Week 13: Minister's Taxes

1. My BEST ADVICE is: use TurboTax software each year
2. Ministers do NOT pay income taxes on housing expenses
a. LIMITATION #1: It must be DESIGNATED IN ADVANCE by the church
b. LIMITATION #2: It is also limited to the "Fair rental value of the house plus utilities
3. However, ministers DO pay Social Security taxes on housing
4. Ministers buying a house also get to take their housing interest as a regular deduction—so called “double dipping.”

Tax preparers can provide assistance by verifying that an individual meets the definition of a minister under IRC section 107 and by maintaining adequate documentation to ensure that valid housing-allowance claims are upheld. This information can also aid those serving on church boards or as advisors to churches. These preparers can enhance tax-law compliance by educating church leaders and employees on the requirements of IRC section 107 and by providing advice in cases where an employee’s right to a housing allowance is less clear.
Application of IRC Section 107
IRC section 107 allows a tax-free housing benefit for a “minister of the gospel” in two situations. First, the employer can allow the minister to live rent-free in a home (parsonage) owned by the church. The minister can exclude this benefit from gross income up to the home’s fair rental value. The value of the parsonage must be clearly distinguished from other compensation, and includes items such as furniture, insurance, utilities, and taxes.
If a parsonage is not provided to the minister, a nontaxable housing allowance can be provided so that the minister can rent or buy a home. This is the option used most frequently. It provides ministers with the freedom to choose their preferred type of housing. The allowance covers items such as mortgage payments (principal and interest), insurance, repairs, utilities, and other expenses to keep the home in working order.

Week 13: Ministers Taxes

1.  I think the most important thing that ministers need to remember about taxes is that they should use some kind of software, like TurboTax.  This software is programed with all of the rules concerning taxes that most ministers do not know offhand.  Another great aspect of this software is that it is usually more effective in doing taxes than a CPA (certified public accountant) because it knows all of the rules concerning ministers and their taxes, whereas a CPA may not know this information offhand.  

2.  Ministers do not pay income taxes on their housing expenses as long as they are designated in advance and do not go above the fair rental value.  I had no idea that pastors did this and this is something that many people would overlook.  This can save a lot of money for pastors.  

3.  Ministers get to take their housing interest as a deduction.  This sounds shady since ministers already have the advantage of not putting their housing on their taxes but this is an allowance given by the IRS.  It is called "double dipping."  I think pastors need to remember this because, again it is an allowance.  

4.  Pastors have to claim their honorariums.  Pastors get a lot of breaks from the IRS and while at times we may not seem to get paid the amounts we believe we should that does not mean that we should hide certain payment from the government.  It would be easy not to claim this kind of a payment on taxes but this is illegal.  Honorarium means that pastors are getting paid for a service and therefore it is a part of taxable income. 

5.  Ministers need to claim unused housing allowance.  This is pretty simple but it would be easy for pastors to not use all of their housing allowance and then keep the rest of it as untaxed income, however whatever money is not used from a housing allowance becomes taxable when you do not spend that money on housing.  So pastors must claim their unused housing allowance. 

6.  Unfortunately it would be easy for a pastor to hide the fair rental value of his home.  Pastors could as the church to place a very large sum of their income as "housing allowance" and then set the value of their home at a very high price.  This would allow them to cover their income and not have it taxed.  Unfortunately again, this is cheating.  Pastors need to make sure that they understand what the fair rental value of their home is.  

 

Week 12: Learning Leadership

"Some leaders learn to lead by making mistakes and then reflecting enough on those mistakes to develop principles for the future...another way is to learn the principles based on the mistakes of others." 

My initial reaction to this statement is to believe that the person who would rather learn from personal mistakes rather than the mistakes of others does not care about the damage that can happen when mistakes occur.  Yes mistakes in ministry will occur regardless of how much we research and prepare for a service or event, but that does not mean that we can lessen the effects of those mistakes by doing some research.  I tend to think that leadership is something that can be learned and not something that is simply inherent.  In my opinion there are leadership qualities that can be developed by looking at the leadership of others and then putting certain traits and characteristics in play.  In my life and ministry, it is my hope that I can put the lessons that others have learned into practice and in some way lessen the effects that mistakes may have on my life, my ministry, or those I am ministering to.  I have to do my best to learn how to be the best leader because my leadership ultimately affects the Kingdom of God and his beloved.  If I'm not trying to learn then, in my opinion, I'm not showing God or those around me that I care about their spiritual formation.  So, I'm going to do anything I can to learn from the mistakes of others and not "learn on the job" without doing any research.  

