Wednesday, February 09, 2005
Feb. 05 E-News
Stewardship E-Newsletter
February 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
Behold the Tax Season is upon us! Let me say that, sadly, most professional tax preparers do not know how to properly prepare ministers’ income tax returns. Probably the most significant difference for functioning ministers (and retired) is that ALL of their housing costs are exempt from income tax (but NOT Social Security). To get this break, there properly needs to be a written statement of (total) housing costs approved in advance by the church or employing body. This statement can be much higher than you actually spend or deduct but you cannot legally deduct more than it states. If you have not done this for 2004, DO IT NOW FOR 2005! Estimate high, include maintenance, furnishings, insurances, utilities, everything!
There are many other factors that affect ministers’ taxes. For example, it is advantageous to have auto expenses reimbursed instead of a flat allowance. You can do this on a mileage basis. (Check the exact figure; it is around $0.32 to $0.37/mile.)
There are many tax guides for ministers available. The Annuity Board (now “GuideStone”) used to send out one free every year. Note that the details in these guides do not always agree and some are much easier to use than others.
I have for years used and recommended:
[B.J] Worth's Income Tax Guide for Ministers.
“This is the tax guide that helps ministers and religious workers avoid frustration and saves them time and money! It is for all ministers, theological students, missionaries, Christian school teachers, church and school board members, and tax consultants. Here is sound advice based on years of research and experience in preparing and auditing tax returns of Christian workers.” It is available at most Christian book stores ($17.99) or on line at www.worthfinancial.com/ .
A new resource! A new tool. Just available is a set of on-line Stewardship Sunday School (or small group) lessons. These are ideal for a month-long stewardship promotion in your church. Four separate “PDF” (format)lessons are now available. These include a full step-by-step leader guides and reproducible learner’s lessons. They are beautifully done and contain all needed teaching instructions. The lesson titles are: “Manage Money Wisely”, “Disciplined Giving”, “View Finances Wisely” and “Handling Money.” Go to www.Lifeway.com, search for “stewardship” and click on Stewardship Solutions. I would suggest downloading each lesson separately. I had problems trying to download all four at once. The cost is $4.95 for each lesson master downloaded.
Ideas for Easter: Check out the Easter Resources Index by Craig Webb on www.Lifeway.com
We are updating our web page and making a slight change in address: In the future it will be BRNonline.org (for “Baptist Resource Network”; change is from “.info” to “.org”). For stewardship stuff, go to the Ministries drop down menu, then to Stewardship.
February 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
Behold the Tax Season is upon us! Let me say that, sadly, most professional tax preparers do not know how to properly prepare ministers’ income tax returns. Probably the most significant difference for functioning ministers (and retired) is that ALL of their housing costs are exempt from income tax (but NOT Social Security). To get this break, there properly needs to be a written statement of (total) housing costs approved in advance by the church or employing body. This statement can be much higher than you actually spend or deduct but you cannot legally deduct more than it states. If you have not done this for 2004, DO IT NOW FOR 2005! Estimate high, include maintenance, furnishings, insurances, utilities, everything!
There are many other factors that affect ministers’ taxes. For example, it is advantageous to have auto expenses reimbursed instead of a flat allowance. You can do this on a mileage basis. (Check the exact figure; it is around $0.32 to $0.37/mile.)
There are many tax guides for ministers available. The Annuity Board (now “GuideStone”) used to send out one free every year. Note that the details in these guides do not always agree and some are much easier to use than others.
I have for years used and recommended:
[B.J] Worth's Income Tax Guide for Ministers.
“This is the tax guide that helps ministers and religious workers avoid frustration and saves them time and money! It is for all ministers, theological students, missionaries, Christian school teachers, church and school board members, and tax consultants. Here is sound advice based on years of research and experience in preparing and auditing tax returns of Christian workers.” It is available at most Christian book stores ($17.99) or on line at www.worthfinancial.com/ .
A new resource! A new tool. Just available is a set of on-line Stewardship Sunday School (or small group) lessons. These are ideal for a month-long stewardship promotion in your church. Four separate “PDF” (format)lessons are now available. These include a full step-by-step leader guides and reproducible learner’s lessons. They are beautifully done and contain all needed teaching instructions. The lesson titles are: “Manage Money Wisely”, “Disciplined Giving”, “View Finances Wisely” and “Handling Money.” Go to www.Lifeway.com, search for “stewardship” and click on Stewardship Solutions. I would suggest downloading each lesson separately. I had problems trying to download all four at once. The cost is $4.95 for each lesson master downloaded.
Ideas for Easter: Check out the Easter Resources Index by Craig Webb on www.Lifeway.com
We are updating our web page and making a slight change in address: In the future it will be BRNonline.org (for “Baptist Resource Network”; change is from “.info” to “.org”). For stewardship stuff, go to the Ministries drop down menu, then to Stewardship.
Jan. 05 E-News
Stewardship E-Newsletter
January 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
The devastating tsunami in the Far East has captured the news in this New Year. The best that I can determine, no Southern Baptist Missionary has been physically harmed. Dear friends of the Pennsylvania/ South Jersey Convention (whose names must be omitted for security reasons) in Indonesia report that they are safe but are broken hearted at the distraction and the loss of friends. Pray for them and all others that minister in that terrible situation.
