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Does your United Methodist ministry need a federal tax exemption letter? There is an easier way than applying directly to the IRS! The Internal Revenue Service has designated the General Council on Finance and Administration of the United Methodist Church (or “GCFA”, the global administrative body of the denomination) to act on its behalf. GCFA certifies your ministry’s status and can issue your tax exemption letter!

Fire and natural disaster – two ways a church’s data could be compromised. Unfortunately, identity theft, ransomware, and digital breaches are also ways a church’s sensitive assets can be stolen or burglarized. However, there are steps a church can take to minimize the occurrence of digital poaching within its IT systems.

Spring is here, and along with it comes blooming flowers, budding trees and … spring cleaning. Spring cleaning isn’t just a time to clean the house; when was the last time you reviewed and revised your organization’s mission and vision statements? A periodic review of each of these important, but first make sure you have a concrete understanding of what each is, and why they are different. A mission statement is what you are doing, your day-to-day operations. A mission statement outlines practical things you do to achieve the vision of your organization. A mission statement tells “Who” and “How” – in the present tense. A vision statement has to do with looking ahead. What is your vision for how the world could be? It tells the “why” with a future objective. An excellent example of both a mission and vision statement is the TED organization. Their mission? Spread Ideas. Their vision? We believe passionately in the power of ideas to change attitudes, lives, and, ultimately, the world. Both these statements follow three best practices when it comes to good mission and vision statements: Clear – these statements are easy to understand and not mistaken for something else. Concise – these statements are short and to-the-point. No extraneous words. Useful – these statements are informative and can guide the organization. Making sure your statements are useful is perhaps the most important item on this list. Why? Although these statements inform external audiences of what you do and why you do it, internally these statements should be a guide for your organization. In every strategic planning session, you will be able to refer back and say, ‘Is this decision in line with what we do and what we are trying to accomplish?’ Ultimately, our collective mission is to make disciples of Jesus Christ for the transformation of the world. What are you doing to make it so? This content was written by the Communication and Marketing Team at GCFA. For more information, or to discuss your communications needs, please contact Brandy Bivens at bbivens@gcfa.org or at 615-369-2336.

Nashville, Tennessee – The Board of Directors of the General Council on Finance and Administration (GCFA) held its monthly board call on September 30, 2022 and approved an adjustment to the benefit trust distribution schedule, along with electing a new member and a new Board Secretary. Any amendments to The Benefit Trust must be jointly approved by GCFA and Wespath, along with the Trustee. Established in 1996 by the General Conference, The Benefit Trust is a wasting trust designed as a benefits funding mechanism to General Agencies for active employees and retirees. The Board voted to increase The Benefit Trust distribution rate from 6% to 8% beginning in 2023, four years ahead of schedule. As part of that vote, the rate of distribution is currently scheduled to increase from 8% to 10% in 2042 and would move back by four years to 2046. Prior to today’s vote, The Benefit Trust was projected to have a 20%-30% reduction of the distribution amount in 2023 due to the market downtown, further affecting General Agencies’ budgets already impacted by inflation and lower collection rates. The Board also made changes in their membership after a vacancy occurred following the departure of Recording Secretary Judy Colorado. Board member Reggie Clemons was elected as Recording Secretary, requiring him to vacate his current position on the Committee on General Agency and Episcopal Matters (GAEM). The Northeastern Jurisdiction College of Bishops nominated Rev. Hector A. Burgos to replace Colorado’s Board seat; the Board duly elected Burgos, who will sit on the GAEM Committee. “We are grateful for Rev. Burgos’ willingness to serve the United Methodist Church, for Reggie Clemons’ leadership, and for all of our board members who freely give their time in service,” GCFA Board President Bishop Michael McKee said.

