New Financial Procedures

Our staff worked with our CPA and tax attorneys this year to bring World Wide into compliance with IRS and Employment laws. Our Executive Board directed us to implement new procedures by January 1, 2019. We have been in contact with all individuals who are currently affected. This section summarizes major changes that will take effect on January 1. Please make note of the following procedures and contact our office if you have questions.

New Pay Dates for Non-Resident Aliens (Non-US Citizens)

One area of compliance is the need to withhold 30% in taxes on US source income paid to Non-Resident Alien missionaries (NRAs). To accommodate the changes, all NRAs will receive a transfer on December 21, 2018, of all funds currently available. No taxes will be withheld on those funds. Any funds received after December 21 will be held until the January pay date, and the 30% in tax withholding will apply.

Starting in January, we can only distribute funds to NRAs one time per month. The payday for all NRAs will be the 25th of each month. If the 25th falls on a weekend, we will send funds on the Friday before. If we have been unable to close the books by the time we send funds, any funds received or processed after the transfer will be added to the next month’s payroll. For instance, if the 25th falls on a Sunday, we will send funds on Friday the 23rd. However, we may still internally process funds and close out books on Monday the 26th. In this instance, any funds processed after we have sent funds on the 23rd would be sent the 25th of the following month.

NRAs who have completed the process with our CPA to have their ministry recognized as a foreign non-profit organization (FNPO) will have the option for us to send transfers to their ministry bank account. Transfers made to recognized FNPOs will not be subject to the 30% withholding.

Payments or Gifts to Individuals

WWNTBM recognizes that part of the ministry the Lord has called you to may include assisting individuals on the field, whether by giving charitable assistance to those in need or by paying a salary to a secretary or assistant pastor. Unfortunately, these situations can create employment and tax issues both in the US and on the field.

When missionaries pay any form of compensation to an individual in exchange for services rendered for their business (ministry), WWNTBM becomes the de facto employer of the individual. WWNTBM is then liable for employment laws and for issuing tax documents to the recipient. Because the funds for such compensation come from US sources, this includes the requirement for WWNTBM to withhold 30% in taxes for all compensation paid to non-resident aliens (non-US citizens.)
By paying compensation to an individual, the missionary may also be entering into an employer/employee relationship according to local laws, and could, therefore, be personally liable for any local employment laws.
Business (ministry) gifts to individuals, whether given as cash or actual items, are limited by the IRS to a total deductible value of $25 per individual per year. Anything above that limit creates a tax situation when you try to claim it as a business expense.
Although as Christians we are commanded to help those in need, not all such assistance meets IRS standards for being tax deductible. For instance, individuals cannot receive a tax benefit for a benevolent or charitable donation made directly to another individual.
World Wide worked with our CPA and tax attorneys to establish guidelines which are beneficial to our missionaries, allowing them to carry out their ministry and remain in compliance with IRS intent. When making payments or donations to individuals, please keep the following principles in mind.

Compensation for services rendered

  • Any time you are paying an individual in return for something they do, you are compensating them. This includes circumstances we would typically think of as employment (i.e., a secretary, janitor, or landscaper.) It also includes situations where the recipient is required to earn a ‘donation,’ such as when the missionary agrees to pay a set amount on their school bill for every hour they spend volunteering in the ministry.
  • The best case scenario for the missionary to pay individuals is to first have their ministry established as a local non-profit. Once that is in place, we can work with our CPA to have the non-profit ministry recognized in the US as a foreign charity. (This process takes several weeks and currently costs $350-$400.) Once the paperwork is in place, WWNTBM can transfer some of the missionary’s funds directly to their foreign charity. The foreign charity then takes the responsibility of paying the individual according to local tax and employment laws. This option gives the missionary the tax deduction while relieving them of any personal liability. It also ensures that WWNTBM does not have to withhold 30% in US taxes for any local employees.
  • WWNTBM will no longer receive funds designated for individuals who are not missionaries with WWNTBM, including funds designated as “national support.” All funds received by WWNTBM should only contain the name of the missionary.
  • Missionaries may not list salaries (i.e., any compensation for services rendered) as reimbursable expenses on their MFRs, except those for individuals who have been previously approved by our Executive Board, (e.g., their spouse or children.) Because of tax withholding issues for non-resident aliens, the Executive Board has voted not to allow missionaries to claim a deduction for salaries paid to non-resident aliens. We recommend that missionaries legally establish their local ministry and obtain US foreign charity status before beginning or continuing to pay compensation to local individuals.
  • Please note: Personal compensation for non-ministry related tasks is between the missionary and the recipient. For instance, if you pay a for a housekeeper, babysitter, or landscaper at your home, those expenses have nothing to do with your MFR or the 30% in tax withholding by WWNTBM. However, when you pay others for work, and thereby sub-contract with another individual to further the ministry for which you receive US funds, that is when these rules apply.

