Be Careful When Claiming Charitable Contributions

Over the years, our Government and the Internal Revenue Service (IRS) have stripped away our allowable deductions for income tax purposes. The supposed reasoning was to streamline the tax code and bring more revenue into the Government coffers. However, the tax code has not been streamlined or simplified, and regardless of the amount of revenue, the Government continues to outspend income.

One of the few deductions remaining for the average taxpayer is that of Charitable Contributions. Churches depend on the money donated to them on any Sunday to offset their weekly budgets. The generosity of so many who contribute to Churches and Ministries is motivated by the fact that they are still allowed to deduct those gifts from their annual income tax return.

With all of this said, we need to be aware of some issues.

Do Not Earmark Donations for Specific Individuals

Private Inurement is a “no-no” for Churches. The Inurement clause states that Churches are not allowed to benefit private individuals. According to Eric Roberts from the IRS, if anyone earmarks a donation for a private individual, the donation will not be permitted.

The Church counting office or Treasurer should have a rubber stamp that declares, “Not for Contribution Credit,” and every donation earmarked for benefitting an individual should be clearly documented as such.

Giving donation credits to individuals who are not authorized may invoke civil and criminal penalties to the responsible parties of that particular Church. Do Not Test the Waters, or Seek to Circumvent This!

Do Not Allow Bartering

A common practice within Church circles is people, especially Church members, who will buy items for the Church, donate them, and then want contribution credit. This practice may be costly for the Church and/or the individual.
Do not allow people to purchase flower arrangements to place on the pulpit for Sunday service and then want contribution credit. Do not allow them to buy supplies and equipment or donate time for contribution credit. Instead, have them donate the dollar amount of the item or supplies they want to give to the Church, and then the Church makes the purchase. This may seem a little asinine, but it will protect all parties, and the dollar donation amount (unless earmarked for the benefit of a specific individual) will be an allowable deduction.

If they insist on giving the item, instead of cash, only write a letter describing in its entirety what was donated. Do not place a dollar amount on the letter. Leave any amounts to be determined by the individual and their tax preparer.

Make sure that all donations are Tithes, Offerings, Mission Fund, or Building Fund. Do not think you can slip something by the IRS. They know what to look for on a tax return. Cheating on your donation credit will not reduce your tax liability enough to make it worth going to prison. “Give to Caesar that which belongs to Caesar,” and you will not have any problems.

How We Can Help

These and other “hot topic” IRS issues are discussed in-depth at our Church Management and Tax Conferences across the USA. After attending one, the Pastor and Church Leaders will have clear direction on what they can and cannot do. Pastor, Church Leader, Do Not Think you can do Church books without the instruction you will receive at one of these conferences.

This is why it is vital for each Pastor and Church Leader to attend the conference nearest them, NOW! Your procrastination may be the downfall of your Church and Ministry. Contact us today to register by visiting www.cmtc.org or call us at 800-344-0076. You will be glad you did.

Remember, for others, this is a job, but for us, “It is A Ministry!”

All Income to a Church May Not be Tax-Free

The 2017 Tax Reform Act (H.R. 1) reveals many surprises for Churches. One of these is the Unrelated Business Income section. In the past, a Church was allowed to have fund-raisers and other Unrelated Business Income (UBIT) without a requirement to report it to the Internal Revenue Service if all of that income for the year equaled less than $1,000. This has changed.

In the new tax code, Churches may no longer aggregate the Unrelated Business Income but must list each separately. The Council for NonProfits interpreted the effect of the recent change as:

  • Only the first $1,000 of unrelated business income is exempt from taxation under previous law, so the proposed changes would affect many organizations of varying sizes.
  • The change to UBIT could increase taxes on nonprofits, taking revenue away from nonprofits’ mission-related programs and services.1

The Affect On the Average Church

The average church in the USA has a regular Sunday attendance of about 70 people. Only about three percent tithe and only about 11% give in the offering. Their irresponsibility to tithe and give demands Churches to do what they must to pay the monthly bills, and sometimes this includes paying the Pastor.

