FBMI Updates
Friday Financial Tip #6
The FBMI office is happy to be able to provide the Bill-Pay Form to serve missionaries. This form allows a missionary to request help with transactions such as giving directly to other missionaries, paying for printed materials, other ministry invoices, wire requests, etc. Requests submitted through this form by the third Monday of each month will be cared for in that month. After the third Monday of every month, any wire request or other bill-pay request will be completed at the beginning of the following month. An exception to this is when our bookkeeper reaches out to a missionary specifically requesting a bill pay for a payroll deduction. Thank you so much for your time and attention. Have a great day in Jesus!
Friday Financial Tip #5: A Reminder for Your EOM
The number you put in Box E in no way decides how much you can or do spend on your family’s needs. This is simply the minimum amount that must be taxed as personal salary each month. Due to inflation, for the first time in many years, FBMI is increasing the suggested amount. Beginning with your January 2024 EOM, you should claim $600 per adult and $150 per child living at home
Friday Financial Tip #4: Love Offerings
For those missionaries on deputation, on furlough, or based Stateside:
If you receive a love offering of $600.00 or more, the church may ask you to complete a W-9. You do not need to complete a W-9 for gifts under $600.00.
If the church does ask you to complete a W-9, you should NOT include this amount on your EOM. The church should be sending you a 1099 at the end of the year. Including this amount on your EOM would cause you to be taxed twice on that amount.
If the church does not ask you to complete a W-9, or if the love offering was under $600.00, you should include it in Box C on your EOM.
Friday Financial Tip
Mrs. Eason has now been faithfully serving our FBMI missionaries for over 19 years. In 2023, she processed 30,799 checks, with a total of 67,607 line items. She accomplished this with an error rate of less than 0.35%. As a way of comparison, the major U.S. banks strive to maintain an error rate of less than 3.0%.
Due to her incredible workload, Mrs. Eason will no longer be available to answer any questions. All questions concerning finances or EOMs should be directed to your FSC.
Thank you for your help with this matter.
General Announcement Concerning 2024 EOMs
We are so glad that FBMI is able to offer our EOM program to you. Called the Accountable Reimbursement Plan by the IRS, this program offers two major benefits to you as a missionary on the field serving with FBMI:
• First, it enables you to claim ministry-related expenses each month, which, when done correctly, keeps you from ever paying taxes on those funds.
• Second, it keeps you from having to explain ministry-related expenses to an accountant or auditor who doesn’t understand how your ministry works.
Along with those advantages comes responsibility. If you decide to use this program (and we think you should), you cannot jump in and out of the program. Beginning this year, if you miss turning in an EOM form one month, you will not be able to participate in the EOM program for the rest of the year.
“Moreover it is required in stewards, that a man be found faithful.” (I Corinthians 4:2)
You may already be very familiar with our EOM program, and you may have been keeping up to date with any changes that occur, but in the interest of helping you to do everything decently and in order, may we remind you of the following:
1. The number you put in Box A must always be the same as the number you put in Box D on last month’s EOM form.
2. The number you put in Box E in no way decides how much you can or do spend on your family’s needs. This is simply the minimum amount that must be taxed as personal salary each month. Due to inflation, for the first time in many years, FBMI is increasing the suggested amount. Beginning with your January 2024 EOM, you should claim $600 per adult and $150 per child living at home.
3. You must keep ALL receipts. You are only required to send in receipts over $75.00, but you must be able to produce all receipts for $75.00 and under upon request.
4. If your receipts are denoted in a foreign currency, you must write the equivalent amount in U.S. dollars. It is your responsibility to ensure that the exchange rate is accurate.
5. Your EOM form is due on the 25th of the following month. If the 25th falls on a weekend, your EOM form is due the following Monday. If your EOM form is turned in late, you may lose the right to participate in the EOM program for the remainder of the calendar year.
