Blog Posts

8/22/2018

Pastor Gets Rude Awakening

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I had some free time on my calendar and decided to attend a Church with which I had early ministry connections. The Pastor had received several invitations to attend a Church Management Conference in his area, but felt IRS compliance issues were really not a factor for small Churches.

After a few moments of reminiscing of days gone by, he turned the topic to our business of Church Management. He stated that he had received our brochures and invitations, but since he was a small Church he assumed (wrongly of course) that the IRS didn’t waste their time or resources auditing small Churches. When I informed Pastor Renault that his thoughts were far from the truth and in reality, the IRS really had closed more small churches and sent more Pastors of small congregations to prison than those of larger or mega churches.

Pastor then brought the conversation to a close with these words, “Well, we still don’t have to worry—I know we are doing nothing illegal.”

People (Pastors) Are Destroyed for Lack of Knowledge

As Service began, it didn’t take long for my trained eye to recognize areas which will cause major trouble for my friend and his Church. During the offering I immediately spotted three illegalities. By the time service was dismissed, I counted two more. If these things are done in an open forum for all to see, what else is done that is illegal that is not seen by the public?

As I shook my Pastor friend’s hand to bid farewell, I told him (away from earshot of others) that his Church had some serious legal issues and if the IRS walked in he and his board would probably get some prison time in addition to hefty fines which would probably result in the Church property being confiscated and sold.

Had He Attended

Had Pastor Renault attended the Conferences to which he had been invited he would have received valuable knowledge concerning that which may or may not be done during and with offerings.

In addition, he would have learned many of the IRS regulations which govern churches and non-profits.

Wasted Time May Prove to be Costly Time

He didn’t want to speak of retaining us while people were exiting the Church, but asked when the next Conference would be in his area. When I told him it may be a year or two before we have a chance to return his countenance sank.

Looking behind me as I walked out, I could see the anxiety on his face and even heard someone ask him: “What’s wrong?” I never heard his answer to their question. Pastor Renault and countless others think they and their Church are okay until it is too late. Once it is too late Pastors and Churches incur huge financial penalties and in many instances face criminal indictment.

Even if your Church was legally perfect, it is still worth attending our nearest Conference for peace of mind. The old adage, “An ounce of prevention is worth a pound of cure,” is still true today.

I pray for Pastor Renault and hope he can get this fixed soon. He didn’t know he was doing anything illegal. Unfortunately, when standing before a Federal Judge, he will be reminded that ignorance is no excuse.

This Is Why You Need Us!

Chitwood & Chitwood is the premier Church Growth, Management, and Compliance firm in the nation. For more than 79 years we have provided Management and Compliance oversight to thousands of Churches nationwide. At our Church Management Conferences across this nation, we teach that which every Pastor and Church Leader should be aware.

For those we represent, we ensure their Churches are maintained in full IRS compliance and litigate on their behalf involving any IRS questions or concerns.

It is imperative that every Pastor and Church Leader attend the next available seminar—even if it requires hours of travel to the venue location. Every day you procrastinate your attendance to one of these seminars possibly places you under the IRS microscope.

To attend the next conference, please call our office at 800-344-0076! Get compliant or you may very well be a statistic.

Our firm will fix whatever is wrong and fight on your behalf. Act Now!

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Our Church Management Conferences will arm you with the information you must have to shield your Church or Ministry from IRS intrusiveness; teach you how to get your Taxes to the lowest possible rate; and daily operate your Church or Ministry within IRS acceptable guidelines.

Our Conferences have been taught across the Nation for over 48 years. Because of the Penalties, Fines, and even Imprisonment that the IRS imposed on many Churches and Pastors, Dr. Chitwood felt led by the Holy Spirit to become a buffer between Churches, Ministers, and the IRS.

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8/20/2018

Out of Compliance, but Didn’t Know It

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Deacon Smith boastfully told me as he checked in for the CMTC Conference in Mississippi, that he knew their Church was obeying all IRS regulations and that he couldn’t understand why the Pastor insisted he attend. Early into the first session that morning, I could see a look of despair upon his face. During the morning break he came to me asking if he could retain our services, because within 30 minutes of that first session he came to the realization that his Church was in deep trouble.

Most Churches think they are obeying all IRS regulations or mistakenly think that IRS regulations do not apply to a Church because of “Separation of Church and State.” Most Churches do obey some of those requirements, but below I have focused on one simple regulation which 88% of all Churches knowingly or unknowingly violate.

It’s Not What You Know that Will Hurt You

When people join a church or a member accepts an appointment to a position within that Church, most have no clue as to what they have agreed. Most of those joining a local Church do so out of a sense of “need to belong,” and this is a good thing—every Christian should be a member of a local Church. Most of those who accept a position in the Church, i.e. Deacon, Elder, Treasurer, Board Member, etc. do so out of their desire to serve Christ by serving the local Church body. However, there are things that both—those joining a Church and those accepting a position in a Church—should research prior to doing either.

Becoming a member of a Church or accepting a position in a Church may place that individual in a precarious situation because of Internal Revenue Service (IRS) Regulations.

Responsible Party Provision Act

The IRS considers anyone who has control over Church property, finances, and with decision-making ability in such areas, a responsible party. This includes everyone from the Pastor to the members (in certain Church Government structures). In the event of IRS violations by the Church, responsible parties could be subject to fines, penalties, and in some scenarios, criminal charges.

Within a Congregational (Democratic) Ruled Church environment, everyone who is a member with voting rights would be considered a responsible party.

Before someone joins a Church, he or she should familiarize themselves with that Church Government structure and then proceed with prayer and caution.

Members who accept a position within their Church should ensure that the Church is legally compliant with all IRS regulations. The candidates to those positions should insist they see a Compliance audit prior to placement.

