Episode Summary: In this episode of the Navigating Church Finances Podcast, host Michelle delves into the importance and proper handling of contribution statements for church donations. Using a personal experience as a backdrop, Michelle highlights the crucial elements that must be included in contribution statements according to IRS regulations. This episode is a must-listen for anyone handling church finances, ensuring donors receive the correct documentation needed for tax filing purposes. Key Takeaways: IRS Requirements for Contribution Statements: Churches must provide written acknowledgment for single contributions of $250 or more. Essential elements of a proper contribution statement: Organization's name and possibly the EIN. Donor's name. Amounts of contributions – can be itemized or combined. Description of any goods or services provided in exchange for the contribution. A statement about whether any intangible religious benefits were provided. Recommendations for Creating Contribution Statements: Outline a sample format for a contribution statement. Emphasize the importance of delivering these statements before donors file their tax returns or before the tax return due date. Importance of Proper Documentation: * Encourages transparency and trust between donors and churches. * Ensures donors can claim deductions where applicable. Michelle https://churchfinances.org/resources
Key Highlights: Introduction to IRS Dirty Dozen (00:00:21): Michelle introduces the IRS Dirty Dozen tax scams for 2025, which are prevalent threats that individuals need to be cautious about. Email Phishing Scams (00:00:57): Learn about the constant issue of email phishing scams where scammers send fake IRS emails to trick individuals into clicking malicious links. Remember, the IRS never contacts taxpayers via email, phone, or text. Smishing (00:01:40): Understand smishing, a scam where text messages use alarming language to trick recipients into clicking on a bogus link with false claims. Bad Social Media Advice (00:03:26): Michelle discusses the danger of taking tax advice from social media, emphasizing the need to verify tax advice with authoritative sources. Fake Charities (00:05:09): Be aware of bogus charities, especially in times of crisis or natural disasters. Michelle provides tips on how to verify the legitimacy of charitable organizations. Ghost Tax Return Preparers (00:08:02): Discover the tactics of deceptive tax return preparers who offer poor service and charge based on refund size. Michelle stresses the importance of using trusted tax professionals and knowing the warning signs of fraudulent preparers. Conclusion: Michelle wraps up the episode emphasizing the importance of staying informed about these scams to avoid becoming a statistic. It's not just about avoiding scams but also about ensuring that your church community remains financially vigilant. Resources: For more trusted resources and guidance, visit Michelle’s website at churchfinances.org/resources. Inspirational Closing: "Let's all strive to make an impact and not just an income. And remember to always look your best, do your best and be your best." Thank you for tuning in, and stay safe and informed. Until next time!
In this episode of Navigating Church Finances Podcast, host Michelle Brown explores the value of supporting locally owned Christian businesses for churches. She unpacks why choosing to shop local can align more closely with biblical stewardship and ministry values. Michelle challenges listeners to consider the greater impact of their spending choices beyond just finding the best price online or at national chains. Show Notes: Introduction to the Topic (00:00:00): Michelle begins the episode by posing thought-provoking questions about the benefits of shopping locally for churches and their communities. She sets the stage for the discussion on the importance of supporting locally owned businesses over online retailers or national chains. Biblical Stewardship Defined (00:01:30): Michelle explains the concept of biblical stewardship, highlighting how it involves responsibly managing God's resources to achieve His goals for the church. She stresses that the hunt for the cheapest option isn't always the wisest decision. Key Benefits of Shopping Local (00:03:32): Kingdom-Minded Stewardship: