Lenders use a formula called the Debt Coverage Ratio to determine whether a ministry’s debt is reasonable or too high. The Debt Coverage Ratio compares the borrower’s annual net income (excluding mortgage interest and depreciation) to the annual debt payments. Basically, lenders like to see the ministry’s annual net income be anywhere from 10% to [...]
Don’t throw away your bank and credit card statements.
July 8, 2010 By 1 Comment
OMG! I’ve seen this one too many times. Here’s the scenario. The pastor or other board member receives all the monthly bank statements and credit card statements. They look over the statements, everything looks good, no errors, no fraudulent transactions. What next? They throw the statement away or better yet, they shred the statement. Why [...]
IRS planned to lower fees from $850 to $200
June 30, 2010 By 5 Comments
IRS planned to lower fees from $850 to $200 for 501c3 application fees this year. Plans delayed till who knows when. They are not saying. Still you may be scratching your head and wondering when did the fees jump to $850? User fees increased for all 1023 returns filed after January 4, 2010. Organizations with [...]
Remember to keep personal fina…
June 30, 2010 By Leave a Comment
Website Enhancement
June 30, 2010 By Leave a Comment
Thanks for stopping by! If you’ve been here before you’ve notice I’ve made a major update to the website. I plan to take full advantage of the blog platform by providing my site visitors with lots of information about managing church finances, tax matters for ministers and non-profits and so much more. Be sure to [...]