Join the local Church; accept a position of service within the Church, but do extensive due diligence prior to either action. Failure in either of the above mentioned scenarios could place the new member or the new Church official in a legal quagmire. This quagmire may not only affect the individual, but in some cases could have a negative outcome for any family members.

For instance, in the scenario of a member accepting a position in the Church, that member should be aware that according to Treasury Regulation 53.4958, the IRS can fine church officers and their family members severally up to $10,000.00 for misuse of church funds even if it was unintentional. In its broadest interpretation this means that even a Board Member’s baby in a crib could be liable for a $10,000 fine.

IRS Requires A Church to Report any Changes to their Responsible Parties

According to T.D. 9617, the Internal Revenue Service requires Churches to report any changes to those considered a part of their responsible parties. If there has been a Pastoral change; if new Board Members, Deacons, Elders, and/or Trustees have been installed (and in its broadest sense could apply to new Church members in a Congregational Ruled setting); the Church is responsible to notify the IRS of those changes. These changes must be reported on IRS Form 8822-B.

Has your Church complied with this IRS requirement? If not, your Church is out of compliance and out of order.

This Is Why You Need Us!

Chitwood & Chitwood is the premier Church Growth, Management, and Compliance firm in the nation. For more than 79 years we have provided Management and Compliance oversight to thousands of Churches nationwide. At our Church Management Conferences across this nation, we teach that which every Pastor and Church Leader should be aware.

For those we represent, we ensure their Churches are maintained in full IRS compliance and litigate on their behalf involving any IRS questions or concerns.

It is imperative that every Pastor and Church Leader attend the next available seminar—even if it requires hours of travel to the venue location. Every day you procrastinate your attendance to one of these seminars possibly places you under the IRS microscope.
To attend the next conference please call our office at 800-344-0076! Get compliant or you may very well be a statistic.

Our firm will fix whatever is wrong and fight on your behalf. Act Now!

Dr. Michael Chitwood

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8/15/2018

New Pastor Becomes Abruptly Aware of Real Church Life

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Pastor Jeff in South Carolina called my office a few days ago and seemed troubled – almost depressed. He knew his spiritual relationship with God was good and he knew that the members seemed to like him and his family. However, there was lethargy in the air at his Church, and even he seemed to struggle to maintain the excitement and energy that had always been present in his ministry.

What Pastor Jeff is experiencing is nothing new. Most Pastors encounter it at some time in their ministry. The Pastors of large Churches seem to not experience it – they do, but they have other staff that absorbs the brunt of it, while the Pastor takes extended Sabbaticals.

Church Is More than Spiritual

Because of the “product” (Christianity/Spirituality) offered by the Church, Pastors and members alike subconsciously fall into the notion that Christianity and Church are somehow a utopia without any of the challenges of life. Church is spiritual about 2 or 3 hours per week. The remainder of the time it is a business that deals with day-to-day troubles, life issues, disgruntled members, and stress just like any other business. Bills have to be paid; budgets must be met; and discord among members must be resolved.

Not long ago a National Church Survey was conducted among thousands of Churches, Pastors, and members, across the United States. The findings reported in this Survey are alarming. Everything listed in the Survey is a leach that saps the energy, excitement, and desire out of Pastors and members.

Enlightening Survey

The following twelve items were discovered during the Survey and should be annotated as an area of concern that requires attention and adjustment by the Pastor, Church Members, and Leaders:

1. The National Church Survey indicates that approximately one hour after your members hear your sermon or message, they will forget it.

2. The National Church Survey indicates that most people will have to hear your message at least seven times to be able to retain only 25% of what they heard.

3. The National Church Survey reports that those who attend Church generally contribute to an average of 13 different ministries (most of which are television

4. 68% of Christians surveyed said they do not have a high level of trust in those who use the title Bishop, Prophet, or Apostle.

5. 94% of Christians say they prefer the title Pastor. When asked why, Christians said it reminds them of a shepherd and Jesus.

6. 84% of Christians are asking the question, “Why is the person behind the pulpit doing so well. . .and the people in the pew are hurting so badly?”

7. The National Church survey states that 94% of all Church members do not like the automated telephone systems that their Church uses to answer calls. A common opinion is that Churches feel the people are suppose to serve them and give them their money.

8. The National Church Survey reports that for every hour you teach or preach it equates to 7.2 hours of wear and tear on your body as a Minister.

9. The National Church Survey reports that Pastors and Ministers who do not demonstrate the importance of looking your best when coming to the House of God have 42% less consistency in their attendance, tithing, and commitment.

10. The National Church Survey states that those who do not carry their Bibles to Church are less likely to read their Bibles during the week. Churches that display Scriptures through various forms of media during services discourage attendees from bringing their Bibles with them to Church.

11. The National Church Survey indicates that 97% of all Pastors who retire at age 65 will be broke or sick.

12. The National Church Survey states that 87% of all Church members do not enjoy Power Point teaching and are uncomfortable with their Pastor not referencing his Bible during his sermon. They comment that they do not feel like they have been to Church if an actual Bible is not used by their Pastor.

Don’t Stress when You Can Have the Best

With these items adding stress to ministry, why would any Pastor or Church Board want to add to it bookkeeping practices that are not compliant with State and Federal Regulations. Churches should be obeying the Laws of the land more than anyone (Rom. 13:1-7).

This is where Chitwood and Chitwood can help. We have been helping Churches and Ministers stay in compliance with State and Federal Guidelines for more than 77 years. No one can do what we do. We are the best in the field.

Remember, God cannot bless a mess! When you are under the umbrella of the Number One, Church and Clergy Tax professionals in the world Chitwood and Chitwood, you can rest assured that you are not only in compliance with State and Federal Regulations, but most importantly, you are in Compliance with God’s Word!

Call 800-344-0076 to register for a Church Management Tax Conference near you.

