33-JIM's JRNL for the month of May 2005 -- 0205-05 ZZjrnl

- - And the Lord direct your heart in the love of God as you continue to faithfully serve Him - -

Links on the www.bcidot.org Web Site include:      HOME  |  ABOUT  US   |    OUR PURPOSE   |   SITEMAP   |  COMPUTER FUND ACCTG  |  HELPS


         TO:  Interested Onliners                                                                                                                 FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                                        
   
         RE: J I Ms  J R N L for the month of May 2005   (Click Here for "Blogger like" perspective/rationale)  
  FILE:  0205-05/jrnl        


          Ministry (not Payors) in charge of the Timing of certain Receipts: (4)

    Ministries often enter into some type of monthly agreement with a Donor  (a pledge for example) whereby a donation is to come into the Ministry at a specified time of the month.  Plus Schools, of course, also make arrangements for Parents to make monthly payments of Tuition/Fees. 
   
My thrust here is for the Ministry to appropriately arrange it so that such payments come at your initiative Please go to  0907  for more info.  Or this money comes in per the recipient's timing and not per the timing of the one making the payment.  WHY: The person making the payment is relieved of taking any action. As a good steward, the Ministry or School can depend on money coming in at the agreed time.  HOW Of course, they notify the Payor when they process payments via any one of the following methods:       

                                                                   AUTOMATIC ONLINE PAYMENTS:

    Like Online Payments described when you go to   0926,  you arrange for the monthly amount (Agreed pledge amount or the unpaid balance due the School)  to either be automatically charged at the agreed monthly time to Payer's Bank Account or Credit Card.  Of course, this shows up as an automatic Ministry deposit directly to the Ministry's Bank Account from that specific source.

                                                                                          DRAFTS:

   
At the time of the monthly agreement, the person is given an incentive to write post dated checks (Drafts), that are processed by the Ministry/School at a later date. Go to 7006  for more specifics in a School setting where this can be tried for a short period of time and if all are satisfied then do so for a longer period of time. etc. At any time the Drafts can be voided. We recommend that the Drafts be entered now into the system as per their future date. This practice contributes to safety plus reminder and automatic processing at that future date. The following scenario at a School might help ......

  1> At the time of registration, you write a series of monthly Drafts.for the total amount of future Tuition.  If it is $1,800.00, you provide 9 Drafts for $200.00 each, but each has a future date as to when the Tuition is due.  The Draft becomes a Check at that future date and the school processes it and informs you that you of this transaction. 
  2> Or the situation is like that shown above, except that the total amount of both Tuition "plus Fees" at month end is unknown.  So you leave the amount of the 9 dated Drafts open (up to an agreed limit) and the School fills in the exact amount later, etc.  Let's suppose that the total account balance is $275.00 ($200.00 Tuition plus $75.00 Fees for that month) and so you pay only $270.00 ... the financial incentive is $5,00 per Draft processed.  I
  3> Of course, these Drafts can be voided before they become Checks and returned to the Payor at any time.

          Churches Voluntarily applying for Tax Exemption with the IRS:  (3)

    Churches are automatically Tax Exempt under Section 508 so they do NOT have to secure the IRS's tax exempt blessing by filing form 1023 like other Non Profit Organizations.  Plus, of course,  they do NOT file annual IRS form 990 like other Tax Exempts.  Also see info within IRS Publications 526 and 1828 - Tax Guide for Churches and Religious Organizations.  
    Regardless of the negatives of "filling out and processing forms and dealing with the IRS", a well known attorney for Christian Organizations recommends that a Church should voluntarily complete this process with the IRS.  Such action results in being listed as Tax Exempt within their public record and enhances the Church in obtaining known benefits that include:

>>   State and local officials accept the word of the IRS as they qualify for state or local tax free benefits.
>>   Local courts will accept the IRS's word so that the Church qualifies to receive applicable charitable bequests
>>   Since recipients must be Tax Exempt entities, it enhances your ability to get grants from certain Foundations, etc.
>>   It might assist you getting any type of loan from certain financial institutions. 
>>   Enables you to obtain virtually free software from named providers like Microsoft --  Click Here  and research sources., etc.
>>   It could facilitate being in compliance with certain copyright laws.