The Church then initiates fund-raisers to make up the difference. I know of one Church where the tithe and offerings are usually within that 3—11 percent. That Church built a brand new addition with only three percent tithing and 11% percent giving any offering. When I asked the Pastor how they could do it with such small weekly support, he replied: “We have five dinners per month—one every mid-week service and one large one on the last Saturday of each month. The members donate all food and time, and then every member is charged $20 for the weekly meal and $25 for the monthly meal.” The members will not tithe and give offerings as they should but will donate food and their time and then pay for the meal they provided.

The new change in UBIT will require Churches to report all fund-raisers and income (other than tithes and offerings) regardless of the previous law’s $1,000 annual exemption.

Some Churches May Not Survive

With the new tax changes in place, the average Church fund-raiser, yard sale, carwash, and even CD and DVD sales may no longer be profitable for the average size Church. Once time and expense are calculated, and the tax is paid on the net, the average Church will realize a net loss rather than a net gain for the Church bank account.

However, if those Churches do not take other action, they will soon have difficulty paying monthly expenses and then have to choose between paying monthly bills or doing ministry.

Why You Must Call us Today

Chitwood & Chitwood is the premier Church Management firm in the nation because we have 80 years of experience. We know how to bring Churches into compliance without breaking the bank and how to generate a steady flow of income for the Church to do ministry.

This is why it is imperative for every Pastor, Pastor’s Spouse, and Church Leader to attend the next Church Management Conference. To register, please call 800-344-0076. If there is not a conference near you, call and speak with Dr. Ronnie Shaw as to how to bring a private conference to your area so your Church can be taught how to tap into funds that are available to assist you with the ministry God has called you and your Church to do. By doing it our way, it is possible to avoid the UBIT.

1. https://www.councilofnonprofits.org/sites/default/files/documents/tax-bill-summary-chart.pdf

5 Things You Should Know When Applying for Social Security Disability

If you’re applying for social security disability benefits and have never done so before, you may be in for a few surprises. Before you apply, it’s important to read through this list of five things you should know about the application process and the benefits themselves. You’ll be better prepared when it comes time to fill out the paperwork, and your application will be more likely to succeed. You should know five things when applying for social security disability benefits.

You Can Apply For Benefits Immediately 

Although you may not be able to start receiving disability benefits right away, it is not true that you have to wait 12 months to apply for SSD. The reality is that you can apply for SSD benefits immediately after becoming disabled. If your medical documentation states that your injury or impairment will last longer than 12 months, you are a good candidate for Social Security Disability. 

Medical Documentation Is Needed

Not having proper documentation of your disability can result in a delayed or denied claim. If you are applying for disability due to mental illness,  records of all medical treatment and doctors’ notes in your application package are required. You may need to take some time to guarantee you have all the necessary paperwork ready. It may feel like an invasion of privacy but is crucial to receiving social security disability benefits. If a decision on your claim is delayed because you don’t have adequate documentation, time could run out before an approval is made. So make sure to gather everything that is needed upfront.

No Income Limits 

SSDI applicants are only eligible based on their disability and if they have worked enough quarters. The applicant’s income or resources are not considered; only those receiving Supplemental Security Income are subject to certain limits.

You Can Hire An Attorney To Assist You During The Process

An attorney is not required but greatly helps your chances of being approved. In fact, it’s recommended that you consult with a lawyer before filing. A lawyer can give you advice about your specific situation and help ensure that you’re submitting everything necessary and in proper order. An attorney can also be helpful if your application is denied; they will understand how appeals work and help get your claim back on track.

Your Application Will Most Likely Be Denied

Most first-time applicants are denied, so you’ll need to prepare yourself for a lengthy and arduous process. Despite what many applicants believe, your application will almost always be rejected on your first try. According to 2016 data from SSA, 65% of all initial applications were denied. And, about half of appeals court judges found claims in favor of those with disabilities 60% or less of the time—which means that it’s very important you have a good case on appeal. That said, after your appeal, your chance at approval drastically improves. 

For further information on applying for social security disability, please contact Logan-Thompson, PC at 423-476-2251 or find them online at loganthompsonlaw.com

3 Reasons Why Your Daily Routine Is Important for Seniors

The older you get, the more important it becomes to develop good habits and stick to them. This importance becomes even more apparent if you’re already living with challenges associated with aging – such as diabetes, chronic pain, and arthritis. Here are three reasons why developing a daily routine is one of the best things you can do to help you stay healthy in your golden years.