Non-Compensatory Payments

  • One fundamental way for the missionary to avoid possible tax issues is to ensure that any donations or payments made to individuals are not given with the expectation of something in return. (e.g., Our ministry will assist with your child’s education because we help those with low income; but we do not expect you to lead singing or teach Sunday School as a prerequisite.)
  • All expenses listed on MFRs should be ordinary and necessary expenses to develop the long-term stability of the ministry within the local culture.
  • Donations to individuals in the church or general population are allowable expenses so long as they are for the promotion, public relation, or development of goodwill between the ministry and the local people, or the humanitarian needs of the community.
  • Donations to individuals apart from regular ongoing activities of the ministry as a whole are probably not deductible. For instance, seeing that your neighbor or coworker needs new tires and giving them money to meet that need is an expression of Christian love. But, if it is not the ministry of the church to provide vehicle repairs to the community as a whole, this is just a personal gift to a friend and is not tax deductible to the missionary.

Foreign Non-Profit Organization Status

In the past, transfers from World Wide to an overseas non-profit ministry account created an automatic deduction for the missionary. We recently learned rules exist which govern this deduction. To continue receiving this deduction, we need to go through a process with our CPA to legally establish that the foreign non-profit organization (FNPO) meets IRS guidelines. This process takes several weeks and involves gathering documentation for our CPA. The CPA’s review and certification cost $350 to $400. Upon completion, a Memorandum of Understanding needs to be signed by officers of the FNPO, agreeing to handle all funds received by World Wide and to comply with local tax laws.

Benefits of this registration include:

  • Ability to hold ministry funds at World Wide until needed, without claiming the income
  • Tax deductions for the missionary when personal funds are sent directly to the FNPO bank
  • Ability to pay local individuals through the FNPO, without 30% withholding on US source income
  • Protection for WWNTBM and for the missionary from both US and local employment laws (The FNPO becomes the employer.)

If you have an FNPO and have not yet started the process of obtaining this recognition with our CPA, we recommend beginning this as soon as possible. Please contact Laura or Naomi with any questions you may have.

Contributions to the Missions Agency

Part of our internal review has revealed inconsistencies in the way we manage the 5% contributions to help offset the expenses of the missions office. To clarify our policies, we want missionaries to be aware of the following guidelines. The 5% contribution applies in these situations:

  • A donor indicates new support, even if it is the first time we have received funds.
  • Funds begin coming from a donor on a regular basis, even if the check memo continues to say ‘gift,’ unless it is specifically designated such as ‘gift for building fund’ or some other specific project. Regular basis does not necessarily mean monthly; some donors give at varying times and some even give annually.
  • All regular funds received are subject to the 5% contribution, regardless of whether they are received in personal or ministry support accounts (i.e. accounts for ongoing operations of a ministry such as a School or Radio Station.)
  • Funds for specific projects will be evaluated on an annual basis to determine if they have become ongoing ministry support as opposed to one-time fundraising events.

Tax Documentation

Missionaries with World Wide have a unique tax status in that they are self-employed, but have received a W-2 as if they were an employee. In the past, this designation offered some unique benefits. However, based on much research, our CPA has recommended that we begin issuing 1099s as of the 2019 tax year. Please note the following:

      • The main change is the tax form you will receive from us starting in January 2020, for the 2019 tax year.
      • Your tax status does not change; you are still considered to be self-employed.
      • Missionaries will still receive a W-2 in January 2019, for the 2018 tax year.
      • Ordained ministers or those whose license or commission meet IRS guidelines will still be able to receive the benefit of a housing allowance.
      • Missionaries will still be able to submit their ministry expenses on monthly financial reports.
      • There may be changes in the form(s) your tax preparer submits when filing your personal taxes.
      • Those who have 403(b) retirement plans will need to make some changes in how these are structured. Our staff will be able to assist with this transition.