By Dr. Michael Chitwood

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8/13/2018

The Church Can’t Choose Who Is and Who Isn’t

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During the Board Meeting the issue of payroll came forth for discussion. The Church was straining to pay all of those whom they had decided to hire. Pastor Morgan and the Treasurer seemed to have a great solution for the problem—issue 1099 MISC’s to all employees and let them serve as independent contractors to the Church. This way the Church would not have to pay matching Social Security and the musicians, praise team singers, and youth Pastor would not only assume all costs of Self-Employment tax, but also be responsible for their own insurance. The Pastor entered that as a motion which was passed unanimously by the Board.

Church Is Devastated by the Consequences

Two years later one of the musicians was subject to an IRS audit. When the agent asked the musician what he did the musician replied, “I play the keyboard for my Church.” The agent then asked him why he was issued a 1099 instead of a W-2, to which the musician answered, “All employees in our Church receive 1099’s.”

This triggered a massive audit of the Church resulting in about one million dollars in penalties, taxes, and interest. Had it not been for an unknown benefactor the Church would have had to disband and sell its property to settle its debt with the IRS.

This Happens More than we Realize

As I travel across this great nation teaching Clergy Tax and Law Conferences I am amazed at the number of great Pastors and Churches who are uninformed or do not care about certain laws that apply to Churches. Just because there is the “Separation of Church and State,” we must remember that now, for the most part in the mind of the Government, that means “separation of the Church from the State, but not vice versa.”

Our Government is inching more and more into affairs of the Church, some of which may be justified because of some shenanigans that take place in the name of religion, but mostly the intrusion is unwarranted.

Until we elect Government officials that are Christian friendly or are genuinely Christian, and they will enact new laws to protect our Churches, we must obey the law. The Holy Spirit commanded us, via the Apostle Paul (Rom. 13), to obey the laws of the land. The only time Scripture gives us the option to disobey is when the laws of the land violate God’s Law (Acts 5:29).

Although the current laws may be burdensome for a Church, they are not violating Scripture and therefore it is our responsibility to obey. One of the laws I find that is often violated is the misclassification of employees.

What Constitutes an Employee?

An employee is anyone that is connected to the Church and performs a service, subject to the will and control of the employer, both as to what shall be done and how it shall be done.

The Church is not allowed to choose who is an employee and who is an independent contractor—that decision is made by IRS guidelines to which a Church must adhere.

The above definition is just one of the items of the Common Law Employee Test. This means that most of the people performing services for a Church, should be receiving a W-2, not a 1099-MISC.

There are huge penalties for misclassification.

Musicians and Pastors are not Independent Contractors

The biggest two categories that are most often misclassified are those of the Pastor and the Church musicians. Both of these groups are employees and their income must be reported on a W-2.

If the musicians are not Ordained Ministers, the Church must withhold FICA and must pay the matching portion. This will be a heavy 941 tax burden for many. The best way to overcome this is to get all paid musicians ordained through the International Congress of Churches and Ministers and then, even though the income is reported on a W-2, the Church is not responsible for FICA. If the Church provides the ordination via the local assembly they must be aware that any credentials issued may not be legitimate for tax purposes. Churches may call us at 800-854-5891 or visit www.iccmworldwide.org for more information on a valid ordination process.

My CPA Told Me Something Different

Local CPAs are great for what they are trained to do – local small business and individual tax returns. Only four percent in America know how to properly do Church books. In a recent conference a Pastor told me he was in trouble with the IRS because a local CPA told him the Church could report his income on a 1099-MISC rather than a W-2.

Churches must be very cautious as to whom they allow to do their books and records. Even an IRS agent may give you incorrect information but you would still be accountable if it violated a tax law (Massey vs The Commissioner). If your Church is not a client of Chitwood & Chitwood, the keeper of your books and records may know just enough to get you in trouble. Remember, cheap advice is expensive.

Conclusion

Chitwood & Chitwood conducts about 150 Church and Clergy Tax Conferences across the USA every year. Our 80 years of experience demonstrates our impeccable record of properly maintaining Church books and records. We are the BEST!

As the ultimate firm in this area of expertise, it would behoove every Pastor and Church Board Member to attend the next conference nearest you. Call 800-344-0076. You will not regret it.

For us, this is “A Ministry – Not A Job!”

By Dr. Michael Chitwood

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8/8/2018

Does Your Church Have an Emergency and Security Plan

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It was June 17, 2015, when a young man entered the Emanuel AME Church in Charleston SC and began a shooting spree, killing 9 innocent worshipers, including the senior Pastor. The young man was apprehended then next day and is currently awaiting trial. Nov. 5, 2017: Dressed in black tactical-style gear and armed with an assault weapon, a 21-year-old opened fire at the First Baptist Church of Sutherland Springs, Texas, killing 26 people and wounding about 20 others.

Compare the above scenarios with that of December 9, 2007, when a young man attacked the New Life Church, a mega Church in Colorado Springs, Colorado, with a number of firearms, killing two and injuring three before being shot by Jeanne Assam, a member of the church's safety team, who was carrying a licensed private firearm. Emanuel in SC and First Baptist in Sutherland were small congregations and experienced many casualties, while the mega Church only had 2 deaths. The difference—a great emergency and security plan involving armed attendees in the Church.

Nine innocent people were killed in Charleston and 26 in Texas, but the Churches did not have an armed security team during services. What if there were several men/women that were carrying a concealed weapon and could have stopped the shooter when he brandished his weapon or fired the first shot? What if all licensed concealed carry members were allowed to bring their weapons to church? The scenario would have a different ending. Those seeking to do others harm are more reluctant to do so when they know others can shoot back.

Church Should be a Safe Place

A Church should be a place where anyone may come to worship God or to accept Him as Lord of their life. It should not be a place where saints must worship with one eye opened, suspicious of those around them – especially visitors.