In working with your finances, our office staff do their best to neatly combine a number of factors, including you, your supporting churches, the First Baptist Church Finance Office, our accountants and auditors, and the IRS. Thank you helping us to help you. We love and appreciate you, and we are always on your side!
Bro. Bosje
2024 EOM Report Form
Select the link below to download the correct 2024 EOM form.
Missionaries still on deputation should not use Box E in the form because they do not yet have a fixed salary. Please complete and email this form to finance@fbmi.org. Direct any questions you have to your Field Service Coordinator (FSC) or call FBMI at 219.228.2850.
Accountable Plans
FBMI uses an Accountable Reimbursement Plan to allow missionaries to avoid paying extra taxes on ministry expenses. Here is some information from the IRS about this type of plan:
Accountable Plans
To be an accountable plan, your employer’s reimbursement or allowance arrangement must include all of the following rules.
- Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer.
- You must adequately account to your employer for these expenses within a reasonable period of time.
- You must return any excess reimbursement or allowance within a reasonable period of time.
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
For more information, see the IRS publications below.
Publication 463 (2022), Travel, Gift, and Car Expenses | Internal Revenue Service (irs.gov)
Publication 535 (2022), Business Expenses | Internal Revenue Service (irs.gov)
Reimbursable Ministry Expenses
Reimbursable Ministry Expenses for FBMI Missionaries
- Some of these items have specific, associated guidelines and limitations defined by the IRS.
- This list does not intend to be definitive, but rather a general overview to help the FBMI office and missionaries properly complete their monthly financial reports.
- All receipts for ministry expenses should be saved. Receipts for ministry expenses more than $75 must be submitted to FBMI.
- Ordinary and necessary expenses related to a missionary’s ministry
- Ministry-related travel (Please note: The categories below are claimable only for deputation or other similar, ministry-related travel away from a missionary’s home.)
- Travel by airplane, train, bus, or car between missionary’s home and ministry destination.
- Travel by taxi or commuter bus
- between airport or station and missionary’s hotel.
- between hotel and ministry destination.
- Sending baggage and ministry materials from regular ministry to temporary destination
- Operating and maintaining missionary’s personal vehicle when traveling away from home for ministry.
- Not for travel between home and regular place of work.
- Can be used for travel between regular place of work and temporary ministry.
- Deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking.
- Car Rental while away from home for ministry. A missionary can deduct only the ministry-use portion of the expenses.
- Lodging and non-entertainment-related meals
- If the ministry trip is overnight or long enough that the missionary needs to stop for rest to properly perform his duties
- Only for the missionary, not spouse or family
- Meals include amounts spent for food, beverages, taxes, and related tips.
- The missionary must follow the per diem rates and other particulars found on the GSA website. For more information, visit https://www.gsa.gov/travel.
- Dry cleaning and laundry for ministry travel.
- Business calls while on the ministry trip.
- Tips paid for any of the above items.
- Other similar ordinary and necessary expenses related to ministry travel. These expenses might include transportation to or from a business meal and operating and maintaining a house trailer.
- Ministry-related gifts
- Typically limited to $25 per person.
- Gifts less than $4 may fall into a different category.
- Payment of Employees
- When paying employees, be sure to also pay all taxes and fees required by US or foreign law.
- Ministry-related rent
- Building or portion of building
- Rent for equipment
- Liability insurance
- Advertising
- Payments to FBMI or another ministry
- For ministry-related needs, such as prayer cards
- Not for charitable donations
- Membership fees
- Not typical
- Ministry-related professional organization or a chamber of commerce
- Education expenses
- Must maintain or improve skills required in your ministry
- Books, publications, subscriptions
- Conferences, seminars
- Not for new trade or business
- Internet
- Including domain registration and consulting
- Only for ministry-related expenses
- Property maintenance or repairs
- For ministry property, not personal property
- Writing ministry-related books or articles
- Meals and entertainment
- Meals must have a clear ministry purpose.
- Provide itemized receipt and proof of payment.