From the Desk of a Friend: Buy the Truth

Proverbs 23:23 Buy the truth, and sell it not; also wisdom, and instruction, and understanding.

In these days many try to eliminate the truth and absolutes. God works with truth, and it is not relative. God is true and not adjustable or relative. Truth has been revealed to mankind in the Person of Jesus Christ (John 1:14; 14:6) and in the written Word of God (John 8:31-32). We are advised in our text to “Buy the truth and sell it not” (Proverbs 23:23).

Of course, this does not mean that we purchase the truth with money or riches. Too valuable to be obtained with any physical or worldly means, the truth is found in the person and the relationship of the Person of God. It is available to whosoever. There is no other supply nor substitute. It will never change or fail. The Person of God changes not, nor does His truth. Customs and societies change and sometimes try to change God’s Word, but the earth will pass away and still God’s Word will not change “one jot or one tittle.”

  1. The truth about salvation was established before the foundation of the world.
    1. Jesus Christ paid the awful price because He was the only TRUE sacrifice to satisfy a just God’s payment for sin.
    2. Because Jesus was “The Way the Truth and the Life” we trust the Person and the Word to be saved from sin.
    3. This truth is so valuable:
      1. It cost the suffering and life of the Son of God.
      2. Many who have experienced this truth gave their lives rather than deny it.
      3. Many have tried to change it by changing the message or distorting it, but it remains the same.
      4. Many have denied it and now suffer eternally in Hell.
      5. Many have embraced it and have a sweet fellowship with the Way, the Truth, and the Life and have assurance of eternal bliss in the presence of Jesus Christ in heaven.
  2. Keep it at all cost “sell it not.”
    1. There is no object or pleasure on earth worth sacrificing the Truth of God.
    2. There is no wealth worth straying from the truth.
    3. No plan or work which leads astray from the truth is worth forsaking or straying from the truth.
    4. There is no suffering worth forsaking the truth, even death.
  3. Application of the truth: (Also wisdom and instruction, and understanding)
    1. Wisdom:
      Romans 11:33 O the depth of the riches both of the wisdom and knowledge of God! how unsearchable are his judgments, and his ways past finding out!
      1 Corinthians 1:30 But of him are ye in Christ Jesus, who of God is made unto us wisdom, and righteousness, and sanctification, and redemption:
    2. Instruction: How to apply the truth
      2 Timothy 3:16 All scripture is given by inspiration of God, and is profitable for doctrine, for reproof, for correction, for instruction in righteousness:
    3. Understanding:
      2 Timothy 2:7 Consider what I say; and the Lord give thee understanding in all things.
      1 John 5:20 And we know that the Son of God is come, and hath given us an understanding, that we may know him that is true, and we are in him that is true, even in his Son Jesus Christ. This is the true God, and eternal life.

Let us earnestly stand for and preach and live only for the Truth of the Word of God.

If Bro. Hurst’s article is an encouragement to you, please email him to let him know. You may also visit ebarnabas.org to make an appointment with him for encouragement.

Prayer & Dates: December 2018

December Prayer/Praises and Special Dates

Click the link above to download a PDF of prayer requests and praises as well as the birthdays and anniversaries for December. Note: You will need to login to SecureCloud in order to view this document. Once you have logged in, click on Files, Shared, then Headquarter Happenings, then scroll to the month you would like to view. This step protects people with WWNTBM in restricted access fields.

From the Memo Board: December 2018

Dates to Know

December 1 – October Financial Reports will be due.

December 10 – All prayer letters should be submitted to our staff in order for your recipients to get them before Christmas.

December 18 – Please contact us by this date via Signal if you will need funds in your account before Christmas or the end of the year.

December 21 – Special pay date for all non-resident aliens. (Final payment without tax withholding.)

December 24-28 – The Office will be closed in celebration of Christmas.

January 1 – November Financial Reports will be due.

