Treasurer’s Update

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Great Commission Fund (GCF) update for fiscal year, ending June 30, 2009

Even with all the plans and adjustments made throughout the year, God did immeasurably more than expected! Now to him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us, to him be glory in the church and in Christ Jesus throughout all generations, for ever and ever! Amen. Ephesians 3:20-21

Great Commission Fund (GCF) income increased by 2.1 percent to $40 million for the 2008-2009 fiscal year. This represented 98.3 percent of our $40.7 million budget, an improvement from $39.2 million in revenues last year. Ministry expense from operations was 85.6 percent of budgets in June which helped keep spending for the year to 93.7 percent of budget or $2.6 million under budget. The YTD net revenue from operations was $1.8 million, of which a portion was used to obtain our goal of 35 days of ministry reserves. International Ministries received a ministry appropriation of $666,000, while Church Ministries received a ministry appropriation of $222,000.

For the 2008-09 year-end summary, please see the attachment»

Great Commission Fund (GCF) Update for July 31, 2009

The Board of Directors approved a budget for 2009–2010 of $37.5 million, $3.2 million less than the 2008-2009 fiscal year budgets. However, as we look to more aggressively “push back the darkness,” we are trusting God to provide resources in excess of $40 million. This will require greater engagement of our people. Will you help increase our participation in Great Commission Ministries beyond 40 percent by helping your church board understand this very important metric? We believe that our potential for increasing revenue lies in having more people participate rather than in asking the faithful to give more.

GCF income was $3.1 million or 105.9 percent of budget for July. Ministry expense from operations was 97.8 percent of budget for the month. The net revenue from operations was $25,816, which is favorable compared to a budgeted net expense of ($195,000).

For the current financial summary, please see the attachment»

Great Commission Sunday

In order to keep you informed of the generosity of Alliance people, we are pleased to report that as of August 14, 2009, the total G.C. Sunday offering stands at $1,001,435, exceeding our goal of $1,000,000. These donations will enable us to continue the work to which God has called The Alliance. Thank you for your generosity.

See the current status of the Great Commission Sunday offering»

Honoraria paid to C&MA Missionary and National speakers

The C&MA Office of Missions Mobilization coordinates a Fall and Spring Missionary Tour. C&MA missionaries continue to be paid by the GCF while on home assignment during their tour. Honoraria paid to C&MA missionaries directly by a church for speaking should be reported on a 1099 as non-employee compensation if over $600. Honoraria remitted to the National Office on behalf of a C&MA missionary will be added to their monthly compensation as an Outfit contribution and included on their W-2 as taxable income.

Honoraria paid by churches to national workers (non-US citizens) traveling with our C&MA missionaries on tour may be subject to 30 percent tax withholding unless a specific tax treaty applies. Therefore, if church members desire to encourage a national worker in their ministry, the best approach may be to encourage church members to make personal gifts directly to the national worker. No tax receipts should be provided by the church for these personal gifts.

Churches should not tax-receipt contributions for the support of national workers. These contributions may be considered a “pass-through” transaction by the Internal Revenue Service and effect the exempt status of the church. The best way to demonstrate your support of these national workers is through ministry partnerships with a C&MA field or the financial support of specific projects funded through C&MA Approved Specials. For more information about ministry partnerships, please contact Ruthie Hankins by email at hankinsr@cmalliance.org or by phone at (719) 265-2182.

FDIC Insurance

FDIC insurance coverage remains at $250,000 through December 31, 2009. Effective January 1, 2010, FDIC coverage will adjust back to $100,000. With the potential for additional bank failures, it is wise for our churches to ensure that bank balances do not exceed these levels.

Ministers will Receive Special Attention from IRS Auditors

The IRS has issued a special guide to its agents on the specific topic of how to handle audits of ministers. While there are no new topics in the document, it focuses on the key audit issues, including the proper treatment of housing allowances, gifts to ministers, calculation of income subject to self-employment social security tax and much more.