Routines Can Lower Anxiety

A well-structured routine can help seniors feel more stable and in control, especially if things feel uncertain due to health or personal circumstances. People often believe that uncertainty is a good thing because it spurs us to action and helps keep us curious. However, a little uncertainty isn’t always beneficial; without structure, anxiety levels may skyrocket as people look forward with fear at everything they need to accomplish in one day. That’s why keeping a daily routine can help lower anxiety and increase calmness in seniors who are feeling uncertain.

Improved sleep quality

Achieving better sleep quality can lead to better health overall. It is known that people with insomnia are twice as likely to suffer from chronic pain and more than three times as likely to be diagnosed with depression. Sleep affects every aspect of our lives—from how we interact with other people and our environment to how we experience life emotionally. Establishing a daily routine can lower stress and anxiety, so you sleep better every night—and in turn, improve your health overall.

Increase Level of Comfort and Security

Having a routine and knowing what will happen each day gives seniors a sense of comfort and security. This type of predictability helps them avoid unnecessary stress, anxiety, and fear as they know what to expect and when it will occur. Establishing a daily routine allows you to predict what will happen and plan accordingly. So whether it’s planning a visit with family and friends or attending appointments at different locations, having a routine makes it easier to handle each activity seamlessly. As a bonus, establishing predictable patterns is often less stressful for loved ones than frequent last-minute changes in plans due to unexpected activities or situations that arise throughout their day.

Mary and Martha’s Personal Care team can create customized care plans for seniors and daily routines to fit their unique needs. We can help make every day the very best it can be for seniors and those who love them.

Contact us today at Mary & Martha’s Personal Care Facility for more information.

How To Talk To Your Family About Senior Care For A Parent

Elderly care is rarely an easy subject to bring up with your family, but the time will come when you’ll need to have this discussion with them anyway. Growing concerns can cause conflict when everyone is not on the same page. Are other family members in denial about healthcare concerns or assistance their aging parent or loved one needs? When you are caring for an elderly parent, things can become complicated. The main focus should be the well-being of your elderly loved one. If you are wondering how to talk to the family about placing your parent in a senior care facility and why they should consider it, here are five tips that may help you out in the long run.

How To Tell Family 

When it comes to difficult conversations, the most important thing you can do is keep calm. Don’t assume that your family or siblings understand what you’re going through, and don’t assume they feel the same way you do. You might be upset and think that your family is not as sympathetic as they should be, but they may not understand why you feel the way you do. They may also have different opinions about what makes a good home and what care works best for their parents. Your family may disagree with the changes you want to make or how much work is too much. Ultimately, how to tell family members about your concerns comes down to being able to express yourself clearly and openly in a calm tone.

Reframe Your Decision

It’s never easy thinking of yourself as a caregiver. And it can be hard convincing your family that you’re not simply abandoning them. Instead, reframe your decision as another way you are caring for them and helping them maintain their independence in their later years. You’ll probably even end up helping improve their quality of life. A successful transition will require a great deal of time and effort from all involved—the sooner everyone is on board with your plan, the better for everyone. Make sure to keep lines of communication open among all parties involved—you’ll need each other more than ever during this period of change.

Consider How This will Affect The Rest Of Your Family

It’s important to consider how this change will affect the rest of your family. If they are not the ones currently taking care of your loved one, it is possible they will not understand your decision.  Be sure to remind them how much better care your loved one will get if you aren’t handling things at home, and make sure you have their support when making that decision.

What’s the next step?

It’s one thing to know that you need help and quite another thing to talk about it with your loved ones. Do your research once you recognize that your care needs are beyond what family members can provide. Find a senior living community in your area and visit. Look for a community that matches your physical needs, personality, and personal interests. If they have some fun activities, so much the better! Even if it is not as comfortable or homey as what you currently have at home, however, try to put yourself in their shoes: The best place for anyone is an environment where they feel at ease and happy.

Wearing A Wig Every Day – How To Do It Right

Wearing a wig every day can take some getting used to, especially if you’re not used to having your hair styled every day. It can be tempting to throw on your favorite cap or beanie when it’s time to start your day but to pull off wearing a wig every day, you have to treat it as you would any other part of your style routine. These tips will help you figure out how to wear a wig every day and get the most out of your wig-wearing experience.

