Treasurer's Update
December 2006 (Fourth Quarter)
Great Commission Fund Results through November 30, 2006Total YTD revenues for the five months ending November 30 equal $14,773,000, or 96.8 percent of the revenue budget of $15,258,000. YTD expenses have been held to approximately 95 percent of the expense budget. Please pray that God would impress upon His people the need to reach the lost around the world through Alliance missions.
»Click Here to see the current Great Commission Fund figures.
The Middle East is ready for peace, real peace. The Middle East is our timely focus for church giving at year-end. This Christmas, Alliance workers are asking for help with five ministry projects, including renovating and expanding the Baghdad Alliance Church, building a Christian school in Jordan, and purchasing land for community recreation in Syria. Bulletin inserts and a DVD already have been sent to your church. Seventy percent of gifts received will be divided among the projects, and 30 percent will go to the Great Commission Fund to help keep the Alliance team on-site in the Middle East. Year-end gifts from your church will be included in your December giving totals if they are received by the National Office no later than Friday, December 29. Visit www.cmalliance.org or contact Ken Hughes at hughesk@cmalliance.org if you have questions.
Your church board should approve, in writing, a 2007 housing/parsonage allowance for your pastor(s) before the end of 2006. Legislation was passed in 2002 that limits the excludable amount of housing allowance for pastors who own their own homes to “not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.” We recommend that this housing allowance be approved as a continuing resolution so it will not expire if the board does not consider it the following year. An example follows:
The following resolution was duly adopted by the governance authority of
[church name] at a regularly scheduled meeting held on [date], a quorum being
present: It is hereby resolved that a housing (or parsonage) allowance be
designated for Rev. [pastor’s name] in the amount of $[amount] for
the year 2007 and for all future years unless changed by specific action
of the governance authority.
We recommend that this housing allowance be reported in Box 14 on your pastors(s) W-2 to provide a permanent record of the amount and to provide support for the resolution adopted by your church.
All church remittances received in the Finance Office through December 29, 2006, will be included in December 2006 income. Church remittances received the first week of the new year will be included in January 2007 income. Gifts from individual donors postmarked by December 31, 2006, and received by January 5, 2007, will be included in December 2006 income.
In most cases, financial gifts made by the church or congregation to pastors and/or staff should be considered taxable income and not tax-free gifts and should be reported as income on the recipient’s W-2.
The IRS has issued the standard mileage rates for 2007. The business purpose mileage will be 48.5 cents per mile, an increase from 44.5 cents per mile for 2006. Charitable mileage remains at 14 cents.
Clergy income is reported in Box 1 of the W-2 with all tax withholding reported in Box 2. Because clergy are not subject to FICA, Boxes 3 through 8 should be left blank. The housing allowance should not be included in the amount reported in Box 1 but should be reported in Box 14 (Other).
Donors who give individual contributions of $250 or more must have a receipt or statement in their possession for such contributions before they file their tax returns in order to deduct these gifts. The written acknowledgment must state that no goods or services were provided in exchange for these gifts. Please give these statements to your people as early in 2007 as possible. You may want to remind your congregation not to file individual returns until receipts or statements have been received.
Effective January 1, 2007, donors will be required to maintain a bank record (e.g. cancelled check) or a written communication from the church for all contributions indicating the church name, date, and contribution amount. This will require all cash contributions to be receipted and detailed for the donor to qualify for a tax deduction.
The staff of Employee Benefits would like to thank you for your assistance and patience this year.
With the year coming to a close soon, they would like to remind you of a number of items.
- Please send your “Honoring Their Sacrifice” offering to the National Office by December 29, 2006, and clearly indicate that it is for “Honoring Their Sacrifice.” Gifts to this offering help to support retired missionaries and pastors.
- If your church is more than a year old and not a church plant, you should be paying your Fellowship Fund Contribution. Funds may be forwarded with your regular GCF contributions, however, please clearly indicate that they are for “Fellowship Fund Contributions.”
- The Fellowship Fund rate for 2007 will continue at 0.7% (as in 2006) of your church’s local income for 2006.
- With the beginning of a new year, it would be a great time to support your staff by encouraging them to participate in the C&MA 403(b) Retirement Plan. It is required that your church make a match donation for each employee.
- Have you considered the C&MA Health Plan for your church? With only a 3 percent rate increase for 2007, our rates are competitive with other plans. The total increase for the past four years has averaged under 8 percent. The market average per year is around 15 percent.
ADF is about C&MA church growth, acquiring the right facilities, and continuing to serve our Alliance churches as a supporting ministry. Therefore, consider investing in ADF’s current investment certificate promotion to earn 6 percent for 2 years. It is a great rate of return and, most importantly, you know your money is invested in Kingdom-building activities. Please go to http://www.adf-inc.com/investment_services/ certificates.htm and download the bulletin insert. Thanks for helping ADF “pay it forward” so we can fund church multiplication by living the Call together.
Vice President for Operations/Treasurer
