Posts Tagged rick rusaw
I sat down recently with my publisher, Hendrickson Publishers, for a live interview about Exponential Groups. Well, my part was live. Their part was in print, so I have to basically interview myself. I hope you enjoy this and hear my heart for equipping and empowering our people to lead groups. The video is 15 minutes, but if you want to skip around, I’ve listed the questions below along with their time stamps.
- What is your background? (0:00)
- Who is the audience for Exponential Groups and what is the book about? (0:50)
- What has made you so passionate about expanding churches’ small groups? (1:45)
- What do you think is the biggest factor hindering churches from successful group-making? (2:47)
- What advice would you give to someone who would like to start a small group but doesn’t want to be considered its “leader”? (3:45)
- What are ways that a church can be creative in its approach to creating groups? (4:35)
- In chapter 1 you mention that a desire for control will hinder the growth of groups. For those who haven’t read the book yet, what are some other examples of factors or mental blocks that typically hold groups back from their potential to expand that you discuss in Exponential Groups? (5:42)
- What’s the best piece advice you’ve received about small groups? (8:02)
- What’s a sticky situation or failed plan that you have learned from? (9:15)
- What projects are you working on now or have planned for the future? (11:05)
For More Information on:
The Neighboring Church: theneighboringchurch.com
By Allen White
Steve Merriman is the CEO and Enrolled Agent at Clergy Advantage, Loveland, CO. Steve has worked with ministers and churches for 40 years and works with over 6,000 ministers including Rick Warren, Saddleback Church; Rick Rusaw, LifeBridge Christian Church; Tim Harlow, Parkview Christian Church; and Nelson Searcy, The Journey Church. You can connect with Steve and his staff at clergyadvantage.com.
Q1. Now that everyone is in a festive mood and ready to celebrate the birth of our Savior, let’s talk about taxes. With just a few days left in the year, what can pastors do right now to reduce their taxes for 2016?
Ministers can save a considerable amount by reviewing their housing allowance designations to make sure it’s adequate. The rule of thumb is to make it higher than what you think you’re going to spend. If you spend more than the designation on housing, you’ll lose out on big deductions.
Other ways to save and reduce tax liability before the end of the year would include contributions to an HSA or a retirement plan. Probably the easiest way to save is through a charitable contribution. As long as the check or credit card date is in 2016, you get the deduction in 2016. People are allowed to give cash contributions up to 50% of their adjusted gross income. Any excess contributions can carry over for 5 additional years.
Q2. Ministers’ taxes are not like anybody else’s taxes. What makes ministers’ taxes so unique?
There are four unique tax rules for ministers’ taxes:
(1) Ministers are completely exempt from all payroll tax. The minister (not the church) is responsible for taxes. Ministers can enter into a voluntary withholding arrangement with the church, but this is matter of convenience, but not a requirement.
(2) Ministers are entitled to a housing allowance exclusion. The amount designated for your Housing Allowance can have a dramatic impact on your tax savings. As I said before, the minister wants to set the housing allowance higher than what they plan to use in case of unforeseen housing expenses or repairs. If a portion of the housing allowance is not used for housing, then that amount will be taxed as regular income.
(3) Dual employment status – Ninety percent of ministers are considered common law employees for state and Federal income tax, but are deemed as self-employed for social security tax. Minister receive a W2 which reports their income, but they have to pay self-employment tax on the income.
(4) Opting out of social security on ministry income. Ministers for religious reasons are allowed to opt out of social security. This is a decision that must be made early on in their ministry.
There are many ways pastors can receive what we call “Tax-Free Money.” For an overview of these strategies, take a look at the “Tax-Free Money for Ministers” video on the website.
Q3. What could pastors do to save taxes in 2017 that they might not be doing now?
Ministers should implement an Accountable Reimbursement Plan for ministry income. There are huge advantages. If you utilize it correctly, you get all of the ministry expenses off the tax return and it reduces your chance of audit. We offer a free 20 minute webinar on high points of an Accountable Reimbursement Plan: Click Here for More Info.
The key is in the implementation of the accountable plan. Other than automobile, the single biggest item is human expenses, including expenses of entertaining members or prospective members in the minister’s home. There is a significant key to church growth in personal entertainment, which can be reimbursed. If minister deducts these expenses on a tax return, the minister only gets a 50% deduction, but if they are reimbursed by the church then it’s a 100% savings. This strategy also reduces social security expense.
Q4. How can a minister’s salary structure give an advantage at tax time?
