Issue 62 of Administration Matters

Most (but not all) congregations can avoid new nonprofit employee parking tax

A little-noticed provision of the 2017 tax reform created potential tax liability for nonprofits – including churches – that provide certain transportation fringe benefits, including parking and paid public transportation. This article provides a summary of the changes and some suggestions for minimizing or eliminating the liability. >More

Legal Checklist for Congregations Webinar

Congregations can unwittingly create legal issues and liabilities through inattention to basic requirements and details related to corporate status, taxes, property, insurance and abuse prevention. Many of these issues can be prevented by using an ELCA-prepared checklist of key items for congregations to address. Join us for a free webinar where the ELCA legal staff will discuss the checklist and best legal practices for congregations. This webinar will be of particular interest to rostered ministers and lay congregational leaders and staff, including congregation council members and officers, and church administrators. Webinar date: Feb. 21 at noon CST. Register here. Registration deadline is Feb. 15.

Tax reporting can be complicated

Portico offers the set of annually updated Richard R. Hammar tax guides at no cost to pastors and congregations participating in the ELCA benefit program. Federal Reporting Requirements for Churches helps congregations understand federal reporting requirements. The Clergy Tax Return Preparation Guide gives special attention to tax-related topics relevant to ministers. Updated versions coming soon. To access, log into your Portico member or EmployerLink account.

2019 IRS mileage allowance

The Internal Revenue Service issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business and charitable, medical or moving purposes. Beginning Jan. 1, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:
• 58 cents per mile driven for business use, up 3.5 cents from the 2018 rate.
• 20 cents per mile driven for medical or moving purposes, up 2 cents from the 2018 rate.
• 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the 2018 rates. The charitable rate is set by statute and remains unchanged. For more information, visit the IRS website.

Low temperatures increase the risk of damage to frozen sprinkler systems and plumbing pipes

Contrary to what one might think, losses due to frozen pipes occur more frequently in climates that are not normally associated with cold weather, especially when unexpected cold fronts sweep through a region. >More

Slips and falls

Protect your congregation from the second-leading cause of preventable injuries by inspecting your facilities and identifying key areas that may contain trip, slip and fall hazards. Inclement or changing weather conditions can increase the chance of an accident. >More

2018 ELCA annual report cover

The ELCA covers for annual congregational reports in 2018 are now available to order. You can also download them for free. >More

Issue 61 of Administration Matters

Inspire, thank and educate with Stories of Faith in Action

The newest edition of Stories of Faith in Action is out — and it’s packed with vibrant photos and stories to encourage giving! Mailed to ELCA congregations, synods and leaders in early September, this annual publication highlights the impact of Mission Support and the ministries it funds.

Visit ELCA.org/SOFIA now to:

• Order free print copies (all you cover is shipping).
• Download an electronic copy.
• View video stories, bulletin inserts and other resources.

How to complete a Pastor’s W-2 IRS Form

Year-end is quickly approaching and with it, the task of tax reporting to the IRS.  Different rules apply when dealing with clergy taxes and withholdings.  The sample W-2 provided will assist congregations in completing W-2 forms for clergy.  >More

Help pastors tap the clergy housing allowance

The clergy housing allowance allows pastors to exclude a portion of their compensation from federal gross income if it can be justified to the IRS as spent on housing expenses. If congregations don’t proactively designate a portion of their pastor’s compensation as a housing allowance, your pastor loses an important tax benefit. Sign-in at Portico EmployerLink required. >More

Don’t be left in the cold — inspect your heating boiler

One of the biggest risks with boiler heating systems is that a problem will cause the internal pressure in the system to escalate to a point where it causes an explosion. This not only results in major physical damage to the facility but can also be life-threatening if your members or employees are in the building. The risk of this occurring can be greatly diminished with proper maintenance. > More

New video: Managing ELCA Benefits 101

A new 22-minute video by Portico Benefit Services, offered on EmployerLink, covers the basics of providing ELCA benefits — key terms, answers to common questions, and action steps to take each year. It’s a great introduction for new treasurers, office managers, plan administrators and human resource directors, and a refresher for seasoned benefit providers. >Watch