Years ago, people had respect for Christians and Clergy. Those days no longer exist. If a Pastor gives counsel to a spouse or family member that is unacceptable to others, those who did not like the counsel are quick to grab a gun or a knife and head to the Church. This happened many years ago with Pastor John Hagee. In this instance God protected him from harm. However, for the Pastor of Emanuel AME Church, the outcome was drastically different.

Isn’t God Obligated to Protect Christians, Especially in Church?

This mentality, although idyllic, is unrealistic. He did not protect Stephen in Acts 7. He did not supernaturally protect Paul, Peter, John or the other disciples. These trigger a couple of thoughts we should entertain.

God will supernaturally protect when it furthers His end desires.

An example of this would be a situation wherein someone walked into a mall to kill someone. The target was a Christian and hundreds of unbelievers were watching. The targeted Christian publicly rebuked the devil and invoked the power of God. God could easily, protect His saint supernaturally, as a witness to the non-Christians. The Christian could then use that as an evangelistic moment to share Christ with the on-lookers. I actually know of a similar situation where this happened.

God won’t do for us what we can do for ourselves.

Jesus said the day will come when he that has no sword should sell his coat and buy one (Lk. 22:36). As fathers are expected to protect their family and homes, Pastors should protect their congregations and Churches. A well-trained, armed security team will do wonders for Church members’ peace of mind.

When I was taking the class for my concealed carry permit, the instructor told us a story of many Churches that were being robbed on Sunday mornings. The Pastor, of one Church in the city, asked all of his concealed carry permit members to begin bringing their weapon to church, and that if he ever asked for a “show of arms” they were to hold up their weapons for all to see.

A couple of Sundays later, his Church was targeted. The Pastor was in the pulpit when he saw the sanctuary doors open and two men in trench coats. Before the men could enter the sanctuary, the Pastor loudly proclaimed, “Could I have a show of arms?” Weapons were raised all over the sanctuary. When the robbers at the back of the Church saw all of the weapons, they had second thoughts and exited the premises.

Some Disagree

There are some who feel that the above-mentioned mindset of an armed security team does not demonstrate the message the Church should be exemplifying. Even some idiotic politicians have gone on record as saying if we are ever attacked, when the attackers see we are unarmed, they will lay down their weapons. The young man did not lay down his weapon in the Charleston Church, the Texas Church, or the Church in Colorado Springs. We should have faith, but it is asinine to be naïve.

It is a Different Age

Things are not like they used to be. Times and mentalities have changed – including those in the Church.

Pastors, those attending your Church have a right to be protected. You have a right to be protected. I have a friend that pastored in North Carolina. The Sheriff of his county told all of the Pastors to carry a concealed weapon when they preached. That Sheriff apparently knew something the Pastors did not know.

Pastor, you do not need to be a martyr. We need you preaching the Gospel. Get an armed security team in place at your Church, and do not delay.

We Are Looking out for You

At Chitwood & Chitwood it is not just about keeping your financial house in order. We are concerned with every facet of ministry of every Church. We know areas that need special attention and the proper way to address those areas. This is why every Pastor and Church should connect with us today. We know things others do not know.

For guidelines to establish a security team or other questions pertaining to Church operations, every Pastor and Church leader should attend a Church Management and Tax Conference nearest their location. To register call 800-344-0076. You will be glad you did. Remember, for us “It is A Ministry – Not A Job!”

Dr. Michael Chitwood

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7/30/2018

Could Your Church Survive with Its Current Bylaws

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It was a little country Church in the out skirts of the small South Carolina town. They only averaged about 60 in attendance on any given Sunday, but they were content with that, and were proud of their small facility and the few beautiful acres upon which it sat. Pastor Smith never had any problems from the community or within his little Church. The members were faithful in their attendance, tithes, and offerings. But, then the “bottom” fell out.

While tidying up a few loose ends on that Saturday afternoon Pastor Smith was approached by a young man whom he did not recognize as a member of the small town or its outskirts where the Church was located. Pastor thought maybe the young man was moving into the area and was looking for a Church home.

Pastor wasn’t prepared for what he was about to hear.

A Shocking Request Is Made

The young man told the Pastor he was engaged to get married and had been searching for the perfect location for the ceremony which he and his fiancé were wanting. As they talked the Pastor thought maybe after marrying this couple they would move into the community, settle in, and become part of the congregation.

Unfortunately, Pastors dreams became a nightmare. As the Pastor continued to speak with the young man he asked some questions concerning the upcoming ceremony. The Pastor then asked the young man how old he was, to which the young man stated he was 26. When the Pastor asked the age of the bride-to-be, the young man stated that his fiancé, John, would turn 24 on the day of the wedding.

Conversation Comes to an Abrupt End

Once Pastor Smith regained his composure from the shock generated by the young man’s response, Pastor quickly told him that they were very fundamental and conservative in their Scriptural beliefs and its interpretation. Pastor then informed the young man he would need to go elsewhere because he and his congregation did not believe in or support the homosexual lifestyle and its agenda.

The Pastor proceeded to give the young man a brief Biblical discourse concerning the sin of homosexuality and that those who practiced that lifestyle were not allowed membership in his Church nor were they allowed to be married or buried in his Church.

The young man told the Pastor he was being discriminatory against him and his male fiancé and reminded the Pastor of the United States Supreme Court ruling.

Pastor Forgets about the Young Man and His Request

The next morning the Pastor relayed to his congregation the events of the day before and his answer and mini-sermon to the young homosexual. The congregation stood to their feet shouting support with many amens and hallelujahs in support of their Pastor’s and Church’s Biblical convictions.

After that Sunday morning service, Pastor Smith did not give the matter any further thought. In his mind, it happened, he had dealt with it, and the incident was history which he erased from his short-term memory banks.

But, the unthinkable happens.

