ECCU Blog

This is the final post in our series of email interviews with presenters for the upcoming 2012 Financial Forum for Ministries.

Dave Moja is a partner and national director of not-for-profit tax services with CapinCrouse LLP. He will discuss recent Internal Revenue Service (IRS), congressional, and court pronouncements. He’ll also talk about ministers’ payroll and unrelated business income as well as health care compliance issues. Here are Dave’s responses to my questions.

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

Dave: The tax laws affecting churches and ministries are constantly changing. And, in many cases, the accounting teams at these organizations do not have a central place—no “one-stop-shop”—where they can go to keep up with all these changes. This session will provide up-to-date information on tax and compliance issues that should be pertinent to attendees. They should leave better equipped to handle the continual onslaught of government requirements. We are most definitely in a “season of compliance.”

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

Dave: The first thing attendees will take away is a summary of recent IRS pronouncements that affect their ministries. They will also receive practical insights and a list of the best methods for handling not-for-profit tax and compliance issues. A third takeaway will be predictive insight into what new requirements are expected in 2013 and beyond.

MBG: How will the format of the forum make it an even more valuable learning experience?

Dave: I will tackle the daunting task of keeping up with compliance issues by providing a number of handouts that should allow attendees to focus on the presentation and take valuable data with them for future reference. This kind of material is best explained in a give-and-take format, so attendees will have ample opportunity to ask questions.

Dave will present at the financial forum in Colorado Springs on December 4, 2012. Follow this link to learn more and sign up.

It’s time again for the federal government to announce next year’s rates and limits for various federal programs. Some of those most applicable to ministries and their employees are:

•  The IRS limit for elective deferral (contribution) limit for employees who participate in 401(k) or 403(b) plans will increase from $17,000 to $17,500. Read the full announcement from the IRS.
•  The IRS limit for employees aged 50 and over who participate in 401(k) or 403(b) plans will remain unchanged at $5,500.
•  The federal per diem rates for reimbursing staff for lodging, meals, and incidentals are listed by city or zip code at the U.S. General Services Administration website.
•  Vehicle mileage reimbursement rates will continue at $0.55.5 per mile; the rate is expected to be revisited mid-2013.
•  The foreign earned income exclusion rises to $97,500 from $95,100.

 Notable tax changes that are set to expire or change in 2013 (unless they’re changed) include:

•  Employee contributions to FSAs (flexible spending accounts) will be limited to $2500 annually.
•  The reduced FICA payroll tax withholding of 4.2% on employees, which has been in effect for the past two years, is set to expire. The new rate will revert to 6.2%.
• Medicare tax rates are set to increase by 0.9% for all eligible earnings in January 2013 for higher income taxpayers.

 As always, consult the IRS website for up-to-date information and changes.

This is the second in our series of email interviews with presenters for the upcoming 2012 Financial Forum for Ministries.

John Butler is an attorney and tax counsel for CapinCrouse LLP. He will speak at each of the three 2012 California forums about recent Internal Revenue Service, congressional, and court benefits; ministers’ payroll and unrelated business income; as well as health care compliance issues. Here are John’s responses to my questions.

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

John: We live and our ministries serve in a dynamic environment where tax laws can have a major impact on operations. At least some of yesterday’s solutions won’t work tomorrow. This session will help attendees identify the areas they must examine to assess where in their organizations they need to make changes.

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

John: The changing tax laws affecting health care issues are critical for all ministries. One takeaway will be that attendees can identify key elements affecting their ministries. A second takeaway will be information that’s helpful when developing a compliance strategy for their ministries related to the health care law changes. The third takeaway will be more general. As critical and recent issues are addressed, attendees will be able to assess which ones apply to their organizations.                                         

MBG: How will the format of the forum make it an even more valuable learning experience?

John: This session is content oriented, so a formal presentation and the detailed outline will contribute substantially to the experience. The opportunity to ask questions will help attendees firmly grasp the concepts presented.

Next up will be David Lee, ministry development officer with ECCU, who will be presenting on how to evaluate your ministry’s mission/money alignment and adjust spending to improve it.

Follow this link to learn more and sign up for the financial forum in your area.

Today’s changing world brings increased risks to churches and nonprofits in the areas of finance, tax, legal, and operations. Responding well to change begins with a fuller understanding of these risks. CapinCrouse LLP and ECCU have teamed up to offer a series of financial seminars to help churches and nonprofits better steward the resources and people entrusted to their care.

These daylong seminars will be offered in three locations in October:

• October 2 at Denver Seminary in Littleton, Colorado (This seminar is for churches only.)
• October 3 at Southwestern Baptist Theological Seminary in Fort Worth, Texas
• October 4 at The Hope Center in Plano, Texas

Come learn from experts like Frank Sommerville, noted ministry legal and accounting expert, and David Lee, ministry development officer for ECCU.¹

Learning objectives for these seminars include:¹

• Better comprehend your ministry’s exposure to legal risk through an examination of timely and relevant court cases and learn how to address any risks that are identified
• Become aware of the latest tax changes and regulatory developments that impact tax exempt organizations and churches, including how to identify potential unrelated business activities
• Understand areas of your ministry that may be susceptible to fraud and how to prevent, identify, and respond to fraud if it does occur
• Learn the differences between financial audits, compilations, reviews, and consulting engagements and how to make your ministry’s next financial audit go more quickly and smoothly
• Increase your knowledge of how to use ratios, benchmarking, and dashboard reports to better monitor and measure your ministry’s financial health
• Learn how the Affordable Care Act applies to churches

The registration fee for each seminar is $59; lunch and materials are included. This program allows you to earn up to 5 CPE credits² and 0.5 NACBA CEUs³.

For more information, visit www.eccu.org/resource/events. If you have questions, please contact Carina Hill at 678.518.5301, ext. 100, or by email at chill@capincrouse.com.

_{¹ Presenters and topics covered will vary by location.}

_{² CapinCrouse LLP is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors through its website: http://www.learningmarket.org/.}

_{³ CapinCrouse LLP is a National Registered Continuing Education Provider (NRCEP) with the National Association of Church Business Administration (NACBA). This program is a premier comprehensive continuing education program related to administration in the local church. It is designed to enhance the ongoing professional development of NACBA members and other ministry professionals, through the offering of quality learning experiences. 0.1 Continuing Education Units (CEUs) will be granted to persons who properly register and attend one contact hour of a minimum of 50 minutes of lecture, presentation, or discussion on approved topics.}

A growing number of nonprofits are fighting to keep their property tax exemption status as they become the target of tax collectors looking to compensate for increasing deficits in state, county, and local budgets. 

For example:

• In California, a New York Times article says some nonprofits have been denied property tax exemptions because the state believes the nonprofit is providing “insufficient” benefits to local residents.
• The city of Boston has asked the largest 45 nonprofits for “voluntary” payments in lieu of taxes and has extended the program to cover any nonprofit with $15 million in revenues.
• The city of Tacoma is considering reducing the property tax exemption for nonprofit healthcare providers.
• In 2010, Hawaii unsuccessfully attempted to impose a new tax of 1% on nonprofits.
• According to the National Council of Nonprofits, some of the top policy issues faced by nonprofits are: Shifting fiscal obligations, attempts to impose new taxes, and attempts to reduce the property tax exemption.
• The Alliance Defense Fund is currently defending a church in Maine because their church property was given a property tax exemption but their parking lot and parsonage were not.

What challenges has your ministry faced regarding property tax exemptions or new taxes?