Insurance: Camps, Legal Advice and More

The question recently came up about our insurance coverage with Westland Insurance:  Do we have adequate liability coverage for summer youth & children's camps?

The response from Westland was:

For the churches that are listed on the policy and their own members/children are participating in the camps the Lombard Policy would respond.

For those churches that have insurance elsewhere, they would have to check with their insurers/brokers to see if it is covered or if they need an extension or separate event coverage.

What this means is that if your church has insurance coverage with another provider (not Westland) and will be sending youth or children to a Foursquare camp you need to ensure the church policy includes camps and events. 

The insurance policy of the hosting church and/or national church may not respond in the event a claim is made.  If the church is with Westland insurance, the policy will only provide coverage for member/children from your church. 

In all cases, it's best to double check to be sure.

Free Alert!!  For those churches who have their insurance through Westland, the Lombard Policy provides Free and Confidential Legal Assistance.  These services would include labour law, tax law, administrative law, and employment law. 

The number is 1.800.786.0656 and is available from 9a.m. to 8p.m. Monday to Friday (EST). 

Legal advice (billable) is still available through the FGCC legal counsel.Please note that situations that result in actual litigation suits or criminal charges are to be reported immediately to the national office. 

Finally, a correction needs to be made on the Insurance post from April 2011 with regards to Abuse Coverage.  The post stated that if you are insured through Westland Insurance the church is automatically covered under the national church policy at no extra charge to the national office or individual church.  However, there will be a charge to the church for the coverage at a prorated/reduced rate (based on membership) under the national church plan.  Sorry for any confusion this may have created.

If you still have questions or concerns about your church insurance policy please contact the national office.

Blessings on your Canada Day weekend! 

Rhonda Berkhiem

BANKING: Government Payments

As I'm writing this post I am also taking a very deep breath and exhaling...great self-control is required when communicating about questions concerning CRA payroll accounts :) 

In particular, when payments for individual church payroll deductions are misapplied to wrong accounts or to the national office payroll account by the CRA.

We may have a solution to the problem but it will require a bit of action on your part:

I have been in discussion with the CIBC Bank over the past few weeks to confirm a simple process for our churches to set-up Online Government Payments for payroll deductions.  If the church is still mailing in payments to the CRA it's highly recommended moving to a direct pay method.

First, it will ensure that payments will be applied to the correct account.  Second, it will save time from preparing cheques or travelling to make payments at the bank.  Finally, if payments are being mailed they will not be delayed by the current mail disruptions.  But that's another story!

For those churches that are currently banking with CIBC, please contact Charmaine Provost directly by email at charmaine.provost@cibc.com or you can also contact her by phone at 604.665.1008.  If you have questions or would like more information before proceeding please let me know.

Hope this is useful!!!


Useful Quote of the Day: 

A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.

Wayne Gretzky

Foursquare Benefits: Pension Plan Update

It's been a year since we initiated the process to transfer our pension plan provider from CCCC (Great West) to Manulife.  Maybe you have been asking the question, "I wonder what's happening with the pension transfer?"

The answer is, it's done!  I received notification today from Manulife that the funds were received today and are invested into the individual member accounts.  The main screens on their account system only update once a month so these amounts will not show up online until May 1. 

Because this is a Registered Pension Plan with the CRA it has required that each province give approval to set up the new account and transfer the funds.  We received the final provincial approval a few weeks ago. 

A formal letter will be included in the next billing cycle to give to your pension plan members.  If you have questions or there has been anything overlooked on your account please let me know right away so it can be investigated.

Thank you for your patience!

Rhonda Berkhiem


Useful Quote of the Day: 
No great work is ever done in a hurry. To develop a great scientific discovery, to paint a great picture, to write an immortal poem, to become a minister, or a famous general~~to do anything great requires time, patience, and perseverance.  
~~W. J. Wilmont Buxton~~

Insurance: Clarity on Coverage

I have received many emails and phone calls over the past month or so on Liability Insurance coverage for the churches. 

