All travel must be pre-approved by Council.

Travel worksheet

1. Filled out by person wanting reimbursement for travel.
2. Turned in to council for pre-approval and/or advanced payment
   1. For advance pay:
      1. Disbursement form must be attached to travel form.
      1. Council then gives to Treasurer to write check
      1. Then to book keeper for QuickBooks and filed.
   1. After travel:
      1. Worksheet, receipts and disbursement form are turned in to book keeper for QuickBooks.
         1. If any discrepancies are noticed, paperwork will be given to council for review.
         1. If no discrepancies are noticed paperwork is filed with disbursement form it pertains to.

Travel Reimbursement Policy:

IRS “Accountable” procedures will be followed.

Upon proof of attendance the following methods will be used to reimburse approved travel:

1. Mileage amount to be reimbursed will be $ .35 cents per-mile, based on shortest distances.
2. Lodging may be allowed up tocurrent GSA per-diem rates, receipts required.
3. Subsistence may be allowed up to current GSA per-diem rates, receipts required.
4. Unused funds that were paid in advance, in excess of reimbursable amount, will be returned to the Church in a timely manner.
5. When a pulpit swap is conducted, only mileage will be paid.

(This information is to be verified with the most current IRS Publications)

Attached: IRS Information Regarding Travel Policy

IRS Information Regarding Travel Policy

Employee:

According to IRS Pub 15 (cir E) and Pub 535 the amount allowed for “accountable method” is:

   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules.

1. They must have paid or incurred deductible expenses while performing services as your employees. The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee.
2. They must substantiate these expenses to you within a reasonable period of time.
3. They must return any amounts in excess of substantiated expenses within a reasonable period of time.

 Amounts paid under an accountable plan are not wages and are not subject to the withholding and payment of income, social security, Medicare, and federal unemployment (FUTA) taxes.

If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a non-accountable plan. This amount is subject to the withholding and payment of income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time.

Other than employee:

Pub 463 if the church reimburses other than employee expenses there must be a “bona fide business purpose and would otherwise be allowed to deduct the travel expenses”.

Dependents:

Children expense reimbursement is allowed if the qualified test in Pub 503 is met.

http://www.irs.gov/irb/2011-42_IRB/ar12.html

.04 An employee is required to include in gross income only the portion of the per diem allowance received from a payor that exceeds the amount deemed substantiated under the rules provided in section 4 or 5 of this revenue procedure if the employee substantiates the business travel expenses covered by the per diem allowance in accordance with section 7.01 of this revenue procedure. See section 1.274-5T(f)(2)(ii). In addition, the excess portion of the allowance is treated as paid under a nonaccountable plan, is reported as wages or other compensation on the employee’s Form W-2, and is subject to withholding and payment of employment taxes. See section 1.62-2(c)(3)(ii), (c)(5), and (h)(2)(i)(B).

The church, in exercise of its religious purposes and mission, has established a Youth Activities Fund to provide resources for the church youth and its various ministries.

The church welcomes contributions to the fund.

The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider how to handle recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.

Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.

The church recognizes that youth ministry is a vital part of the church’s purpose and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.

The church, in exercise of its religious purposes and mission, has established a missions fund to provide resources for the church, church members, or other worthy persons or organizations spreading the gospel of Jesus Christ. The fund can also provide resources to church members or other worthy individuals for short-term mission trips or support of long-term missions. The Church has made commitments from the general fund and will use designated giving to help meet these commitments before giving to other missions.

The church welcomes contributions to the fund.

The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.

Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.

The church recognizes that spreading the gospel is the primary purpose of the church and has established this fund as an ongoing fund.

Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.

Current AFLC Missions:

• Church monthly commitment of AFLC Evangelism $100.00
• Church monthly commitment of AFLC Mission Support-Jonnie Sliver $25.00 up to $100.00
• 1^st Sunday of the month collections to AFLC mission groups or AFLBS scholarship fund (see policy) up to $100.00 per month.

Missions, Other Organizations:

• Church monthly commitment of Josiah Venture $75.00.
• Heritage House up to $500.00 one time gift per year.
• Saint Vincent De Paul up to $250.00 one time gift per year.
• Others the council approves up to $250.00 one time gift per year.

