Category: Tax
August 31, 2010ChurchSafety.com’s Top 10 Training Resources
What other church leaders are reading and using to keep their congregations safe.
ChurchSafety.com provides expert guidance and risk management information on a broad range of safety topics. We’ve compiled the Top 10 most-downloaded resources from ChurchSafety.com during the past year. Find out what other church leaders have read and used to train staff and volunteers and to develop a safe environment for ministry:
10. Confronting Gun Violence at Church
While the number of incidents involving guns at churches remains small, information and preparation are still vital. Begin by assessing the current security of your church. This download gives helpful advice on how to plan for the unexpected, whether or not your church should hire a security guard, and how to deal with the media in the aftermath of violence.
Children are often the most vulnerable members of our congregations, and their presence also presents some of the most serious liability risks. Most churches use minors to assist in various children's or youth programs. Screening these workers will help prevent youth-peer sexual harassment. Institutions can be found guilty of negligence in these cases for not providing security against such abuse. Learn practical steps to properly screen underage workers and access helpful templates for references and interviews.
8. Creating a Safety Team
When crisis arises, are you prepared? Don’t be taken by surprise next time. Learn to respond appropriately to situations ranging from common medical emergencies to crisis involving gunfire. Every church can benefit from forming a safety team that is trained to respond appropriately to various emergencies. This download will discuss the importance of having a team that can handle situations requiring security intervention, medical response, or evacuation.
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The Your Church Blog's Top 10 Posts from Its First Year
The topics that most interested readers like you during the past year.
I love milestones. And I'm a sucker for top 10 lists (thank you very much, David Letterman). Since today is August 26, it means the TheYourChurchBlog.com turns 1. Naturally, I went back and looked at our 10 most popular posts for the first year.
But before I do, a few observations about our past year:
1. Subject popularity appears diverse: 3 of the Top 10 posts fall under the Law Category, with 2 each under Finance and Safety, and 1 each under Staff and Office (the other post was a general one and didn't fall under one specific category);
2. Our highest traffic day came on February 23, on the heels of our post "Oregon Case Provides a Powerful Reminder to Churches," which reviews the implications of an appeals court's ruling that allowed a pastor's victory in a defamation lawsuit against his former church to stand.
3. The post garnering the most comments was "Where You Work Best," which discusses the pros and cons of worshipping at the church where you also work.
Without further delay, here are TheYourChurchBlog.com's Top 10 posts during its first year:
10. Legally Host a Super Bowl Party: If your church is hosting a Super Bowl party this year, you will need to abide by three simple guidelines to avoid violating copyright law ... read more
9. The Top 7 Resources to Combat Church Embezzlement: Earlier this month, we looked at two recent cases of church embezzlement, and the "zero tolerance" stance judges are starting to take against these crimes. Unfortunately, yet another big headline has since emerged ... read more
8. 10 Questions to Ask About Your Church's Communication: As you approach 2010, consider these 10 questions to discuss your church’s communication efforts ... read more
7. What Will the New Health Care Bill Mean for Churches?: Now that President Obama has signed the health care reform bill into law, many churches are wondering what the impact will be on staffing costs. ... read more
Continue reading "The Your Church Blog's Top 10 Posts from Its First Year" »
Is Your Church Giving Raises This Year?
How different churches plan to approach pay increases in 2010.
An interesting post recently surfaced in the Church Admin discussion group hosted on Yahoo:
"Situation: Our church is currently very close to our income and expense budget for the current year (fiscal year end in December). Last year, the board chose NOT to give any pay increases, but this year, some of them want to do so in next year's budget.One board member feels that since some of our congregants are out of work, that we shouldn't give salary increases, even though according to our budget projections, there is no financial reason not to. He is very vocal that we shouldn't even consider raising anyone's pay.
Is anyone willing to share whether or not they are giving pay increases, and the rationale behind their decision? I'm especially interested in hearing from churches who are doing okay at meeting their budgets, and whether or not they are considering pay increases."