Pastor Wasn’t Ready for what would Happen Next

It was about three months after that Saturday afternoon conversation when the county Sheriff showed up at the Pastor’s house. Knowing the Pastor and the members of that small country Church, the Sheriff said, “Pastor, I hate what I have to do.” It was then he placed in the Pastor’s hand a lawsuit initiated by that young man’s ACLU attorney. The Pastor and the Church were being sued for discrimination.

The Sheriff, the Pastor, and the Congregation were not worried. The community was a God-fearing, God-loving community in the heart of the Bible Belt. They knew the suit would be thrown out.

The suit did go to trial, and the Church won. Unfortunately, the Appeal was not as supportive as the local trial. On Appeal, the court ruled in favor of the young man and the small country Church was sold to settle the demands of the verdict.

What Went Wrong

During the Appellate proceedings the Judges ruled that the local trial failed to use the Church Bylaws as the standard for how the case should be decided. The Church Bylaws did not have an Article 14 Scriptural Conduct Living Provision Section to protect itself against lawsuits involving matters Scriptural belief and practice. Since the bylaws did not declare the Church to be against the homosexual lifestyle, the Church could not legally deny the young man and his male fiancé a wedding—especially since other non-members had recently been married using the Church facilities.

Because they did not know the law as it pertains to Churches, especially in ecclesiastical issues, they lost their beautiful country Church and property. The members had worked hard for five years with multiple fund-raisers and sacrificial giving so they could be debt free, only to have a court sell the property to settle the damages of the suit.

Why You Need Us!

Church Bylaws are the second most important document in your Church other than the Holy Bible. Unfortunately, most Churches allow the Pastor, some Trustee, or both to write the bylaws. This is a bad mistake.

In the tortious climate and the all out attack against Christianity, the days of respect for a Church and its beliefs are a thing of the past. Churches must do everything from a defensive perspective if they want to protect themselves and their assets.

Chitwood & Chitwood, with our 80 years of experience, has developed the best bylaws in the nation for our clients. Our bylaws have won every time they have been challenged.

At our Church Management Conferences across the nation we stringently teach the importance of Church Bylaws.

Before you put you and your Church at risk, it would behoove you to contact us at 800-225-5849 and ask for Mr. Tim Haney. Mr. Haney will draft you a solid set of bylaws based upon the Church Government of your Congregation. Don’t think the couple of pages written by your Pastor and Board will suffice. Every day you wait is another day you could become the subject of a lawsuit designed to take your Church assets. You should also call 800-344-0076 to register for a Church Management Seminar near you.

By Dr. Michael Chitwood

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7/26/2018

The Loneliest Place in the World

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Pastor Simpson had longed for the day for four years. He was finally graduating from Seminary and excited to enter the ministry for which he had dreamed for years. As a teenager, active in his local Church, he had always admired his Pastor and the seemingly positive effect his Pastor’s influence exuded in the lives of his parishioners.

It had been 12 months since Pastor Simpson accepted the role of Senior Pastor for the little country Church. Looking in from the outside it seemed this was a storybook connection—he loved and cherished his members and they reciprocated it back to him. But, then the bottom fell out.

Pastor Admits Himself to Rehab

Having been in his Pastoral position for less than 13 months, Pastor Simpson was faced with the necessity to enter rehab. The pressure of Pastoring the little country Church had taken its toll and Pastor Simpson turned to alcohol and pornography to help escape the emotional pain connected to his position.

Four years of Seminary training, graduating with a bachelor’s degree and a 3.9 GPA, had not prepared the young man for that which he would soon experience. In addition to Pastor’s emotional problem, the Church split down the middle. Half of the little congregation wanted to kick the Pastor to the curb, while the other half was sympathetic to his plight and desired to see him healed, delivered, and whole.

Seminary Is only Part of the Process

Seminaries and Bible Colleges are good for what they do, but the problem is they don’t do enough. Any Seminary student will leave the institution with more Biblical knowledge and insight than probably will ever be used in the life of their ministry. The students learn how to properly exegete the Scripture, while writing papers explaining the Hebrew and Greek definitions of a text.

In addition to the study of the Scriptures most Seminaries and Bible Colleges demand for the students to engage in an active prayer life and serve locally in some form of ministry within a Church setting.
What the Seminary does not do is provide in depth training to successfully navigate the stormy seas which a Pastor must sail. If all a Pastor had to do was preach his or her job would be the easiest in the world. Unfortunately, preaching and teaching is only a small percentage of the average Pastor’s job duties.

Pastors Must be Jack-of-All-Trades

In addition to spending much time in prayer and meditation to arrive at the appropriate message for a Sunday Service, the Pastor will spend most of his or her time performing duties which most members take for granted. The below is only a partial list of what an average Pastor will do weekly in his or her role.

CEO
The Pastor is automatically thrown into the position of Chief Executive Officer the moment he or she accepts the role of Pastor. This means the Pastor is automatically responsible for everything that transpires in that Church. While most CEOs are well compensated for their role, many Pastors live at the edge of poverty.

Financial Planner
The Pastor is not only responsible to ensure the Church is meeting its budget, but he or she often is required to sit with families who are struggling to make ends meet from week to week.

Recruiter
A Church cannot operate without a sufficient volunteer staff. With the Church struggling week to week just to meet its budget, there are no extra funds to pay those needed to do ministry. A Church needs volunteers for Children’s Ministry, to oversee the Benevolence Fund, to operate its Women’s and Men’s Ministry, and then there are musicians and singers needed to lead worship service. Someone has to gather and oversee those volunteers and more often than not, that lot falls on the shoulders of the Pastor.

In the above list I have omitted the various other duties such as Arbitrator/Peace-Keeper, Janitor, Maintenance Supervisor, Events Planner, Public Relations Expert, Social Worker, and countless more that could be named.

Is it any wonder that only 10% of Pastors actually retire in the pulpit? Is it any wonder why the position of Pastor is considered as the fourth highest suicide attempt rate of any profession?