Week 13 singleness and Ministry

Week 13 Singleness and Ministry

5 items I intend to practice to avoid sexual impurity and impropriety in thought, words and deed

 

1. I will tell my wife, the same day, if another woman begins to come on to me.

 

2. I will not spend time alone with members of the opposite sex, I will always make sure there is at least one or (preferably) two other people there.

 

3. I am going to keep an accountability partner that I will get a hold of and talk to at least once a week.

 

4. I will not allow myself to get overworked and be away from home for too much time, I will always make family time a priority.

 

5. I am going to get an accountability program for my computer and let my wife content advisors on my computers.

Week 13 Minister’s taxes

Week 13 Minister's Taxes

Most important things that I need to Remember about Ministers and Taxes

1. Buy a tax program to use such as Turbo Tax, do not use the free internet service, but actually buy the program.

 

2. Minister's do not have to pay income tax on housing allowance, but they do have to pay social security tax on the housing allowance.

 

3. Don't be unethical when it comes to filing taxes even if you have to pay more.

 

4. Most Churches reimburse the Social Security tax you pay on your housing allowance, or at least part of it.

 

5. You can deduct the interest you pay on your house if you own it, (the "double-dipping" principle)

 

6. Go to the DS with tax issues because this is his/her job.

Week 12: 360 Degree Leader

The theory of the 360 Degree Leader states that regardless of position or authority, a person in any role as the ability to lead people in positions all around him.  He can lead those who have authority over him but supporting, encouraging, and working as hard as he can for them.  A person can lead others at the same level as him by not competing against them but by working with them, giving them ideas, and encouraging them.  And finally, a person can lead those below him, but can do so in a way that empowers and enables rather than simply demanding something from them. 

I can see how this leadership trait would be effective at the River Community Church.  I believe that because the church is still in its beginning stages it needs 360 degree leaders.  I believe that by having an attitude of service and not competition we can empower leaders to take up roles in ministry that will ultimately do great things for the churches future.  In my thinking, I think it would be great for the church to develop lay leaders who feel like they have ownership over a part of the ministry.  The ministry becomes their own and they take great pride in it.  I have seen how a church plant may struggle because it can be difficult to get people involved at first, but by having the leaders encourage those on all levels to take up ownership of the ministry will help tremendously.  

360 Degree leadership is also something that I feel will really benefit the church staff as a whole.  It can eliminate, to some degree, the hierarchy that exists between the senior pastor and the other pastors on staff.  When a senior pastor leads with principles from the 360 Degree leader, he does not simply show authority and power to the other pastors, but he encourages them and empowers them to go and minister, maybe with the same authority that he has.  A 360 Degree leader will give opportunities to other pastors to succeed and grow in ministry.  I think that would be great for the church because it can help alleviate friction in the relationships between staff pastors.  We're all working towards the same goal and if we become 360 Degree leaders we are helping everyone move in a way where they can serve and minister.  

Week 12 Essay Insightful Response

Week 12 Essay

Response to the statement: "Some leaders learn to lead by making mistakes and then reflecting enough on those mistakes to develop principles for the future…another way to learn is the principles based on the mistakes of others."

    If all leaders were humble enough to admit when they have made a mistake then they, and the people they lead would be better off. One of the problems with the first part of this statement is that people are not willing to admit they have made a mistake. Which of course is not right because we have all made mistakes, it is just that some people are not willing to be honest with themselves and think that they never do anything wrong. Another problem with the first part of this statement is that leaders are too often not willing to accept blame or responsibility for the mistakes they make. They are quick to place blame elsewhere and absolve themselves from any wrong. Good leaders are willing to admit that they have make mistakes and are willing to reflect upon those mistakes and grow from the mistakes they have made.

    More leaders are willing to learn from the mistakes of other because it is much easier to say someone else has made a mistake. Leaders should look at the lives of the leaders of the past and people currently in leadership and see what mistakes they have made and learn from them. If someone has already made one mistake then you don't have to make the same mistake to learn from that mistake. We should to others to see what they have done both wring and right to learn from their life experiences as if it were our own experiences.

Week 11: Maxwell Book

The 360 Leader by John Maxwell challenges the myth that only a select few at the top of an organization can lead and encourages leaders to empower those below them to lead in all directions.  

