Blog Archives

Your Church and Natural Disasters—Part II

9/19/2017

I began this blog in a previous post and would encourage everyone to read Part I prior to reading this conclusion.

When a disaster strikes a community, be it a hurricane, tornado, flood, etc. Churches desire to be a shining light and help anyway possible. However, every Church cannot do everything and each Church and Pastor should carefully develop a plan of assistance should the need ever arise.

During hurricanes, floods, tornados, etc. people often look to local Churches as potential shelters. Just because your Church has the space does not qualify it as a shelter. A lot of thought and consideration must factor into whether or not your Church can successfully operate in a relief shelter capacity.

Dealing with the Loss

When you take into consideration the huge loss and add it to any emotional, personal, and physical toll of any major storm, the needs of the community and the Church can easily escalate to gargantuan proportions.

I toured an area struck by massive tornados several years ago. The small town looked like a warzone. Many residents were not even able to locate their homes. Those that did were overwhelmed by the unrecognizable condition in which they found it. With that said, how should a Church proceed in dealing with any personal or community loss?

Sometimes It Is Better to Donate than Provide

Often, Churches will get overzealous in their desire to help a community by wanting to start their own relief effort. This can be a major mistake for the Church.

The Church may not have the heartbeat of the particular community as to what the needs are. Don’t rush to purchase water, conduct clothing or food drives, etc. By the time you collect what you desire, that community may have an over-abundance of that item and any that you would take would simply be surplus.

What I will suggest may seem cold-hearted or calloused by some reading this blog, but I would suggest that your Church donate the money the members would spend on things like water and paper towels, to a credible relief agency. My personal choice is the Salvation Army because a huge majority of donated funds to them actually make it to the cause and is not swallowed up in administrative overhead.

These organizations are experienced in disaster relief and know where to best channel funds and supplies, while limiting waste.

If you choose to send supplies rather than money, do due diligence to discover what supplies are most needed by the reputable relief agency.

Your members are probably not qualified in disaster preparedness and relief. Therefore Church people that attempt to become one are usually more in the way than they are a help.

Do What God Called You to Do

In times of crises and disasters, people need emotional and spiritual help and support. It is easier to provide physical needs than emotional and spiritual. All too often we rush to provide the physical, while the spiritual and emotional needs starve.

This is not a time to “ram the Gospel” down someone’s “throat.” They need to know and feel that someone cares and that they are loved. One of the most helpful things Church members can do in a crisis is demonstrate the unadulterated love of Jesus.

Inform your volunteers in this area, not to take things personally. Remember, people are suffering tragic loss and most have had to tell their story until they may be tired of telling it. If they lash out at you, be kind, understanding, and don’t take it as a personal assault against you or your Church. Have some of your volunteers trained to recognize the difference between normal stress and grief, and that which is abnormal and unhealthy, and respond accordingly.

Worship Services

You are a Church and your specialty is the spiritual. It is acceptable and needed to conduct Worship Services to pray for those who are affected. One of the best ways to help the grieving find the path to recovery is through worship. Even if your Church facilities are damaged, find a way to offer this need.

Be sensitive to the grieving in attendance. This is not the time to try to raise an offering. Many who attend may have lost everything. Do not place them in an uneasy position which will be created by an offering plate shoved in their face.

This is Why You Need Us

As the premier Church Management Firm in the nation we know what others do not. That is why it behooves every Pastor and Church Leader to attend a Church Management Conference. To register for a seminar nearest you, call 800-344-0076, or visit us online at www.cmtc.org. This will be the greatest investment you can make for you and your Church.

Every crisis and disaster is an opportune time for the hurting to see the Jesus that you preach about every Sunday. Let them see Him!

By Dr. Michael Chitwood

Your Church and Natural Disasters—Part I

9/14/2017

When a disaster strikes a community, be it a hurricane, tornado, flood, etc. Churches desire to be a shining light and help anyway possible. However, every Church cannot do everything and each Church and Pastor should carefully develop a plan of assistance should the need ever arise.

