Author: WWNTBM

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From the Memo Board: March 2018

Dates to Know

March 30 – the Office will be closed in observation of the Resurrection

April 1 – February financial reports will be due

June 18-21 – Family Fellowship Week in Shelby, NC

Financial Report Checklist

Changes in ministry can affect the typical expenses you list on your reports from month to month. For instance, someone on deputation will primarily have travel expenses, while someone on the field may have more costs related to renting a building or purchasing snacks and Sunday School supplies. Someone coming home on furlough will be dealing with mileage, meal allowances, and lodging costs they don’t usually see when on the field. We suggest that you click here to review our checklist of commonly overlooked expenses, to be sure you are claiming all allowable deductions.

Changes in Tax Laws will affect you this year

Our CPA has given us guidance on several changes taking place for this tax year. While our staff is not qualified to give tax advice, we do seek to keep you aware of situations that may impact you financially. Please review the following information carefully, and contact us or your tax preparer if you have questions.

  • Necessity of submitting MFRs

Our accountable plan has always provided a benefit to those who choose to submit Monthly Financial Reports. Those who do not participate have previously had the option to itemize unreimbursed employee expenses on Schedule A of their personal taxes. However, starting this year that is no longer an option. This means that if you have previously been submitting ministry expenses through your tax preparer, you will lose the tax benefit this year unless you begin submitting MFRs. Some ministry expenses could possibly still be used to modify self-employment taxes via Schedule SE, but those specifics would need to be discussed with your tax preparer. By far the best situation is for you to report all ministry expenses through WW, thus providing the fullest tax benefit. If you are new to submitting reports, or even if you just need a quick review, you can click here to download a handy checklist.

Please note that other personal expenses may still affect your tax return, such as health care, contributions, etc. This change specifically affects ministry expenses, such as mileage, travel, and so forth.

  • Change in Entertainment Expenses

Several have asked about the change that eliminates the ability to claim business entertainment expenses. Our CPA has assured us that taking a supporting pastor to lunch and hosting missions teams are expenses that can still be listed on your MFR. One key factor is recording the business purpose of the meal, as well as the participants. (i.e. Took Pastor and Mrs. Smith to lunch to discuss ministry philosophy, or took the Taylors to coffee for a counseling session.) This change specifically affects entertainment expenses such as tickets to sports games or concerts, or sightseeing excursions, so will likely have little impact on our missionaries.

  • Change in Moving Expenses

One big change is that moving expenses are no longer tax deductible. Therefore, shipping a container of household goods is no longer able to be listed on your MFR. If that container also has ministry items, it is possible there may be some allowances that can be made for a portion of the overall expense. Our CPA is unsure how the impact of this change will play out, as the IRS begins making decisions on case-by-case situations of what may still be allowable vs. what will definitely not be allowed. Passports and visa costs will still be allowed, as they are not specifically related to moving. For now, please be aware of this as you estimate costs for moving to the field. As many costs will no longer be tax deductible, you may wish to increase your estimated tax payments to help make up the difference. Please communicate with us when the time comes to move, so we can consult our CPA about your individual case.

  • Change in Child Tax Credits

These changes will affect each family differently, and it is vital that your tax preparer is aware of both state and federal laws that affect this complex situation. Following is a brief note from our CPA: “We are balancing state and federal laws regarding the foreign earned income exclusion (FEIE), foreign tax credits, and child tax credits. In some cases, we delay using the FEIE for federal purposes (but not for state, if applicable), in order to gain benefits of child tax credits. With the increased credits, especially the refundable portion, it’s potentially a whole new ballgame. As our missionary clients get older and their children begin to turn age 17 or begin to attend accredited colleges (depending on the five-year window for FEIE elections), we annually must revisit these factors.”

We recommend discussing your situation with your tax preparer annually, and asking that they recommend which method of exclusions vs. tax credits will most benefit you not only in the current year but also for the future. Our CPA is also available to discuss this should you or your preparer have questions.

