Category Archives: Memo From The Mountains

Church Financial Records Belong to Whom?

One might think this is a foolish question.  Everyone assumes that the church is the owner of its own financial records, but what does the church’s Bylaws say? What if the treasurer takes the financial records to his home and then has a falling out with the church or pastor? He claims ‘possession is 9/10s of the […]

Noncash Contribution Warnings

Many individuals provide noncash contributions to the church including clothing, motor vehicles, furniture and food stuffs.  In order for these individuals to get credit on their tax returns, they will need a receipt for the items contributed to the church. If the contributions have a value of $250.00 or more, then a written receipt must […]

Affordable Care Act and Employer Paid Medical Insurance

We are coming to the end of the penalty relief period (June 30, 2015) from the $100.00 per day per employee for any employer which has a employer payment plan which does not comply with the Affordable Care Act’s market reforms.  This relief period was to help those employers who have less than 50 employees. The […]

Vain Prayer By One Seeking Votes

It was a shock to some people that Mike Dickinson, a Democrat running for Congress in the State of Virginia tweeted the following prayer “Dear god. Please use Ebola to infect the @NRA and it’s various members. For they are A true virus and true terrorists in America.”  I am not sure to what god […]

Screwed Up Pentagon Leadership

The Bible Baptist Church in Carthage, Missouri is a small church filled with pride in America.  It is a very patriotic church.  The church decided to honor their heroes during their annual Vacation Bible School.  On Monday they had paramedics, on Tuesday they had the fire department, on Wednesday they had the Sheriff’s Dept and […]

Does Our Church Need To Receive 501(c)(3) Approval From The IRS?

The quick answer is NO. Section 508 of the Internal Revenue Code sets forth special rules with respect to section 501(c)(3).  In subsections (a) and (b) are how new organizations must notify the IRS they are applying for 501(c)(3) status and the presumption that if they don’t they will be deemed a private foundation.  Section […]

IRS To Attend Church. Chance For Salvation?

The IRS has settled a lawsuit which began in 2012 by Freedom From Religion Foundation reportedly agreeing to adopt standards for determining and investigating whether churches and religious organizations have violated restrictions on political activity. One will have to wait to see what policies were agreed upon in such settlement so churches will know how […]

Lost Housing Because Not In Writing

Housing allowance is one of the most important benefits that pastor can receive from the church because the Internal Revenue Code  Section 107 provides that ministers of the gospel are allowed to exclude from income the fair rental value of a home provided by the church as part of their compensation as well as the […]

But They Promised

A pastor had a board commitment that he and his wife would be covered by the church’s health insurance policy and that the church would pay their premiums during their retirement for their lifetime.  Several years into their retirement the pastor and his wife were notified that the board had decided that they would be […]

Be Careful with “Catchup” Payments to Previously Undercompensated Employees

Many churches have had their pastors and other employees take less than their approved salaries over the years in order to help the church through tough economic times. When the church is better off financially, the church begins to play “catchup” and pay some of the previously under received salaries to the pastor or other […]