- Must provide names of individuals receiving meal.
- Entertainment is not typical.
- Phone
- If personal phone, must claim only the percentage used for ministry.
- Clothes
- Not typical
- Only for clothes that are not adaptable to general wear
- The cleaning of these items, for example, baptismal robes
- Bank charges
- Only for ministry account
- Ministry-related legal, accounting, or other professional services
- Office Expenses and office supplies
- Ministry-related materials
- Ministry-related printing
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Reimbursable Ministry Expenses for FBMI Missionaries
- Some of these items have specific, associated guidelines and limitations defined by the IRS.
- This list does not intend to be definitive, but rather a general overview to help the FBMI office and missionaries properly complete their monthly financial reports.
- All receipts for ministry expenses should be saved. Receipts for ministry expenses more than $75 must be submitted to FBMI.
-
- Ordinary and necessary expenses related to a missionary’s ministry
- Ministry-related travel (Please note: The categories below are claimable only for deputation or other similar, ministry-related travel away from a missionary’s home.)
- Travel by airplane, train, bus, or car between missionary’s home and ministry destination.
- Travel by taxi or commuter bus
- between airport or station and missionary’s hotel.
- between hotel and ministry destination.
- Sending baggage and ministry materials from regular ministry to temporary destination
- Operating and maintaining missionary’s personal vehicle when traveling away from home for ministry.
- Not for travel between home and regular place of work.
- Can be used for travel between regular place of work and temporary ministry.
- Deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking.
- Car Rental while away from home for ministry. A missionary can deduct only the ministry-use portion of the expenses.
- Lodging and non-entertainment-related meals
- If the ministry trip is overnight or long enough that the missionary needs to stop for rest to properly perform his duties
- Only for the missionary, not spouse or family
- Meals include amounts spent for food, beverages, taxes, and related tips.
- The missionary must follow the per diem rates and other particulars found on the GSA website. For more information, visit https://www.gsa.gov/travel.
- Dry cleaning and laundry for ministry travel.
- Business calls while on the ministry trip.
- Tips paid for any of the above items.
- Other similar ordinary and necessary expenses related to ministry travel. These expenses might include transportation to or from a business meal and operating and maintaining a house trailer.
- Ministry-related gifts
- Typically limited to $25 per person.
- Gifts less than $4 may fall into a different category.
- Payment of Employees
- When paying employees, be sure to also pay all taxes and fees required by US or foreign law.
- Ministry-related rent
- Building or portion of building
- Rent for equipment
- Liability insurance
- Advertising
- Payments to FBMI or another ministry
- For ministry-related needs, such as prayer cards
- Not for charitable donations
- Membership fees
- Not typical
- Ministry-related professional organization or a chamber of commerce
- Education expenses
- Must maintain or improve skills required in your ministry
- Books, publications, subscriptions
- Conferences, seminars
- Not for new trade or business
- Internet
- Including domain registration and consulting
- Only for ministry-related expenses
- Property maintenance or repairs
- For ministry property, not personal property
- Writing ministry-related books or articles
- Meals and entertainment
- Meals must have a clear ministry purpose.
- Provide itemized receipt and proof of payment.
- Must provide names of individuals receiving meal.
- Entertainment is not typical.
- Phone
- If personal phone, must claim only the percentage used for ministry.
- Clothes
- Not typical
- Only for clothes that are not adaptable to general wear
- The cleaning of these items, for example, baptismal robes
- Bank charges
- Only for ministry account
- Ministry-related legal, accounting, or other professional services
- Office Expenses and office supplies
- Ministry-related materials
- Ministry-related printing
2023 EOM Report Form
Select the link below to download the correct 2023 EOM form.
Missionaries still on deputation should not use Box E in the form because they do not yet have a fixed salary. Please complete and email this form to finance@fbmi.org. Direct any questions you have to your Field Service Coordinator (FSC) or call FBMI at 219.228.2850.