The most frequently asked question has been, "Does the church need to have Abuse/Counselling coverage and Directors' Liability insurance included in their policy?"  There is more than one answer depending on who your insurance provider is:

The Foursquare Gospel Church of Canada (national office) uses Westland Insurance as our liability/property insurance provider.  Brenda Erickson, our Westland representative, has provided us with details that should bring more clarity to what is required for each of our churches.

If your church is insured with Westland Insurance then you are not required to obtain additional coverage for Abuse/Counselling liability.  You are automatically covered under the national church policy at no extra charge to the national office or individual church. 

However, if you are with another insurance provider you will not be covered for this under the national office insurance and will need to have this specifically included in your individual insurance coverage.  This is an additional charge and depending on your provider can be costly.

Directors' Liability insurance is covered under the national church policy and is not required for the churches.  The national board is legally responsible for the operations of the national church and/or any liability that may flow from decisions made at the local church level.

If you are a church plant and are conducting services in rented/leased facilities you are required to have insurance coverage for public liability and property.  Coverage is provided under the national office policy for a small fee ($75).

The Administration Manual (Tab 5, Part 6.0) itemizes the types of coverage that are to be included in the church's insurance coverage.  Please note that the Foursquare Gospel Church of Canada, as holding title to all church property, is to be the named insured for insurance purposes.  The church may also be named as secondary benificiary.

Please take the time to review the Foursquare policy and your individual church coverage.  If you need further assistance then please contact the national office. 

You can also contact Brenda at Westland Insurance directly at 604.543.7788 or berickson@westland-insurance.com if you have questions or you would like to obtain a quote for insurance coverage.

Rhonda Berkhiem


Quotable Quote: 
For a long time it had seemed to me that life was about to begin - real life. But there was always some obstacle in the way, something to be gotten through first, some unfinished business, time still to be served, a debt to be paid. Then life would begin.
At last it dawned on me that these obstacles were my life.
... Alfred Souza

Banking - Signing Authorities, Online Banking & Credit Cards

This blog is going to be a three-in-one post.  They're actually three different topics but they are all linked by one common denominator.  That is, the policy that all disbursements made by the church are required to have 2 signatures for approval.

All bank accounts should be set up with at least 3 signing authorities.  This can be the pastor and 2 or more other people.  They can be council members and/or administrative people.  There should never be signors on the account that are related (ie pastor and spouse or family member).  All cheques are to be signed by two authorized persons.  Administration Manual Tab 5, Part 4.4,5

For convenience cards (online banking/debit cards) transactions, the 2 signature policy is also in effect.  This means that convenience cards can be set up for deposits, online inquiries, and online bill payments (with approval).  However, these cards should not be set up with debit capabilities as this bypasses the signature policy.  In this case, the purchases still needs to be made by the individual and then claimed for reimbursement.  This will also help prevent funds from being expended that have not been first approved.

For this same reason, the church should not take on the responsibility of debt incurred for the personal credit cards of council members, pastors or staff for church expenses.  Purchases are to be made with prior approval and submitted for reimbursement and supported with receipts.  See Adminstration Manual: Tab 3, Part 4.0, #15; Tab 4, Part 4.4; Tab 4, Part 5.2, #6 

In our day of modern convenience and the need to simplify its very easy to overlook the importance of a policy like this.  However, the extra effort and inconvenience is worth it.  Not only does it give credibility and integrity to the accounting system of the church and ensure that funds are being spent for their intended purpose.  But, most importantly, it protects those very people who so faithfully serve the church in this capacity.  From those who count the offerings to the bookkeeper, and from the council to the pastor.  One small thing can protect so many....



Useful Quote of the Day:
Worship is giving God the best that He has given you. Be careful what you do with the best you have. Whenever you get a blessing from God, give it back to Him as a love gift. Take time to meditate before God and offer the blessing back to Him in a deliberate act of worship. God will never let you hold a spiritual thing for yourself; it has to be given back to Him that He may make it a blessing to others.

