Let’s be really honest – year-end giving wasn’t exactly what we hoped for. In a recent study conducted by the Barna Group, 57% of pastors surveyed said the economy had negatively impacted their church compared to last year. The good news is that only 8% of church leaders said the economic impact was “very negative,” and 9% actually described last year as financially positive. Even if your not one of the 57%, you’re probably not as comfortable going into 2010 as you’d like to be.

So what can churches do to weather this environment? Here’s a few suggestions: Read the rest of this entry »

Final regulations that were adopted in 2007 take effect on January 1, 2009, for most tax-exempt organizations. 

What changed? How is your T-E organization affected?

The final regulations require all 403(b) providers, including churches, to have a plan document in place no later than 12/31/08. Failure to adopt a written plan before 1/1/09 will render all subsequent contributions to the plan to be fully taxable. The plan document must address several issues, including: Read the rest of this entry »

The National Association of Church Business Administration has organized an event to celebrate the power of peer-learning to address the increasing complexity of running the business of a church in contemporary society. 

Scrutiny of non-profits, including churches, has increased in recent years and has magnified with the current condition of the economy. It is even more important during these times to run the business of a church properly.  Honest mistakes and inadequate safeguards can expose churches to many different negative outcomes. This event will provide an opportunity for leaders from different sizes of churches to meet with each other in a training session format to learn from each other how to manage some of these current challenges.

Debbie Miller, secretary of the Greater Kansas City Chapter of NACBA said “Churches need to be the example to our communities in doing things right and with excellence.” Phil Martin, NACBA’s deputy CEO has also made the point that most church leaders do not get formal training in business administration. With these facts in mind, Church Administration Day is a chance for larger churches to reach out to smaller churches that may not even have an administrator. 

The information above was summarized from the article “Complexity of congregational life inspires first annual event for church administration”, which can be found at the following website: http://www.nacba.net/cad/.

For locations and contact information for regional training events:
http://www.nacba.net/cad/cad_locations.htm

For contacting a NACBA chapter in your area:
http://www.nacba.net/Structure/chapterlst.htm

For more information on National Church Administration Day:
http://www.nacba.net/cad/

For information on the National Association of Church Business Administration:
http://www.nacba.net/index.html

Churches are classified as a charitable organization under the Internal Revenue Service code. Despite a number of references to the word “church”, the tax code provides no definition, primarily because of interfering with the constitutional guaranty of religious freedom or encouraging abuse.

The IRS has attempted to fill this void by developing a list of 14 criteria that characterize a church. In determining whether an organization can be defined as a church, the IRS considers the following operational and organizational activities:

Read the rest of this entry »

During a church service, congregants are encouraged to pray for Presidential candidates, McCain/Palin. Was this prayer request considered political activity? The IRS might consider this request as a political endorsement of either the Republican or Democratic party.

501(c)(3) organizations may not intervene in political campaigns. How does an organization define “intervening”?

According to the IRS’ Glossary included in the 2008 Instructions for Form 990, political campaign activities are all activities that support or oppose candidates for elective federal, state or local public office. It does not matter whether the candidate is elected. A candidate is one who offers himself or is proposed by others for the public office. Political campaign activity does not include any activity to encourage participation in the electoral process, such as voter registration or voter education, provided that the activity does not directly or indirectly support or oppose any candidate.

If the congregants had been encouraged to pray for both the Republican and Democratic candidates, is that considered political activity?

Is the church “intervening”? You decide…

For more information, see Publication 1828, Tax Guide for Churches and Religious Organizations.