STEWARDSHIP AND DISCIPLESHIP TOGETHER #2 -

                            God Owns Everything and Needs Nothing

 

            Continuing my discussion on stewardship and discipleship together, I want to focus on one of the statements that I shared last week:

            God owns everything and needs nothing.[1]

            I’ve often (jokingly?) stated that the first stewardship scripture is Genesis 1:1-2 – “In the beginning God created the heavens and the earth. Now the earth was formless and empty, darkness was over the surface of the deep, and the Spirit of God was hovering over the waters.”

            After all, if we are stewards (the basis of the word stewardship), then we are made to manage or look after another's property. So as stewards, none of what we “have” is our property. We are looking after it for another. And the “other” is God who created when everything was formless and empty.

            There are other scriptures that the article by Christian Stewardship Network cites about the ownership by God:

Psalm 24:1 “The earth is the Lord’s, and everything in it, the world, and all who live in it.”

Psalm 50:10-12 “for every animal of the forest is mine, and the cattle on a thousand hills. I know every bird in the mountains, and the insects in the fields are mine. If I were hungry, I would not tell you, for the world is mine, and all that is in it.”

Deuteronomy 8:18 “But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today.”

Acts 17:24-25 “The God who made the world and everything in it is the Lord of heaven and earth and does not live in temples built by human hands. And he is not served by human hands, as if he needed anything. Rather, he himself gives everyone life and breath and everything else.”

            Each of these scriptures talk about ownership by God. Genesis 1 talks about the creation, which is only part of the story (now that I think about it). But the other two from Psalms, and the ones from Deuteronomy and Acts talk about actual ownership. Any of us who have made anything know that the ownership of the made item doesn’t always stay with the maker. But what God made, God still owns:

·         The earth, the world

·         Animals, birds, insects, the world itself

·         The ability to produce wealth

·         The world, the earth, actual everyone because God gave life and breath to all

 

God owns everything, and as it says in the Acts scripture: he is not served by human hands, as if he needed anything.

            So God created, God owns, and God doesn’t NEED anything.

            As we continue to discuss stewardship and discipleship in the upcoming summer weeks, to help us prepare for our stewardship and discipleship often done in the fall, remember, stewardship and discipleship have to work together. One cannot exist without the other. We aren’t effective stewards if we aren’t disciples, and we aren’t disciples if we aren’t using the resources give to us to further God’s kingdom.

            Stay tuned for this ongoing stewardship conversation.

            If you wish more information on this, or would like to discuss stewardship and its relationship with discipleship, please feel free to contact me at (315) 427-3668 or sranousacctg@twcny.rr.com. I’d be happy to help.

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[1] Stewardship Education that Builds Disciples, Furlong, Jessica and Dick, Don (Christian Stewardship Network), https://www.christianstewardshipnetwork.com.

 

                        STEWARDSHIP AND DISCIPLESHIP TOGETHER

 

            An article that I read from Christian Stewardship Network, Stewardship Education that Builds Disciples[1] had an excellent series of statements:

On stewardship theology:

1.    God owns everything and needs nothing.

2.    We own nothing and need everything.

3.    God is the sole provider of all resources.

4.    God uses stewards to manage His resources.  

On effective discipleship:

1.    Create a safe space for relationships to form.

2.    Conversation should be organic.

3.    Customize teaching style to individual’s

a.    life stage,

b.    spiritual maturity, and

c.    financial health/season.

I thought it was important to spend time this summer discussing stewardship as many of us and our churches spend time in the fall “doing” stewardship and fund raising. It’s time to start planning now, not wait until a couple of weeks before the first stewardship sermon or letter.

            I am going to spend some time over the next few weeks picking apart the Scriptural basis for these statements, as well as how we can “do” stewardship more effectively.

            I want to make sure that we realize that stewardship and discipleship have to work together. One cannot exist without the other. “Ultimately stewardship is using the resources God has blessed you with in order to further his kingdom, whereas discipleship is pursuing growth as a follower of Christ.”[2]

            We aren’t effective stewardship if we aren’t disciples, and we aren’t disciples if we aren’t using the resources give to us to further God’s kingdom.

            Stay tuned for this ongoing stewardship conversation.

            If you wish more information on this or would like to discuss stewardship and its relationship with discipleship, please feel free to contact me at (315) 427-3668 or sranousacctg@twcny.rr.com. I’d be happy to help.