In essence, Maxwell is trying to empower people to lead everyone they come in contact with.  He states that a 360 leader knows how to effectively and respectfully lead those that have authority over them by making them look good and encouraging and following them.  360 leaders know how to build relationships with co-workers so that they can work effectively together rather than in competition with one another.  And 360 leaders know how to utilize, encourage, and empower those whom they have authority over.  A 360 leader knows how to build relationships with everyone they work with and use those relationships to reach goals more effectively.  Its about learning how to submit and serve one another rather than serving your own self interests as a leader.

I happen to agree with Maxwell's point, that a 360 degree leader can have a massive affect on an organization, because competition and selfish motives are not present.  I feel that making this a reality is much harder than it seems.  To rid ourselves of selfish motivation is difficult enough at times.  How often do we look at those above us who do poorly in leadership roles and try and work harder to make them look good?  Not very often.  But I do believe that having a 360 degree leader attitude is one that reflects the heart of Christ and will help our churches serve in a way that is more effective for doing the ministry of Christ.  

Week 11: Maxwell Book

From John Maxwell's 21 Irrefutable Laws of Leadership
The Law of Respect:
People naturally follow leaders stronger than themselves
I think this is interesting; yet so true. Whether you are a follower who is just beginning to discover the impact of leadership or a natural leader who already has followers, you can learn to be a better leader. The 21 Irrefutable Laws of Leadership distills Dr. John C. Maxwell's insights from more than thirty years of personal experience. Each law of leadership is like a tool to help you achieve your dreams and add value to the lives of other people. In The Law of Respect, you will learn why:
Leaders go their own way when a group first comes together
People change direction to follow the strongest leaders
People naturally align themselves and follow leaders stronger than themselves
Major change tests respect for a leader

Mistakes Ministers Make

Joe McDaniel
1. You stop growing.
It's hard for a pastor to continue to grow because they are always pouring out into others lives. So you need to find a way to 'feed' yourself.
2. You stop caring.
NEVER stop caring. You show you don't care, we show you the door!
3. You stop listening.
You're job is to listen to people listen, and we need you to listen. Whether it's counseling or whatever, listening is as important as preaching.

Week 11: Mistakes Ministers Make

I interviewed Deric Brown from The River Community Church on March 25th at the church. 

1.  The first mistake that new ministers make is thinking that they can simply gain the respect of their congregation by having the title of pastor.  They need to earn that respect and earn the right to know the intimate things about a church member's life. 

2.  New staff members need to learn to follow in the footsteps of their leaders or former church leaders.  It is helpful when a pastor listens to the advice of a former leader of the church because he has the knowledge and experience needed to guide the congregation. 

3.  Slow down.  New pastors may think that they have something to prove and while this is somewhat true the pastor needs to take his time and ease his way into the position and changes that may be occurring within the church.  

Week 12 Essay Theory X and Theory Y

Week 12 Essay Formal Leadership Theory

Theory X and Theory Y

    First of all theory X says that managers or leaders must assume that employees are inherently lazy and will avoid work at every opportunity. Theory Y says that employees may be ambitious, self-motivated, and exercise self control.

    I have seen an example of theory Y leadership in a Church that I once attended. It is Athens Wesleyan Church, the Church I went to growing up. The pastor of the Church would allow people to be involved with ministry and allow them to take risks and go out on a limb. Theory X leaders do not allow this because of the close supervision they believe that people need. Theory X leaders try to do everything on their own or have their hand in everything so they can "make sure it goes right."

    This was not the case at Athens Wesleyan. The pastor would allow people to be involved with the various ministries in different ways without babysitting them. At Athens Wesleyan there were many people that were involved in the ministry of the Church and encouraged to be involved in the ministry of the Church because the pastor thought that the people would want the ministry of the Church to be successful, not for fear of retribution if they fail, but because they could grasp the ministry of the Church and take leadership and ownership in it.

    At Athens Wesleyan the pastor would also listen to the ideas and suggestions of others. He did not always think that he is right, and was willing to listen. This is not the case with theory X leaders. The pastor of Athens Wesleyan Church was a theory Y leader and would encourage and develop the ministry of the Church with the help of volunteers that he was willing to let take a chance and take ownership in the ministries they were involved in.

Week 11 Essay Maxwell Book

Week 11 Essay

Maxwell Book

    The John Maxwell book that I looked into is called The 21 Irrefutable Laws of Leadership. The principle that I learned from this book is what Maxwell refers to as "The Law of Process." The law of process says that a leader does not become a leader in one day but to become a good leader it is a process. In this chapter there is the story of Anne Scheiber and how through a life time of saving she was able to go from making a little over $3,000 a year to leaving an estate worth over 22 million when she died. Maxwell uses this an example of how you cannot just do something overnight, but it is a process and this process is often accompanied by many sacrifices, had times and though decisions.

