ECCU Blog

One of many memorable scenes in C. S. Lewis’ Chronicles of Narnia is in the first book, The Lion, the Witch, and the Wardrobe. The four main characters—Lucy, Susan, Edmund, and Peter—had spent a day with two beavers, and the conversation had gotten around to Aslan. When Mr. Beaver informed them that Aslan was a lion, Lucy became alarmed.

“Then he isn’t safe?” she asked.

“Safe?” said Mr. Beaver; “don’t you hear what Mrs. Beaver tells you? Who said anything about safe? ‘Course he isn’t safe. But he’s good. He’s the King, I tell you.”

When you follow your calling into ministry, the early days aren’t unlike these children’s early impressions of Narnia. You’re anticipating the upside. The idea of risk isn’t foremost in your thinking. But the longer you’re in ministry, the more acquainted you become with the fact that it isn’t always safe.

Of course, when you’re focused on ministry, protecting the people and resources God has entrusted you with can be a daunting, even distracting responsibility. So it’s good to know that some people are called to focus on managing risks. One of these people is Richard Hammar, the leading specialist in legal and tax issues affecting churches. And if you minister in Orange County, you might want to check out an opportunity coming up on November 9.

Richard will be in Yorba Linda that day as the keynote speaker for a Risk Management Conference for Ministries. This all-day event includes nine afternoon breakout sessions in three tracks—security, legal, and finance. In fact, one of my fellow bloggers, Mark Jones, will present on the topic “How to Keep Your Ministry’s Financial Assets Secure.”

Richard Hammar alone is worth the investment of time for this event. A graduate of Harvard Law School, he is both an attorney and Certified Public Accountant (CPA). He is the senior editor of Church Law and Tax Report and Church Finance Today newsletters and has taught church law in a number of seminaries. He’s the author or coauthor of more than 100 books on legal and tax issues regarding religious organizations. And if these credentials aren’t convincing enough, you even get lunch with your $30 conference registration fee.

When you follow a calling into ministry, you say yes to many things, including the risks that come with the messy business of loving people. If you could use some guidance for managing those risks, follow this link to learn more about the Risk Management Conference for Ministries.

And if you’re wondering how to navigate safely around Narnia, give Lewis’ Chronicles of Narnia another read.

This is the third blog in our series about presenters at the upcoming 2011 Financial Forum for Ministries. Here are John Butler’s email responses to a series of questions about his presentation. John is tax counsel with CapinCrouse LLP. His session is titled, “Tax and Legislative Developments: Long-Term Issues and Hot Short-Term Issues.” 

MBG: How will your presentation help attendees better serve their ministries? 

John: They will be more alert to possible issues and opportunities presented by tax and regulatory changes.                                                 

MBG: What are three important takeaways attendees will learn during your presentation?

John: The first takeaway will be the current status of several major issues affecting religious organizations. A second will be the potential for “refunds” to smaller organizations of a portion of their health insurance premiums. Finally, they’ll walk away with some wisdom for handling IRS notices. 

MBG: What is one suggestion you’d offer to help attendees gain the most from this learning experience? 

John: People often hear great ideas and learn important things at conferences, many of which are good or even necessary. But no one can do everything. Therefore, instead of trying to go home and do many things, plan to leave the Forum with three to five specific action steps that can be implemented at your ministry in the next 30 days. Be concrete and specific. Actually accomplishing those three to five things will benefit your organization far more than a long list of unfulfilled desires. 

MBG: What do you think are the biggest challenges facing ministries today?

John: Our resources—people, time, money—seldom increase at the same pace as people’s expectations. The people I’m talking about are donors, staff, government, even ourselves.   

What is the biggest challenge your ministry faces regarding taxes or government regulations?

In September 2011, many nonprofits experienced a drop in their ratings on Charity Navigator, the nation’s largest and most-utilized evaluator of charities. Charity Navigator’s significant shift in their rating system of nonprofits was the cause of this drop. Their new system, Charity Navigator 2.0, incorporates two new dimensions. In addition to examining financial health, they now examine accountability and transparency.