          Some  "I HAVE LEARNED"  experiences as shared by a Business Administrator : (5a)

                                    I HAVE LEARNED:

  • That if God asks me to do something, He will get me through it
  • That it is better to lose with grace than to win with arrogance. Jesus was a forceful speaker but he never argued with those who disagreed. The closest thing to an argument was, “Thou hast said,” and then His compassionate heart was obvious
  • That you can’t fix people – you can only be Christ-like. In most situations that is enough.
  • That I cannot always be popular and do a good job, but that’s okay.
  • That true happiness comes from fulfilling God’s purpose for my life.
  • As to “give and take” – I give credit and take blame!
  • The immense satisfaction of having an idea, seeing it come to fruition, and getting no personal recognition for it.
  • That getting organized is a lot of work, not always appreciated while change is taking place, but once it’s up and running everyone accepts and really appreciates the results.
  • To forgive. Never hold a grudge, it’s not worth the energy, and isn’t what we are about in this life. Be kind. Every person is fighting a difficult battle.
  • That two people can look at the exact same thing and each can see something totally different. Learn to be flexible.
  • How to appreciate quiet time and not take it for granted. Let God speak.
  • To never "hop" when I am walking on "eggshells" – be especially careful when dealing with sensitive people.
  • That fools walk where angels dare to tread – if a person has a reputation of being difficult with a history of creating anxious situations, take exceptional caution.
  • That a "Bulldog can whip a Skunk but it’s not worth it;"  so says Mark Twain.
  • To distinguish between "difficult" and "malicious" people. Difficult people often feel helpless and act recklessly. Malicious people delight in other’s pain. You can negotiate with Difficult people; but only God can change the Malicious.
  • Not to sweat the small stuff and to choose my battles wisely.
  • That when things get tough, to lay it at the feet of Jesus – a silent prayer takes seconds because He already knows the situation and what needs to be done.
  • To trust Him – “The Lord detests the proud of heart." Be sure of this, they will not go unpunished.” Remember, punishment is God’s job, not ours. This should relieve a lot of pressure.

        In sharing the above content, I did some editing of what was placed within  http://groups.yahoo.com/group/churchadmin/  some months ago by:

Ron Nelson -- Church Business Administrator, Second Presbyterian Church
3701 Old Brownsboro Road
Louisville, Kentucky 40207 -- 502-895-3483; ron@2ndpreslou.org

         Local Church should provide helps as to "Righteous Personal Finance - RPFin": (6a)

    I have become more convinced in recent years that the church's Board of Leadership needs to, not only manage carefully it's own Internal Financial matters, but provide help to their members/constituency so that they can experience Righteous Personal Finance -  RPFin.  The Pastor might preach, no more than two or three times, if at all, during the year on the general topic of Biblical Principles regarding this topic.  Also some churches have a Stewardship Group which primarily encourages us to know and live up to our church financial commitments.    
    But as a part of this overall  RPFin  thrust, the Leadership
should avail itself of the resources provided by Crown Ministries and others. Please go to  4999  for more resource details. This overall Church provided  RPFin helps effort might include ....

1>  Conclude that there is nothing wrong with 'righteously talking about money' within your church, it is another one of those 'things' in our every day life that should be a 'tool (blessing) and not a tyrant (curse).'
2> RPFin principles need to be taught to our children at a early age. It should be appropriately integrated into our Christian Education effort.
3> New Christians should be so discipled;  we need to provide appropriate pre-marital RPFin training; plus newly marrieds should be helped to lay appropriate RPFin foundations.
4> Like a lot of things in our Christian life, our "olders" should be encouraged to share their positive experiences along these lines with the "youngers".  Please go to  0929  for some ideas.
5> Please go to  4001  for a self-examination tool that could be discretely used for early detection and prevention of your constituent's RPFin problems.
6> Many of us now have a personal computer. Once a member knows and practices such Biblical Principles, they should be encouraged to use applicable Personal Finance Software to keep financial records so they can better experience RPFin.  Please go to  0500  for an example of such a resource.
7> When you  Click Here  you will see what I have shared on this topic in an article that I call "If Jim B was the Church's Voluntary Board Treasurer."