    I thought that this is an excellent principle of leadership especially in the world today. This is helpful with my generation as we are the "fast food" generations and want things done yesterday. We are not patient and often times don't want to put hard work into something. We want things and we want it now. From reading Maxwell I better realize how I have to be patient and invest time and energy into becoming a leader. Even if I am a good leader now I will not get better without hard work. There is a t-shirt that I once saw that said "Don't wish it was easier, wish you were better." I think this describes how I now feel about leadership, I don't wish it was easier, but I wish I was better and am willing to work hard and invest time into this process to become better.

People Work

I think the best way to work with people is by hanging with people. The best way to get good at doing something is to continuously do it. It is always hard to find something easy, when you don't do things repetitively.
Often times, 'homeschoolers' are people who have poor person skills. I think this is due to the fact that they do not necessarliy hang with people day in and day out.
Learn to pacify the situation instead of destroying others. Managing conflicts skillfully–bring responsible, making sound decisions, being inventive, helping others–can be a powerful opportunity for growing both professionally and spiritually. Choose to be curious, dropping “fight or flight” mentality. Recognize that we do not need to limit ourselves to a narrow perspective of achieving our objectives, voicing our opinions, protecting our territory. We can explore a wider set of possibilities for helping the situation. We can also attract resources during conflicts. By modeling our own resourcefulness first, we can then invite others to offer suggestions and share responsibility. First pacify, then discover that we are resourceful enough to be daring and available, free from fear and arrogance. Pay attention, and with such alertness we can preserve the sanity of our world even during extreme discord.
A working relationship means finding the best way to communicate with your co-workers, from supervisors to interns. You must together determine strengths and weaknesses, so that work can be accomplished most effectively. A working relationship also involves respect, trust, and, especially in an office setting, honesty. With these building blocks, a relationship is built on the foundation of work productivity. Many people work together for years without seeing each other outside the office.

Week 10: People Work

As I think about relationships and relational people I believe that a part of it is truly a gift that people are given for ministry.  I can think of countless pastors I have met who simply have an ability to be relational and develop deep and beneficial relationships with their communities.

   However I also believe that we are able to develop and learn the ability to be relational in ministry.  I believe that I am one person who has developed the ability to be more relational as I have matured and learned in ministry.  

The first thing I think of that helps develop relational people is to intentionally and maybe even forcefully place yourself in a position where you will be around people more often.  Doing so allows you to be more comfortable and confident around larger groups of people.  I know that when I started doing this I recognized how I would avoid and shy away from situations where I would be around a group of people.  So first getting around people and developing a comfort with that is important. 

Another aspect of becoming a relational person that I see is that we must become good listeners.  When we know what people are going through and talking about we will be able to have intentional and meaningful conversations.  I can't count how many times I have found myself thinking about the next thing that I will say to someone when I get into a conversation with them.  When I do this I lose focus on what will really have an impact on the person that I'm talking to.  So, to be able to develop better relational skills we have to learn to listen to what others are saying so that we will be able to have meaningful conversation.  

One of the hardest things about being a relational person is actually knowing what questions to ask and how to ask them.  I know from first hand knowledge that it is important to be able to ask good questions that cause others to respond with answers other than a simple yes or no.  It can be hard but it is important to learn how to ask questions that will make people talk.  As I said before, listen carefully so you can ask the right questions, but then learn how to ask questions that will make a person go deeper.  

There is a tendency to become someone you are not when you feel as if being relational isn't a strong point.  Its easy to think that becoming someone other than who you are will help in an uncomfortable situation, however faking it is sometimes very easy to see.  I've been fake before in relationships and I have had people tell me that they know and can see when I'm being fake.  This gives people the idea that you don't care about their relationship.  So it is important to understand who you are, what your abilities are, and how you may react in uncomfortable situations.  

Finally, I feel it is important to share your heart.  One thing that people respect and respond to is genuineness.  If you are genuine in your relationships and show people your heart and how you care about them, it will help you develop relationships.  How can we expect others to show interest or share intimate things if we are not willing to do the same?  We need to find a good way to share our hearts in a positive manner and allow others to share with us.  