IRS Form 8822-B: Change of Address or Responsible Party Have you found yourself on hold with the IRS for a substantial amount of time in hopes of making changes to your organization’s records or to request important documentation only to hear the IRS specialist tell you that you are not authorized to call or receive information on behalf of your organization? Keep reading to understand why it is important to keep information up to date with the IRS to avoid delays in obtaining and making changes to important tax-related materials. The Internal Revenue Service (IRS) requires any organization that has obtained, or will obtain, an Employer Identification Number (EIN) to name an individual as the “Responsible Party” for the entity, providing his/her Social Security Number (SSN). The IRS defines a responsible party as: “the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.” (See Form SS-4 Instructions, page 3) In general, the Responsible Party is an individual who has direct or indirect authority over the organization’s finances. The IRS wants an individual recognized at the organization who it can contact if needed. It is simply the person designated and authorized to contact, receive communications, and make changes with the IRS on behalf of the organization. Who should be the Responsible Party for a local church? As you know, our church structure and polity doesn’t fit neatly into government definitions and rules, so our (non-legal) opinion is that the persons who best fit the definition of a Responsible Party for annual conferences and local churches are their respective treasurers. This person, more than anyone else in their respective entities, could be said to directly or indirectly “control, manage, or direct the entity and the disposition of its funds and assets.” While they are certainly “closer” to controlling, managing, or directing the disposition of assets as opposed to the entity itself, arguably they indirectly do the latter as well. Regardless, the IRS wants a name and a SSN of a person associated with the organization with authority to make financial decisions. IRS Requirements Beginning in 2014, the IRS requires any entity with an EIN to report a change in its Responsible Party within 60 days of the change. There is not a direct penalty for non-compliance with this requirement although per IRS Form 8822-B, “if you fail to provide the IRS with your current mailing address or the identity of your responsible party, you may not receive a notice of deficiency or a notice of demand for tax.” Your organization can request a change in Responsible Party, and a change of address, by submitting IRS Form 8822-B. When completing the form, be sure to check the “tax-exempt organization” box at the top of the form. Further, Box 1 – “Employment, excise, income, and other business returns” should be selected if your organization is only reporting a change in its Responsible Party. Please refer to the bottom of the form for the correct mailing address to send the completed form. The IRS has indicated it should take 4-6 weeks to process these changes. Other Helpful Links Do You Need a New EIN? How to request a copy of EIN Letter (147C Letter) Apply for an EIN Online Form SS-4 PDF IRS Automatic Revocation of Exemption It is important to understand that your organization will be categorized as an entity that is required to file in the IRS system if your organization files even one time. This is the case even if your organization is not originally required to file but files anyway. If an organization is categorized as a filer, and it fails to do so for three consecutive years, its exempt status will automatically be revoked. If your organization is marked as a filer by mistake, you will need to contact the IRS to have this designation fixed before you stop filing. Although almost all churches and certain church-related organizations are exempt from filing an annual return or notice (IRS Form 990, 990-EZ, 990-PF, or Form 990-N) with the IRS, some are required (See Who Must File link below). Automatic Revocation List The IRS publishes and updates the Revocation List on its website monthly. This is the list of filers (whether accurately categorized as such or not) that have not filed for three consecutive years and thus whose tax-exempt status was automatically revoked (“auto-revoked”). It will also send a letter notifying your organization of this information. If your organization’s exempt status is auto-revoked, it is no longer exempt from federal income tax and ineligible to receive tax-deductible contributions. If your organization has obtained an individual exemption determination directly from the IRS, and its exempt status is auto-revoked, this information will be reflected on the IRS Select Check database, which is used by many charitable organizations to verify exemption status of an organization. Similarly, if your organization is included in the UM Group Tax Exemption Ruling (“Group Ruling”), and its exempt status is auto-revoked, GCFA is prohibited to issue your organization an updated Certificate of Inclusion letter until its exempt status is reinstated. Reinstating Tax-Exempt Status If your organization is notified that its exemption status has been automatically revoked, it must apply directly to the IRS to have its status reinstated, even if the organization was originally in the group ruling and never had to file an application with the IRS. If your organization is a group ruling subordinate, and you are notified of revocation, the Responsible Party should first try calling the IRS to see if it can be fixed over the phone before beginning the reinstatement process. \If you are not able to get this resolved by phone, you will find the process for reinstating in IRS Publication 4991. Other Helpful Links Who Must File? UM Group Ruling Application for Inclusion & Updated Letter

A housing allowance is designed to be a portion of clergy’s compensation package that is designated by their church to provide housing. Pastors, are you maximizing the tax benefit of housing designations? Churches, are you assisting clergy by designating an appropriate housing allowance? The goal is to project your housing expenses as accurately as possible for the upcoming year or at the beginning of a new appointment before making a designation.

Discounts and Programs for United Methodist Ministries Nashville, Tennessee – The newly updated Ministry Resource Guide published by The General Council on Finance and Administration is here! GCFA’s Ministry Resource Guide features special offers, discounts, and programs from vetted ministry partners, designed to help local churches and other United Methodist ministries. It is free of charge and widely available to assist ministries with multiple solutions. The guide easily connects organizations that offer savings on their products and services for church projects and ministries, non-traditional revenue streams to help support church ministries, Christian travel opportunities, and software and app options to streamline church operations. Partners that are feature include Vanco Faith, The Home Depot, Education Opportunities Tours, REEF Technology, Staples, Subsplash, Ace Hardware, Interfaith Credit Union, Neighbor, UMC Market, and the United Methodist Insurance Program. Kellie Schmeal, Relationship Director for GCFA, said: “The Connectional and External Relations Teams are committed to this work. It is our pleasure to resource, vet, and present new ministry partners that will assist in the ministries of local United Methodist churches and other United Methodist organizations.” Potential ministry partners are vetted by an internal GCFA Vetting Committee and is aided by staff of the General Board of Church and Society (GBCS), who provide assistance in additionally vetting the providers. For more information or questions on GCFA’s Ministry Partner program, connect with Kellie and the External/Connectional Relations team at ConnectionalRelations@gcfa.org or 866-367-4232. # # # # # The General Council on Finance and Administration coordinates and administers financial resources, safeguards the legal interests and rights of the Church, and provides administrative resources to enable the fulfillment of the mission of The United Methodist Church. To learn more about UMC Support, sign up for our monthly newsletter, The Collaborator Follow us on social media: www.facebook.com/GCFAUMC www.twitter.com/@GCFA_UMC www.gcfa.org