To: The Congregation                                                                                                                      January 17, 2014

Regarding: Contributions to the Church

This letter is given with the intent to help clear up concerns dealing with contributions given through the church.

You have elected the church council members to be stewards of the church, pray about the areas you wish to contribute to and trust your council to be good stewards.

The council reviews all known needs and disburses the funds to needed areas within each fund account.

If you know of a specific need please write the council a letter or note to let them know, It will be reviewed at the following council meeting.

When making contributions to specific fund accounts please consider the following:

Most Fund accounts are tax deductible.

Your donations become non-deductible when you specify an individual. See IRS publications on this.

Designated funds (Temporary restricted contributions) are required by law to be used in the fund account they are designated to however money received over the commitment amount may be transferred to the general fund.

The current fund accounts are as follows:

Unrestricted contributions:

General Fund-these funds are tax deductible-used to pay the Pastor, maintain the church, help meet mission commitments and give as needed to other areas.

Temporary restricted contributions: when giving to specified fund accounts for tax deductions please remember, to be deductible your contributions may not be for specified individuals and the council must have complete control over to whom it is dispersed to. Please specify details on your offering envelopes.

Benevolence Fund– for families who are in need-policy and request forms located on back table.

Mission Fund– for missions –these fund accounts include, but are not limited to:

1. Joe Smith -current church commitment: $75.00 per month-funds given specifically for this help us reach that commitment.
2. AFLC World missions-Miriam Infant home (do not write Jonni Sliver) – current church commitment: $25.00 per month-funds given specifically for this help us reach that commitment.
3. AFLC Evangelism –current church commitment: $100.00 per month-funds given specifically for this help us reach that commitment. 
4. AFLC Home missions

Scholarship Fund– for members and their families- to help cover enrollment costs of AFLBS.

Bible & Gideons Fund– to purchase Bibles

Meals Fund– to help cover the cost of church meals

Youth Activity Fund– to help cover the cost of youth activities

Travel Fund –to help cover cost of mileage reimbursements for members of the congregation for attending church related activities.

Chair Fund –for purchasing new chairs for the church as needed.

Memorial Fund –for a specific purchase (these funds can be placed into general fund after the release date specified by giver)

Pastor (non-deductible) – If you wish to give to pastor you may give directly to him, or for deductible contributions refer to the above list of accounts.

Thank you for your contributions; we are committed to being good stewards of what God has provided. Please continue to keep us in your prayers.

Church Council, Redeemer Free Lutheran Church

A council approved Guest Speakers will be given payment for service of £150.00 per speaking engagement. Mileage may or may not be authorized. Non-council approved speakers may or may not be given payment.

• If mileage and/or lodging are authorized payments will be made in compliance with the travel policy.
• Mileage to be paid in compliance with the travel policy only for distances over 50 miles (round trip).
• If authorized £ .35 pence per mile will be paid.
• If an overnight stay is required and authorized, the church will make arrangements for a host family or pay for local accommodations.
• When a pulpit swap is conducted, only authorized mileage will be paid to Redeemer Free Lutheran Church Pastor, visiting pastor will be paid by their home church.
• Council invited Pastor Candidates will have no mileage limit and payments will be made in compliance with the travel policy.

Offerings taken for guest speakers will be applied to authorized amount in order to defray costs, if offerings do not meet the authorized amount the general fund will make up the difference.

If offering exceeds the authorized amount the excess will be added to the general fund account.

The normal practice of financial operations of the church is for members to give their tithes and offerings through the general budget of the church.

The church welcomes contributions to the fund.

The church council must approve fundraising events.

The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider how to handle recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.

Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.

The church recognizes that fundraising events are a vital part of the church’s purpose and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.

All funds must be given in accordance with IRS regulations (e.g. IRS Pub 1828, Pub 526, Pub 557, Pub 4221, and Pub 4573)

Fundraising events must be for a general event

Funds must be equally divided to all participants

Be non-discriminatory in use (a church group is not discriminatory).

Fundraisers will be organized and run completely by volunteers.