  • Tax Notes

As you prepare to submit your financial documents to your tax preparer, here are some things you may want to give them:

  • List of dates you were in the US vs. out of the country
  • Details of any housing expenses
  • Information on any retirement plans – IRA, Roth IRA, Traditional IRA, or 403(b)
  • Information on any investments
  • Information about any foreign bank accounts on which you are a signatory
  • Details of any family births or deaths in 2018 (Names, dates, and SSNs)
  • Details of estimated taxes submitted
  • Information about your health coverage and medical expenses, including the type of health coverage you have (i.e. traditional insurance, marketplace insurance, health sharing plan, etc.)
  • W-2s, 1099’s, and other tax forms received
  • Details of charitable contributions
  • Be sure your tax preparer is aware that you are a dual-status minister, who is self-employed but receives a W-2.
  • New for this year: You may need to provide copies of a photo I.D. such as a drivers license or passport if your preparer will be submitting your taxes electronically
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Tax Time Reminders

Tax season is once again upon us! Here are several reminders concerning tax issues that you may face. We trust that this information will be useful to you, both in giving you a better understanding of your reports and helping you to be aware of items that may affect your personal taxes.

Tax Paperwork for 2017

Tax-related paperwork generated by WWNTBM is in your SecureCloud folder. This includes W-2 forms, MFR Summary Reports, and Estimated Tax letters. Please be sure to look at the 2nd page of the MFR Summary, to see if there are any specific notes for you and your tax preparer. If you requested that we submit your tax information directly to your tax preparer, please note that those documents will be sent in late February. This is to ensure that there is time for us to include any forms that may arrive in our office from other sources. If you have any questions, please contact Naomi.

1099 Forms

If churches issued funds payable to you in excess of $600 during the year 2017, they may issue you a 1099 form. If those funds were either mailed to the office, or included on Line 2 of your MFR as extra income, they are already included in the total of your W-2. Our office can assist you in verifying whether the funds were included on your W-2. Your tax preparer can assist you on your return in recording this so that you are not taxed twice on the same income. We recommend that you request churches to make checks payable to WWNTBM to avoid this issue in the future.

Foreign Tax Exclusion

In order to claim the foreign tax exclusion, you must be out of the US for 330 days over a 12 month period of time; however, these days do not have to be in the same calendar year. In order to gain the full benefit of the foreign tax exclusion, your tax preparer may be able to revise your returns based on the actual time you have spent overseas. Because of this, it is vital to provide your tax preparer with all of your travel dates to and from the US. You may also wish to discuss with your tax preparer what dates would be the best travel dates when planning to leave for the field or return on furlough, as this could affect how much you are allowed to claim under the foreign tax exclusion.

It is our understanding that, while the Foreign Tax Exclusion does benefit many of our missionaries, it may not always be the best solution, as there are other situations which may give a greater benefit. Some of those options may affect taxes not only for this year, but for future years as well. This is another reason we recommend consulting a tax professional who can advise you in relation to your unique circumstance.

Healthcare and your taxes

Our financial report gives a location for you to track ‘heath insurance costs.’ However, each individual situation is different. Some use this area to record traditional health insurance, some use it to record expenses through the MarketPlace, and others use it to record details for a health care sharing ministry such as Samaritan Ministries. While all of these are heath related costs, each of the examples affects your taxes in a different way. Please be sure that your tax preparer is aware of the details of your health coverage, as it may affect how they complete your tax return.

Estimated Tax Payments

Missionaries are considered to be self-employed, and are therefore subject to self-employment taxes. Submitting quarterly estimated tax payments throughout the year will help to prevent having a large tax payment due each April. Estimated tax payments can be submitted on your own, or, if you are interested, you may contact our office for information on how we can submit them for you.

