Tax Implementation Delay

The recently enacted Tax Cuts and Jobs Act of 2017 called for many changes in tax law, tax reporting, and laws surrounding charitable deductions, among other things. Two such changes will significantly affect churches and affiliated religious organizations. These changes can be found in Section 512(a) paragraphs (6) and (7).

These changes require new methods of calculation for tax reporting and payment for income earned through unrelated trades or business for churches and affiliated organizations and declare certain amounts paid by tax-exempt organizations to be taxable income (e.g., for a parking facility used in connection with qualified parking, for a qualified transportation fringe benefit, gym memberships, etc.).

These changes have not yet been clearly defined and the reporting method for them is currently unknown. A delay in implementation of changes will allow churches and religious institutions time to ensure they are abiding by the new law and time to train treasurers, volunteers, and stewardship teams in appropriate new practices. An implementation delay will also allow the Treasury and Internal Revenue Service time to outline clearly the definition of these new requirements and create the reporting structures necessary for tax-exempt organizations to comply with the law.

The Christian Church Foundation, Disciples Church Extension Fund, and Pension Fund of the Christian Church each represent the financial interests of the Christian Church (Disciples of Christ), managing over $4B in assets. As advocates for the financial wellbeing of all of our churches and affiliated organizations such as colleges and universities, nursing homes, children’s homes, and other ministries, we respectfully add our voices to those of organizations, including Church Alliance, the American Institute of CPAs, and the National Council of Nonprofits, among others, that have requested a delay in implementation of changes relating to Sections 512(a)(6) and (7) of the Internal Revenue Code that were enacted as part of the recent Tax Cuts and Jobs Act (“TCJA”; Public Law No. 115-97).

We believe it is in the best interest of the Christian Church (Disciples of Christ) and other churches and religious organizations to delay the implementation of these new laws until Treasury and the Internal Revenue Service have accurately defined the measure of the law and created means to adhere to these new regulations or repeal this section of the law due to the undue burden this will place upon volunteer-based organizations.

If you would like to add your voice along with ours, please click here and fill out the corresponding form.

To read a full account of Sections 512(a)(6) and (7) please click here.

To read the full statement by Church Alliance please click here

To view a full list of the Supporting Signers please visit the Pension Fund website here

 

CCF Works to End Modern Day Slavery

     The General Board of the Christian Church met in mid-April and Christian Church Foundation President Gary Kidwell reported on behalf of CCF. As part of his report, Gary explained to the General Board some of the ways CCF works for good in the world through partnership with Disciples Women and the Interfaith Center for Corporate Responsibility (ICCR), among others.
     Around the world, there are currently 152 million children engaged in child labor, 73 million children engaged in hazardous labor, and 25 million people engaged in forced labor. In March, the United States Senate passed the Stop Enabling Sex Traffickers Act (SESTA). This marked a major victory in efforts to stop human trafficking and it mandated updates to the Communications Decency Act to hold online platforms accountable when they knowingly engage in human trafficking. The Christian Church Foundation was one of many who advocated for SESTA.
     In addition to human trafficking, millions of people become slaves through the actions of unscrupulous labor brokers. As a member of ICCR, CCF supports work for responsible and sustainable business practices. Recently, we have worked with other members of ICCR to support the “No Fees” Initiative, which helps “companies to create robust management systems that will ensure workers . . . are not forced to pay for employment.”1 Hershey’s, McDonald’s, Williams-Sonoma, and Dean Foods are some of the new companies joining the “No Fees” Initiative this year, committing to integrate ethical recruitment, stricter codes of conduct, and changes in labor policies into their companies. Over the last year, the number of companies with a “no fees” policy has grown from twenty-five to forty-six while an additional eight new companies have integrated at least three pillars of the “no fees” policy into their management systems.
     At the Christian Church Foundation Board meeting this spring, Gary reviewed his General Board report and these important partnerships. Gary reminded our Board that, “We can make a difference, have an impact, and use our financial heft to work for justice in the world.”

