Charitable contributions by individuals reached $292.09 billion in 2018, according to Giving USA. Unfortunately, according to a study by the Association of Certified Fraud Examiners (ACFE), organizations lose 5% of revenues to theft and fraud each year. Tithes and...
Q: A private Christian school wants to rent some classroom space in our church facility. Will our church be subject to taxes for unrelated business income? A: Even though churches are recognized as tax-exempt organizations, they may be liable for tax on...
Q: After a plea by our church board, several members of the church donated funds specifically for the replacement of our heating and cooling system. Thankfully, a local company donated a new system, so these designated funds are not needed. Should we return these...
According to a recent study by the Association of Certified Fraud Examiners, a typical organization loses 5% of revenue to fraud each year. For a church, that would equate to losing almost three weeks of tithes and offerings. Another study by the Center for the Study...
At the end of each calendar year, churches have a few important reporting requirements to help them stay compliant with federal and state laws. From compensation reporting, to tax form submissions, to donor notifications, here is a list of 10 key tasks and...
Q: Help! Our church bookkeeper just resigned. What tasks should our new bookkeeper focus on as he/she begins this job? A: Bookkeeper, accountant, or treasurer—no matter the title, this daunting role can be overwhelming. If you find yourself in this position,...
One way to assess the strength of your financial processes, procedures, and controls is to put them through the scrutiny of an audit. There are a few different types of audits that can be performed, from assessing the strength of your controls, to opining on the...
Q: Are there expense reporting forms that the IRS requires churches use? What other recordkeeping rules does the IRS require? A: Various expenses, if incurred for a bona fide business need, can be reimbursed by an employer, including churches. Like any...
Has your church ever been audited by the IRS? I would suspect most churches can answer no. Because churches are tax-exempt, they don’t file a standard income tax return, or fill out Form 990, so there’s less scrutiny from the IRS than for other types of organizations....