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[1] Stewardship Education that Builds Disciples, Furlong, Jessica and Dick, Don (Christian Stewardship Network), https://www.christianstewardshipnetwork.com.

[2] https://justdisciple.com/discipleship-stewardship/

 

                                  NECESSARY CHURCH POLICIES

 

            Last week, I talked about pastor discretionary funds and accountable reimbursement plans (ARPs), and stated that written policies for both are an important way to make sure everyone has the same understanding. I also always recommend, strongly, that written accounting policies are important to have in place as well.

            Recently, I read an article that took this idea of written policies a little further. The title of the article was “7 Policies Every Church Needs for Trust and Transparency.”[1] The author’s list includes:

1.    Building Use Policy

2.    Endowment Policy

3.    Finance Policy

4.    Gift Acceptance Policy

5.    Memorial Fund Policy

6.    Pastor’s Discretionary Fund Policy

7.    Safe Sanctuary and Limited Access Policies.

To this list, I would also add a Sexual Harassment Prevent Policy. This is a policy required by the State of New York. A model policy, training, and other information is available on the New York State government website.

In addition, a policy governing Accountable Reimbursement Plans is also a good idea. It makes it clear for all parties if everyone understands what the ARP can be used for.

The building use policy lists expectations about access to property and the use of the building, furniture, etc., so both the church and the persons using the property have the same understanding. This policy should include information about passwords, keys, fees, emergency contacts and insurance coverage. One issue that a church should be aware of when considering the use of their building is that any use that isn’t missional in nature should trigger taxes for unrelated business income. The use of the building could also affect exclusions from real estate taxes.

The endowment policy (or planned giving policy) should discuss the use of the monies, whether the principal can be used or just income, what the use for the monies is. It should also discuss how the funds are invested, etc. It might be a good idea to consult with an attorney about this policy to make sure it complies with state laws.

The finance policy (or accounting policy) specifies who is responsible for what financial tasks, i.e. treasurer, bookkeeper, financial secretary, counters, finance chair, finance committee, etc. It also lays out how money is handled, from collection, through counting, deposit, paying of bills, bank accounts, and reporting.

The gift acceptance policy is an important one. This one is often ignored because the idea of having rules to accept a gift seems silly to many. But a written policy can spell out what types of gifts are acceptance and which ones are one. It will talk about major gifts and specify the persons/positions that make decisions about each gift, particularly gifts that bear restrictions on use.

The memorial fund policy describes the purpose and use of gifts given honoring a persons’ life. This policy should really state that while “input from family members may be invited, the church retains the right to adopt or reject suggestions”[2]. Memorial gifts are given to honor a person’s life, so having a plan and avoiding accumulating memorial funds will help do that.

            The pastor’s discretionary fund policy lays out what the proper use for the funds would be, which, as we talked about last week, is to help people or situations in need. The author stated that it is the church’s responsibilities to protect both its assets and leadership. Also, the fund management system needs to be revised periodically to make sure everyone understanding the procedures and the pastor is protected from tax or other risk.

            The safe sanctuary policy is a policy that is available from the Conference Safe Sanctuaries committee. It lays out guidelines for supervision, transportation and other procedures to protect children, youth and vulnerable adults. These policies have to be in place, reviewed periodically and training provided so that all employees and any volunteers that may come into contact with children, youth, and vulnerable adults have received the training.

            So, with the author’s list of seven and the two additional ones I added, every church should have at least nine written policies in place. These are the basic policies. A church may have need of others.

            If you wish more information on this, or need templates for any of these policies, please feel free to contact me at (315) 427-3668 or sranousacctg@twcny.rr.com. I’d be happy to help.

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[1] Leading Ideas, written by Bonnie Ives Marden (February 21, 2023)

[2] Leading Ideas, written by Bonnie Ives Marden (February 21, 2023)

 

                         ACCOUNTABLE REIMBURSEMENT PLANS AND 

                                    PASTOR DISCRETIONARY FUNDS

 

            I recently was in a church finance meeting and a question came up about accountable reimbursement plans (ARPs) and pastor discretionary funds, and how they should be used. I’ve taught several workshops on church finances and include slides on both. I also recently attended a workshop given by the General Council on Finance & Administration (GCFA). ARPs are different from pastor discretionary funds and have very different uses.

