Determining the Assessment Using the most recent year’s data (2016), the congregation’s Adjusted Operating Revenue is multiplied by the ASA bracket. Operating Revenue - Diocesan Assessment paid Adjusted Operating Revenue x ASA bracket 2018 Assessment Line A – 2016 Parochial Report Line 12 – 2016 Parochial Report (%)

Assessment Brackets 12% Family-size ASA 0-74 Bracket determined by Average Sunday Attendance (ASA) 12% Family-size ASA 0-74 13% Pastoral-size ASA 75-149 Transitional-size ASA 150-224 Program-size ASA 225-349 14% Small Resource-size ASA 350-799 Large Resource-size ASA 800-above

Proposed Assessment Example Assessment Formula St. Swithen’s Episcopal Church $ 250,000 - $ 30,000 $ 220,000 x 13% $ 28,600 2016 Operating Revenue Diocesan Assessment paid Adjusted Operating Revenue ASA Bracket 2018 Assessment

Financial Statements Balance Sheet-including land and buildings Income and Expense statements-required to work with a balanced budget each year Calendar year Income flows for churches are usually slow in summer months and December is catch up month Encourage pledging for better budgeting Separate Foundations need to be reported to vestry on a regular schedule

Size of Congregation Determines Responsibility of Treasurer Treasurers in smaller congregations often are tasked with doing more of the day to day accounting duties Larger congregations often have full time staff to handle day to day duties In either instance the treasurer needs to be knowledgeable of the financial strengths and weaknesses of the church and present the vestry monthly with complete financials

Clergy Housing Resolutions All clergy need to declare their housing amount each year in November or early December Vestries need to have formal resolution stating clergy stipend and housing approved before start of new year This amount can be changed during the year but it can’t be retroactive to earlier in the calendar year IRS.gov has several resources concerning housing allowances

Title to Property All property in the diocese is titled in the name of the Corporation of the Episcopal Diocese of Dallas unless it is held for investment or income producing purposes and no ad valorem tax exemption is claimed on it (Canon 37) Held by the Corporation solely for the use and benefit of such Parish, Mission or Diocesan Institution No property can be encumbered without permission of the Corporation, Executive Council and Standing Committee

Ministry Funds All ministry funds are assets of the church Need to be included in yearly audit Responsibility of the Vestry to establish specific procedures for administration and accounting To be used for “missionary and charitable purposes of the congregation” Guidelines are on EDOD website Separate checking accounts are discouraged

Self-employed vs Employee All clergy are considered self- employed for Social Security and Medicare only. They are still employees of the church and should receive a W2 with housing listed in box 14 at year end Refer to IRS guidelines to determine other individuals classification-most are employees

Resources EDOD.org IRS.gov Diocesan office TEC tax hotline 2017 Church & Clergy Tax Guide-Richard Hammar