Why It Is Lonely at the Top

When a member of the Church has an issue, whether it is a sin issue, or relational or emotional issue, they can go to the Pastor. They know what they confess and the assistance they receive will be confidential because of Priest-Penitent Privilege. But, to whom does a Pastor go? If the Pastor was to confide in a Church member, that member would no longer hold the Pastor in high esteem because of his or her failure, and most of the Church would know about it before the next Sunday Service. The Pastor can’t go to another Pastor because unfortunately, Pastors consider other Pastors and Churches as their competition. If he confided in another Pastor he would be afraid the news would be all over town so that the Pastor in whom he confided could grow his Church at the expense of the fallen man or woman of God. Most of the time the Pastor does not even feel comfortable relating his or her troubles to their spouse.

The Pastor finds himself or herself alone—no one to lean on and no one in which to confide. The emotional pain becomes so severe, that the Pastor seeks relief wherever he or she can find it. Too often, in order to find solace the Pastor turns to the dark world of something like alcohol or pornography as their escape. This is why the Pastor should be the most prayed for person in any congregation.

Why You Need Us

No one knows the throes of ministry, especially Pastoral, better than Chitwood & Chitwood. We have been the ultimate Church Management firm for 80 years. During this time we have always been the place which can assist the Pastor in his or her day-to-day challenges. At our Church Management Conferences across the nation we teach and make resources available to Pastors which can alleviate some of the pressure and stress they encounter on a weekly basis.

I strongly urge every Pastor, Pastor’s Spouse, and Church Leader to enroll for the next available Church Management Conference. It will be the best investment you can make in yourself and your ministry. To register please call us at 800-344-0076.

By Dr. Michael Chitwood

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7/23/2018

Why Every Christian Should be Ordained

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Pastor Henson constantly asked his Children’s Church Leader to become ordained and each time the answer was the same--“I don’t need papers to lead worship.” After years of pushing the issue the Pastor finally relented, but then it happened.

It was late on a Saturday evening as the Pastor was doing his final prep work for his next day’s message when the phone rang. On the other end was his Children’s Church Leader sounding audibly upset. When Pastor calmed her down, she informed Pastor Henson that she needed Ordination Credentials, to which Pastor agreed to ordain her the next day.

It was then that his Children’s Church Leader became adamant, declaring that she needed them now. When Pastor asked why, she relayed this heartbreaking story:

My best friend has been rushed to the hospital and she is not ready to meet God. I was called to the hospital to speak to her about her soul, but I was stopped at the ICU nurses station. Since it was not visiting hours the nurse asked me if I was an ordained Minister. Pastor I lied and told them I was, but then the nurse asked to see my ordination card. Pastor if I don’t get credentials now, my friend may die and go to hell.

Pastor Performs an Emergency Ordination Ceremony

Pastor Henson told his Children’s Church Leader that he and his wife would meet her at the Church in about 30 minutes to present her with the necessary papers she would need to get past the ICU nurse’s station.

Pastor and his wife prepared the necessary ordination papers and conducted an abbreviated ordination ceremony. Once complete the Children’s Church Leader rushed back to the hospital, thankful that she had the necessary documentation to see her friend before she died, with hopes of winning her to Christ.

It was the Best of Times and the Worst of Times

To coin the phrase from Charles Dickens’ Tale of Two Cities, “It was the best of times, it was the worst of times.”

When the Children’s Church Leader arrived back at the hospital and proceeded down the ICU hallway she was met by her best friend’s spouse. The spouse was weeping uncontrollably and shared the devastating news that his wife and her best friend just died. It was the worst of times because the friend died without knowing Christ as her Savior—doomed to an eternity in hell. It was the best of times because the husband then asked the Children’s Church Leader if she could tell him what he needed to do to get his life right.

There in the hallway the husband repented of his sins and accepted Christ as His Savior, while the soul of his wife was burning in hell.

The Children’s Church Leader repented for not allowing herself to be ordained, but the price for her ordination was one that she had rather not paid. A piece of paper would have kept someone from dying lost without God.

Why Should Christians Be Ordained

It is our conviction and desire that every Christian in the world (especially in the USA) become an Ordained Minister of the Gospel. When we share this desire with others, the response is usually, “but I am not a preacher.” There is nothing that says you have to be a preacher to be an Ordained Minister.

2 Corinthians 5:18 declares all Christians to be ministers. If God has declared that you are a Minister, who are you and I to contradict God? That little piece of paper—the Ordination Card—would have prevented someone from going to hell. The Church should strongly encourage every Christian in their Church to be ordained.

It is amazing how legally empowering someone as to what God has already declared them to be emboldens them in areas of ministry which they should have been doing, but probably have not done. We have witnessed time and again how people who have never conducted hospital visits or have never shared Christ with others, suddenly become active in performance of Christian ministry duties.

Once the Christian member is ordained, he or she may then begin to perform Sacerdotal duties which, in turn, allows him or her certain IRS benefits. You don’t have to be a preacher to take advantage of IRS tax benefits. The Internal Revenue Service only recognizes the title minister and that is what God has already declared you to be. All you need are the legal documents to support what God has said you are.

Credentials Must be Legal

Anyone can give someone a piece of paper, but because you have a piece of paper doesn’t make you legal. This is why you should contact us today.

The International Congress of Churches and Ministers (ICCM) is the best, largest and fastest growing non-denomination ordaining body in the world. Our credentials are recognized world-wide and receive the greatest respect from religious and secular sources around the globe.

Urge your Christian members to become ordained now!

In Closing

ICCM enjoys the same credibility and integrity as our Church Management and Tax wing of Chitwood and Chitwood. With 80 years of providing counsel and ministry to Churches all across the globe, we know what it takes to lighten the burdensome load placed upon most Pastors and Christians.