 

Source: http://www.iccr.org/no-fees-initiative

Foundation honors Enrique “Quique” Ocasio

The Christian Church Foundation Board of Directors gathered in Indianapolis, Indiana, April 22-24, for their first meeting of 2018. The Board reviewed the year-end information from 2017 and discussed the upcoming year. The meeting included worship together, conversations regarding new tax law, reports from Prime, Buchholz and Associates, and election of three new board members. Rev. Reggie Chapman, Pastor of Lakewood Christian Church in Lakewood, Colorado, Mr. Dwayne Bell, Owner-President of Excel Real Estate and member of New Covenant Christian Church in Nashville, Tennessee, and Ms. Debbie Jennison, member of North Hill Christian Church in Spokane, Washington, will join the Christian Church Foundation Board of Directors January 1, 2019.

The highlight of the board meeting was the recognition and honoring of Great Lakes Zone Vice President, Enrique “Quique” Ocasio. Quique has been with the Christian Church Foundation since 2004, first working in investment services, then with congregations in Puerto Rico, the Northeast part of the country, and the Great Lakes Zone. After 14 years of dedicated work, Quique will be retiring at the end of June 2018. In honor of Quique’s time with the Foundation, he was presented with stained glass artwork depicting the Chalice and the Honored Minister pin. Rev. David Vargas, President Emeritus of Division of Overseas Ministries, and Rev. Samuel Robles, Jr., Pastor of Arise Christian Church in Orlando and current Foundation board member, both spoke about Quique and their ministry together over the years. Rev. Vargas described Quique as a “teacher at heart, the eternal volunteer, and a humble servant of God.” Foundation President, Gary Kidwell, said, “The Foundation is much better because of Quique’s sincere devotion, easy rapport, authenticity and calm confidence.” Quique is an invaluable member of the Christian Church Foundation staff and will be greatly missed.

India Bobadilla, currently serving as Assistant Vice President of the Foundation’s Great Lakes Zone, will be promoted to Vice President starting July 1. India and Quique have been working together closely over the last year to help ease this transition.

The Board’s next meeting will be November 9-11 in Dallas, Texas.

Archibald Named Director of Communications

The Rev. Maggie Archibald of Avon, IN, has been named the new director of communications for the Christian Church Foundation, President Gary Kidwell has announced. She will begin her duties March 1.

“We are thrilled that Maggie felt called to this position,” Kidwell said. “She is a pastor with the skills to communicate our ministry to the church. As a lifelong member of the Disciples, and the granddaughter of a former regional minister, Maggie understands who the Disciples are and how the Foundation can best relate to everyone.”

A 2016 graduate of Christian Theological Seminary, Rev. Archibald has been minister of faith formation for the Christian Church in Indiana since 2016 and associate minister at Avon Christian Church since March 2017. She graduated from CTS with a master of divinity degree as well as a master of arts in multicultural Christian education.

The daughter of John and Jeannie May, and granddaughter of Georgia and the late Rev. Bernard (Bernie) Meece, Rev. Archibald graduated from Lynchburg College in 2012 with a major in interdisciplinary studies with an emphasis in elementary education.

She has served as a keynote speaker for several Disciples Women’s events. She currently is a member of the Bethany Fellows and a participant in the Pension Fund’s Excellence in Ministry program. She and her husband, Matt, have a 1-year-old son, Daniel.

“I expect Maggie will bring a fresh perspective to how the Foundation works with donors and ministry partners as we continue to support both the present and future ministry of the church through legacy gifts,” Kidwell said.

The Foundation is a general ministry of the Christian Church (Disciples of Christ) with the mission of encouraging legacy gifts and responsibly managing endowment funds owned by Disciples ministries. It is a donor-directed foundation designed to benefit Disciples ministries and institutions, currently managing more than $660 million in assets.

 

The Tax Reform Bill

A tax reform bill  approved by both Houses of Congress has been signed into law by President Trump. Although the tax break for charitable contributions is one of the few deductions retained under the new tax bill, other changes will reduce its usefulness for certain itemizers. Because the standard deduction will be doubled and many other deductions will be limited or disappear, it is expected that fewer taxpayers will itemize their deductible expenses and, of those who do, fewer will receive an additional tax benefit for all their charitable gifts. 

For those who do currently itemize, one strategy to consider is to accelerate some or all of your planned gifts for 2018 and make them in 2017. This can be accomplished by simply paying your 2018 church pledge before the end of this year, or by using a donor-advised fund to set aside these charitable dollars now.  Whatever your situation, now that the new law’s final provisions are being made public, this is a good time to review your own prior year tax returns, and consider how changes to the tax law will impact you. 

