofits

Posted Tue, 03/24/2009 - 12:00 by Daniel Skerbitz

In a nationwide survey of over 1,300 member organizations, the Evangelical Council for Financial Accountability (ECFA) reported that a majority of respondents had better than expected financial results for the fourth quarter of 2008. Over 330 churches and nonprofit organizations responded to the survey, and 72% said that they met, exceeded or came within 10% of their fundraising goals. Only 28% reported that they were more than 10% below their goals.

Court Puts Halt to IRS Audit of Church

Posted Wed, 02/25/2009 - 14:38 by StanfieldODell

The Minnesota federal district court last month decided that current IRS procedures for opening tax investigations of churches does not comply with legal requirements for pre-approval by a high-level Treasury official. Currently, the head of the IRS exempt organizations exam division approves all church audits. But the court said that the law requires approval from a higher-level official.

Reverend Robert A. Schuller resigns as Senior Pastor of Crystal Cathedral

Posted Mon, 01/19/2009 - 17:40 by Justin Moore

After being relieved from his duties as Preacher on the television show “Hour of Power” in October by his father and founder of the Crystal Cathedral, Reverend Robert A. Schuller has resigned. It is reported that he will start his own ministry. The Church is a member of the Reformed Church of America denomination, which oversees approximately 60 churches throughout California. According to reports, Rev. Schuller is still in good standing with the denomination.

IRS Announces 2009 "insubstantial benefit" amounts for token goods or services given by charities

Posted Mon, 01/19/2009 - 17:35 by Sandy Siegfried

The IRS announced their official computation of inflation-based tax figures for tax years beginning in 2009 in Rev-Proc 2008-66. For 2009, a token gift value may be $9.50 (up from $9.10 in 2008) for contributions of $47.00 or more (up from $45.50), or not more than the lesser of 2% of the contribution or $95 (up from $91.00).

Yearend Tax Traps: Fringe Benefit Reporting and 1099’s

Posted Tue, 01/13/2009 - 16:28 by Daniel Skerbitz

Fringe Benefits: The IRS requires reporting of certain fringe benefits as income to employees on their W-2. These include 1) personal use of company vehicles; 2) group life insurance in excess of $50,000; 3) expense allowances for which employee has not provided supporting documentation; 4) country club dues; etc. Most of are well aware that these type items represent taxable compensation to the employee; however, there is another danger in failing to report these items. The “excess benefit” rules include a safe harbor for items contemporaneously reported as compensation to the employee.

IRS Offers Relief From Immediate Compliance With 403(b) Written Plan Requirement

Posted Mon, 12/15/2008 - 18:09 by StanfieldODell

The IRS issued 2009-3, providing relief during 2009 for sponsors of 403(b) plans on having a written plan in place by January 1, 2009.

In general, sponsors of 403(b) plans are required to have a written plan in place as of January 1, 2009, that satisfy the requirements of the final 403(b) regulations that were published July 26, 2007.

Under Notice 2009-3, however, they are granting relief from the requirement that the written document be in place on January 1, 2009, provided the following:

1. The plan sponsor has adopted the written plan on or before December 31, 2009.

Minnesota Mega Church Gets Small Victory in IRS Proceeding

Posted Fri, 12/12/2008 - 14:04 by Justin Moore

Reverend James Hammond and his Church, Living Word Christian Center of Brooklyn Park, MN appears to have won a small victory in their most recent round with the Internal Revenue Service.

Earlier this year, the IRS asked Church to provide detailed financial information, focusing on compensation of the founder and senior pastor of the church James Hammond. The Church refused to comply, arguing that they did not have to because the request was not made by a “high ranking” IRS official, which is required by law.