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RENDEZVOUS

"I'm interested in the Mission, its financial administration, and its ministries. What questions should I be asking?"

by Leota Fred, RMBM Business Manager

WHAT CHANGES ARE OCCURRING?

The recording and reporting procedures of the finances of the Rocky Mountain Bible Mission have changed dramatically in the last five years. We moved into the world of technology and began using software specifically designed to put the Mission in alignment with general accepted accounting procedures. We have standard reports for use to foundations and our constituency. Two years ago we even implemented a budget for the general fund. In 1999 we missed our budget by $6,263. This year we missed our budget by $177. We're learning.

Camp Utmost operated at the new site this year. And with the completion of the "tabins" and the lodge, it's apparent we need to use the facility more. The facilities hold too much potential and the costs are too great not to use it fully. Elohim Camp and Retreat Center saw increased interest this year, and we can once again turn to our goal of a year-round facility. The camp boards, the executive board, and the Mission body look ahead for uses of these facilities in addition to the summer youth camps.

The Mission is still committed to providing summer Bible camps to children at very affordable fees, but it is very evident that these camps cannot pay the maintenance costs. The Mission's philosophy is that camp fees pay for the expenses directly related to camp. The facilities then need to be made available to others, and those fees will cover repair and maintenance. Fees and policies have been established, and advertising material is underway. Each camp has its own budget, board, and director. Encouraging, exciting changes have begun.

WHY DOES RMBM NEED ME?

The missionaries of Rocky Mountain Bible Mission are busy. They are busy in their ministries and busy in reaching the rural areas with the Gospel. In fact, I don't know if RMBM has ever had so many plates spinning before. And each plate represents an exciting and worthy ministry. To keep some of the plates spinning, we desperately need your support, both in prayer and in money. Allow me to highlight a few items.

Elohim Camp and Retreat Center. The last few years, we've been forced to simply winterize and shut down, really using the camp for only 5-6 weeks of the summer. That was never the intent of the Mission. We desire to have a facility that can offer camps and retreats all year. New director Warren Edson has the place hopping with Praise Nights already, and he wants to move to year-round utilization as soon as possible.

In order to do that we must make some major repairs to the existing facilities, and very soon we need to build a lodge that can accommodate large gatherings. Summer camp fees do not and cannot cover the improvement costs or the winter utility bills. And we cannot host or charge groups for winter activities until the improvements are done.

See our dilemma? Please join us in our efforts at Elohim in prayer and, if possible, in dollars.

The 2001 Shepherds' Conference. As you may remember, this is a special conference retreat for RMBM missionaries. This is a time for them to receive nourishment and rest. Jerry Bridges of Navigators is the keynote speaker this next April. We are looking and individual or corporate sponsorship to underwrite the expenses. If you know of businesses or people who would be interested in sponsorship, please let us know.

Pathwalkers ministries recently received a van. Vehicles are always a mixed blessing. The blessing is providing transportation to those children who have no other way to attend activities. Routine maintenance, gasoline, and insurance costs often overshadow the blessing. We are trying to build a fund to help with these costs, and hopefully to send our missionaries out in the summer to reach other Native Americans with the message of Jesus. Can you help?

WHAT ABOUT ADMINISTRATIVE FEES AND COSTS?

Periodically scandal rocks the non-profit world when some daring soul questions what percentage a specific organization takes for its administrative fees. Administrative fees represent the percentage of dollars the Mission assesses each ministry. You will be delighted to know that our Mission takes only 7 percent. So, if $100 is given to Joe Missionary, $7 goes towards general administrative fees, and $93 goes to Joe Missionary. The Mission's goal is to keep this fee as low as possible. The 7 percent is unheard of in the non-profit world where anything from 12 to 20 percent is not uncommon.

Administrative costs represent what it takes to run the Mission. Again, we try to keep this low. The ultimate goal of any non-profit is to keep administrative costs at 10 percent. We're at 9 percent.

So, what's the correlation between the 7 percent administrative assessment and the 9 percent administrative cost? We use the assessment fees and donations to the general fund to cover these administrative costs as well as some children's ministries that are not self supporting.

TAX TIP

We receive many checks that are marked "gift for...," yet the donors want a receipt so they can use it for tax purposes. And that's fine and legal and acceptable, but their donation is not truly a "gift." Webster defines "gift" as something voluntarily transferred by one person to another without compensation. The IRS follows this definition to the letter. We give gifts to friends and family--clothes, food, cars, cash--out of love. We give to churches, missionaries, and other charities out of love as well, but we are allowed to be compensated for our generosity.

The compensation is the receipt or the tax deduction. The money becomes simply a donation, not a gift. The donation then becomes income for the missionary, and with that, the accompanying tax liability to that missionary. Tax law does allow for a true gift; just don't request a receipt.

Confused? Here are some tips on giving to your favorite missionary.

1. If you are receipted for your donation, it is assumed that you will use this as a tax deduction. This donation becomes income to the missionary and is subject to taxes. Checks should be made payable to the church or missionary organization, not to the missionary.
2. If you truly want to send your favorite missionary a gift--cash, check, food, clothing, then expect no receipt and do not use it as a tax deduction. The missionary does not have to claim any of this as income. In fact, the IRS suggests you send the gift directly to the missionary (make checks payable to the missionary).
3. Uncle Sam sees "gifts" as special and infrequent; for example, Christmas, birthdays, anniversaries, plus those every-now-and-then gifts called "just because." By the way, if the IRS gets wind of frequent and very large gifts, the missionary's income could be scrutinized. The IRS wants to make sure the intent of the gift is clear--that it is out of love and generosity, not services rendered.
4. One last consideration. A few Decembers ago we received two checks, one for the monthly support of a missionary, the other simply marked "Christmas gift" written on the memo line of the check. We receipted the monthly support but not the $1,000 gift. The missionary received the entire $1,000 (our policy is to not assess 7% on gifts), but had excluded it from their taxable income. The donor called, quite upset that we had not receipted the $1,000, because he had fully planned to use it as a tax deduction.

Fortunately we were able to correct the tax records before the missionary had filed a return. From that time on we have chosen to err on the side of caution and receipt all money received as donations unless accompanied by instructions otherwise. Please do not confuse us or the missionary by writing "gift" on the check if you're taking the deduction.