Posts Tagged rick rusaw
By Allen White
[Dear Readers – Do you ever have thoughts that you can’t get away from? For a few years now, I have almost resisted writing about some things that have been stirring deep inside me. Also, over that time period, a number of events as well as ministry startups in various sectors have confirmed many of the things I’ve been sensing. Over the next month or so, I will post some of these thoughts. What I am writing should not be taken as an indictment of any ministry or methodology. I am sincerely inviting you to wrestle with some things I’ve been wrestling with. I would appreciate having you join the conversation.]
Megachurch, as we know it, is not the future. In an increasingly secularized society, the tolerance for more “big box” churches will decrease. Churches are already viewed by municipalities as heavily reliant on city resources, yet do not pay taxes. In fact, some of their prime locations could generate more revenue as a Costco. I foresee zoning as a continual obstacle.
Speaking of taxes, while I don’t see tax deductions for charitable contributions disappearing, the new tax law makes most people’s charitable contributions irrelevant in regard to their taxes. Since the standard deduction has increased to $24,000, for many households their mortgage interest, charitable giving, and medical expenses aren’t going to top that amount. Now, I’m not a CPA, but the math is pretty simple to pencil in. If giving no longer offers a tax advantage, then how will giving be impacted? If giving decreases, then what happens to capital campaigns and building projects?
Then, we could go back and ponder the question asked by Rick Rusaw and Eric Swanson in The Externally-Focused Church (Group Publishing 2004): If your church disappeared from your community would you be missed? Does your community rely on your church? Do you pick up the slack where government services lack? Can you serve the under-served in your community? Or, does your building provide a meeting place for weekend gatherings, then sit empty the rest of the week?
The climate is changing. I haven’t even mentioned those churches who are fighting a culture war that’s already been lost. I also didn’t bring up a moral majority that’s become an oxymoron.
The strategies that served us well over the last 25 years are not going to do the same in the next 25 years. It’s time for a shift.
The “hero” in any church is the member, not the pastor. The best representation of the impact and ministry of the church is the individual member. Members will determine the effectiveness of the church’s outreach. While churches can have a great location, in the churches I’ve served, we found that less than 2 percent found their way into our church from merely passing by. About the same went for paid advertising, social media, or other forms of advertising. How well does your church make disciples? There is nothing more attractive than a believer whose life has been transformed inviting a friend who’s noticed their life change.
When you look out at your congregation on Sunday morning, do you see an audience or an army? If it’s an audience, then they need to be entertained. The concern is over comfort and convenience. If you perform well and offer a good experience, then the hope is they will return.
But, if you see them as an army, that’s a different story. Your army needs to be equipped and empowered to serve. They don’t need to be catered to. They don’t need to be fretted over. They need marching orders. They need permission and opportunity to live out what God has called them to do.
The focus changes from gathering to scattering. For the last 25 or more years, we have gathered well, but scattered poorly. It’s time for a change.
Flexible, Unrestricted Gatherings
About six years ago, in a conversation with Josh Surratt, Lead Pastor at Seacoast Church, he mentioned a family from their church who had moved to Maine. Every Sunday morning, they gathered with about 40 friends and neighbors in their living room to watch the service at Seacoast together. My immediate reaction, “Well, maybe it’s time to redefine a ‘campus.’”
Conversations like this led to the idea of microsite churches. In my initial brainstorming with my friend, Brett Eastman, we imagined smaller communities or places where multisite churches wouldn’t build a campus. What if the service via steaming video was brought into homes, restaurants, or smaller meeting places to serve these areas? The microsites would rely on unpaid staff to manage them, but with connection and support from larger organization.
One of the first places we saw develop these microsites was NewSpring Church in South Carolina. They took a little different spin on the idea by using “houses campuses” as a trial balloon to determine whether a community could support a viable multisite campus eventually. It was essentially planting a multisite campus with a less expensive, less risky trial run. We also interacted with the folks at The Rock Church in San Diego, who had heard from people who were not comfortable walking onto their main campus on Sunday morning. So, they multiplied 50 microsites in venues where these folks felt more comfortable gathering. This included bars, night clubs, and other locations. Read more about the early days of microsites.
By developing a microsite strategy with online video and support, there is no limit to a church’s potential to reach any community that can provide someone to pioneer the work. Once the strategy has created a unit of one, then the sky’s the limit. Locations can easily be rolled out in same language communities or translated into other languages and cultures. Potentially, these flexible, unrestricted gatherings can multiply without church-owned property or paid staff. As long as their kept small and taught to multiply, securing larger gathering spaces is unnecessary.
Meaningful, “Volunteer” Ministry
I hate the word “volunteer,” but it’s the word everyone uses, so here we go. With the congregation as an army, the key to deploying the army is gifts-based ministry. God has gifted and called every believer to fulfill his or her mission on the earth. Calling is not limited to clergy. Ministry is not limited to paid staff. For all intents and purposes, the only difference between “volunteers” and paid staff is the source of their income and possibly their availability.
If the church fully embraces the concept of the priesthood of believers, then it can accomplish far more than what it’s currently doing. The key is to champion the member, help them discover their spiritual gifts with a tool like Network, and to support and deploy them as they do the work of the ministry. When believers are operating in their gifts and abilities, empowered by the Holy Spirit, and supported by their pastors and churches, they are unstoppable. They find meaning and purpose beyond what anything else can provide. And, the church functions as it should.
I led the gifts discovery and deployment process at a church I served for 15 years. Every member who attended a discover your ministry type class met with me for a post-class interview. I was always amazed at what people aspired to do and how God had equipped them. In fact, I even identified my future wife this way!
Our church reached a point where we only started new ministries out of these conversations following the gifts discovery class. Some of these ministries, we heard about from sources in the community because our people were serving based on their gifts and hadn’t told us what they were doing. That thought just makes me smile.
The church burdens many of its members with meaningless ministry – parking lot attendants, greeters, coffee servers, and so forth. Potentially the worst staff position in any church is the “guest services coordinator,” because this person must constantly hustle to fill vacant spots every weekend of the year! Why? Because no one is called to this. (Feel free to argue in the comments, but read on).
Yet, believers rise to the occasion in gifts-based ministry. Pastors – do you want your members dragging themselves out of bed to serve or jumping out of bed to serve? The difference is organizing ministry around spiritual gifts rather than filling slots.
Microsites are easier to multiply than megachurches. Microsites don’t require church-owned property, elaborate budgets, or guest services. As someone is welcomed into a member’s home, isn’t that the only guest services needed?
What about training? Who can be trained more quickly – a pastor or a location host? No location host to date has been required to earn a Master of Divinity first.
Most churches will never have the budget, paid staff, or buildings to accomplish what God has called them to do. Well, that’s if we look at the church as an institution. But, in viewing the church as the body of Christ, there is millions of dollars worth of property in the homes of the church’s members. The “staff” originates from gifts-based assessments. There might be a few expenses, but really no budget.
As it becomes harder to fill and maintain the big box church, there are viable options. Examples like the Tampa Underground (tampaunderground.com) are worth considering. After 10 years of developing their model, they are now sharing their learnings with others.
The future of the church is bright, but it is different. While previous models of ministry have served us well, it’s time to reconsider our strategies and redefine our ministries.
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.