How the minister’s pay package salary is structured plays a big part in the overall tax savings. A Common mistake in the church is to equate “package” and “pay” as the same. They are not! The minister’s “take home” pay that is available to provide for the minister’s family is not the same as the total pay package. The tax treatment of expenses, pay and benefits is different in the church from the business world. Clergy compensation itself is quite different from employee compensation in the business world. These are “apples” to “oranges” comparatives.
A properly structured pay package will frequently be more impactful to savings taxes than how the tax return is completed.
Q5. I just received a notice from Clergy Advantage about the mileage deduction being reduced from $0.54 to $0.535 in 2017. How can church staff keep up on changes like this?
Q5.5. With a new Congress and President in 2017, what are your predictions for any changes that might affect pastors and their taxes?
Going into my 40th tax season, I’ve learned to differentiate between talk and what is actually legislated. Best to wait and see what will actually be legislated.
By Allen White
One year ago after following a nudge from the Holy Spirit, which felt move like a shove, my wife and I formed our own coaching organization. It was a big step. After working for two churches and then two stints at Lifetogether Ministries with Brett Eastman, it was time to go out on our own. And, what a year it’s been!
Exponential Groups, my first book on small groups, will be released on February 1, 2017 from Hendrickson Publishers. Writing this book was something I just felt compelled to do, even if my mom is the only one who reads it. It’s the stories and best practices from the over 1,500 churches I’ve coached and the two churches I served on staff. Why Exponential Groups? When we recruit individual leaders, we grow by addition. When we train apprentices and “birth” new groups, we grow by multiplication. When we engage our entire congregation in the Great Commission, we grow exponentially. You can preorder Exponential Groups at Christianbook.com, Amazon, Barnes and Noble and other online outlets. Hint: The book is $5 cheaper at Christianbook.com (my publisher owns it). (Download the first chapter Here). But, this isn’t the best part.
I have the privilege of coaching some of the great churches across North American and helping them grow their groups exponentially. Here is a partial list of churches I’ve worked with in the last 12 months in various ways.
Coaching Groups — 19 Churches including:
C4 Church, Ajax, Ontario
Christ Tabernacle, Queens, NY
Discovery Church, Orlando, FL
Eastlake Church, Chula Vista, CA
Manna Church (ARC), Fayetteville, NC
Next Level Church (ARC). Ft Myers, FL
Peninsula Covenant Church, Redwood City, CA
St. Johns Lutheran Church (LCMS), Orange, CA
The Branch Church (COC), Dallas, TX
Victory Worship Church (AG), Tuscon, AZ
Ward Church (EPC), Northville, MI
Bayside Community Church (ARC), Bradenton-Sarasota, FL
LifeBridge Christian Church (ICC), Longmont, CO
St. Matthew Catholic Church, Charlotte, NC
Allison Park Church (AG), Pittsburg, PA
Bethesda Pentecostal Church, St. Johns, Newfoundland
Mariners Church, Huntington Beach, CA
The Rooted Network, Mariners Church, Irvine, CA
Venture Church, Los Gatos, CA
Online Courses including:
Love of Christ Church (ARC), Bear, DE
Overlake Christian Church, Redmond, WA
Salem Lutheran Church (LCMS), Tomball, TX
The Life Church, San Angelo, TX
Thousand Hills Church (AG), Corinth, TX (Leader Retreat)
Georgia District Council (AG), Macon, GA (Pastors’ Conference)
Chip Ingram and Living on the Edge (multiple projects)
Doug Fields and Intentional Parenting (Discussion Guide)
Lutheran Church of the Atonement (ECLA), Barrington, IL
Kingdom Life Church, Baltimore, MD
Wow, when I stop and look at the list, I realize it truly has been an amazing first year. I also serve churches in some low cost ways:
My Blog: allenwhite.org
We’ve had a great first year and have seen great progress in the churches we have served. My hope in the coming year is not only to help more churches grow their small groups, but also to help more churches grow their people. In the Great Commission, Jesus charges every believer with the responsibility to “Go and make disciples…teaching them to obey everything I have commanded you.” The word we are keying in on for 2017 is “obey.” Jesus didn’t tell his disciples (including us) to “teach them…everything.” He commanded us to “teach them to obey everything.” An obedient church is a growing churches. Priorities will change. Chains will fall off. Communities will be transformed. Believes will be empowered. New leaders will come out of the woodwork. Without building another building or hiring another staff member, we can change the world.
Thanks to all of you who’ve allowed me to play in your sandbox and have taken this work seriously. You and your church will never be the same.