15 Questions Nonprofit Board Members Should Be Able to Answer
If you serve as a nonprofit board member, we recommend that you review the organization’s Form 990 and be informed enough to answer these 15 questions.
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25 Questions When Planning a Missions Trip During a Pandemic
With travel at the center of overseas missions work, the pandemic’s continued certainty is raising questions about when and whether to cross borders to continue the work.
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5 Things Christian Organizations Need to Know About Picking a Healthcare Plan
Christian organizations should consider these five factors when choosing a healthcare plan for their employees.
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9 Strategies for Overcoming Financial Challenges
Nothing in our lifetimes compares to the season of financial uncertainty that arrived so suddenly. Here are nine very practical ways we are seeing the most effective ministries overcome financial obstacles.
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Accountable Expense Reimbursement Plan – Sample Resolution for Ministries
When applied properly, expenses reimbursed through an accountable expense reimbursement plan do not result in taxable income. Here is a sample of an accountable plan.
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Accounting for Contributions Made to Nonprofits
Outlines the proper accounting treatment for contributions made by an organization to a nonprofit
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Agency (or Custodian) Funds
Outlines proper accounting treatment for non-gift assets an organization receives that are not legally its property, known as agency funds
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Aim for Faithfulness Rather than Results!
What are we aiming for? Or in ministry terms, how do we define success? From our research, ministry leaders typically define success along one of two lines.
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Audit Committee Questions for Auditors
List of questions that a board of directors or audit committee should annually ask their auditors
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Audit Your Disaster Relief Policies
Humanitarian nonprofits need to be prepared for a new level of scrutiny and transparency by developing or upgrading their existing policy regarding disaster response situations.
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Authentic Leadership: Balancing Doing and Being
"Lack of a deep root system is one of the key reasons why high-profile leaders fail."
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Board-Designated Net Assets
Unrestricted net assets subject to self-imposed limits by action of the governing board, e.g., future programs, investment, contingencies, purchases, or construction of fixed assets, or other uses.
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Bridging the Development and Finance Divide: 4 Pillars of Healthy Communication for Ministries
<p>Perhaps the most critical relationship to funding success in a ministry is between the Development and Finance departments. When there is alignment, the ministry can <strong>take advantage of growth opportunities</strong>, <strong>make better decisions</strong>, and <strong>effectively </strong><strong>advance its mission</strong>.</p>
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Building the Oil Supply and Stocking the Storehouse
Dr. John Zietlow outlines a strong biblical basis for carefully devised financial policies and establishing adequate cash reserves. As he says: “Financial health is a prerequisite for mission achievement. As you begin to build or rebuild your oil supply and stock or restock your storehouse, take confidence that God is your Source and He will supply all of your needs according to His riches in Christ.”
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Cell Phone Usage
This document provides cell phone usage information for a ministry, including a summary of the tax rules relating to cell phone expense.
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Changing Accounting Methods for Form 990 Reporting
Discusses proper accounting methods for Form 990 reporting and procedures to follow when changing accounting methods
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Check-writing Procedures
Specific internal control procedures to follow when writing checks to best protect the assets of an organization and includes a list of publications that contain more information about disbursement controls
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Clearly Communicating Timely Ministry Financial Data
Boards and others need meaningful interpretation of ministry financial data
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Contributed Services and Use of Facilities
Outlines the accounting treatment, income tax treatment, and Form 990 presentation rules for contributed services and use of facilities
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Contribution Sample Policy for Ministries
A ministry may have an underlying sense that some contributions should be carefully reviewed before accepted.
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Could Your Ministry Use an Accountability Tune-Up?
While solid financial accountability systems take extra effort, they are important tools.
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Current Assets and Current Liabilities
Defines and lists examples of current liabilities and current assets according to authoritative accounting literature
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Directors and Officers Liability Insurance
Discusses importance of director’s and officer’s liability insurance and important policy characteristics
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Document Retention and Destruction Sample Policy for Ministries
Discusses proper maintenance of corporate documents and records and outlines retention time periods for several categories of documents
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Employment Eligibility Verification
All employers must complete Form I-9 to document verification of the identity and employment authorization of each new employee.