 
Oswald ChambersMy Utmost for His Highest

National Office Reports: Gold Sheets

Many of you have been hearing from Jasmine quite a bit lately.  She has taken on the enviable job (not:) of sending out reminders for monthly reporting and following up if they are overdue.  We're very grateful for her willingness to take on this very useful but sometimes thankless task!

At our monthly meeting this past week she made the comment that she gets the question quite frequently: What is the Gold Sheet? 

This question didn't surprise me as we have so many new leaders and churches coming from different church backgrounds.  Which is great!  We also have been restructuring the national office reporting process so this may be generating some uncertainty as to what reports are required.

The following will be useful in keeping current:

Up until recently, the Gold Sheet has been the monthly reporting requirement of all registered Foursquare churches.  The report includes both Ministry and Money information.  The form can be downloaded from the home page of the Foursquare website http://www.foursquare.ca/.

The Ministry side of the report provides the national office with statistical data like attendance, salvations, baptisms (water/Holy Spirit), healings and testimonies.

The numbers from each church are combined together and published in our yearly Annual Report which then gets distributed to all licensed ministers in the AGM packet for convention.  They also become part of the global report published by Foursquare International.

The Money side of the report provides the financial activities and position of the church. Some of the financial data is also combined and reported in the Annual Report but are not reported in the global report. 

For those churches who have been set up on the Confluent Accounting system the Money side of the Gold Sheet is no longer required.  Reports are now generated right from the accountings system and are called either  "Financial Reports" or "Financial Statements".  The Ministry side of the report still needs to submitted along with the financial statements.

Church Plants are also responsible for the same monthly reporting, however, their reports are submitted directly to the mother church (including extension tithe).  The mother church includes the ministry/financial information of each church plant along with their reports when submitting to the national office. 

We will be creating a new Ministry report in the near future as the current one doesn't fully reflect the ministry that our churches need to report.  Jasmine will be revising the form with a new format and name.  Your comments and suggestion about the form are welcome so please email her directly at jasmine@foursquare.ca. 

The new Ministry report will have a separate section on the form for church plants.  For the time being, please attach the church plant reports to the mother church reports.  The financial reporting should be reported within the financial statements of the mother church.

Once the new Ministry form has been created and all our churches have been set up on the Confluent Accounting system there will no longer be a Gold Sheet. 

****

Whether ministry or money, keeping current on your reporting is important.  A case in point that you can confirm for yourself from this years Annual Report.  Over the past ten years we have averaged, together, between 500-700 salvations annually.  Last year's report (July 30/10) showed only 330.  If you didn't submit your ministry reports then you weren't included in the count.  Please know that your ministry and reports do matter!!


Useful Quote of the Day:
"God's purpose has always been about redeeming a people...there is a radical difference between leading one person to faith and leading a people to faith.  The former produces a follower of Jesus Christ; the latter produces a movement of Jesus Christ.  The first requires one heart bound to God.  The second requires many hearts bound together in God...God sent his Son not only to call individuals to himself, but also to transform culture.  And he prays for us that we would be one even as he and the Father are one."
Erwin Raphael McManus, An Unstoppable Force.

Church Planting: Mother/Daughter Administration

With more and more of our churches catching the vision for church planting, the question has been: 

What is the proper method for accounting and administration of church plants?

Both the Administration Manual and the Administrators' Guide clearly outline the policies and procedures for administering church plants.  You can also access resources and information on our Foursquare website: 

http://www.foursquare.ca/index.php/20090323157/Downloads/nfcd-resources.html

Some important things to remember:

• The mother church is fully accountable for all income and expenses of the church plant. Until the church plant has been approved by the national board as a chartered church and is fully registered as a charity with the CRA, they are in essence considered an outreach of the mother church and must be accounted for as such. 

• There was a time when the church plant would simply swap cheques in order for the mother church to issue tithe receipts.  From the CRA's perspective this is "lending" the charity number and does not provide adequate proof of the operations of the church plant.  Using this form of accounting could have the potential of jeopardizing the charitable registration of the mother church.