Charitable Contribution:

Credit will not be given for items received by the church at a fundraising event on the yearly donation disclosure statements

Credit will be given for monetary donations to the general event if given using assigned offering envelope to the designated general event on the yearly donation disclosure statements

Plan:

Redeemer Free Lutheran Church has established an Educational Assistance Plan (the Plan) to provide educational benefits under Section 127 of the Internal Revenue Code to all employees of Redeemer Free Lutheran Church. This document sets forth the Plan.

Employment Status:

Employees qualify for the Plan and earn the benefits if they are a current employee. Employees may take courses of instruction during active employment or during an approved leave of absence.

Plan Benefits:

Redeemer Free Lutheran Church will reimburse the employee no more than $ 1,500.⁰⁰ a year for qualified and council approved educational programs. Should lawmakers enact any changes, this Plan automatically adopts the changes on its effective date. Under Section 127 of the Internal Revenue Code, the employee receives the reimbursements under this Plan as tax-free fringe benefits.

Plan Termination:

Redeemer Free Lutheran Church reserves the right to change or terminate the Plan without prior notice. If Redeemer Free Lutheran Church does end the Plan, Redeemer Free Lutheran Church will reimburse all courses in process prior to termination, but it will not reimburse any classes that begin after Plan termination and notification.

Funding:

Redeemer Free Lutheran Church will pay educational benefits out of its general assets. Redeemer Free Lutheran Church does not maintain a special fund to cover the benefits. Further, Redeemer Free Lutheran Church does not require participants to make contributions as a condition of receiving benefits.

Prohibited Choices:

This Plan prohibits Redeemer Free Lutheran Church from offering eligible employees a choice between educational assistance and any other compensation.

Covered Educational Expenses:

This Plan reimburses costs for tuition, fees, and books for approved educational classes.

Expenses Not Covered:

The plan prohibits reimbursements of meals, lodging, transportation, tools, and supplies. Further, the Plan does not reimburse costs for any education that involves sports, games, or hobbies.

Employees who plan to take advantage of the Educational Assistance Plan shall notify Redeemer Free Lutheran Church in writing of such plan; course of study, and expected reimbursement amounts and dates as soon as the information is available but no later than 30 days after the educational activity begins.

Reimbursements:

Redeemer Free Lutheran Church will not reimburse any amounts already reimbursed by any financial assistance, scholarship, or any other financial benefit derived from public or private programs.

Redeemer Free Lutheran Church shall make direct payments to the school, upon council approval or reimburse the participant within 45 days of proper submission of the supporting documents.

Upon completion of the courses, the participant must provide proof of attendance and original receipts for all items for which he or she seeks reimbursement.

If participant cannot give supporting documentation upon completion of the courses, the participant must repay to the church any funds that were paid by the church within 45 days.

Redeemer Free Lutheran Church has explained this Plan to me, an eligible employee, and I have read this Plan document. With this signature, I verify that I have read this Plan document and understand the Plan.

By the Employee

Printed Name ______________________ Signature ________________________ Date _______

On behalf of Redeemer Free Lutheran Church, I explained this Plan to the employee above. Further, I furnished the employee with a copy of the Plan and observed as he or she read the Plan. I hereby affix my signature in verification of these facts.

For the Employer

Printed Name ______________________ Signature _________________________ Date ________

The church, in exercise of its religious purposes and mission, has established a Church Meals Fund to provide resources for the church fellowship and its various ministries.

The church welcomes contributions to the fund.

The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider how to handle recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.

Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.

The church recognizes that meal ministry is a vital part of the church’s purpose and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.

The church, in exercise of its religious purposes and mission, has established a Chair Fund to enable donors to assist with the purchase new chairs for the church.

The church welcomes contributions to the fund.

The administration of the fund, including all disbursements, is subject to the control and discretion of the church council. The church council may consider how to handle recommendations from anyone, but in no event is the church council bound in any way to honor the recommendations.

Donors will not be permitted to recover a contribution on the grounds that the church council failed to honor the donor’s recommendation.

The church recognizes that the chair fund is a vital part of the church’s purpose and has established this fund as an ongoing fund. Should at any time in the future the church vote to close this fund, all money in the fund at that time will go in the general budget of the church.

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