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FASB Accounting Standards Update – Leases (Topic 842)
In 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) which significantly affects financial statement accounting for leases.
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Financially Interrelated Nonprofit Organizations
Outlines the accounting and reporting guidelines for nonprofits that are financially interrelated (SOP-94-3)
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Finding Church Management Software to Fit Your Needs
With dozens of Church Management Software (ChMS) options available, finding the best solution for your ministry can be daunting. Ministry Business Services, Inc. has researched 39 of the top Church Management Software programs and offers a comprehensive and unbiased compilation of what each platform offers, as well as general information on what to look for in choosing a management solution for your church or organization.
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Four Questions to Ask About Executive Compensation at Your Organization
Nonprofit organizations need to attract and retain qualified leadership.
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Fraud in Ministries: Real Examples and Red Flags
Ministries can implement a few simple internal controls to remove temptations from employees and protect resources from misappropriations.
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Fraud Prevention Checklist for Ministries
We hear about fraud in the news, but we don’t want to consider it as a possibility in our ministry.
While this short summary is not meant to be all-inclusive, it will help you assess your current situation and determine if additional precautions or considerations may be necessary to protect your organization.
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Gifts to Ministry Staff
Nonprofit ministries often make gifts to employees to show appreciation for the dedicated service. These payments may take several forms and have important implications to the ministry, the staff members, and donors.
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Going Concern Contingencies
Defines going concern contingencies as the inability of an organization to meet its obligations as they come due, and outlines the conditions that lead to a going concern audit opinion
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Granny is Still Investing in Bitcoin – It Pays to Be Ready When She Wants to Donate Some to Your Organization
Granny is investing in Bitcoin. She might not understand exactly what digital currencies are, but she’s been making money from her investments.
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Guidelines for International Grant-Making
Outlines the proper procedures and due diligence when making grants to international organizations
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Handling Gifts of Digital Currency - What Churches and Ministries Need to Know
Churches and ministries should provide gift acknowledgments for gifts of digital currency as is appropriate for any other noncash gift. Donee organizations may be asked to sign Form 8283 and may be required to File Form 8282 in connect with gifts of digital currency.
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How Much for Fundraising?
Discusses factors that may be considered when determining what is an appropriate amount of fundraising expense for a specific organization
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How to Best Communicate Open Enrollment to Your Employees
When communicating healthcare plan enrollment information to employees, consider these strategies to engage and educate your team in a clear and effective way.
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Independent Auditor Sample Request for Proposal (RFP)
Sample request for proposal can be used by ministries to request proposals from independent auditors to perform the ministry’s audit
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Internal Control & Internal Audit Guidelines for Ministries
An effective system of internal controls includes the segregation of responsibilities involving financial activities
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Internal Controls – Action Steps to Excellence
Internal controls are the procedures and practices that help ministries achieve their mission. They promote efficiency, reduce the risk of loss, help ensure financial reports re accurate, and assist is maintaining compliance with laws and regulations. Sound internal controls also help ministries avoid patterns of mismanagement that could bring dishonor to God.
Internal controls are not a “one-size-fits-all” matter. This is why a generic set of controls will often place too much focus on some areas and provide too little attention to other areas. Internal controls should be risk-based—with a focus on areas with the propensity for risk.
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Investment of Permanently Restricted Net Assets in Real Estate
Discusses the propriety of investing permanently restricted net assets in real estate
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Is Your Organization Ready for the General Data Protection Regulation?
The General Data Protection Regulation, or GDPR, went into effect on May 25, 2018 and many nonprofit organizations don’t realize they could be impacted. The GDPR is a set of laws enacted by the European Union (EU) to protect individual rights to privacy and control over personal data.
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Meals and Lodging Provided to Employees
When an employer provides meals and housing for employees, it is important to determine whether the value of the meals and lodging is taxable to the employees.