During hurricanes, floods, tornados, etc. people often look to local Churches as potential shelters. Just because your Church has the space does not qualify it as a shelter. A lot of thought and consideration must factor into whether or not your Church can successfully operate in a relief shelter capacity.

Things to Ponder Before Offering Your Church Facilities

Space is only a minor factor in the equation. Some questions the Pastor and Church Leaders should discuss are:

- How much Kitchen and Storage Space is available?

Is the kitchen of your Church sufficient to cook the food necessary to feed those whom you plan to shelter? Are the appliances capable of handling the task (Many Church Kitchens use residential appliances which will not handle the necessary load demanded by a crowd)?

Do you have ample storage space, including refrigeration and freezer capacity to store enough food and supplies to service the residents?

- Do you have a sufficient number of volunteers?

Everyone wants to help initially, but offering your location as a shelter can require days or even weeks. Most of those who volunteer will quickly lose interest and motivation. This will then over-burden those who stick to their commitment. Without an abundance of volunteers to give each one ample down time, you are fighting a losing battle.

- What about restroom facilities?

Most Church plumbing is designed for occasional use—i.e. Sundays and a midweek service. It is best to check with your water and sewer providers to ensure this will not be a problem. If your Church is on a septic system you will need to check with your county’s environmental department to ensure the septic system and leach field can handle the drainage. If not, then you will need to secure some portable sanitation units, including hand-washing stations (make sure these units can be serviced as needed by the vendor).

- A final question that must be addressed is, “How will Church members handle the stress and damage that is done to its pristine Worship Facility?”

Many Church members sacrificed to build or pay for the facility they call their Church. As much as we want to convince ourselves that in a time of disaster everyone would think of the displaced first, this is not the case. Years of pastoral experience and dealing with Church membership has taught me that everyone looks at things through different filters.

It is difficult for those who have struggled financially to help build and pay for a Church, to sit quietly and watch it destroyed, or at the least suffer damage, while housing those who are there for a few fleeting days and will never offer to help bring the facility back to its pristine condition. This has caused many Church fights and splits and your Church will be no different. Make sure all members understand and are okay with the fact that the facility will be damaged (often significantly) while operating as a relief shelter.

Liability Concerns

It is hard to imagine people whom you are helping would sue you, but DO NOT underestimate people and ambulance chasing attorneys. I have seen Church members sue their Church. If members will do it, you know strangers will.

Is your Church Liability Insurance Policy sufficient to handle the amount of liability that sheltering displaced persons could impose? Those who are using your facility for shelter will be in a crowded situation. Tempers will flare; accidents will happen; since there is no way to screen those who show up, the possibility of sex-offenders preying is probable.

All of these concerns are liabilities to which the Church Leadership must satisfactorily address before offering to open their facilities as a relief shelter. When helping others harms you, you need to take a moment and re-evaluate.

This is Why You Need Us

As the premier Church Management Firm in the nation we know what others do not. That is why it behooves every Pastor and Church Leader to attend a Church Management Conference. To register for a seminar nearest you, call 800-344-0076, or visit us online at www.cmtc.org. This will be the greatest investment you can make for you and your Church.

Look for Part II of this blog for more information you need to know before opening your Church as a relief shelter.

By Dr. Michael Chitwood

What If Your Church Had to Close for A Few Services

9/12/2017

During late Summer and into the Fall, our nation, especially on the east coast and Gulf states, are subject to some violent hurricanes. Many remember, Andrew, Hugo, Katrina, and Harvey, just to name a few. Our Midwestern states face constant tornado threats that could devastate a community within a few moments and northern states face harsh winters with record snow falls.