Make Sure Your Wig Is The Right Size

When it comes to wearing a wig, size is crucial! Depending on the brand and style of the wig, it can be easy to find one that fits your head perfectly. However, some may need to consider alterations. It’s important to buy a wig that will fit snugly on your head— if it’s too loose, you’ll likely have problems with slipping or an uncomfortable fit. Instead of wearing the wrong size all the time, try shopping for one that fits correctly from the start.

Store Your Wig Safely

A good wig is an investment, so don’t ruin yours by storing your wig incorrectly. Depending on the style of your wig, you may want to keep it in its original package, or you may be able to use other means like hangers and boxes. But what about when you’re ready to wear the wig? It is okay to wear the same wig every day with no problems. However, you should also remember that wigs can get dirty and occasionally require washing, like your own hair. When washing your wig, always use appropriate products and leave your hair as dry as possible before storing it.

Don’t Sleep In Your Wig

Hair loss can be emotionally distressing for anyone, and wearing a wig allows your hair to breathe and rest. You might think sleeping in your wig is the easiest way to get used to having hair in your life again. But sleeping in a wig may damage your hair. Depending on the style of your wig, you can wake up with dents and indents where the wig has become misshapen. Even if there are no visible signs of wear, sleeping in your wig stresses the glue and the unit’s structure. It is important to remember that you can keep your wigs for their expected lives or even longer with proper care.

What You Need to Know Before Hiring a Disability Lawyer

Getting approved for social security disability can be difficult and confusing, especially if you’re unsure how the process works or who to hire to help you get approved. This guide will give you some information that will help you better understand what to do before hiring a disability lawyer, why it’s necessary, and how to find one that’s right for you.

Who Qualifies for Social Security Disability

The Department of Health and Human Services states that your medical condition must prevent you from engaging in any substantial gainful activity to qualify for social security disability. Your medical condition must have lasted, or be expected to last, at least one year or result in death. In addition, you must be unable to perform substantial work given your age, education, and work experience. A condition does not need to limit all daily activities to count as being significant. Social Security will evaluate what tasks you can still do despite your condition—for example, whether there are jobs that only require you to occasionally lift up to 10 pounds or regularly use basic computer programs like Microsoft Word.

Things to Consider When Searching for An Attorney

Do they have a good reputation? Be sure to check with your local bar association or call clients directly to hear what they think. Do they specialize in Social Security Disability cases? If not, do they seem knowledgeable about SSDI cases in general? Will they put you first as a client? The best lawyers may be overwhelmed with clients, but that should never impact your case—for better or worse. Social Security Disability claims are extremely complex and can quickly become overwhelming; that’s why it’s crucial to find a lawyer who will provide excellent counsel and put your interests first when there’s so much at stake. Ask questions about how their expertise helps them best serve clients who come to them for assistance on their social security claim.

Why Do I Need An Attorney

Do-it-yourself Social Security Disability applications do not get accepted more than 30% of the time, which is why it’s best to hire an attorney to help. Doing it yourself also is risky because if your application is denied and you appeal with an attorney, your attorney can help represent you in court while fighting for your benefits. If your application was rejected on your own, that means when your case goes to court, there will be no attorney helping you and leaving you with no voice in court. Having an attorney by your side at all times through every step of the process can be very helpful during these stressful times. The right disability attorney will ensure that all of their clients are well informed about their rights and responsibilities during every step of their case.

What to Remember

While the process is intimidating, the experience doesn’t have to be. A good attorney will walk you through every step of the way and make sure that your application is filed as quickly and efficiently as possible. By understanding what’s going on behind the scenes, you can make sure your application is complete—and ensure that it gets read! It’s always a good idea to plan for the worst when dealing with something like disability applications—just in case. But if things don’t go as planned—and they probably won’t at some point—you’ll be happy that you’ve prepared yourself for any potential roadblocks along the way.

For further information, please call Logan-Thompson, P.C. at 423-476-2251 or check out their website at https://www.loganthompsonlaw.com.

How to Get the Best Fit with a Wig

If you’re nervous about wearing a wig, you might be surprised to learn that they aren’t as noticeable as you’d think. With proper styling, a wig can look and feel indistinguishable from real hair—while being much easier to style!