Like I said at the start of this post, some people do just have an ability to form relationships and carry conversation with others.  But we can develop our abilities if we are willing to find out who we are and place ourselves in a position to learn. Yes it will be uncomfortable at first, but understanding that these relationships can be use by the Spirit to work in the lives of others should encourage us to preserver.  

Week 11 Mistakes Ministers Make

Week 11

Mistakes Ministers Make

I interviewed my wife, Jessica Trout, on Monday March 23, 2009.

Three Mistakes for a new staff person with a church to avoid:

1. Don't think you can do it all on your own:

    - It seems that many times pastors come into a church and think that they can do everything on their own or that they don't need people to help them. They should be open to allowing others to help because they don't have to do it all on their own.

2. Don't take too long preaching:

    Many times when pastors come into a church they feel that they have to impress the people of the church and they do so by giving long and drawn out sermon to show the people how much they know. It would be better to hear a short impactful sermon than one that is long and drawn out.

3. Don't be afraid to ask for help:

    This goes along with #1 but many times a new pastor is afraid or slow to ask for help because they do not want to seem inadequate to the people of the church, but they should not afraid to ask for help.

Church Fight

Pastor Jared
There was a female youth worker who had an issue with the youth pastor. They were little spiffles at first. But over time, they began to escalate into bigger issues. Eventually, everything added up and was bottled. One day in the office, the female came in a began yelling at the youth pastor. It got so out of hand the pastor asked her to leave, but she wouldnt. People in the church gto wind of the situation and about 1/5th of the people ended up leaving because of the issues and the fact that they were never settled. The youth pastor was eventually let go, once all the details were made public.

Leadership Characteristics

Here are some Quality Characteristics:
Honest - Display sincerity, integrity, and candor in all your actions. Deceptive behavior will not inspire trust.
Competent - Base your actions on reason and moral principles. Do not make decisions based on childlike emotional desires or feelings.
Forward-looking - Set goals and have a vision of the future. The vision must be owned throughout the organization. Effective leaders envision what they want and how to get it. They habitually pick priorities stemming from their basic values.
Inspiring - Display confidence in all that you do. By showing endurance in mental, physical, and spiritual stamina, you will inspire others to reach for new heights. Take charge when necessary.
Intelligent - Read, study, and seek challenging assignments.
Fair-minded - Show fair treatment to all people. Prejudice is the enemy of justice. Display empathy by being sensitive to the feelings, values, interests, and well-being of others.
Broad-minded - Seek out diversity.
Courageous - Have the perseverance to accomplish a goal, regardless of the seemingly insurmountable obstacles. Display a confident calmness when under stress.
Straightforward - Use sound judgment to make a good decisions at the right time.
Imaginative - Make timely and appropriate changes in your thinking, plans, and methods. Show creativity by thinking of new and better goals, ideas, and solutions to problems. Be innovative!

Week Nine Essay Leadership Characteristics

Week Nine Essay

Leadership Characteristics

A list of characteristics that "make" people want to follow a leader:

1. Politeness

2. Kindness

3. Openness and transparency

4. Bold

5. Someone who is not afraid of failure

6. Someone who knows what they stand for

7. Someone who does not let other people walk over them

8. Someone who is willing to take a stand for what is important

9. Someone who is personal and pleasant to talk to

10. Someone who shows they genuinely and truly care about you

Week 9: Leadership Characteristics

This is the list of attractive leadership characteristics a good church leader would have (in my own opinion and no particular order of course). 

1.  Servant-hood/Humility - A good leader in my mind serves those around him and is humble about the position he has been entrusted with.  In all facets of his life, he makes service and humility a key part of who he is.  

2. Visionary - This leader has vision and does a good job sharing this vision.  He not only is able to cast vision but also is able to make that vision a reality. He effectively communicates this vision to get others on board.  

3. Vulnerable - When a leader is able to be vulnerable with others I believe it shows sincerity and discernment.  The leader knows what it is to share his heart with others but also knows when to share and how much to share.  

4. Intelligent - A good leader is intelligent and desires to continue growing.  They know that when they stop learning they stop leading.  Good leaders are able to teach others what they have learned.  

5. Mentoring/Equipping - Sharing the knowledge, experience, and wisdom they have is an important part of a good leaders requirements.  They need to understand what it is to mentor and equip others to minister.  They take others "under their wing" to prepare them for ministry or life in general.  

6. Disciplined - A good leader is disciplined and knows when to say no.  They understand what it means to prioritize and take responsibility.  

7. Relational - Good leaders are able to form intentional and long lasting relationships that are beneficial.