Great Commission Fund Results through February 28, 2006
Total YTD revenues for the eight months ending February 28 equal $24,378,000, or 97.2 percent of the revenue budget of $25,082,000. This represents an increase of $1,742,900, compared to February 2005 when YTD revenues were 88.2 percent of budget. Praise God for His provision! Please pray that we will receive strong sacrificial giving in the remaining four months of the fiscal year, ending June 30, 2006.

Great Commission Sunday
Your church may choose any Sunday in May to celebrate Great Commission Sunday. Gifts of $25 “Above and Beyond” each giver’s usual giving will send more workers and expand Alliance ministries into new regions. Last year’s Great Commission Sunday giving raised nearly $1 million and placed 23 new workers overseas.

Your church will receive two shipments of promotional resources, including an FAQ sheet, GC Sunday poster, missions coin boxes, DVD, bulletin inserts, and instructions for the church treasurer. All gifts from this May event should be designated “Great Commission Sunday” and sent to the National Office by the end of June.

Standard IRS Mileage Rates
The new IRS mileage rate is 44.5 cents per mile and is effective for miles driven on or after January 1, 2006.  Reimbursement at a rate higher than 44.5 cents results in taxable income to the individual. The mileage rate given for the use of an automobile for charitable purposes remains at 14 cents per mile.

Finance Manual for Church Treasurers (and Pastors)
When you have questions or need information related to your ministry as church treasurer, look at the Finance Manual for Church Treasurers (and Pastors) that is located on the C&MA Web site. The Finance Manual can be found in the Alliance Resources section (www.cmalliance.org/resources.jsp) under Reports/Manuals, along with other valuable resources. Another similar resource in the Church Resources section is the Church Risk section related to taxes, law, and risk management. These pages are set up in a “frequently asked questions” format and refer to the Finance Manual for details.  Our desire is that these resources will assist you in your ministry.  If you still have questions after reviewing these resources, please contact Eddie Swanson (C&MA controller/assistant treasurer) at swansone@cmalliance.org or Tim Cummings (C&MA general counsel/assistant corporate secretary) at cummingst@cmalliance.org.

Group Exemption Matters
If your church changes its name or address, we need to be informed. For a name change, the church must send a copy of its Amended Articles of Incorporation or the name change form filed with the state bearing the state’s receipting stamp. Please send these items to Tim Cummings in the Office of the Corporate Secretary. We cannot change the name of the church with the IRS until we receive this information. Forms to change the church name are available through your Secretary of State.

If your church is going to inform the IRS of an address or name change for W-2 filing purposes, please be sure to use your church EIN number and not the denomination’s EIN number. Unfortunately, we have had an incident where a church accidentally used the C&MA’s EIN number, and the church began to receive all of the National Office’s IRS correspondence.

Political Activities
The IRS has guidelines that limit the involvement of churches in political campaigns. Churches cannot endorse candidates, make donations to campaigns, engage in fund-raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to a candidate. Churches may sponsor debates or forums to educate voters; however, if the forum or debate shows a preference for or against a certain candidate, it becomes a prohibited activity. The church may publicize its position on moral and social issues but must not link that position to specific candidates.

A church can have political candidates address its congregation as long as overt campaign activities are avoided, the same opportunity is afforded all other qualified candidates for the same office, and the congregation is informed before and after the speech that the church does not endorse any candidate for public office. Other activities, such as voter education, are acceptable as long as they are neutral in content and format. Rating candidates or even organizing forums where members of the public rate political candidates can be a problem, since these encourage people to vote for or against a candidate.

A church should be careful to walk the line between addressing an issue and endorsing or criticizing a particular candidate and his/her position on an issue. Pastors need to be particularly careful in making statements of this type, since they may be viewed as agents of the church. If the IRS finds that a church is engaged in prohibited political campaigning activity, the church could lose its exempt status and be subject to an excise tax on the amount of money spent on that activity. Contributions to a church that loses its tax-exempt status because of political activities are not deductible by the donors for federal income tax purposes.

Fellowship Fund Mandatory Contributions by Churches and Entities
The Fellowship Fund is the defined benefit pension plan, created in the 1930s, that still supports about 600 C&MA retirees.  Unfortunately, the fund to cover these retirees’ allowances is underfunded, causing General Council to mandate contributions from churches and other entities until it is fully funded.

According to the mandate approved by Council, “each church affiliated with the C&MA is required to contribute each year an amount equal to 0.7 percent of its local church operations income from the prior year. A newly established church is required after the first year to pay 50 percent of the normal church contribution amount or 0.35 percent for the first five years.” If you have a question regarding your church’s contribution amount, please contact Larry Keeports (director for Employee Benefits) at keeportsl@cmalliance.org.

The Christian and Missionary Alliance Retirement Plan
The Christian and Missionary Alliance offers a retirement plan for your staff members. The plan is an employer plan that requires a 50 percent match of salary reduction contributions up to 3 percent of the staff members’ contributions. This is a way for the church to encourage its staff members to plan for their retirement. The plan offers 13 investment options, including The Alliance Development Fund (ADF) as a fixed income option. Each participant elects which options suit his/her individual needs.

Designating a portion of your investments to go into ADF savings will assist The Christian and Missionary Alliance in its “Kingdom Building.” The ADF savings investment currently provides a 5 percent rate of return, which is excellent compared to other fixed funds in the market and helps churches obtain facilities for maximum ministry impact. For more information about The Christian and Missionary Alliance Retirement Plan, contact the Office of Employee Benefits at 1-800-700-2651 or e-mail the office at retirement@cmalliance.org.

Ken Baldes
Vice President for Operations/Treasurer