Southern Baptists and other Christians can help by sending financial gifts for aid through the IMB disaster relief fund. Gifts can be sent, designated "Asia Earthquake Disaster Relief," to the International Mission Board, P.O. Box 6767, Richmond, Va., 23230 (to give online, go to the International Mission Board's website, www.imb.org, and click on "Give Now" in the box highlighting the tsunami story). All funds given will go to relief efforts; none will be used for administrative costs. This is possible because our representatives are funded by the Cooperative Program and the Lottie Moon Christmas Offering for World Missions.
* * *
The New Year is a good time to institute some good fiscal procedures in your church. Not long after I moved to the Northeast, the mission pastor of Hartford (CT.) Baptist Church stopped by my house early one Saturday morning. He plopped a big cloth bag full of money on the kitchen table and said, “Bob, we need you to be our church treasurer!” I said, “Oh, no, I never touch anyone else’s money.” But he persisted saying that in that small mission there was no one else. Well, beginning that day, I got an education on the handling money in small churches. Let me suggest some things to you:
1. The Pastor nor his family should never touch the money.
2. There should be an independent counting committee of three unrelated persons who count the money each week. Do not count during the service and count in a discreet place. We have a pamphlet in the State Office on Counting Committees and the procedures they should use.
3. A person designated as the “financial secretary” should be the only person who knows the aggregate of what individuals give. Pastors and leaders should not know so that they can treat everyone impartially without regard to their giving. Members should be sent regular(quarterly) reports on their contributions for tax and accounting purposes. Care should be taken that these do not appear like “bills.”
4. A concise, easy to understand treasurer’s report should be submitted to the congregation each month showing both income and expenses. We advocate “ministry based” budgeting, that is expenditures are grouped according to the ministries of the church: e.g. the ministry of the pastor, the ministry of missions, the ministry of facilities, etc.
5. In so far as possible, it is generally better to have a “unified budget” than to have a proliferation of different “funds.” Exceptions to this are often “building funds” and, “deacon’s funds” for helping those in need in a discreet fashion.
These are just a few very basic suggestions which I know many of you already are aware of. We have numerous materials in the State Office to help churches do a good job in handling the Lord’s money. These will be posted on our web page in the near future WWW.BRNonline.info. We are in the process of re-configuring the web page which should be completed by the end of the month. If you would like something before then, call the office, (1-800- 451-6599).
LATE WORD: Check out the book by Ron Blue, “Master Your Money,” special: $9.99, Lifeway.
* * *
January 2005
Bob Tallent, rgtallent@Comcast.net, 856-778-6117
www.bobbybaptist.blogspot.com
The devastating tsunami in the Far East has captured the news in this New Year. The best that I can determine, no Southern Baptist Missionary has been physically harmed. Dear friends of the Pennsylvania/ South Jersey Convention (whose names must be omitted for security reasons) in Indonesia report that they are safe but are broken hearted at the distraction and the loss of friends. Pray for them and all others that minister in that terrible situation.
Southern Baptists and other Christians can help by sending financial gifts for aid through the IMB disaster relief fund. Gifts can be sent, designated "Asia Earthquake Disaster Relief," to the International Mission Board, P.O. Box 6767, Richmond, Va., 23230 (to give online, go to the International Mission Board's website, www.imb.org, and click on "Give Now" in the box highlighting the tsunami story). All funds given will go to relief efforts; none will be used for administrative costs. This is possible because our representatives are funded by the Cooperative Program and the Lottie Moon Christmas Offering for World Missions.
* * *
The New Year is a good time to institute some good fiscal procedures in your church. Not long after I moved to the Northeast, the mission pastor of Hartford (CT.) Baptist Church stopped by my house early one Saturday morning. He plopped a big cloth bag full of money on the kitchen table and said, “Bob, we need you to be our church treasurer!” I said, “Oh, no, I never touch anyone else’s money.” But he persisted saying that in that small mission there was no one else. Well, beginning that day, I got an education on the handling money in small churches. Let me suggest some things to you:
1. The Pastor nor his family should never touch the money.
2. There should be an independent counting committee of three unrelated persons who count the money each week. Do not count during the service and count in a discreet place. We have a pamphlet in the State Office on Counting Committees and the procedures they should use.
3. A person designated as the “financial secretary” should be the only person who knows the aggregate of what individuals give. Pastors and leaders should not know so that they can treat everyone impartially without regard to their giving. Members should be sent regular(quarterly) reports on their contributions for tax and accounting purposes. Care should be taken that these do not appear like “bills.”
4. A concise, easy to understand treasurer’s report should be submitted to the congregation each month showing both income and expenses. We advocate “ministry based” budgeting, that is expenditures are grouped according to the ministries of the church: e.g. the ministry of the pastor, the ministry of missions, the ministry of facilities, etc.
5. In so far as possible, it is generally better to have a “unified budget” than to have a proliferation of different “funds.” Exceptions to this are often “building funds” and, “deacon’s funds” for helping those in need in a discreet fashion.
These are just a few very basic suggestions which I know many of you already are aware of. We have numerous materials in the State Office to help churches do a good job in handling the Lord’s money. These will be posted on our web page in the near future WWW.BRNonline.info. We are in the process of re-configuring the web page which should be completed by the end of the month. If you would like something before then, call the office, (1-800- 451-6599).
LATE WORD: Check out the book by Ron Blue, “Master Your Money,” special: $9.99, Lifeway.
* * *
