Ministry Tools
We have compiled information useful for maintaining the
compliance of your 501(c)(3) organization. These pages are provide as a
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Example:
Accountable Reimbursement Policy
The following standards and
policies have been adopted and ratified by the ministry for use and
implementation in the financial, fiscal and accounting practices of the
ministry:
“WHEREAS,
Internal Revenue Regulations require that a full accountable reimbursement
policy be established to avoid the reporting of reimbursements of expenses to
employees or other ministry workers, it is established that:
1. Any
minister, or other ministry worker, now or hereafter employed or engaged by the
ministry shall be reimbursed for any ordinary and necessary business and
professional expense incurred on behalf of the ministry, if the following
conditions are satisfied: (1) the expenses are reasonable in amount;
(2) the minister or other
ministry worker documents the amount, time and place, business purpose, and
business relationship of each such expense with some kind of documentary
evidence as would be required on the minister’s federal tax return; and (3) the
minister or other ministry worker documents such expenses by providing the
ministry with an accounting of such expenses, no less frequently than monthly.
In no event will an expense be reimbursed if substantiated more than 60 days
after the expense is paid or incurred by the minister or ministry worker.
2. The ministry
shall not include in a minister’s or other ministry worker’s W-2 form the amount
of any business or professional expense properly substantiated and reimbursed
according to the preceding paragraph, and the minister or other ministry worker
should not report the amount of any such reimbursement as income on his or her
1040
3. Any ministry
reimbursement that exceeds the amount of business or professional expenses
properly accounted for by a minister pursuant to this policy must be returned to
the ministry within 120 days after the associated expense is paid or incurred by
the minister or other ministry worker, and shall not be retained by the minister
or other ministry worker.
4. If, for any reason, the ministry’s reimbursements are less than the amount
of the business or professional expense properly reported and substantiated by
the minister or other ministry worker, the ministry will report no part of the
minister’s or other ministry worker’s W-2, and the minister or other ministry
worker may deduct the non-reimbursed expenses as allowed by law.
5. Under no circumstances will the ministry reimburse a minister or other
ministry worker for business or professional expenses that are not properly
substantiated according to this policy. Ministry and staff understand this
requirement is necessary to prevent our reimbursement plan from being classified
as a “non accountable” plan.
6. All receipts and other documentary evidence used by the minister or other
ministry worker shall be retained by them. The ministry may, at its election,
make copies of such evidence.”
ADOPTED AND APPROVED on the
___day of ____________, 20___ by the Board of Directors and we, the undersigned,
hereby certify that the forgoing is a true account of the Resolution as passed
on behalf of the Ministry:
ATTEST:
(Ministry Name)
_________________________ _________________________
Secretary
Chairman of Board
Dated:
_____________
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