• The mother church, at the very minimum, should have accounts for the following information in their accounting system:  bank accounts, one receipted income account, one non-receipted income account, and one expense account.  Upon receiving monthly financial reports from the church plant, one entry could be made into the accounting system.

• As early as possible, the church plant should be set up with their own accounting system (Confluent) and administration.  The mother church would work with the plant to help train and support in the daily operations of the church.  This will enable the plant to be fully operational by the time they are ready to be chartered and on their own.

• The church plant should be able to provide full details of all funds received.  For those amounts that will be receipted by the mother church, there should be detailed records including full name, addresses, amounts given and should all be supported with tithe envelopes.

• A Mother/Daughter Church Sponsorship Agreement should be completed at the start of a church plant.  This is a very useful tool to help both the mother and daughter church understand the relationship and responsibilities that each has for all aspects including accountability, mentoring, and administration.  Please contact the national office to obtain a copy.

Church planting is not easy but there's no way to put a value on the impact for the Kingdom that comes through reproducing healthy churches.  It's a labor of love that will bring eternal rewards.


Useful Quote of the Day:  We should not look back unless it is to derive useful lessons from past errors, and for the purpose of profiting by dearly bought experience. George Washington

Designated Funds: Giving Policy

To designate or not to designate, this has been the question.

I've had several churches in the past while ask about the proper handling of Designated Funds; that is donations given for a specific purpose.

Question:  can we change the designation of funds that have come in for a specific purpose?

Answer:  No, Yes & Maybe.

No, if you have already accepted a designated gift you cannot change the designation.  When received, it becomes a legal obligation of the church to disburse it for its designated purpose.  The only way to change the designation would be to appeal to the courts.  In most cases, this is not cost effective.

Yes, if you have a Designated Giving Policy in place prior to receiving a gift then the church may redirect funds to other purposes if they are no longer required or are needed for other projects of the church.  This policy must be communicated and can be done by printing the policy on the tithe envelopes. 

An example of this statement can be as follows:

“When any given need has been met, or where projects cannot be reasonably carried out the donor agrees that designated gifts may be used where needed most.”

A couple of things to remember.  Gifts received prior to adopting a Giving Policy will still need to be used as designated.  Once the policy has been set in place, council should determine the approved projects of the church and communicate that these will be the only projects the church will accept designated funds for.

Maybe, designated gifts may come in that are for a ministry area of the church that is already funded through the operating budget.  Examples would be youth, children, adult, Alpha, missions, etc.  In this case, designated funds that come in can be used to offset the budget of ministry costs. 

The church could choose to use the funds over and above the budget, or use it to reduce the amount from the budget.  If the gift is not fully used up in the year the remaining balance should be carried forward to be used in the next budget year.

Whatever way the church decides, may you be blessed in your givings and receivings!


Useful Quote of the Day:  We shall never have more time. We have, and always had, all the time there is. No object is served in waiting until next week or even until tomorrow. Keep going... Concentrate on something useful.
Arnold Bennett

Donation Receipting: Due Date for Issue

It's so interesting how we can go along for years, doing something a certain way, all the time thinking this is the way it needs to be done.  That is until someone questions it and does a little research for themselves.  Well, that's the case of the question I received today about the official due date for issuing donation receipts:

A quick question on the donation receipts.   Do they have to be in the mail tomorrow, or can I bring them to church next Sunday to hand out?  CRA's website seems to indicate that there is not a deadline to get them out.

Answer:  The CRA only suggests that receipts be issued by February 28.  However, they also recommend that it is a good date to have them ready and available so individuals can complete their personal tax returns on time which is on or before April 30.


There is no consequence to the church or its charitable status if they do not have receipts out by this day.  However, it does show due diligence on the part of the church and also consideration for givers to have them done in a timely manner.

For those churches that have a large number of receipts they do have the option of issuing receipts at periodic intervals.  This can help greatly to reduce the February crunch.

That was a great question! 

Check it out for yourself at:  http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/whn-eng.html