Governance Issues

Are WE Closed Yet?? (1 of 5)

Posted Thu, 02/14/2008 - 16:45 by StanfieldODell

Many of us understand that once a month/quarter/year a business, ministry or church will need to do an assessment of its activity and the stewardship of that activity. This is considered a monthly/quarterly/yearly closing of the financial records, which is a review or overview of the books, to ensure that they are complete and all information is recorded correctly. In addition, it gives an analysis on how well an organization has done during the month/quarter/year. A similar assessment was performed in the Bible regarding the story of the talents as follows:

Bogus E-Mail

Posted Fri, 02/01/2008 - 06:35 by Karen Kirchman

Straight from the IRS hotline:

The IRS has seen several variations of a refund-related bogus e-mail which falsely claims to come from the IRS, tells the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form. The form asks the recipient to enter personal information that the scamsters can then use to access the e-mail recipient’s bank or credit card account.

Vehicles Contributed to a Church – (4 of 4)

Posted Wed, 01/23/2008 - 10:10 by Laurie Gnad

If a church or ministry receives an auto or other vehicle and the claimed value is greater than $500, there are different filing requirements than discussed in the previous post. You still need all the donor and vehicle information listed previously, however the additional documentation is more complicated.

Contribution - When to Record?

Posted Mon, 01/14/2008 - 13:46 by Sandy Siegfried

The following is a question that we have received from a controller of a large church in the north east.

Question - During the Watch-Night service, Bishop called for a cross-over offering that was taken after 12AM and the envelopes were dated 1/1/08. When is the contribution recorded? 2007 or 2008?

Answer - The contribution is recorded when delivered to the Church. The cross-over offering was delivered after 12AM and therefore should be recognized in 2008.

Charitable Contributions - Requirements - (1 of 6)

Posted Wed, 01/09/2008 - 14:57 by Sandy Siegfried

Contributions are typically the most significant source of income for a church or ministry. In order to be a deductible expense for a tax payer the contribution must meet six requirements. Our post today will discuss the first requirement:

Vehicles Contributed to a Church – (3 of 4)

Posted Thu, 01/03/2008 - 11:44 by Laurie Gnad

Churches or ministries that receive a motor vehicle, boat or airplane contribution in excess of $500, should prepare Copy A of Form 1098-C. The form should be retained and filed with the IRS by February 28, 2008 along with a 1096 transmittal form. The Form 1096 must show the total number and dollar amount of all such 1098C (copy A forms) for the year. Remember, do not combine any of the under $500 donations in the 1098C-copy A totals.

The Picturesque Staff - (Mega-Church Series)

Posted Wed, 12/26/2007 - 13:22 by StanfieldODell

Personnel continue to be one of the greatest resources of a organization. Hiring the right person for the right position is important, however retaining that individual continues to be a strong challenge for a number of organizations.

The following are examples of policies directed for training, development and retention:

·Provide personnel with clear, current job descriptions and the resources they need to produce quality work.
·Support the education, development of and opportunities for growth and advancement of personnel.

Vehicles Contributed to a Church – (2 of 4)

Posted Tue, 12/18/2007 - 10:41 by Laurie Gnad

If a church or ministry receives a vehicle valued greater than $500 and it is not sold, you must certify that it is used substantially in the church’s regularly conducted activities. Or, you must certify that the vehicle is to be transferred to a needy individual, at below value, to further the church’s charitable purpose. On Form 1098-C, a detailed description of the vehicle’s use must be supplied. Do not check box 7 or your donor will be limited to a $500 donation. The church/ministry must supply Copies B & C to the donor within 30 days of the contribution if no sale will take place.

The Picturesque Staff - (Mega-Church Series)

Posted Thu, 12/06/2007 - 13:08 by Sandy Siegfried

Maintaining and motivating staff is a challenge for most organizations, including churches. Having proper employment policies, staff training/development and retention plans are critical areas for churches.

The following are examples of employment policies that should be considered and implemented by non-profit organizations:

·Comply with all federal, state and local employment laws when hiring and employing personnel, including withholding and payment of payroll taxes. See IRS Publications 505 and 517 relating to payroll issues for employees and ministers.

Designated Contributions

Posted Tue, 12/04/2007 - 14:41 by Sandy Siegfried

We receive several questions each year regarding designated or restricted contributions. Designated contributions are contributions made to a church or ministry for a specified purpose or program. The donor may designate a specific project or a specific individual relating to the contribution. Whether or not the contribution is deductible for income tax reporting depends on the type of designation and whether the Church has control and discretion over the contribution.

The following are several examples...