Tax Paperwork for those with Foreign Bank Accounts

US Treasury Dept. regulations require that if you have any foreign bank accounts, and if the sum total of all of your foreign accounts has ever been $10,000 at any given time during the past year, you must complete the IRS Foreign Bank and Financial Account Form (FBAR) and give it to your tax preparer. This includes all foreign accounts on which you are a signatory, such as a ministry account. This form, and further information about it, is available on the IRS website at www.irs.gov. It is our understanding that there have been several changes to these requirements in recent years, and you may also need to complete Form 8938. Please refer to the IRS website and your tax preparer if you have any questions.

Ministry Bank Accounts

If your ministry has been chartered and established as a non-profit organization, we recommend having your ministry get a bank account in its name. Funds for purchases such as land may be able to be sent directly to your ministry, thus eliminating your personal tax liability. Please note that there are limitations to this option. Of course, regular support could never be sent this way. Please contact our office for more information.

Utilizing a Tax Professional

Studies have shown that the average person who uses a tax professional, instead of filing their own taxes, receives a much greater tax return. When comparing the returns of those who self file vs. those who use a tax professional, it is estimated that a self-filer loses between $297 and $791 in missed refunds. The savings far exceed the amount spent to hire a professional. Many have also found that using tax software does not always compare to the benefits of using a professional, either. In many instances it is not that the software or the self-filer is wrong, but that other choices may be better. (Information taken from daveramsey.com.)

It is also good to note that not all professionals are familiar with tax situations that might affect you. We encourage all missionaries to use a certified tax preparer who is familiar with special tax situations that affect missionaries and those living overseas. A listing of tax preparers used by other missionaries is available on SecureCloud, under the Forms and Manuals section.

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Featured Article: Ecclesiology and World Evangelism

In Titus 2:1, Paul instructs, “But speak thou the things which become sound doctrine.” Theology is the foundation of our faith. Throughout this year, we will be sharing some articles with you that have been penned by our board members. A few of them have taken much time to research and write about an area of systematic theology. We hope this will be an encouragement to your faith. This month, Bro. Tim Daniel has written an article on Ecclesiology–The Doctrine of the Church.

But if I tarry long, that thou mayest know how thou oughtest to behave thyself in the house of God, which is the church of the living God, the pillar and ground of the truth. And without controversy great is the mystery of godliness: God was manifest in the flesh, justified in the Spirit, seen of angels, preached unto the Gentiles, believed on in the world, received up into glory. 1 Timothy 3:15-16

The church is a group of believers called out of the world to go back into the world to sound forth the gospel message of the living God. Everyone in the local church must be functioning and behaving according to God’s truth for world evangelism to successfully take place. The pastor and deacons must be serving God according to His Word. The pastor also must be administering the ordinances of the church for the church to grow in the grace and knowledge of Jesus Christ. Baptism is the announcement of a new believer and disciple in the church, and the Lord’s Supper is an opportunity to remind believers of the atoning work of Jesus Christ. These two ordinances bring new life and revived life to the church. The church must be faithful to tithe and give sacrificially for the work at home and abroad to succeed. As the Word of God is entrusted to others in the local church, it will grow and equip the pastors, evangelists, missionaries, and church members needed to carry on the work of world evangelism.

The Church witnesses the truth of the living God in the world.

The church of the living God is the God-ordained organization to witness the Gospel message around the world (Matthew 28:18-20). The church is the “pillar and ground” of the truth of the living God in the world. Jesus promised, “I will build my church” (Matt. 16:17) and He is still doing so! The stewardship of the Word of God by the church will directly influence the building and witness of the church! Whether it is around the corner or around the world, the church is the God-ordained organization to build evangelistic outreach. Other organizations are involved in missions, but the God-ordained institution is the local church. In Acts 13:2-3, the local church at Antioch under the leadership of the Holy Spirit commissioned and sent Barnabas and Paul out as missionaries. They were then accountable to that church for their missionary work. This same process of the church witnessing in the world must be distinctly maintained today! Unless the local church wisely operates according to the truth of the Word of God world evangelism will die!

The Church worships the truth of the living God in the world.