Do Not Delay! If you would like to be legally ordained as to what God has declared you to be contact us at 800-854-5891 and ask to speak to Dr. Ronnie Shaw. You may also visit us online at www.iccmworldwide.org.

In addition I would strongly encourage you to attend the nearest Church Management Conference to learn more about legal ordination and requirements necessary for your Church or Ministry to be legally compliant. To register for the next seminar please call 800-344-0076.

By Dr. Michael Chitwood

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7/18/2018

If You Don’t Like the Direction Your Church is Taking, Look in the Mirror

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Representing thousands of Churches and Pastors for the past 80 years and with several Pastors on staff, I have determined that when a Church or ministry is not productive the blame does not lie at God’s feet, but at the feet of the man or woman He has installed in that Church. God gives us our mandate and vision based upon our abilities and if it is not productive we have no one to blame but ourselves.

I understand that Scripture declares that the Lord must be the builder of the House or our labor is in vain (Psa. 127:1). However, I also know that God will not come physically to your location to build your Church or Ministry. He builds it through His delegated authority for that House, as the man or woman of God carries out His vision and desire. His vision for the local Church is outlined in Scripture and further amplified to the Pastor through prayer and meditation.

As I was meditating as to what to write for this blog, I continued to hear in my spirit two reasons why Churches don’t grow or have the resources they need to fulfill the ministry which God has entrusted them.

God Will Not Bless A Mess

One thing that is easily discernible in Scripture is that God is a God of order. When creating this earth, the heavens, and all that is therein, He did it in a specific order. When He sent His Son into to this world to redeem us, it was at a specific time and according to a certain order (Gal. 4:4). When Jesus fed the multitude, it was orderly (Luk. 9:14ff). God is a God or order—not chaos. God’s very first order of business as recorded in Scripture is bringing order to chaos. In Genesis 1:2 the Hebrew for the words “without form, and void,” attest to the chaos of the world and universe. At the end of Genesis 1:2 God addresses the chaos and immediately begins to bring into arrangement that which is out of order.

God does not like a mess and when we operate our Churches apart from Biblical order it shuts the floodgate of God’s blessings.

Part of operating our Church according to Biblical order is ensuring that we obey laws of the land as we are commanded to do in Romans 13:1-6. Yet, the number of Christians and Pastors who will look for ways to cheat so they can avoid giving the IRS its fair share as required by law is astounding.

I know of Christians who will get paid “under the table” and not report the income on their annual tax return. There are Pastors who will receive offerings and not funnel them through the Church bank account and the Pastor will not report them as income.

There are Churches who haphazardly maintain Church books and financial records without following the laws and regulations outlined in the IRS code.

This is a mess, and expecting God to honor that type of dishonor and illegality is foolish. If God lent Himself to that which is in open violation of His Word, His house would be a divided house and the Kingdom of Heaven could not stand (Mk. 3:25; Luk. 11:17).

Every Pastor and Church Leader in the USA needs to take ACTION NOW to bring their Church into Spiritual and Legal compliance.

You Get What You Preach

One of the first things any Pastor should learn is that he or she will get what they preach. If people are not coming to Christ in your services it is probably because the Pastor seldom preaches on Salvation. If the Church finances are not sufficient to meet the budget each week it is probably because the Pastor does not or seldom preaches about tithes, giving, and Biblical Stewardship. If people are not healed in your Church it is probably because the Pastor seldom preaches about divine healing and faith required to receive it. Pastor, you get what you preach!

Many Pastors avoid addressing or preaching about areas they feel may be “controversial.” This is a big mistake. The Word of God is designed to offend those whose hearts and lives are contrary to its teaching (Mk. 4:17; John 16:1).

Pastor, if you are not seeing what you need in your Church, you need to look in the mirror. Either you are not preaching enough on the subject or you have allowed chaos and shoddy bookkeeping of the Church financial records. Whichever is the cause of your Church not being what God intended, the blame and the fix rests completely upon your shoulders. This is why you need us.

We Can Help

Chitwood & Chitwood has provided Church Management and oversight for thousands of Churches for 80 years. We are the expert on matters of Church Management and Compliance. Every year we conduct seminars across the USA to teach Pastors and Church Leaders areas that need attention to bring stability and growth to their Churches and Ministries. At our conferences we address financial and bookkeeping concerns that must be addressed if they Pastor and Church Leaders want to experience God’s best for their House of Worship. At these meetings we instruct Pastors in areas of Church Management and order that will enhance their ministry so they may do their God-ordained tasks with joy (Heb. 13).

It behooves every Pastor, Pastor’s Spouse, and Church Leader to register for the next available Church Management Conference. To register, please call 800-344-0076. This will be the best investment you can make for your Church and your Ministry. Stop struggling to do that which should be pleasure.

By Dr. Michael Chitwood

What You Will Learn at our Conferences

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7/16/2018

Oops! What Went Wrong?

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I had known Pastor Jason for almost 20 years. He was the Senior Pastor of a prominent Church in his community and I was glad to see him in the Church Management Conference I was conducting in a neighboring city.

Pastor Jason was the first at that conference to engage our services. While I was completing the paperwork, he told me a familiar story that I hear very often in conferences. He thought his Church was in great financial shape. The former Church treasurer gave monthly reports to the board and they thought they had a million dollars in their Church account. The treasurer died suddenly, and the Church had a CPA review the accounting program used by the Church. Within 30 minutes reviewing the computer reports, the CPA hit one key and brought the Church to a shocking reality. They did not have a million dollars in their account, but were shocked to discover they barely had ten thousand dollars.

Horrible Bookkeeping Skills or Embezzlement

Churches are the easiest target for either. Many Churches are filled with family relationships and when it comes to keeping the financial records Churches will often select a treasurer based upon their math skills, the relationship of the treasurer within the membership, or both. None of these three reasons qualify for placing someone in a position of such importance.

