Message of Thanksgiving

For each new morning with its light,
For rest and shelter of the night,
For health and food,
For love and friends,
For everything Thy goodness sends.
--Ralph Waldo Emerson (1803-1882)

Dear APA Sisters,

I wanted to take a moment to wish you and your loved ones a very, Happy Thanksgiving!  I am blessed to have each of you in my life, you are the sisters I never had.  I see some of you more often, I see some of you once or twice a year, I even only get to see some of you every couple of years, but yet when we come together its like we just saw each other yesterday.  That is very special in my book!

I am looking forward to the next several months as the planning goes into full gear for our Regional Conference in May 2012 where I will pass on the gavel to the very capable hands of Allyson Criminger. 

Many blessings to you and yours,

Barbara Prieto
Florida APA Region President

Are Thank You Gifts Taxable?

from Church Finance Today

Richard R. Hammar

With the holidays in view, many church leaders take advantage of the opportunity to thank church staff and volunteers through public recognition and gifts. 

Taxable income does not include any "de minimis fringe benefit." Section 132(e)(1) of the tax code defines such a benefit as "any property or service the value of which is so small as to make accounting for it unreasonable or administratively impracticable." Cash can never be a de minimis fringe benefit since it is not "unreasonable or administratively impracticable" to account for its value. The same conclusion applies to "cash equivalents," such as gift coupons and certificates, even though the property acquired with a coupon or certificate would have been a nontaxable de minimis fringe benefit had it been provided by the employer.

The income tax regulations provide several examples of de minimis fringe benefits. They include "occasional typing of personal letters by a company secretary; occasional personal use of an employer's copying machine; group meals, or picnics for employees and their guests; traditional birthday or holiday gifts of property (not cash) with a low fair market value; occasional theater or sporting event tickets; coffee, donuts, and soft drinks; local telephone calls; and flowers, fruit, books, or similar property provided to employees under special circumstances (e.g., on account of illness, outstanding performance, or family crisis)." Similarly, a congressional committee report listed "traditional gifts on holidays of tangible personal property having a low fair market value (e.g., a turkey given for the year-end holidays)" as examples of de minimis fringe benefits.

The IRS has noted that "it is not administratively impracticable to account for even a small amount of cash provided to an employee because the value of the amount provided is readily apparent and certain. Accordingly … accounting for cash or cash equivalent fringe benefits such as gift certificates is never considered administratively impracticable."

In conclusion, the turkeys and fruit baskets that your church provides to volunteers are nontaxable de minimis fringe benefits that need not be reported as taxable income by the volunteers. The cash and gift certificates the church provides to employees do not qualify as de minimis fringe benefits, and must be reported as taxable income on the employees' W-2 forms.

The cash and gift certificates the church provides to volunteers do not qualify as de minimis fringe benefits, and so they constitute a taxable benefit. However, since the volunteers are not employees, the church is not required to report the amount of these gifts on a W-2 form. No Form 1099 is required either, assuming that the volunteers do not receive compensation of $600 or more during the year. It will be up to the volunteers themselves to decide how to handle the certificates for tax purposes.

Many churches treat the staff to a holiday lunch or dinner at a local restaurant. According to the income tax regulations, the value of these meals ordinarily would be a nontaxable de minimis fringe benefit. The regulations give several examples of de minimis fringe benefits, including "group meals, or picnics for employees and their guests."

This article originally appeared in the December issue of Church Treasurer Alert, 2007.

How Do Employment Discrimination Laws Apply to Churches?

ChurchLawAndTax.com features two separate free articles related to one common question—how do employment discrimination laws apply to churches? As you might guess, the answer is complex.

In Pastor, Church & Law, Volume 3: Employment Law, Richard Hammar writes:

Title VII of the Civil Rights Act of 1964 prohibits employers engaged in commerce and having at least 15 employees from discriminating in any employment decision on the basis of race, color, national origin, gender, or religion. Religious organizations are exempt from the ban on religious discrimination, but not from the other prohibited forms of discrimination.

Numerous employment lawsuits involving churches and those "other prohibited forms of discrimination" have erupted throughout the years. It's essential every church understand the circumstances surrounding these cases—and the outcomes. Such understanding may help a church prevent a potential legal vulnerability; more importantly, careful planning now helps churches establish best practices protecting the church while respecting every employee.

This week, read about one woman who sued a church for age discrimination after it fired her. 

So, what do YOU think?

A Time for Thanksgiving

November is a time of thanksgiving.  We spend this time thinking about those things in our lives that we are thankful for; be it family, friends, colleagues and God.  But are we showing our administrative staff how thankful we are for everything that they do for our church?

Show your administrative staff how grateful you are for everything they do for you, your staff and your members.  Make sure to include in your 2012 budget the membership fees for them to join the Administrative Personnel Association of the Presbyterian Church (USA) as well as continuing education funds to attend APA conferences.  For a small fee ($75 for the membership dues and approximately $500 to attend a conference), they can become part of this great organization, recognized in the Book of Order G-2.1101 – G-2.1102.  The Presbytery affirms the skills and dedication of these certified lay employees by providing recognition at Presbytery at the time of their certification and by inviting these employees to Presbytery meetings, granting them the privilege of the floor.

By attending APA conferences, your administrative staff will improve the quality of professionalism in the offices that are usually the first points of contact with congregations, governing bodies and agencies of the Presbyterian Church (USA).  They will learn the importance of efficient office procedures and develop a deeper commitment and understanding of the issues, policy, history and theology of our church.

For more information about the APA and how it will benefit your administrative staff, contact Barbara Prieto, Florida Region President, at 305-666-8586 or rivierachurch@bellsouth.net.

Nancy Fine

Membership Chair, Florida Region of the Administrative Personnel Association of the Presbyterian Church (USA)

www.floridaapa.org