- Gary Kidwell
Christian Church Foundation President

Foundation Board hears from new GMP, approves 2018 budget

The Christian Church Foundation continues to celebrate new financial milestones, buoyed by strong market returns in 2017 and tight budget controls, its Board of Directors learned.

The Board, meeting in November in Jacksonville, FL, approved a $4.2 million spending plan for 2018. Projected operating income is about $4 million, with earnings from its own endowment making up any difference.

 President Gary Kidwell reminded the Board that the Foundation’s financial strength allows it to provide cost-efficient services to donors and ministry partners. Keeping a tight rein on expenses during good times ensures resources for ministry in lean years, he said.

 The Board also heard the Rev. Terri Hord Owens, the new general minister and president of the Christian Church (Disciples of Christ). Owens is an ex-officio member of the Board.

Owens encouraged Disciples to keep in strong relationship with each other and to mentor and encourage youth, passing on that critical “Disciples DNA” that makes the denomination unique.

The Board also:

• Received a first-hand history lesson from President Emeritus James P. Johnson, who shared some of the background behind key decisions made in the Foundation’s early years. What seemed like small decisions at the time, President Kidwell noted, have had a major influence on how the Foundation more effectively moves money to ministry.

• Elected Board leadership for 2018. Continuing are Bob Williams of Dallas, TX, Board chair; Todd Reed of Walton, KY, vice chair; Debra Clayton of Topeka, KS, secretary; the Rev. Tanya Tyler, Sterling, IL, at-large member; and John May of Wilmington, NC, Investment Committee chair. Also elected were Ted Waggoner of Rochester, IN, Budget & Program Committee chair; Sharon Worley of Denver, CO, Audit Committee chair; and the Rev. Joanne VerBurg of Black Mountain, NC, Nominating Committee chair.

• Said farewell to retiring Board members Josué Torres-Moreno of Bayamon, Puerto Rico, and Gloria Feliciano of Totowa, NJ.

Remembering Harry Cotabish: A Consummate Christian Gentleman

by W. Darwin Collins

A few years ago, the Rev. Janet Hellner-Burris met with the Rev. Dr. Dwight French, the late Pennsylvania regional minister. As they talked about their church communities, Dr. French remembered Harry Cotabish as “a consummate Christian gentleman.”

Rev. Hellner-Burris served with Harry for years as board chair, elder, trustee and choir member at Wilkinsburg Christian Church. She couldn’t agree more with Dr. French’s kind words.

 

Sharing his talents with the church

I was introduced to Harry as I transitioned to regional ministry following Dr. French. Harry served the region as the chair of the regional new church start in Cranberry Township, PA. The church start required many hours and detailed plans, and I quickly learned to appreciate Harry’s organizational and planning skills. An engineer by profession, Harry brought the skills from his career to help the church. More importantly, what Harry brought to his service in the congregation and region was a devotion to giving his best for Christ’s ministry. Through his time, skills and financial resources, Harry always gave his very best.

Harry’s commitment to the church did not only span one congregation. Prior to his final years at the Wilkinsburg church, he participated at East End Christian Church. During the winter months of his retirement, he and his beloved wife, Gladys, attended First Christian Church of Ft. Myers, FL. His commitment to God and the church could not be confined to a single location. Wherever Harry lived, he gave of himself.

Following his death in 2016, Harry’s legacy would not be diminished. Rev. Hellner-Burris spoke of his legacy: “His attention to detail, combined with his great love of the church led him to be one of the wise voices we always listened to as we navigated the choppy waters of congregational transformation. In addition, Harry was a role model for me in growing old gracefully…his legacy lives on at our church and in the heart of one honored to be his pastor.”

 

Planning for generosity in death

Although it’s easy to remember Harry’s life and service, Harry and Gladys made careful plans to distribute their remaining assets after their deaths. The church and its ministries were beneficiaries of their generosity. As in their lives, so too in death!

The congregations Harry served in Wilkinsburg, Ft. Myers and the Pennsylvania region received proceeds from the Cotabish estate, extending the couple’s love for these ministries well into the future. Through the Christian Church Foundation, the Christian Church in Pennsylvania created the Harry N. and Gladys N. Cotabish New Church Establishment Fund to encourage continued interest in planting new churches.

Harry Cotabish was a consummate gentleman indeed, and a true ‘saint’ of the church.

 

Leave a legacy of faithful generosity

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