How can we encourage families to continue worship, prayer, and discipleship in their homes?

F I N A N C E

VITAL RECORDS EVERY CHURCH SHOULD HAVE

The passage of the CARES Act has brought to the surface the importance of church records. Many churches have applied for loans under the Payroll Protection Program, and banks are requiring documentation that many churches simply do not have. This month I wil list a few items that churches should take great care to ensure they have in their files at all times.

IRS DETERMINATION LETTER

The General Council of the Assemblies of God in Springfield carries a group exemption which grants 501(c)3 tax-exempt status to all Assemblies of God churches. Each church should keep a copy of the group exemption letter listing it as an affiliated entity. To secure a copy of this letter, you can contact the Office of the General Secretary and request a copy of the IRS Group Exemption Letter. You can reach them by calling 417-861- 2781 (ext. 3237) or email at churchrecords@ag.org. You can also contact the District Office (Renae.Elmore@okag.org) for assistance.

EMPLOYER IDENTIFICATION NUMBER ( EIN )

Every church should have an EIN, even if it does not have any employees. There are many instances when an EIN is necessary. For example, a church will need an EIN when it opens a bank account or files for incorporation with the Secretary of State. You can find your EIN by contacting your bank, the District Office (Renae.Elmore@okag.org), or the Internal Revenue Service.

CERTIFICATE OF INCORPORATION

To become incorporated with the State of Oklahoma, a church needs to file its Articles of Incorporation with the Secretary of State’s Office. Once approved, the Certificate of Incorporation should be kept in the church’s permanent files. We also recommend keeping a copy on file with the District Office. You can either file for incorporation or secure a copy of your church’s certificate by contacting the Oklahoma Secretary of State’s Office (www.sas.ok.gov), or the District Office (Renae.Elmore@okag.org).

BOARD MEETING MINUTES

Board meeting minutes are more than the general accounting of board discussions. They serve as the official and legal record of the board meeting. Minutes should not contain history of discussion and/or disagreement between individuals. They should accurately record the wording of “motions” and the action taken on such motions. Minutes should clear, concise, and condensed.

CONSTITUTION & BYLAWS

All Oklahoma District Council Affiliated Churches function under the provisions of the Oklahoma District Council’s Constitution and Bylaws for Local Churches. All Oklahoma District Council General Council Affiliated Churches are to function under the Oklahoma District Council’s Constitution and Bylaws for Local Churches unless they have submitted a copy of their amended bylaws to govern their local assembly. Once a church submits a copy of its version to the Oklahoma Executive Presbytery, those amendments will be reviewed, and a response along with the approval and/or recommendations will be returned to the local church. The letter containing the decision of the Executive Presbytery will be sent to the local church, and a copy will be placed in the church file retained by the Oklahoma District Council. If a local church has never received a letter that verifies the approval of the Oklahoma District Executive Presbytery for their amendments, any decision regarding governance will be subject to the current adoption of the Oklahoma District Council Constitution and Bylaws for Local Churches. To secure a copy of the Local Church Bylaws, contact Renae.Elmore@okag.org.

CURRENT EMPLOYEE PAYROLL RECORDS

Pastors, administrative assistants, janitors, and other paid church workers are likely considered to be employees of the local church. As such, the Internal Revenue Service requires their wages to be reported on form W2 at the end of the year. This means that churches will be responsible for payroll taxes on all nonministerial employees. Churches should only issue form 1099- Misc. to independent contractors. More often than not, people working for the church will not pass the independent contractor test. For all employees churches should ensure the following forms are filed and retained;

Quarterly 941 & State Payroll Filings Annual W2 & W3 Forms

For more resources, visitwww.ecfa.church/churchexcel

K E V I N C O N N E R

FINANCE & OPERATIONS KEVIN.CONNER@OKAG.ORG @KEVINSCONNER