The right wig is easy to find by paying attention to the hairline, and this can be one of the most important parts. Some wigs cover more hair, and some cover less, so it’s important that you select one that best matches your natural hairline. Doing this can give you an idea of what it would look like on your head and should be done before picking out the wig, not after. A good wig should have baby hairs around the front perimeter, which will create a bit of a natural blend from your actual hairline into the wig area.

Find Your Wig Size

Finding the right size wig can be tricky. It can be very upsetting and disappointing to see that your wig doesn’t fit properly and isn’t comfortable to wear, making you feel more self-conscious than usual and may make it harder to adjust to wearing one regularly. There are many things you can do, however, to ensure that your wig fits you properly and comfortably so that it will not only look good but feel good as well. The most important aspect of finding a good wig is picking one that fits you the best. To do this, you need to know the size of your head. Here are some tips for measuring your head, deciding which size to order, and getting the perfect fit for your wig.

Step 1: Measure Your Head Circumference. To measure your head circumference, wrap a tape measure around the widest portion of your head at its largest point. Make sure that it is above your ears and eyebrows; it’s like measuring the diameter of your skull. Write down your measurement in inches.

Step 2: Determine the Size of Your Wig. Now that you know your head’s circumference, you can figure out what size hairpiece will work best for you. Use these general guidelines: Extra Small = 17 – 19, Small = 19 – 20, Medium = 20 – 22, Large = 22 – 24, Extra Large = 24.

You may find that these sizes feel too small or large when trying them on. Some caps may even come with an adjustment piece that will allow you to adjust the wig up to 1 inch. Even so, it might not be until after wearing one for a bit that you realize how comfortable a particular wig feels or how much room there is inside of it.

Suppose you’re worried about having wigs look too artificial or fake. In that case, another thing you can do to make your wig look as natural as possible is to try parting your wig in a way that you usually part your hair when it is naturally growing. Doing this will give you an authentic appearance and make you feel more natural. Regardless of which style and method you choose, remember: wearing wigs does not have to be intimidating! The great thing about wigs is that they allow for such versatility and flexibility – whatever works best for you is exactly what should be worn on any given day!

Walking for Health: Helping Seniors Stay Active and Healthy

Walking is one of the best ways to stay healthy, both physically and mentally, as you age. Physical health benefits can include better bone density, less stress on your heart and joints, and an overall decrease in the risk of disease. But it also helps your mental health by keeping your brain active, improving your mood, and reducing symptoms of depression. With so many potential benefits of walking as you age, it’s important to make sure that you stay in shape and do it regularly. So what’s the best way to get started?

Improve mood

Exercise can help boost brain chemistry that helps elevate mood. When people take a daily walk, they will see positive changes in their mood very quickly. Researchers measured depression in men with mild to moderate depression who had recently taken up daily walking for at least 30-45 minutes. They discovered that as little as six weeks later, participants reported feeling less sad or blue and were better able to control negative thoughts about themselves.

Reduce Risk of Chronic Diseases

Walking is a great way for seniors to reduce their risk of disease. The CDC reports that 70% of people who suffer from chronic diseases like heart disease, diabetes, cancer, osteoporosis, or depression are physically inactive. And exercise like walking can reduce the risk of these conditions and lower your mortality rate by 30%. Walking is a great low-impact exercise for everyone. Walking every day reduces the risk of chronic disease and leads to higher self-esteem and better mental health. Staying active in later life helps seniors maintain an active social life too!

​​Helps Maintain a healthy weight

As we age, our metabolisms slow down. While weight gain is a natural part of aging, seniors are more likely to become overweight or obese because of inactivity. Luckily, though, staying active can help your body maintain a healthy weight even as you get older. Physical activity helps burn calories, and muscle tissue breakdown slows down. Keeping yourself in shape is just one way that walking can make an impact on your health—it can also improve your heart health by lowering blood pressure and cholesterol levels. Maintaining a healthy weight will reduce your risk of diabetes, hypertension, heart attack, and stroke.