When our office begins a compliance process for a church, most of the problems are the result of shoddy bookkeeping. However, embezzlement is still rampant in the Church world.

More embezzlement happens in Church and ministry settings than any other areas of corporate America. Ten percent of Churches reported embezzlement, but according to a study by Gordon Conwell Theological Seminary in Hamilton MA, 95% of embezzlement from Churches is not reported. 1 The reason that much of the embezzlement within Church ranks is not reported is because of the spiritual foundation of a Church. We are taught to forgive, therefore when most Churches suspect or discover embezzlement, they usually remove the treasurer from the position, and “put the matter under the blood of Jesus.”

In the scenario that I mentioned at the beginning of this blog, both were involved. The former treasurer did not have any bookkeeping skills, but was also ciphering money from Church coffers.

It’s Not what You Know that will Hurt You

Church records should be reviewed by outside independent parties at least annually, but one report provided a shocking statistic that less than 25% of Churches in the USA ever had their books reviewed in an independent audit.

Refusing to allow a reputable firm to review financial records of your Church only serves to continue incompetent bookkeeping practices or to allow continued or future embezzlement.

You Get what You Inspect, Not what You Expect

If you have an incompetent Church Treasurer and do not want to remove them from their position, it will be necessary for the Church to retain Chitwood & Chitwood to provide monthly review and oversight of those books to ensure the Church operates on a solid financial foundation.

If there is embezzlement you should take the following steps immediately:

1.      Adopt and enforce clearly stated policies for handling cash

The more eyes there are on the books, the more likely it will be that someone will notice any irregularities.

2.      Training

Pastors should hire Chitwood & Chitwood to provide the tools necessary to educate Check Writers and Board Members.

3.      Audits

As I mentioned earlier, “You get what you inspect – not what you expect!” Because of our 80 years of experience, Chitwood & Chitwood has seen it all.

4.      Use the Three-Person Rule

Always make sure at least three unrelated people are counting the money, and do not have personal financial issues.

5.      Background and Credit Checks

6.      Be Alert for Warning Signs

These are numerous, but a few are: “Only one person having access to offering, cash, checks, or checking account; The person with access doesn’t want to take a vacation and guards against someone else doing their job; The person with access is living beyond their means; The person with access has personal financial issues.”

7.      Act on Suspicion

NO ONE should be above accountability or oversight.

In Closing

Chitwood & Chitwood has 80 years of experience in Church and Clergy financial management. We have seen it all. Don’t ever not do the right thing because you think you cannot afford it or because of fear when it comes to protecting Church finances.

Call us today at 800-344-0076 to register for a Church Compliance Conference where you will learn more about this subject and other vital information or contact drshaw@cmtc.org to find out how to make sure your books are in order and that you are not a victim of Church fraud. Pastors, we are on your side and desire to assist you in helping your Church reach its next level for God. Every day you do not contact us is another day that thousands of dollars may be walking out of your Church because of fraud. Remember Pastor, God and the IRS are holding you responsible. Get it fixed now.

By Dr. Michael Chitwood

What You Will Learn at our Conferences

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<<Previous

Forward>>

People (Pastors) Are Destroyed for Lack of Knowledge

Had He Attended

Wasted Time May Prove to be Costly Time

This Is Why You Need Us!

By Dr. Michael Chitwood

What You Will Learn at our Conferences

It’s Not What You Know that Will Hurt You

Responsible Party Provision Act

IRS Requires A Church to Report any Changes to their Responsible Parties

This Is Why You Need Us!

Dr. Michael Chitwood

What You Will Learn at our Conferences

​Church Is More than Spiritual

Enlightening Survey

Don’t Stress when You Can Have the Best

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Church Is Devastated by the Consequences

This Happens More than we Realize

What Constitutes an Employee?

Musicians and Pastors are not Independent Contractors

My CPA Told Me Something Different​

Conclusion

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Church Should be a Safe Place

Isn’t God Obligated to Protect Christians, Especially in Church?

Some Disagree

It is a Different Age

We Are Looking out for You

Dr. Michael Chitwood

What You Will Learn at our Conferences

A Shocking Request Is Made​

Conversation Comes to an Abrupt End​

Pastor Forgets about the Young Man and His Request​

Pastor Wasn’t Ready for what would Happen Next​

What Went Wrong​

Why You Need Us!​

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Pastor Admits Himself to Rehab​

Seminary Is only Part of the Process

Pastors Must be Jack-of-All-Trades​

Why It Is Lonely at the Top​

​Why You Need Us​

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Pastor Performs an Emergency Ordination Ceremony​

It was the Best of Times and the Worst of Times​​

Why Should Christians Be Ordained​

Credentials Must be Legal​

In Closing​

By Dr. Michael Chitwood

What You Will Learn at our Conferences

God Will Not Bless A Mess

You Get What You Preach​

We Can Help

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Horrible Bookkeeping Skills or Embezzlement​

It’s Not what You Know that will Hurt You​

You Get what You Inspect, Not what You Expect​

In Closing​

By Dr. Michael Chitwood

What You Will Learn at our Conferences

Archives

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Complimentary resources

Church Is More than Spiritual

My CPA Told Me Something Different

A Shocking Request Is Made

Conversation Comes to an Abrupt End

Pastor Forgets about the Young Man and His Request

Pastor Wasn’t Ready for what would Happen Next

What Went Wrong

Why You Need Us!

Pastor Admits Himself to Rehab

Pastors Must be Jack-of-All-Trades

Why It Is Lonely at the Top

Why You Need Us

Pastor Performs an Emergency Ordination Ceremony

It was the Best of Times and the Worst of Times

Why Should Christians Be Ordained

Credentials Must be Legal

In Closing

You Get What You Preach

Horrible Bookkeeping Skills or Embezzlement

It’s Not what You Know that will Hurt You

You Get what You Inspect, Not what You Expect

In Closing