The administrator's question is an interesting one. If the economy is beginning to thaw—and there is still debate about whether that's actually the case—then should churches currently meeting their budgets consider pay raises for staff? Our 2010-2011 Compensation Handbook for Church Staff, which surveyed nearly 5,000 churches across the country, showed a small decline in salaries in 2009 (after a slight gain in 2008). This means many church staff members haven't received a bump up in pay in quite some time.
Here's how other church leaders responded to the question:
Continue reading "Is Your Church Giving Raises This Year?" »
2010 Tax Tips for Church Leaders
An update on key developments during filing season.
Ministry Direct, a channel of AGTV, recently hosted a live, 50-minute video with Richard Hammar on the latest tax information that churches and ministers should know. See it below.
Video provided by AGTV. Used with permission.
To learn more about how to file your 2009 tax return and for tax help throughout 2010, order Richard Hammar's 2010 Church & Clergy Tax Guide.
Struggling Cities Eye Taxes, Fees for Churches
Budget shortfalls bring tax-exempt status under fire.
Like countless other municipalities throughout the country, Fort Wayne, Indiana, is struggling to find ways to bridge the gap between declining tax revenue and the costs of maintaining infrastructure and services.
What makes Fort Wayne stand out is the city’s mayor, Tom Henry. Henry is leading the charge for the Urban Mayor’s Caucus of Indiana to tax nonprofit and church-affiliated ministries to help solve his region’s revenue shortfall.
Nearly every town in America is feeling the strain of the economic crisis. As a result, while becoming a 501©3 is a relatively simple process, maintaining a completely tax-exempt status may become increasingly difficult for churches.
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Discerning Eyes for Church Law, Finance, and Administration
Known, respected leaders to help guide CTI resources.
Christianity Today International's church management division, which publishes Your Church magazine, the Church Law & Tax Report and Church Finance Today newsletters, plus resources, such as the annual Church & Clergy Tax Guide and ChurchSafety.com, recently formed two important boards for its publications and resources.
CTI invited well-known and well-respected members from church legal and financial circles to an Editorial Advisory Board to bring authoritative and qualified eyes to its work.
The 14 advisors will regularly contribute to the church management division’s publications, websites, and resources, and also will regularly provide ideas, thoughts, and feedback, shaping the articles, videos, books, blog posts, and other resources that guide church leaders on important legal, financial, safety, and administrative decisions.
Noted church and business leaders who will lend their expertise include:
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Should You Prepare Your Own Tax Returns?
It’s not as hard as you might think.
Ministers can prepare their own tax returns. While ministers’ taxes present several unique rules, these rules are not complex. Unfortunately, many people confuse uniqueness with complexity. With a little effort most ministers should be able to comprehend these rules sufficiently to prepare their own tax returns. The information provided in my 2010 Church & Clergy Tax Guide, together with IRS Publication 17 (Your Federal Income Tax), should be all you need in most cases. Of course, some ministers will prefer, for a variety of reasons, to have someone else prepare their tax returns. If that is your choice, be sure you select someone with experience in the preparation of ministers’ tax returns (preferably a tax attorney or a CPA). You may wish to share a copy of the 2010 Church & Clergy Tax Guide with the person you select.
Before you hire a tax preparer
Before deciding to have someone else prepare your tax return, consider the following:- More than half of all income tax returns prepared by paid preparers contain errors, according to an IRS study. What were the most common mistakes? Failing to claim the standard deduction; entering dollars and cents in the area for dollars; failing to claim (or incorrectly stating) the amount of a refund; failing to total the multiple entries on Schedule C; filing a Schedule SE even though net self-employment earnings are less than $400; using the wrong filing status (joint, head of household, etc.); and failing to check the age/blind box.
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The Top 10 Church Administration Posts for '09
A look at the hottest topics facing pastors and administrators.
As 2009 draws to a close, here's a fun look back at the year's 10 most-read posts on TheYourChurchBlog.com. Doing this kind of review often helps us understand the most pressing issues facing church administrators, executive pastors, pastors, and leaders.
And, it's a nice way to showcase topics that you may have missed the first time around.
Here's the Top 10:
10. How to Interview Your Next Church
9. Report: Giving Steady at Two-Thirds of Churches
7. Free Excerpt: The Essential Guide to Church Finances
6. 5 Leadership Books Worth Reading
Continue reading "The Top 10 Church Administration Posts for '09" »
IRS Announces Standard Business Mileage Rate for 2010
Rates slightly drop as transportation costs ease.