It is through the biblical worship of the living God in the church that world evangelism will be reinforced and expanded. The Word must be preached and practiced to regenerate new life and new service for God. The church is the “pillar” of truth, a place of heralding forth the Word of truth! It is not an entertainment center, social club, theater, or recreational facility. Its main business is the preaching, preservation, and practice of the truth. Worshiping God according to truth produces a continuous cycle of more evangelism, more sanctification, more edification and more equipping (Acts 15:33, 2 Timothy 2:2). Worship builds the church and its missions outreach! Proper worship in the church of the living God produces more and more world evangelism! In order to maintain and move forward in world evangelism, there must be a strong determination to plant more local churches! The more people who properly worship God in spirit and truth, the more warriors will be produced and prepared for spreading the Gospel around the world. Worship in the local church and world evangelism work hand in hand.

The Church wars for the truth of the living God in the world.

The church of the living God is a group of believers who earnestly contend for the truth of God (Jude 3). They will advance against the enemy and false doctrine to take the Gospel of Jesus Christ all around the world (2 Timothy 2:3-4). The world is a war zone for believers! The church of the living God is the “ground” or “foundation” of truth that propels missionaries into the regions beyond. Everything done in the name of the living God must be built on the foundation of truth, which is the Word of God. The church is the source of the called-out warriors to advance with the truth around the world. Therefore, the local church evangelizes, educates, edifies, and equips people to advance the cause of Christ throughout the earth! Without the power of the Holy Spirit in the local church, true world evangelism will be defeated by false religions and God’s enemies!

Without an institution that is functioning well and is identified as the ground and pillar of truth, biblical missions will cease to exist. Thank God, that institution God established for the work of world evangelism is the church. Missions cannot operate biblically or successfully apart from the pillar and ground of truth, which is the church of the living God. May God raise up more pastors who will preach with the power of Holy Spirit! May God enable us to preserve the truth in our generation and behave biblically as we practice this truth in the local church! Truth will triumph in the church, and truth will triumph in world evangelism. The church must continue to function as the pillar and ground of truth! World evangelism will progress proportionately as the truth of the living God is preached and preserved in the local church.

Pastor Tim Daniel
New Testament Baptist Church
Kinston, NC

If this has been a blessing to you or you would like to share your thoughts with Bro. Tim Daniel, you can contact him via email here.

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From the Memo Board: February 2018

Dates to Know

February 19 – You should receive the 2018 MFR Template with the new mileage rates.

March 1 – January Financial Reports will be due.

June 18-21 – Family Fellowship Week in Shelby, NC.

August 20-24 – Encouragement Conference in Germany.

Uplift

The Friday Uplift time changed to 11:15 AM. The adjustment allows everyone a better block of time for making deputation contact calls. If you have never attended Friday Uplift, please join us for this time of encouragement and prayer. Other Uplift meetings this month are Tuesday, February 13th at 9:00 AM EST and Tuesday, February 27th at 9:00 PM EST.

Women of World Wide

We’re announcing a fairly new ministry of WWNTBM for ladies only. For several months now, we’ve had a Facebook closed group for the women of our mission. Every day, you can laugh, pray, ask questions, and share with us. Some of our ladies are very active, but we haven’t seen many of you at all. Perhaps you didn’t even know we existed. Men, please tell your wives about WOW (Women of World Wide), and if you are a World Wide lady reading this, please come over and join us. It would be wonderful to have ladies praying for each other at any hour of the day or night. We are all over the globe, you know! Hope to see you soon! Your fellow WOW, Lou Ann Keiser (Spain)

Please contact the office to be added to the WOW group.

Benefits of Financial Reports

The Monthly Financial Report (MFR) is the tool that missionaries can use to become accountable to WWNTBM for their reimbursable expenses, rather than having all funds listed as salary. Over the course of 2017, 82% of those eligible chose to submit MFRs. By doing so, they were able to reduce their W-2 Wages by a combined average of 33.73%. If you are not currently utilizing MFRs and would like information about how to begin, please contact our Office. This tool will be even more important in 2018 as changes to the tax law may make it more difficult to claim certain items on your own taxes that could still be claimed through the WW office.