    What is your church doing along these lines?

          Modernized e-Filing of forms 990 etc:  (7a)

    Per info from the IRS, as of April 17, 2005, over 800 exempt organization returns have been filed using "Modernized e-File" this year.  See table below for a break down of e-file returns received"Modernized e-File" saves you time and effort, and eliminates errors with built-in accuracy checks in the return preparation software. See us about visiting the "e-File for Charities and Nonprofits website"  for more information, including approved software vendors.

Form ID: Identification: Number:
990 The usual 408
990-EZ Short Form 257
990-PF   22
8868 990 only extensions 172
       Total   859

          Click below for Potentially Helpful Online Links for JIMs JRNL Readers: (1)

       Non Profit QBooks Helps -----  http://www.realitycheckonline.com/pages/202064/index.htm
       CPA Dan Busby and Ministry Staff tax issues ---  http://www.churchexecutive.com/2005/04/tax_issues.asp
       More DonaMail resources for Smaller Ministries:  --  http://www.techsoup.org/howto/articlepage.cfm?ArticleId=591&topicid=6
       What are "Donor Advised Funds"?    ----  http://nonprofit.about.com/od/donors/a/donor_advised.htm
    
    
  Direct Payment of Bills --- http://directpayment.org/dpnp2.html

           This month's chosen "Ministry Finance" Truism: (2)

        Below is one of my Ministry Finance precepts/beliefs/principles, or  "rules of thumb".  Please go to  0069  for our complete TRUISMS list.

   DEBRIEFING - minutes to formal Ministry Finance meetings are essential, but subjective written thought gathering immediately following an agenized meeting from your perspective (debriefing) is very very helpful to you and applicable others.
 

             Prayerful Thots:

Lord,  help me to assimilate the following more and more in my life:  '"Faith in You is not just 'Believing' that You will, but "Knowing"  that You will."   In thy precious name, Amen.


     This "Blogger" like monthly endeavor (99) allows me to share some personal comments/thoughts as to Ministry Finance issues plus matters concerning Righteous Personal Finance for Christian people.  Please go to  0200  for further explanation and links to earlier JIM's JRNLs.  The four digit links  xxxx  above come from www.bcidot.org sources. 
    If you would like to receive the next monthly JIM's JRNL during the first week of the subsequent month,  please join the following Yahoo Group:   ---- http://groups.yahoo.com/group/JIMsJRNL/.    Caution --- the non  www.bcidot.org  web links that I reference herein do NOT necessarily imply my endorsement.  Further, if any of these links do not work, let us know which one at LINK@bcidot.org.  Lists of our  www.bcidot.org  articles (or Web Docs), can be found at 9712.  9716  and  9705.  


 Probable "Ministry Finance Lingo", or "Frequently Used Vocational Terms" used herein, appear below:

            BLVR = 
Someone who has accepted Jesus Christ as Lord and Savior, CBA = Church Business Administrator, CBAer;  CMS = Church Management Software/System;  CPA = Certified Public Accountant;  GAAP = Generally Accepted Accounting Principles/Practices;  GPFund or GPF = General Purpose Fund; MFTeam or MFT= Ministry Finance Team QBOE = QuickBooks Online Edition;  QBooks or QB = Quickbooks; RPFin 
= Righteous Personal Finance , SPFunds or SPFs = Special Purpose Funds


HOME  |  ABOUT  US  |    OUR PURPOSE   |   SITEMAP  |  COMPUTER FUND ACCTG  |  HELPS 

Click Here and go to a list of earlier JIM's JRNLs - Contact JimRetCPA@bcidot.org

This document was updated last on:  May 24, 2007