Winter checklist

Whether your climate is snowy or mild, it’s important to protect your church property during the coldest months of the year. >More

Issue 60 of Administration Matters

A statement from the ELCA presiding bishop addressing our call to care for creation

Evangelical Lutheran Church in America (ELCA) members pray and care for God’s marvelous creation every day. We also join the global Christian community each Sept. 1 to Oct. 4 to mark the Season of Creation. >More

Religion and politics

It is important for each congregation and its leaders to understand what political activity is permissible to maintain the congregation’s tax exemption. ELCAvotes is an initiative to expand the role of the church in encouraging faithful and non-partisan voter participation by providing faith-based resources around voting. As a leader in your ministry, make sure you know what to say and do to protect yourself, your congregation and your nonprofit status. Learn from an expert in the webinar “Religion & Politics.”

Hurricane season is here. Are you ready?

If there is any good news, it’s that hurricanes are one of the few disasters that come with advance notice. Take the time now to prepare both your property and congregation for what may happen. >More

Separate incorporation

When a mission entity operates as a body distinct from the church, it is a good idea to review the following list of potential reasons to separately incorporate that entity to protect both parties. >More

Leave roof work to the pros

Although a roof repair may look like a simple thing, and you may be tempted to save some money, it’s best to leave the roof work to the pros. That realization may save you and perhaps others from serious injury. >More

Issue 59 of Administration Matters

Tips for computer and internet safety

By better understanding security threats associated with the use of computers and the internet, and by understanding the manner in which these threats are exploited, you can better protect your congregation, your congregation’s information, computers and computer files. >More

New Wholeness Wheel Bible study

Published by Portico Benefit Services and authored by Pastor Amanda Nesvold of Christ Community Lutheran Church in Green Bay, Wis., this resource was a hit at this year’s synod assemblies! Use it alone or with others to consider how you’re stewarding all dimensions of your life and faith. >More

Tips for building projects

Have a building project in mind? Check out this link from Church Mutual Insurance Co. to learn more about what you need to know. Also, consider the Mission Investment Fund of the ELCA for your building financing needs. >More

Unemployment exemption for churches

Churches and religious organizations are not liable for the Federal Unemployment Tax Act (FUTA). For further information on FUTA, see IRS Publication 15, Circular E, Employer’s Tax Guide; IRS Publication 15-A, Employer’s Supplemental Tax Guide; and IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers.

How to prepare for a malicious attack

Though attacks on churches are (thankfully) a rare occurrence, it is still a good idea for houses of worship to plan for the possibility of unexpected violence. >More

Leave roof work to the pros

Trying to fix a roof yourself can be hazardous. Since working on a roof is dangerous, be sure to leave the job to the professionals – they just might save you from a serious injury. >More

Issue 58 of Administration Matters

2018 ELCA Youth Gathering

Next month we will be gathering with more than 30,000 of our Lutheran friends! The 2018 ELCA Youth Gathering is on its way, and we can’t wait to engage in our theme, This Changes Everything, guided by Ephesians 2:8: “For by grace you have been saved through faith, and this is not your own doing; it is the gift of God.” For those of you who won’t be able to join us in Houston, we invite you to connect with us via livestream on our website. We’ll be sharing our Mass Gatherings (starting June 27 at 7:30 p.m.), as well as daily Bible studies with some of our main stage speakers (starting at 3:30 p.m.), and worship services for MYLE (June 26 at 6:45 p.m.) and The tAble (June 27 at 10 a.m.). We also would like to invite you to follow us on all social media platforms using #ELCAYG2018. Join the story and share with others! > More

Pastor’s discretionary fund tips

Without a clear policy in place, the pastor’s discretionary fund can result in mistrust, accusations and even income tax issues for a congregation and its leadership. > More

How to handle money and protect contributions

Theft or embezzlement at worship centers happens at facilities of all sizes, within all denominations and at locations across the country. The sad truth is many religious organizations are easy targets for three main reasons: financial control is often given to one person; there is little oversight because the person is trusted within the organization; and a large amount of cash is handled. > More

