Current Events

Fees to marry, bury and baptize – Little Debit #3

Ministers may receive fees to perform marriages, funerals or baptismals directly from congregants or other individuals. These fees are typically incurred in the performance of their ministerial duties and represent taxable income under Treas. Reg. 1.61-2(a)(1). These fees are reported on schedule C of the minister’s tax return.

Little Debits are selected information obtained from various sources that provide “user friendly” information for churches and ministries. Short and sweet like Little Debbies.

Tax Exempt Organization - Little Debits #2

In a recent case ruling by the Oklahoma Court of Civil Appeals, a tax-exempt corporation

excludes any entity wherein any part of its net earnings goes to benefit any private shareholder or individual.

Can you spell "inurement?"

Little Debits are selected information obtained from various sources that provide “user friendly” information for churches and ministries. Enjoy!

Restricted Contributions…GAAP Requirements

Contributions that are restricted based on the passage of time, should be recorded as “temporarily restricted” and then “released to unrestricted” when the passage of time has occurred. For example…a donor contributes $20,000 on 7/5/06 which is restricted to be used for medical benevolence as follows: $5,000 in 2006; $5,000 in 2007; $5,000 in 2008; $5,000 in 2009. How is the contribution recorded?

In 2006 – the church/ministry records the following:
DR Restricted cash $20,000
CR Temporarily restricted contributions – benevolence $20,000

FASB issues two proposed standards affecting non-profit organizations

According to the FASB website http://www.fasb.org
the Financial Accounting Standards Board has published for public comment exposure drafts of two proposed FASB Statements of Financial Accounting Standards (SFASs) intended to improve the accounting and disclosures for mergers and acquisitions (M&A) by not-for-profit organizations.

Increase in Charitable Giving

Despite increases in gasoline prices and other necessities, Americans found a way to give 2.7 percent more to charitable causes last year than in 2004, according to a report by the American Association of Fundraising Counsel. Experts say the increase was propelled by a series of significant natural disasters including Hurricane Katrina and the tsunami in Southeast Asia, The New York Times reported in June

How are these types of contributions to be recorded, in accordance with generally accepted accounting principles?