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Minimizing Fraud
Trusted ministries are keenly aware of their susceptibility to fraud. They establish and continually test internal controls to minimize significant fraud.
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Overhead Assessments on Restricted Gifts
What limitations does a ministry have when applying an overhead assessment on restricted gifts?
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Paying Counseling Fees for Employees
Outlines the proper tax treatment of counseling fees paid by an employer on behalf of its employee(s)
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Permanently Restricted Net Assets
The part of net assets for a nonprofit organization that is restricted in perpetuity by donor-imposed stipulations.
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Personal Use of Ministry-Owned Vehicles
Vehicles provided by organizations to employees for business use are often used for personal purposes.
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Purchase and Travel Cards
Certain credit cards may be used to restrict purchases to specific vendors (purchase card) or types of expenditures (travel card).
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Quid Pro Quo Disclosure and Acknowledgment Requirements
Discusses the obligation of a ministry to provide a receipt for certain transactions where the giver receives goods or services in exchange for a donation
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Recording Income from Estates
Explains the proper accounting and recognition criteria for estates contributed to nonprofit organizations
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Rescue Mission Client Payments
Rescue missions often make modest payments to "clients" who participate in a spiritual transformation program at the mission. This document addresses the taxability of these payments.
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Restatement of Prior-Period Financial Statements
Any error in the financial statements of a prior period discovered subsequent to their issuance should be reported as a prior-period adjustment by restating the prior-period financial statements.
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Sample Policy on Suspected Misconduct, Dishonesty, Fraud, and Whistleblower Protection
Sample policy covering the whistleblower protection provision contained in the Sarbanes-Oxley Act
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Social Security Tax for Ministers – More Complex than it Appears
Social Security Tax for Ministers - More Complex than It Appears
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Standard Mileage Rates
The Internal Revenue Service (IRS) establishes the optional standard mileage rates for employees to use in computing the deductible costs of operating an automobile for business, medical, or moving expense purposes.
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Tax Treatment of Scholarship and Fellowship Payments
Discusses the proper tax treatment of scholarship and fellowship contributions and payments
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The “New” Form 1099-NEC and Revised Form 1099-MISC
A new 1099-NEC form has been introduced by the IRS for 2020. It is actually an old form that hasn’t been in use since 1982.
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The Audit Oversight Process
Details adequate financial oversight and how it is one of the central responsibilities of effective board governance
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The IRS Takes These Board Financial Responsibilities Seriously – Do You?
If you serve on the board of an organization, you’ve probably heard the term “fiduciary responsibility” and know that it applies to your role as a board member.
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Tithing Charity Funds
Discusses issues relating to a ministry tithing a portion of its funds to another ministry and includes link to a tithing policy
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Travel and Expense Reimbursement Sample Policy for Ministries
Travel and expense reimbursement policy for a nonprofit organization
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Underwater Funds
A fund in which the principal amount (corpus) has fallen below the value of when originally gifted by the donor.
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Underwater Funds Rule
Under UMIFA, an organization was prohibited from using fund assets if the value of the fund was below its historic dollar value.
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Viatical Investments
Defines and discusses issues relating to viatical investments, investments by an organization in an individual life insurance policy
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What Are the Compensation Committee Best Practices for Setting CEO Compensation?
An ECFA member ministry has a compensation committee charged with the responsibility to recommend the CEO’s compensation and fringe benefits to the board each year. The committee is comprised of two non-staff board members and the ministry’s CFO. When the board receives the recommendation of the compensation committee, the CEO stays in the boardroom but does not participate in the vote. While the compensation committee records the details of the recommended compensation in their minutes, the board minutes do not reflect any details. How could the ministry improve their practices?
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When Is It Appropriate to Make an Overhead Charge to a Ministry Project?
When a ministry raises funds for a project—let’s say a building fund or a campus expansion fund—is it appropriate to make an overhead charge to the project? In other words, is it appropriate for a ministry to allocate a portion of the funds raised for the project to cover general and administrative costs and any costs related to raising the resources with the total raised less the overhead allocation used for the project?
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