The new accountability and transparency component includes additional information from the IRS Form 990 as well a review of an organization’s website. The scope of the new rating includes analysis of the following areas:

• Independent board
• Material diversion of assets
• Audited financials prepared by independent accountant with an audit oversight committee
• Loan(s) to or from related parties
• Board meeting minutes
• Copy of IRS Form 990 provided to organization’s governing body in advance of filing
• Conflict of interest policy
• Whistleblower policy
• Records retention policy
• CEO listed with salary
• Process for determining CEO compensation
• Board compensation

Additionally, information reviewed on your organization’s website includes:

• Board members listed
• Key staff listed
• Audited financials
• IRS Form 990
• Privacy policy

Churches are excluded because they are not required to file IRS Form 990, the fundamental source for these ratings. However, those evangelical nonprofits that are required to file Form 990 are included. Even if you ministry is not required to file Form 990, this is a good list of areas for your ministry to consider addressing.

What do you think about making this information available? How has your ministry’s rating changed?

When I first heard about Orphan Sunday, I pictured a church pep-rally of sorts—complete with adoption cheerleading and success-story goose bumps.

As a foster parent myself, I was leery of an emotionally charged event that tugged at people’s heartstrings. This business of caring for orphans is hard. But as I learned more, it became clear that the folks at the Christian Alliance for Orphans (who oversee Orphan Sunday) understand both the beauty and the tremendous cost of caring for those with deep wounds.

And so Orphan Sunday—nationally recognized on November 6 this year—is intended to go beyond pulling the heartstrings of your congregation to understanding God’s heart for the fatherless, to experience both the joy and pain of caring for his orphans.

“Orphan care is not just one more good cause,” says Jedd Medefind, president of the Christian Alliance for Orphans. “Ultimately, it’s about God’s people understanding his heart more deeply. When we truly understand how our God cares for the most destitute, we begin to grasp how deeply he cares for us as well. And, as we mirror his love of the fatherless in our actions, we reveal his heart to a watching world.” (And, I might add, we understand the gospel like never before—for our adoption came at great cost as well.)

And it’s not just about adoption, either. While every believer is not called to adopt, everyone can be involved in caring for the orphaned or distressed. It may be as uncomplicated as mentoring the kid next door who never knew his dad.

Here’s just a few simple ways your church can participate in Orphan Sunday on November 6:

• Show the two-minute Orphan Sunday video and devote a few minutes to prayer for orphans near and far.
• Gather your church or family on Sunday evening for the one-hour live web-cast of guided prayer and global worship for the fatherless.  
• Ask a few families from your church currently involved in orphan care to share how their understanding of the gospel has changed as they’ve sponsored, adopted, or fostered a child.
• Invite your small groups or families to participate in The Orphan’s Table—a simple meal made up of the same food provided to orphans worldwide.
• Ask families who’ve fostered or adopted to share how others in the church can offer support and encouragement.

 Be sure to visit the official Orphan Sunday website for more ideas and easy resources to get involved.

Plan to participate? Leave a comment to let us know what your church is doing!

This is the second blog in our series of interviews with presenters at the upcoming 2011 Financial Forum for Ministries. This time I spoke with Dan Busby, president of the Evangelical Council for Financial Accountability (ECFA). His session is titled, “What Is Happening on Capital Hill Impacting Churches and Nonprofits?” 

MBG: How will your presentation help attendees better serve their ministries?

Dan: With the latest information on church and nonprofit information from Capitol Hill, they will be well-armed to keep their organization abreast of issues that will be or may be coming down the pike. 

What are three important takeaways attendees will learn during your presentation?

Dan: They’ll learn the current status on three important issues. First is threats and options related to the charitable contribution deduction. Second is the progress of the “Super Committee” with respect to deficit reduction and the possible impact for churches and nonprofits. And third is the work of the Commission on Accountability and Policy for Religious Organizations as they address a litany of tax policy issues given them by Senator Charles Grassley. 

What do you think are the biggest challenges facing ministries today?

Dan: I see four major challenges. First is effectively telling their story. Too many ministries lead with facts and figures instead or leading with good stories about their ministry and supporting those stories with the facts and figures. Next is innovating with courage. Innovation is not just for for-profit organizations—it’s for nonprofits as well. An economic downturn is an ideal time for ministries to review all programs and processes and determine how to streamline, focus, and save dollars. A third challenge is to communicate appreciation. Ministries should have a mindset of continually expressing appreciation to staff and donors. Many staff members are feeling uncertain about their positions. Donors may be wondering about the viability of ministries they have been supporting. Express appreciation! A final challenge is to sweat the small stuff. Yes, the big issues are always important, but in this environment, it’s time to sweat the small stuff—being sure that the organization is running with precision from top to bottom. 

What is the biggest challenge facing your ministry today?