If you’re reading this, you’re most likely in the final stages of planning a hybrid event! Stop, take a moment, and celebrate that. Planning two meetings – one in person and the other virtual - is a feat! Now it’s time to get those final ducks in a row to ensure that your meeting runs smoothly.

Producing successful events for both in-person and virtual participants is possible as long as you engage both audiences. Our Travel and Meeting Planning team has partnered with our A/V specialist to help you understand the nuances of planning hybrid events.

Nashville, TN – The General Council on Finance and Administration ‒ UMC Support (GCFA) is pleased to report that Interfaith Federal Credit Union has become a vetted ministry partner with GCFA. Interfaith Federal Credit Union has more than 70 years of devoted service to Methodists, helping to develop their understanding of unique financial needs in the faith community. Ramon Noperi, President & CEO of Interfaith, said, “We are humbled and honored by the opportunity to renew our ministry partnership with GCFA. We hope to remain enhancing the financial lives of our members as we continue to provide an alternative to traditional banking to our brothers and sisters of the United Methodist Church.” Headquartered in Montclair California, Interfaith Federal Credit Union has offices in Phoenix, AZ, Rapid City, SD, Independence, MO, Knoxville, TN and Westbrook, ME offering a national footprint and membership to the United Methodist family. Kellie Schmeal, Relationship Director at GCFA said, “We are constantly looking for ways to form partnerships to help the United Methodist faithful, and we are pleased that this partnership with Interfaith Federal Credit Union does just that.” To learn more about the Interfaith Federal Credit Union program, visit www.interfaithfcu.org. To learn more about the GCFA Ministry Partner program, visit the GCFA Partner page: https://www.gcfa.org/partners/, or contact the Connectional Relations team at ConnectionalRelations@gcfa.org or 615-369-3393. # # # # # The General Council on Finance and Administration coordinates and administers financial resources, safeguards the legal interests and rights of the Church, and provides administrative resources to enable the fulfillment of the mission of The United Methodist Church. To learn more about UMC Support, sign up for our monthly newsletter, The Collaborator Follow us on social media: www.facebook.com/GCFAUMC www.twitter.com/@GCFA_UMC www.gcfa.org

A Case Study of a Religious Organization Conference Are you already thinking about planning your next annual conference or meeting? Our meeting planner recently worked on a conference that resulted in a 98% satisfaction rating. Read our case study for tips on how to plan a hybrid event that will amaze all your attendees! And, right now you can get your 2023 meeting contracts reviewed by a professional - let a licensed attorney and certified meeting planner review and suggest edits!

GCFA Board Met and Approved Episcopal Fund Revisions for 2022 Nashville, Tennessee – The Board of Directors of the General Council on Finance and Administration (GCFA) held its monthly board call June 24, 2022. Rev. Sheila B. Ahler, on behalf of the Committee on General Agency and Episcopal Matters (GAEM), presented a recommendation for a compensation plan for sixteen active Bishops serving in vacated Episcopal Areas, in addition to their existing responsibilities, and who had, to date, not received any remuneration for their additional ministry responsibilities. The Board approved a stipend, retroactive to the start of each Bishop’s additional assignment, representing 11% of their monthly compensation. The impact of the Episcopal Fund will be approximately $345,000 and is 11% of cumulative costs savings resulting from the vacancies resulting from retirements and leaves. As a result of the vacancies, the Episcopal Fund has seen cost reductions of approximately $3.1 million, related to salaries and benefits for the vacant Episcopal areas. Today’s vote is applicable only to current vacancies due to these unusual times; the monthly stipends will expire December 31, 2022. “The GCFA Board wishes to recognize the service and sacrifice these dedicated clergy have made, answering the call of the Church selflessly. These dedicated servants have spent extra time, in some cases for eighteen months, away from their families, to live out their faith in service. We are so grateful and wish to thank them for their willingness,” Rev. Sheila B. Ahler, GAEM committee member said.