Live a longer life

There are a lot of reasons to walk for health. A meta-analysis of almost 200 studies showed even more impressive benefits; it revealed that every half hour spent walking each day cut mortality risk by 4%. A 2014 review focused on walking as exercise among seniors found that regular physical activity can significantly reduce all-cause mortality. Other studies have shown that regular walking can improve sleep quality and minimize depression—both things we should be concerned about as we age. In short, taking walks every day could help us live longer, healthier lives.

Mary and Martha’s Personal Care is committed to improving the quality of life of their seniors. Walking is one component of helping seniors live a healthier lifestyle. For further information, please call Mary and Martha’s Personal Care at 706-866-7454 or visit maryandmarthaspersonalcare.com.

An Old Scam with A New Twist

Pastor Jones called our office, upset that he had received a call from “the IRS.”
The individual who had called him told him that the IRS had deposited a refund into his bank account in error and that he needed to forward that refund to them immediately.
The Pastor checked his bank account to discover an actual deposit had been made, but how could the IRS deposit to his account in error when he had not given his bank account number to the IRS?

Potential Cyber Scams Are Not New

What had happened to Pastor Jones was nothing but an old tax scam with a new
twist. For years, innocent people have received calls from someone claiming to be from the Internal Revenue Service (IRS). Some of these calls have threatened the individuals with impending warrants for their arrest due to money the caller claims the individual owes the Federal Government.

Because we provide Church Management Counsel to Pastor Jones and his church, we immediately researched the issue and discovered that someone had fraudulently obtained his bank routing and account number. The scammers then filed a false claim with the IRS and deposited it into Pastor Jones’ account. They intended to get Pastor Jones to access the money, send it to them, and they would be free and clear while Pastor Jones would have ended up with a bill for the claim from the IRS plus penalties and interest.

What Everyone Should Know About Tax Scams

Please be aware that the IRS will not call anyone and tell them that a warrant is issued. As a matter of fact, if you will call back to the number they provide and call their bluff, they hang up immediately. As for the new twist on the scam mentioned above, IRS spokesman Eric Smith provided us with the following steps to take should anyone receive a call similar to Pastor Jones.

Mr. Smith suggested that no one return calls to the scammers, and we agree. We know our business, so we did this to bait the scammers. That is why they immediately disconnected.

Appropriate Steps to Take

If money that you were not expecting was deposited into your account from the
IRS, you should take the following steps:

  1. You will need to return the money—just do not return it to those who have called
    you.
  2. Close your bank account and contact your tax preparer.
  3. To return the fraudulent refund, go to www.irs.gov and search for “Topic
    Number: 161—Returning an Erroneous Refund—Paper Check or Direct Deposit.”
    Then follow the steps provided in that article.
  4. If it was deposited into your bank account, contact the “Automated Clearing
    House” (ACH) department of your bank. See if you can have the deposit returned
    directly to the IRS. You must also call the IRS to explain why the refund is
    returned. Individuals should call 800-829-1040. If you are a business, call 800-
    829-4933.
  5. If the erroneous refund came to you as a paper check, write “void” on the back
    where you would normally endorse it. Then send the check to the IRS location
    based on the city listed on the refund check. Include a note explaining why you are
    returning the refund. Make a copy of the check and return the original via
    certified mail to be on the safe side.
  6. It is imperative that you return the money as soon as possible. By law, interest
    may have accrued on the fraudulent refund.

Mr. Smith further advised that these types of scams are another reason why no
one should procrastinate in filing their tax returns. If you have fallen for a tax scam, read the IRS’ “Taxpayer Guide to Identity Theft” at www.irs.gov.

Why You Need Us in Your Corner

Chitwood & Chitwood is the number one Church Management and Accounting firm in the nation. With 80 years of experience, we are savvy to everything that Churches and Clergy may encounter.

We file more Ministers’ Income Tax Returns than anyone and get Ministers back an average of $2000 more than other firms. The reason is we have been doing it longer, and we know Ministers’ benefits that others do not know.
We encourage you to contact us if you have not filed your return or if it has been prepared, send it to us for review before filing it. We will review it to see how much we can save you.
At our live Conferences all across the nation, we cover this and many other topics
that every Minister and Church Leader should know. To register for an upcoming Conference, visit us at www.cmtc.org or call 800-344-0076. It will be the best investment you and your Church can make this year.