During some of these crises, Churches have been among those who experience destruction, or at the least, extended closure. Every Church needs to develop a plan they can initiate in the event of a catastrophe. This is not a lack of faith—it is common sense. The Psalmist David had faith God would deliver Goliath into his hands, but David still loaded and fired his weapon.

Church Closure

One of the biggest fears of a Pastor is that of Church closure. Pastors dread calling off a Sunday Morning service due to inclement weather such as a snow fall, hurricanes, or for any other reason because of the financial implications. You can imagine the fear some Pastors encounter when faced with an extended closure due to flooding from a hurricane or major destruction from a tornado?

To help alleviate disruption, Churches should create a special voicemail box or “Phone Tree” to alert their members and those seeking comfort as to any closures. Another avenue of contact could be the Church website (which every Church should have, regardless of size). Pastors should establish an emergency contact flow chart in the event of limited power availability. They could contact those key leaders closest to them and they in-turn could contact those in their circle of influence. With each leader and Church member contacting those in their sphere of influence it would not be long before everyone of concern was notified.

The Pastor and someone he or she chooses should be the contact person for TV and radio Public Service Announcements (PSAs). Every local TV and radio station will freely broadcast Church and business closures due to weather-related or other catastrophic issues. Use them.

Limiting Financial Losses

One of the biggest reasons Pastors do not want their Church to close on a Sunday Morning is because of finances. Giving to the Church—tithes and offerings—are an “out of sight, out of mind” issue. Many Christians, who give their tithes and offerings, do not if they are not in Church on any given Sunday. Unfortunately, the bills still come due and must be paid. Since many Churches live Sunday to Sunday in their finances, they cannot afford a Sunday without income.

To migrate through a closure, whether one Sunday or an extended time, Pastors can alleviate some of the financial headaches with a few simple actions.

- Teach the congregation the spiritual and natural importance of giving.

The Pareto Principle is unfortunately alive and well in the Church. Eighty percent of the congregation enjoys the ministry of the Church and the positive impact upon their lives, but only twenty percent carry the financial burden.

Every Pastor should teach tithing on a regular basis. And for those of you who think tithing stopped with the New Testament, you should re-study the Scriptures. Tithing is found from Genesis through Hebrews. You are hurting your congregation when they do not understand the Biblical and natural importance, implications, and benefits of tithing. Without all members tithing and giving in freewill offerings, ministry is greatly restricted.

- Set up and teach electronic giving

Smart Phone giving apps are available in addition to online via the Church’s website. This is a great tool that can be used by members when they are on vacation, sick and unable to attend service, and for times of catastrophe when the Church must be closed due to weather or tragedies.

Do not be afraid to encourage your people to give via text or online. Many Churches receive the bulk of their tithes and offerings through vestibule kiosks, and cell phone texts during the service. Those same Churches experience much less interruption in finances when people are unable to attend.

Why We Do What We Do

Hardships come to everyone occasionally. The difference between successful Churches and those who struggle is how they deal with them.

Chitwood & Chitwood has been the ultimate Church Management firm in the nation for more than 78 years. At our Church Management and Tax Conferences across the nation we teach valuable information and make available numerous resources to ensure the Church does what it is called to do with little interruption—minister to the lost and hurting.

Every Pastor and Church Leader is encouraged to attend a Church Management and Tax Conference near them. To register for the conference nearest you, call 800-344-0076, or visit us online at www.cmtc.org. This will be the best investment you can make for your Church during these uncertain times in which we live.

By Dr. Michael Chitwood

IRS AUDITS AND THE CHURCH

9/7/2017

Traveling across the United States conducting Church Management and Tax Conferences, I am amazed at those who think that somehow the Church is exempt from any intrusion by the Internal Revenue Service (IRS). Some arguments are made by unknowing Clergy and Church Leaders who think that “separation of Church and State” is a constitutional issue. Then there are some who feel that the Church Audit Procedures Act (CAPA) of 1984 made it virtually impossible for the IRS to intrude into Church financial matters. Let’s look at each to demonstrate exactly why each no longer offers protection to a congregation.

