Making disciples of Jesus Christ for the transformation of the world.

Finance Update

FINANCIAL COMMENTS

We are getting close to having a new BUS. Your pledges and contributions to date total $45,711. In order to cover the total cost of this new bus we will need an additional $20,000. For those of you who have not contributed as yet, please consider giving something to this ministry. Your prayers are needed.

The General Fund is in very good shape. We continue to show positive contributions to the General Fund. We are almost 5% ahead of anticipated revenues through June. THANK YOU. This is a great place to be considering that the summer months have historically been much lower contribution months.

Our expenses are in line with the budgeted amounts through June. We are 0.3 % below expected expenditures.

Blessings to all who continue to support the missions of the church.

Kent Jagnow <kjagnow@fumcholland.org>,
Treasurer

Church Audits by Ken Rizzio, Chair of Finance

Last year, members of the Finance Committee participated in three audits of our Church’s financial records. The audit of the 2015 program year was conducted on March 8, 2016 by Barbara Brechting with assistance from Lloyd Helder and Kent Jagnow. No concerns on the audit were noted that day. On June 7, 2016, a snap audit on the current year program was performed by Cindy Minnich and Lloyd Helder. That audit tested entries for payroll taxes deposited, reconciliations between bank statements & the check book, deposits, checks and the payment of ministry shares- if they were up to date. All of the items examined were in order. The third audit was also an internal snap audit conducted by Carl Virta on last year’s program; and like-wise there were no findings.

So, now it is time to gear-up for the audit of the Church’s 2016 financial records. Who can perform a local church audit? According to the Treasurer of the West Michigan Annual Conference, a church has the option to utilize the services of a person or team from within the congregation. There is no requirement that a Certified Public Accountant must perform a local church audit. A Local Church Audit Guide was prepared by the General Council on Finance and Administration to assist with conducting an audit.

Therefore, with an audit of our Church’s 2016 program on Finance’s “to do” list, I am seeking the help of any accounting professionals in our congregation who may be willing to participate in this next audit as a voluntary service to the Church. Please contact me if you would like to be involved in this task or if have any questions at 892-4120 or ken.rizzio@lakeshoreadvantage.com Thank you!

Qualified Charitable Distribution for Seniors

If you are over 70 and have a traditional IRA, you may be able to realize a federal tax benefit from a gift to the church from your IRA. This type of gift is called a “QUALIFIED CHARITABLE DISTRIBUTION” or (QCD). The direct gift from your IRA trustee to the church results in the amount of the gift NOT being included in your Adjusted Gross Income for the year in which the gift is given. The possible tax benefits are:

  • Less of your Social Security benefits may be taxable.
  • If you itemize deductions, the “trigger” for your medical deductions is lower.
  • If you don’t itemize deductions, the QCD gives you the ability to fully maximize the tax benefits       of your gift, as it is not included in your Adjusted Gross Income.
  • The QCD gift is allowed to be part of your Required Minimum Distribution (RMD).
  • An offsetting factor is that if you give to the church in this way, you CANNOT then use this gift as part of your itemized deductions. Another factor to consider is that the check must be made out to the church and must go directly from your IRA trustee to the church and CANNOT GO TO YOU FIRST.

If this is of interest to you, please see your tax accountant, investment advisor or trustee. The details of this tax bene-fit can be found in IRS Publication 590-B.

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