Supporting local Christian businesses helps ensure the church's financial resources support entrepreneurs who share biblical values, operate with integrity, and engage in ethical business practices. It fosters a cycle of financial responsibility through tithes. Strengthening the Local Christian Community (00:04:48): Local investments foster economic growth within the faith community and create positive, God-centered work environments. Michelle shares her personal experiences to illustrate the difference in work atmospheres. Aligning with Ministry Values (00:08:40): Many Christian-owned businesses offer products, services, and partnerships that align with church missions. Michelle shares excitement about partnering with local businesses that incorporate faith into their environment and operations. Considerations for Churches (00:10:01): Michelle advises churches to weigh their purchasing decisions with community support in mind and to understand the challenges small business owners face, such as overhead and expenses, when asking for discounts. Quote to Remember: "Supporting local businesses, especially locally Christian-owned businesses, may be the wiser decision." Call to Action: Consider where your church spends its money and the broader impact those spending choices have within your community. Contact Information: For more insights and conversation on navigating church finances, subscribe to the podcast and connect with Michelle Brown. Your financial stewardship can make a difference in your church and community. Contact: michelle@churchfinance.org https://churchfinances.org
Episode 93: Financial Admin Evaluation Welcome to another episode of Navigating Church Finances with Michelle Brown, the podcast that takes the guesswork out of managing church finances. In this episode, we explore the importance of creating and utilizing job descriptions and employee evaluations, especially for church bookkeepers or financial administrators. What’s in This Episode: Introduction of the New Show Format: Michelle talks about the new intro, music, and tagline designed to make the podcast more engaging and fun. The Importance of Job Descriptions: A discussion on why official job descriptions are crucial for both employees and the organization, ensuring clarity in responsibilities and expectations. Why Conduct Employee Evaluations: Explains the recommended timeline for evaluations: 30, 60, and 90 days for new employees. Highlights the significance of evaluations in setting clear expectations and providing performance feedback. Key Responsibilities of Church Bookkeepers/Financial Admins: Weekly counting of donations, with a focus on having two unrelated people involved. Maintaining payroll and benefit data, preparing financial data, and ensuring confidentiality. Working collaboratively with the church treasurer and finance committee. Communication and Understanding Financial Data:</strong> Emphasis on the need for clear communication and understanding of financial reports to facilitate effective church operations.</p></li><li><p><strong>Course Offering:</strong> Michelle introduces her "Intro to Church Finances" course, which provides resources such as roles and responsibilities outlines, handouts, PDFs, checklists, and more.</p></li></ul><p><strong>Additional Resources:</strong></p><ul><li><p>Visit <a title="ICF Course" href="https://www.churchfinances.org/icfcourse" target="_blank" data-mce-href="https://www.churchfinances.org/icfcourse">https://www.churchfinances.org/icfcourse</a><img class="mce-pagebreak" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" data-mce-resize="false" data-mce-placeholder=""> for more information on the "Intro to Church Finances" course, available now at a lower price until the end of tax season. Conclusion: Join Michelle again next week as she continues to offer insights into church finance management. Remember to strive to make an impact, not just an income, and always present your best self. Thank you for tuning in! If you found this episode helpful, consider checking out the course link provided above. Don’t forget to subscribe for more episodes filled with valuable information for your church's financial success. Michelle looks forward to engaging with you in future episodes, sharing more tips and expert advice on church finances.