“Separation of Church and State”

The term “separation of Church and State” does not appear in the Constitution of the United States. It first appears in a letter written by Thomas Jefferson dated January 1, 1802. This letter was addressed to the Danbury Baptist Association in Connecticut and was published in a Massachusetts newspaper. The actual wording by Jefferson was:

I contemplate with sovereign reverence that act of the whole American people which declared that their legislature should “make no law respecting an establishment of religion, or prohibiting the free exercise thereof,” thus building a wall of separation between Church & State.1

The words in quotation are from the 1st Amendment of the Constitution. The problem we have is the ideology of politicians and the Federal Courts. Although Conservative politicians hold to the definition of the 1st Amendment to be as Jefferson explained in his letter, Liberal politicians and Liberal courts take the opposite stance. While Conservatives long for the input of the Church into the operation of the Government while strictly limiting any Government intrusion into the Church, Liberal politicians and courts reverse it—they want Government intrusion into the Church world while strictly limiting any spiritual influence of the Church into Government affairs.

Therefore, it is foolish for Pastors and Church Leaders to think there will not be any Government regulations that allow for the IRS to be a watchdog of Church financial

matters—especially in our current Church climate where there is abuse by Pastors and Church Leaders in this area.

Church Audit Procedures Act

This act passed by our Legislature demanded that a high ranking IRS official must approve an audit of a Church and only after a report of suspected financial abuse or violation of federal laws. One major problem with that law was the official level for approval remained proportionately low in the IRS ranking and only suspected abuse or violation was necessary.

Many Churches were still audited, ministers imprisoned, and Churches closed since its implementation. But, we now have another problem.

Affordable Care Act (ACA)

Many people thought that Obamacare was about giving insurance to those who were without. Although, many did get insurance, and still do under the ACA, the Government had an ulterior motive. Normally health issues and programs would be addressed and administered by the Department of Health and Humans Services. This did not happen with the ACA.

Our legislatures, under the direction of President Obama, placed ACA under the direction of the IRS. Why? The answer is simple. The IRS needed an avenue to get into Churches without fighting red tape that may present itself due to CAPA.

Within the 2000 plus pages of the ACA there is a clause that stipulates that any person or organization covered by ACA is subject to random audits. Any organization with at least one employee is subject to it. Even though it does not have to provide insurance for the employee, there are still reporting requirements. This includes Churches.

That means that any Church is subject to an ACA random audit. Once the random audit begins all the IRS needs to is see something that they deem suspicious, or for the Church to answer one of their questions inappropriately, and the audit will deepen into a full-blown audit of the Church finances.

It Doesn’t Have to Happen to Your Church

For more than 79 years Chitwood & Chitwood has been the premier firm in America in the area of non-profit IRS issues and Church management. Conducting about 100 Church Management and Tax Seminars each year across the United States, we teach Pastors and Church Leaders what they need to know and how to avoid becoming a target for the Internal Revenue Service.

It would behoove every Pastor and Church Leader to make it their number one priority to attend one of these conferences in upcoming weeks. It will be the best one-day investment you and your Church will ever make.

To register for a conference near you call 800-344-0076, or visit us online at www.cmtc.org. Every day you procrastinate could put you one day closer to the IRS knocking on your door.

1 Jefferson, Thomas. Jefferson’s Letter to the Danbury Baptist: The Final Letter, as Sent. The Library of Congress Information Bulletin: June 1998. Lib. of Cong., June 1998. Web. Aug 7, 2010.

By Dr. Michael Chitwood

Everyone Pays

9/5/2017

Many years ago there was an oil filter commercial that used the statement: “You can pay me now or you can pay me later.” The theme was that if you got the oil changed regularly in your automobile and used the Fram oil filter, it would save you major repair bills later. The premise being that it was much cheaper to pay $15.00 for an oil change and new oil filter than to pay hundreds of dollars for major engine repairs.