Financial Status Report

We have uploaded a Financial Status Report to your SecureCloud account. This is meant to show you the financial details that we have on file, such as your support estimate and the average amount of support you received this past quarter. This is information we provide to pastors who may call about your ministry. We ask that all missionaries update their support estimate once every four years, or as their lives and ministries change. Please review this information and contact us if you have any questions.

New Baby

Congratulations to Joshua and Joanna Town on the birth of their newest baby, Joshua Scot. He was born on January 31, and weighed 8 pounds 10 ounces and was 21 inches long. Joshua joins three sisters: Juliana, Jayla, and Jennifer. The Towns are starting an Arabic church plant in Philadelphia, PA. Pray for their ministry as they are seeking a new location.

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Prayer & Dates: February 2018

February 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 February. 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.

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New Missionaries January 2018

Praise the Lord, He is continuing to bring new missionaries to join our family at World Wide! Here are two new families who have been interviewed in recent weeks. Pray for these as they begin deputation, as well as others still in the application process!

Jed and Gloria Duarte are sent out of the Maranatha Baptist Church in Shelby, NC, pastored by Jim Davidson. They have a daughter, Eliana, who is just a few weeks old. Bro. Duarte is originally from Brazil, where his father is a pastor. Gloria was born in Kenya, where her family served as missionaries. They are both graduates of Ambassador Baptist College and plan to go to the Moto Grosso area of Brazil.

Ethan and Brittany Prater are sent out of the Emmanuel Baptist Church in Abingdon, VA, with Pastor Bryan Treadway. He is a graduate of Grace Baptist Bible Institute of Dennis, MS. The Praters have three sons: Enoch (5), Silas (3), and Jude (1). They will soon be starting deputation to go to the Dominican Republic.

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Prayer & Dates: January 2018

January 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 January. 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.

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From the Memo Board: January 2018

Dates to Know

January 9 – Missionaries will receive their statements of December Support Received.

January 11 – All missionaries will receive their final December support on this day, regardless of the day they normally receive support.

January 15 – December Financial Reports will be due, along with any remaining receipts or financial paperwork for 2017.

January 31 – W-2 Forms and other tax documentation for the 2017 year will be available.

June 18-21 – Family Fellowship Week with Faith Baptist Church in Shelby, NC. Begin arranging your summer schedule to be with us!

August 20-24 – European Encouragement Conference in Nittendorf, Germany.

SecureCloud Packets

At the end of each month, we scan any mail that has come to the Office and place it in your SecureCloud folder. This would include check stubs for all bills paid by the Office, as well as any cards or correspondence from donors. Please be sure to check SecureCloud periodically, especially once you receive the notice that December packets have been uploaded, as many missionaries have received Christmas cards and letters which are available to you there.

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!

Housing Allowances for 2018

Housing allowances previously in place have automatically rolled over to the new year. Missionaries who are ordained are eligible to have a housing allowance in place, which can provide certain tax benefits. If you did not have a housing allowance in 2017 and would like to have one for 2018, or if you have questions regarding this, please contact our office.

New Excel Template

A new Excel template for the year 2018 will be available during the second week of February. This will give us time to review the need for any possible updates. January financial reports will be due on March 1. Should you wish to complete your report before the new template is available, you are welcome to submit it on the 2017 template.

New Mileage Rate

Beginning January 1st, the IRS mileage rate has increased to $0.545 per mile for business/ministry miles. This change will be reflected in the new Excel template for 2018.

New Tax Laws

On December 22, President Trump signed legislation that enacts some major changes to tax law. We are working with our CPA to determine what changes may affect our missionaries and will keep our missions family updated with our findings. We would recommend that as you begin working with your tax preparer to file your 2017 taxes, you also consult with them on how these changes may impact you personally.