Welcome back! In today’s episode, we will be chatting about properly preparing a Minister’s W-2. I recently had the honor of writing an article for NATP’s Tax Pro magazine. Since I share everything I learn with you, I decided that I would share highlights from the article with you as it’s a member-only magazine and cannot be purchased by the general public. Even though the deadline for submitting W-2’s to the IRS and providing to your employees is past, it’s never too soon to start thinking about next year's W-2’s and just receiving confirmation that the ones issued this year were correct. For the full article, sign up for my email list if you haven't already at https://churchfinances.org and click on the link to join the newsletter. xo Michelle
After a 2-month break, I'm back and sharing why it took so long. Grab your FREE Church Payroll Compliance Kit at https://churchpayrollcompliancekit.com Join my Private Coaching Group at https://churchfinances.org/cohort Thanks for listening xo Michelle
Episodes mentioned in the podcast: 89: Courts halt new DOL Salary rules 79: Year end Wrap up 54: 1099's 53: Filling out those W-2's for ministers xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
In this quick bonus episode, I briefly discuss the newest update in the DOL's Salary requirement change and what the TX Federal court decision means for you and your church. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
It's not always easy, but sometimes change is necessary. Today I share what was a big change for me in my business. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
Benevolence given to immediate family members of employees is generally treated as taxable income to the employee. This is because the benefit is considered to be provided in connection with the employee's performance of services. https://www.law.cornell.edu/uscode/text/26/102 xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
Summary Direct Employer Payments: Benevolence funds provided directly by an employer to an employee are generally included in the employee's gross income under Section 102(c). Qualified Disaster Relief Payments: Payments made by an employer to employees for disaster-related expenses can be excluded from gross income under Section 139 if they meet the criteria for qualified disaster relief payments. Documentation: Employers must ensure that payments are commensurate with the expenses incurred and maintain adequate records to support the exclusion from gross income. In conclusion, while benevolence funds provided by an employer are typically taxable, exceptions exist under Section 139 for qualified disaster relief payments, provided specific criteria and documentation requirements are met. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
The determination of whether an individual is an employee or an independent contractor is based on the common law rules, which consider various factors indicating the degree of control and direction the employer has over the worker. According to the IRS regulations and rulings, the following seven factors are significant in establishing an employer-employee relationship. FREE https://churchpayrollcompliancekit.com xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
Do you think all ministers are automatically self-employed for payroll? We are going to answer that question today as we walk through the ins and outs of ministerial employment status with a story to show why it’s so crucial for churches to get this right. New FREEBIE! https://churchpayrollcompliancekit.com xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
The three most common mistakes churches make with 1099 forms are: Misclassifying Employees as Independent Contractors: Churches often incorrectly classify workers (e.g., ministers, musicians, or administrative staff) as independent contractors when they should be treated as employees. This can result in tax penalties for the church and confusion for the worker about their tax obligations. Failing to Issue 1099-NEC for Eligible Workers: Churches sometimes neglect to issue 1099-NEC forms to individuals or businesses paid $600 or more in a year for services. This oversight can lead to fines for failure to file the required forms with the IRS. Incorrectly Filling Out 1099 Forms: Common mistakes include entering wrong taxpayer identification numbers (TINs), misreporting payment amounts, or filing forms late. These errors can result in penalties and additional scrutiny from the IRS. To hear more and to learn what mistakes have to be fixed, take a listen to today's episode. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
Today we’re going to tackle a crucial topic for small churches—how to create an effective budget, even when resources are tight. Budgeting can feel overwhelming, especially when you’re dealing with limited income, but with the right approach, it’s not only manageable, it can help your church grow and thrive. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
What does the IRS have to say about voluntary withholding on housing allowances? Check out todays episode to find out! xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
A recent graduate of the Intro to Church Finances course shares her experience with us today. Sign up for the Intro to Church Finances Course today! Cart closes on Monday, September 30th. https://www.churchfinances.org/icfcourse Hope to see you there! xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
Link to sign up for the webinar https://churchfinances.ck.page/6e9ec4fa85 xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA
Webinar sign up page! Year end Wrap up I was recently asked what services a professional bookkeeper could offer to churches. I share in today's episode the services I offer through my firm that I recommend other bookkeepers offer as well. xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.
New Harassment Law from the EEOC is discussed to make you aware of who it affects in your church and how you should respond. https://www.eeoc.gov/laws/guidance/enforcement-guidance-harassment-workplace xo, Michelle Next Steps: Click below to learn more about me and my current offers https://my.linkpod.site/MBrownEA Disclaimer: The information provided in the Church Finance and Minister Tax podcast is for general informational purposes only and is not intended as legal advice. The content discussed is based on personal opinions, experiences, and research performed and should not be considered a substitute for professional legal advice. Always consult with a qualified attorney or legal expert for advice regarding your specific situation. The host and guests of this podcast are not responsible for any actions taken based on the information provided.