The Same Rule Applies to Your Church

The Internal Revenue Service is changing rules and regulations daily and most Churches have no clue as to how the new regulations and laws affect them. Would it not be better for a Church to spend a couple of hundred dollars each year to learn the changes and stay in compliance than it would be for the IRS to show up at your door and your Church be penalized thousands of dollars and possible prison time for the Pastor and Church Leaders?

Unfortunately, most Churches would rather “roll the dice,” save a couple of hundred dollars, and pray that the IRS does not catch them in their violations. The Apostle Paul admonished Christians to obey the laws of the land in Romans 13:1-6, yet many Churches purposely and knowingly violate IRS regulations every week.

God Cannot Bless A Mess

If God sanctioned or blessed something that was illegal, He would be less than God. I understand that Apostle Peter said, “We ought to obey God rather than man,” but that statement only applies when the laws of the land violate or contradict God’s Word. Nothing in the IRS code violates or contradicts God’s Word. Therefore we are commanded to obey those regulations or we are in rebellion to Scripture.

When the Children of Israel went to war with the city of Ai they were soundly defeated. Their demise was contributed solely to one man violating God’s command. Everyone was told to touch nothing in the city of Jericho because God commanded that everything in that city be destroyed. Achan took a wedge of gold and a Babylonian garment. His rebellion was considered by God as if the whole nation rebelled. Innocent men of Israel died in the battle of Ai simply because one man thought he could disobey God and no one would ever know.

Pastors and Church Leaders, how many people in your congregation are suffering because you did not feel it necessary to obey God’s Word which demands that you obey the laws of the land? All of those IRS violations that are committed in your Church every week are not unnoticed by God. Could it be that your Church and many in your Church are struggling because you feel that no one will know you are operating against the laws of the land?

We Can Help

Chitwood & Chitwood is the premier Church and Clergy tax expert in the nation. We are experts on the IRS and even know many of the laws before they are released to the public. Every year we crisscross this nation teaching Church and Clergy tax seminars to keep Churches abreast of IRS regulations. To attend one of these seminars is $99.00 plus a workbook.

At these conferences you will be shown how we can get your Church in compliance with the latest IRS laws and bring it into proper financial order. God demanded good stewardship in Scripture. No Church is a good steward of God’s money when they purposely refuse to learn the IRS regulations which apply to a Church, the Pastor, and Church Leaders. Could it be this is why so many churches seldom exceed 70 in attendance? Could this be the cause as to why so many churches struggle financially?

I would encourage every Pastor and Church Leader to attend the next Church Management and Tax Conference closest to their location. To register, call 800-344-0076 or visit our website at www.cmtc.org. Everyone pays; it is just a matter of when. You will pay a small amount to learn the new IRS regulations and how to get your church in compliance, or you will pay heftily in the form of IRS penalties, including possible prison time.

Act now. Once they show up at your door it is too late.

Your Church and Natural Disasters—Part II

Dealing with the Loss

Sometimes It Is Better to Donate than Provide

Do What God Called You to Do

Worship Services

This is Why You Need Us

By Dr. Michael Chitwood

Your Church and Natural Disasters—Part I

Things to Ponder Before Offering Your Church Facilities

Liability Concerns

This is Why You Need Us

By Dr. Michael Chitwood​

What If Your Church Had to Close for A Few Services

Church Closure

Limiting Financial Losses

Why We Do What We Do

By Dr. Michael Chitwood

IRS AUDITS AND THE CHURCH

“Separation of Church and State”

Church Audit Procedures Act

Affordable Care Act (ACA)

It Doesn’t Have to Happen to Your Church

By Dr. Michael Chitwood

Everyone Pays

The Same Rule Applies to Your Church

God Cannot Bless A Mess

We Can Help

By Dr. Michael Chitwood

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By Dr. Michael Chitwood