Amending or ending gift restrictions

From time to time, restricted gift purposes cannot be fulfilled as expected. However, charitable organizations should be very careful and take all proper steps to repurpose or amend restricted gifts. > More

Prepare trees to endure high winds

The destructive force of wind can cause enormous damage to trees. Everyone has seen photographs of areas hit by a hurricane or tornado. Large areas are littered with uprooted trees and broken branches. However, it does not take a storm of great magnitude to cause tree damage. > More

Handling church property losses

It’s bad enough having a property loss caused by fire, smoke or vandalism, but not having the proper records to substantiate your claim with the insurer can cause even more headaches. It is essential to know that in the event of a loss, it is the claimant’s responsibility to prove the amount and extent of the loss. Proper record-keeping can save the day. > More

Issue 57 of Administration Matters

ELCA Directory is now online

The 2018 ELCA Yearbook is now online and known as the ELCA Directory. Just as the printing press changed the world during Martin Luther’s time, so are the digitization of data and the internet changing the way we publish and access information. This digital, online solution will provide the same content as the ELCA Yearbook with added features of accessing the information from any computer (including mobile devices), filtering and annual reporting. Find this free resource at https://directory.ELCA.org.

May 15 is an important ELCA Youth Gathering deadline!

• Registration fees must be paid in full. To check your congregation’s balance, log in to your congregation’s registration account and print the payment letter. Don’t forget to make sure checks are mailed to the correct address in Hagerstown, Md., – many checks have been mistakenly sent to our old P.O. box in St. Louis!
• Hotel reservation forms and deposits are due to your hotel! The reservation form can also be found on your congregational account. If you would like to request housing assignment changes, you must email gathering@elca.org. Hotels are not authorized to increase or decrease your assigned rooms or change the room type (e.g., a king for a double).

Tithe.ly

Enable members of your congregation to give in seconds using Tithe.ly’s suite of giving tools. Online, mobile and text giving are quick and easy. The ELCA churchwide organization has negotiated special pricing for ELCA congregations using these giving and engagement tools. Learn more about Tithe.ly and the special ELCA offer today. >More

Updated Hammar tax guides now available through Portico

Portico Benefit Services offers the set of annually updated Richard R. Hammar tax guides at no cost to pastors and congregations participating in the ELCA benefit program.

• “Federal Reporting Requirements for Churches” helps congregations understand federal reporting requirements. The 2018 version includes Hammar’s extensive analysis of the impact of the Tax Cuts and Jobs Act of 2017 on congregations and staff.
• “Clergy Tax Return Preparation Guide” gives special attention to tax-related topics relevant to ministers.

Find links to these guides on both EmployerLink and myPortico.

ELCA-endorsed property and liability insurance program

Did you know that over 3,200 congregations and 48 synods are currently insured by the ELCA Endorsed Property and Liability Insurance Program underwritten by Church Mutual Insurance Co.? The program offers competitive rates, excellent claims services and other valuable features such as its sensor program to help further protect your property. For more information, please refer to this link concerning the ELCA endorsement and to this brochure further explaining the program. Obtaining a quote is easy. Just call 800-554-2642 and select option 1. >More.

How to avoid carbon monoxide poisoning and use generators correctly

Backup generators can provide an emergency power supply enabling you to keep important equipment running during a power outage. It’s important to make sure generators are properly installed and operated to prevent health and safety risks for you, your staff and members of your congregation. Remember: Carbon monoxide is an invisible, poisonous gas. Make sure that there is proper ventilation and do not operate your portable generator in any closed space. Installation of carbon monoxide detectors is critical to avoid deadly accidents. >More

Save money while saving the planet: ENERGY STAR for congregations

Did you know that most congregations can cut energy costs by up to 30% by investing strategically in efficient equipment, facility upgrades and maintenance? There is a well-known, but under-utilized program that can help congregations do this. Join this webinar during the afternoon of March 28th for an overview of how congregations can make optimal use of EPA tools such as Portfolio Manager, which can benchmark and track energy and water use as well as savings and reductions in greenhouse gas emissions. >More