            “Pastor discretionary funds are established by a local church to give its pastor complete discretion and authority to provide confidential financial support to persons in need. The details of these discretionary funds can vary. In some cases, no guidelines or instructions as to acceptable use of the funds is provided, effectively giving the clergyperson free reign as to how they are spent. In other instances, the clergyperson is given some guidance, but it may be very general or unclear and may be given orally or understood culturally. These funds can lead clergy – both local church pastors and bishops – to unknowingly run afoul of relevant Internal Revenue Service regulations and can result in unintended tax consequences to clergy and to donors.”[1]

 

            Accountable reimbursement plans are very different in that they are budgeted amounts provided to a pastor to be used to pay the pastor’s professional and business expenses, such as travel, continuing education, subscriptions, etc. When the pastor incurs a professional or business expense, he or she submits a claim with backup substantiation. The church either pays the expense directly or reimburses the pastor.

 

            By definition, the accountable reimbursement plan is for reimbursement of business expenses and is not reported as compensation on the pastor/employee’s W-2.

 

Receipts are mandatory as part of an accountable reimbursement plan. The IRS (and the Conference) requires an adequate accounting by the employee and maintenance of good records by the employer. The IRS requires actual receipts for any expense over $75.00. The church may use this figure or set a lower limit. (e.g., GCFA

requires receipts for all expenses over $25.00.)

            The documentation should show (or be listed on the receipt itself): the purchase, amount, date, place, and the business nature of the expense.

·         For example, if the pastor purchased a $10.25 notebook, the substantiation would not require a receipt, but at the very least should state, “Purchased Notebook for $10.25 on 1/5/01 for keeping accountable reimbursement records for church.”

·         A meal expense might state, “$5.90 lunch on 1/5/01, in Centerville while meeting with district superintendent.”

·         Another example is $150 expenditure for a continuing education seminar where the staff can submit the invoice for payment by the church to the vendor. Or, if the staff person paid personally, an acknowledgment of payment by way of a receipt for the seminar or the invoice with a front and back copy of a canceled check would be adequate to substantiate the reimbursement to the staff person.

            I have been aware of times when employees/clergy submit receipts several months after the funds are expended. This is inappropriate at best. The IRS requires that all substantiation of expenses occur within a reasonable time (within 60 days will be deemed reasonable) of the expense being paid or incurred. I would suggest at least monthly, to be sure receipts or information isn’t lost.

            The church can allow advances, if the church wishes to do so and has an adequate accounting system to track the substantiation for or reimbursement of advances. If an advance is given and exceeds the amount of business expense substantiated, the staff person must return the excess within a reasonable time (within 120 days will be deemed reasonable) of the date incurred or paid.

 

            Under no circumstances should the ARP be given to a pastor at the beginning of the year with the instruction to “keep track of everything.” Nor should unused funds be given to the pastor/staff person at the end of the year. This could jeopardize the entire accountable reimbursement policy.

            “Under an accountable plan, you are required to return any excess reimbursement or other expense allowance for your business expenses to your employer. Excess reimbursement means any amount for which you did not adequately account within a reasonable period of time. For an example, if you received a travel advance and you did not spend all the money on business-related expenses, or you do not have proof of all your expenses, you have an excess reimbursement. You must return an excess reimbursement to your employer within a reasonable period of time…The IRS will always accept 120 days as a reasonable period of time.” “If an employee fails to return, within a reasonable period of time, any reimbursements in excess of substantiated expenses, “only the amounts paid under the arrangement that are not in excess in the substantiated expenses are treated as paid under an accountable plan.”[2] 

            In other words, since those excess expenses are no longer part of an accountable plan, that means they are now considered part of compensation of the employee. So the amount would be added to the employee/pastor’s W-2 salary and is subject to income tax and self-employment tax (if pastor), and Social Security and Medicare (if non-clergy employee).

            In all cases, I think written policies are the best way to make sure everyone abides by the tax and church rules, and also that everyone has the same understanding. These policies should be in place, and reviewed annually, and should always be discussed with a new employee or clergy at appointment time.

 

            If you wish more information on this, or need templates for policies, please feel free to contact me at (315) 427-3668 or sranousacctg@twcny.rr.com. I’d be happy to answer questions.

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[1] CLERGY DISCRETIONARY FUNDS, General Council on Finance and Administration of The United Methodist Church Legal Services Department.

[2] 2022 Church & Clergy Tax Guide 2022, Hammar, Richard R., p 329.