The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
* 50 cents per mile for business miles driven;
* 16.5 cents per mile driven for medical or moving purposes;
* 14 cents per mile driven in service of charitable organizations
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Top 5 Reasons Churches Wind Up in Court
Current legal trends that can help your church assess its vulnerabilities.
For many years, I've closely reviewed litigation involving churches to identify patterns that pastors and leaders can use to assess their own risks and potential vulnerabilities. In 2008, the following five types of cases brought churches to court more than any others:
1. Sexual Abuse of a Minor (15 percent of cases). Sadly, this type of case is typically the No. 1 or No. 2 reason churches wind up in court every year.
2. Property Disputes (13 percent of cases).
3. Zoning (10 percent of cases).
4. Personal Injury (9 percent of cases). This is a Top 4 issue every year.
5. Tax (7 percent of cases).
Based on this ongoing analysis, churches should note the following major risk categories they face and work to evaluate (and to minimize) their own risks:
Continue reading "Top 5 Reasons Churches Wind Up in Court" »
You Want to Donate What?
How to handle all types of charitable contributions.
Join us on Tuesday, November 10, 2009, for a live webinar event with nonprofit CPA, Elaine Sommerville titled, "You Want to Donate What? How to Handle All Types of Charitable Contributions" (Click on "You Want to Donate What? on the left side of the page to sign up). Elaine will present a sensible plan to help your church receive and document these contributions with confidence. She also will provide tips on educating members to give donations that comply with tax laws and benefit the giver as well as the receiver.
Free Excerpt: The Essential Guide to Church Finances
Most churches don't use a program budgeting method--and they're missing out
Earlier this year, we released The Essential Guide to Church Finances by Richard Vargo, a professor of accounting in the Eberhardt School of Business at the University of the Pacific, and Vonna Laue, a partner at nonprofit accounting firm Capin Crouse.
Below is a free excerpt, which discusses the advantages of program budgeting and why churches that use incremental budgeting strategies put themselves at a disadvantage (and, if you like what you see from this excerpt, you can order your copy of Essential Guide to Church Finances here).
Continue reading "Free Excerpt: The Essential Guide to Church Finances" »
Study: Donations Grow 42% With Face-to-Face Time
Research underscores the power of relationships for church leaders.
In fact, it matters so much, the study reveals “donors to religious organizations gave an average of $2,904, or 42 percent more, when they were asked in person by someone they know,” according to an article published Wednesday by Philanthropy Journal.
That stat provides a tangible reminder of the power of relationships. Of course, when it comes to ministry, face-to-face time should matter more than just to land a big-dollar donation. We were created for relationship with the Lord, and for relationships with each other. Relationships matter a great deal to Him. We should strive to maintain healthy, edifying ones with all congregants, regardless of their financial situations, because the fruits of such efforts are eternal.
Keeping that in mind, there are people in your congregation who feel the Lord has blessed them in terms of finances and resources. For a church leader, the key is to learn more about these people by listening to them, and to hear about how their passions might align with the church's vision.
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Pinched Paychecks
Survey: Pastors, church staff nationwide see slight pay declines.
About half the nation’s full-time pastors report they received no salary increase in the past year, continuing a downturn in salaries among top leaders in churches, according to a new survey published by Christianity Today International. In fact, the extensive survey, publishing this fall in the 2010-2011 Compensation Handbook for Church Staff, shows a slight decline or stall in pay levels for the majority of every church employee surveyed this year.
The Compensation Handbook was developed to provide church leaders and employees with a current and reliable picture of compensation practices across a broad spectrum of American churches. It presents survey data from nearly 5,000 churches representing more than 10,000 staff members in 13 ministry positions, both full-time and part-time, ranging from pastors to childcare positions. The survey was conducted in February and March from subscribers of various Christianity Today International magazines, e-newsletters, and web channels, including Church Law & Tax Report, Church Finance Today, and Leadership, a journal for pastors and church leaders.
Among the findings:
• After a slight bump up in salaries in 2008, the new survey finds a small decline reported in 2009.