January 8 – Missionaries will receive their statements of December Support Received.

January 11 – All US Citizen missionaries will receive their final December support on this day, regardless of the day they normally receive support. (Non-resident aliens will not receive funds this day.)

January 15 – December Financial Reports will be due, along with any remaining receipts or financial paperwork for 2018.

January 25 – New monthly pay date for all non-resident aliens. (Tax withholding begins on this date.)

January 31 – W-2 Forms and other tax documentation for the 2018 year will be available.

New Missionaries

Chris and Candace Beane are new associates with World Wide. They are sent out of Cross Roads Baptist Church in Columbus, NC, with Pastor Nathan Deatrick. Chris is the IT director at Ambassador Baptist College, where he is also a student. Their goal is to take annual trips to the United Kingdom during the remainder of his time in school. They will then start deputation after his graduation, with plans to plant churches in the UK along with veteran missionaries Travis and Terri Snode. The Beanes have two children: Hayla (11) and Teddy (8 months).

New Baby!

Congratulations to Stephen and Anelly Villarreal on the birth of Stephen Daniel. He was born on November 13. Mom and baby are doing well! The Villarreals have been serving as furlough replacements in Mexico this past year. They will return to the US soon and plan to begin full-time deputation in February.

December Support

Please contact us via Signal by December 18 if you would like funds in your account before Christmas. Final December support distributions will be made on January 11th for all US citizen missionaries, regardless of their regular pay date. Contacting us by December 18 will enable us to schedule your funds around bank closings and holiday hours. Should you have an emergency need after December 21, you may contact our staff at the following numbers:

John O’Malley: 704-974-6108
Kim O’Malley: 704-974-1008

January Income Totals

During a typical month, we close the books on the 25th and any checks received after that date are posted to the following month. Due to receipting requirements, we cannot do this in the month of December. As a result, please be aware that your December support total may be higher than normal, while your January support total may be lower than normal. Please be sure to plan ahead for this!

Are You Prepared for an Emergency?

Every day it seems we hear news of someone facing a tragedy, whether from a storm, an accident, or an unexpected death. Dealing with the aftermath of such situations can be frustrating and time-consuming, and is often compounded in foreign countries. We encourage all missionaries to plan ahead and prepare your family for emergencies. One excellent tool is a Legacy Drawer, as recommended by Dave Ramsey. Click here to learn more about this system of organization that will help make sure your family is taken care of during unexpected life events.

From Our President: December 2018

Danny Whetstone
For those of us that know the Lord, this is a very special month. Many families get together at this time, and maybe it is for the only time in the year. We exchange gifts with our family and friends. However, so does the world! The thing that distinguishes our celebration from the rest of the world is the worship of our Lord Jesus Christ. It is understood that we want to worship the Lord every day, but we emphasize His birth at this time. It really is not important to me that we have the exact day, but that we set aside a special day to remember the price that our God paid to redeem us from our sins.

In all of the hustle and bustle of this Christmas season, let’s take time on purpose to praise the Lord for His unspeakable gift to us. No one else could have accomplished this but Christ. We had no way to access heaven apart from His coming, living, and suffering for our salvation.

This is also a wonderful opportunity for us to share our faith in the Lord with others. Special gospel tracts are written just for this time of year. Christmas is on practically everyone’s mind. Even if it is simply to them Xmas it still opens the door for us to share Christ with others. What better gift could we give to the Lord than to extol His name to a lost world? If we are not careful we will see Christmas in our rearview mirror and realize that we did everything but worship and serve Him.

Darleen and I want to take this opportunity to wish each of you a Merry Christmas and a Happy New Year. In reality it is one day following another; however, it creates a time in our year that we can evaluate the past year, and then dedicate ourselves to the year that is ahead. Let’s dream big for the coming year. Let’s purpose in our hearts that we are going to make more of Christ than ever before. Whatever our best has been, by God’s grace we can do even more. The world can be changed one soul at a time. At the same time, each of those souls that we reach with the gospel of Christ will be changed forever.

May the Lord richly bless you, your family, and your ministry this day and every day in your future.

In His Service,
Danny A. Whetstone

If this article has been an encouragement to you, you can email Bro. Whetstone here to let him know.