Uplift for Servants

Devotional excerpts from our Uplift calls are available to the general public at upliftforservants.com. Uplift For Servants will help other Christians benefit from the encouragement provided to us each week. Please feel free to share this resource with your friends and family!

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Visitors at the Office

We love having people stop by the Office! In the last few weeks, we’ve had visits from several of our missionaries, as well as some larger groups. If you are ever in the area please come by and see us. Here are pictures of some of our recent guests:

The McKinney family was here for some initial training and stopped in again to spend the night after a meeting. They are just beginning deputation to go to Bolivia.

 

Each fall, we enjoy hosting the secretarial class from Ambassador Baptist College. We enjoy the opportunity to help train students for future ministry.

 

Nathan & Hannah Fry were in town for Ambassador Baptist College’s missions conference representing their Lens of the Harvest ministry.

 

Jack & Melinda Peeler recently came home on furlough from the island of Nukuoro.

 

Darleen Whetstone brought Pastor and Mrs. Brookshire of Orangeburg Baptist Temple to visit the office. Orangeburg Baptist is the sending church for the Kenney family.
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From the Memo Board: December 2017

Dates to Know

December 1 – October Financial Reports will be due.

December 8 – Revised pay date for those who normally receive funds on the 10th.

December 8 – 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 if you will need funds in your account before Christmas or the end of the year.

December 20-27 – The Office will be closed in celebration of Christmas.

January 1 – November Financial Reports will be due.

January 9 – Missionaries will receive their statements of December Support Received.

January 11 – All missionaries will receive their final December support on this day, regardless of the day they normally receive support.

January 15 – December Financial Reports will be due, along with any remaining receipts or financial paperwork for 2017.

January 31 – W-2 Forms and other tax documentation for the 2017 year will be available.

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 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 19, 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!

Utilizing a Tax Professional

We have recently had several requests for information about tax preparers used by other missionaries. Therefore, we wanted to make this available again to everyone in case others are looking for a new tax preparer.

Studies have shown that the average person who uses a tax professional, instead of filing their own taxes, receives a much greater tax return. Many have also found that using tax software does not always compare to the benefits of using a professional either. In many instances it is not that the software or the self-filer is wrong, but that other choices not obvious in the software may be better for the individual. (Information taken from daveramsey.com.)

It is also good to note that not all professionals are familiar with tax situations that might affect you. We encourage all missionaries to use a certified tax preparer who is familiar with special tax situations that affect missionaries. A list of tax preparers used by other missionaries is available on SecureCloud, under the Forms and Manuals section. Each of these agencies are currently taking new clients. Prices and level of assistance can vary greatly from one agency to another, so it may be beneficial to contact them first to discuss your individual circumstances before choosing a preparer. A less expensive option may not always be the most beneficial for your situation.

Retirement Accounts

Each year we are required to publish to all missionaries the following:

WWNTBM currently offers our missionaries the option of participating in a 403(b) Retirement Plan, the non-profit version of a 401(k) plan. We encourage all of our missionaries to participate in some type of retirement planning. If you do not currently have a 403(b) account and would be interested in opening one, please contact our office for a listing of vendors and more information.

Due to IRS regulations, we are required to use a Third Party Administrator (TPA) to handle all 403(b) accounts. The administrative fee is $50.00 per year, which will be deducted from Support each January or February for those who contribute. The TPA assists us by administering our plan and keeping us in compliance with the Department of Labor and IRS codes.

Please note that loans and hardship withdrawals are not allowed by the companies who manage your 403(b).

Please see the 403(b) Availability Notice in SecureCloud under the Forms and Manuals folder for the latest information on contribution amounts and limits for 2017 and 2018.

Uplift Podcasts

The following recordings were recently published on Uplift.com. You may access the site by entering the username: wwntbm and the password: gospel. These recordings for our missions family contain the Uplift calls in their entirety, including prayer requests and challenges to our missionaries. We hope they will encourage your heart.