Read more from ECFA»

Did You Know? Your Incorporated Church May Not Be Incorporated

• • incorporating your church usually is not a one-time event
• • most states require some kind of reporting on a regular basis, either annually or less often
• • if reports are not filed in a timely manner, your secretary of state may administratively dissolve the corporation
• • this could impact any legal actions taken by the church during the dissolution time frame
• • it may be possible to resolve by filing for reinstatement
• • check your status by calling or accessing your secretary of state’s Web site

These are general observations and not a comprehensive explanation. If you have any questions related to the above, you can contact Tim Cummings at (719) 260-9941 or cummingst@cmalliance.org. Tim is the General Counsel/Assistant Corporate Secretary in the National Office. LEGAL ADVICE DISCLAIMER: Unless explicitly stated otherwise, the content of this article is not to be regarded as legal advice. If you require legal advice, please contact an attorney licensed to practice law in your state.

IRA Rollover Provisions Approved by Congress

The Pension Protection Act of 2006 is being extended through December 31, 2009 as part of the Emergency Stabilization Act. It is an opportunity for church members age 70 ½ and older who own an Individual Retirement Account (IRA) to direct gifts of up to $100,000 to the church from the IRA without reporting the transfer as income. The contribution must be transferred directly from the IRA to the church. Historically any withdrawals from an IRA would be taxed prior to making a gift. Now a contribution can be made directly from the IRA without being taxed. This is just one more way, along with gifts of stock, that members can consider as a significant way to support their community of faith, particularly as the end of the year approaches. As always, consult your tax advisor.

To make a contribution, church members should contact their IRA custodian and request that an amount be transferred to The Christian and Missionary Alliance. If you would like more information, please contact Joseph Padilla at (888) 689-6300, or e-mail him at padillaj@theorchard.org.

Standard Mileage Rates

The Internal Revenue Service (IRS) has decreased the standard mileage rates effective January 1, 2009 to 55 cents per mile, a decrease from 58.5 cents per mile in 2008. This rate may be used to reimburse employees tax free for mileage driven in their personal automobiles for 2009. This rate may also be used to value personal mileage in church-provided vehicles with a fair market value of $15,000 or less for inclusion on the employees W-2 as taxable income. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Tax Guide for Churches and Religious Organizations

The IRS offers a quick reference guide of federal tax law and procedures for churches and religious organizations to help them voluntarily comply with tax rules.

Download the PDF now from the IRS Web site»

Alliance Benefits

C&MA Retirement Plan. The C&MA Retirement Plan is a “church plan” as recognized by the Internal Revenue Service, allowing official workers upon receiving retirement payments to offset the income against housing costs, which will save on income taxes.

C&MA Health Plan. Alliance Benefits is happy to welcome the Southern District into our Health Plan. It is a privilege to have the opportunity to serve more C&MA workers. To find out more about the Alliance Health Plan, call us at (800) 700-2651, or contact our office at benefits@cmalliance.org. We offer a solid plan with competitive rates.

C&MA Fellowship Fund. We are continuing to receive 2009 church contributions to the Fellowship Fund. The percentage for each church remains the same as previous years, 0.7 percent of the annual income. Thank you on behalf of our retired missionaries and pastors. They are very appreciative of your ongoing support.

The Alliance Development Fund (ADF)

ADF is deeply grateful for the investments of C&MA churches, constituents, and friends. Dynamic, Great Commission churches continue to build, buy, and expand as they see lives transformed and God’s Kingdom advance. To help meet their need for funds, ADF is currently offering a 14-month investment certificate at 4 percent (for new investments). We believe this is a very attractive rate and hope you’ll consider this new offering as an option if your church has funds to invest ($500 minimum deposit). Also, ADF would be very pleased to help you get the word of this investment certificate out to your congregation, we have a variety of materials and ideas to assist you. If you would like more information you can contact us at (888) 878-3060, or you can visit our Web site at www.adf-inc.com.

Thank You

Thank you for serving at your church! Your leadership, particularily in times of uncertainty, is a valuable gift to your church and the C&MA. If you need any other help, please contact me by e-mail at baldesk@cmalliance.org or by phone at (719) 265-2128.

Gratefully,

Ken Baldes
Vice President for Operations/Treasurer and COO

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