October 27, 2020
The United As One COVID-19 Special Appeal continues to provide support to congregations during this pandemic.

The United As One grant has recently helped congregations like Holy Trinity in Fort Walton Beach and Joy Lutheran in Ocala, both of which received the grant to help improve livestream worship services.
Join the Florida-Bahamas Synod and lift up your neighboring congregations!
Taxes are not fun. But if taxes are not handled correctly, things can become down-right painful. In some parts of Florida, tax collectors are becoming more aggressive with non-profits, especially churches.   

The basic assumptions for the general information that follows are these: your church has extra space, you are renting to a for-profit undertaking (school, club, game day parking, weekday parking, senior care, after school program, etc), and the church is generating income from the rental activity. There are three types of tax we are going to deal with – federal and state unrelated business income tax (corporate income tax), state sales tax, and local property tax – each administered by a separate taxing agency with different rulesIn every case, you should consult with your CPA to evaluate and address your specific set of circumstances.

From a federal and state unrelated business income tax perspective, if the arrangement is producing income, is regularly carried on, and is not substantially related to the carrying out of the organization’s exempt purpose, you should consult with your CPA to determine the potential tax implication of the arrangement. In general, rent from real property is excluded from unrelated business income; however, there are various circumstances in which the exclusion does not apply. One of the more common circumstances is when the property is debt-financed.

If you have a mortgage on the property, then you can only rent out up to 15% of the property as it is measured in space-used, or time-used, or a combination of both criteria. If you rent out more than 15%, then you need to work with your CPA to determine the potential tax liability. If you don’t have a mortgage, you should consult with your CPA to verify that the terms of the rental agreement allow for the rental income to be excluded from unrelated business income tax. 

State and local sales tax implications should be addressed for all rental arrangements. Sales tax should be collected and remitted for any tenant who does not provide a valid sales tax exemption certificate (generally for-profit individuals/entities). The church sales tax exemption certificate does not extend to the tenant. In every case, you should consult with you CPA to evaluate and address your specific set of circumstances.

Local/city property tax collectors can be an area of unique concern. Property tax exemption is granted if the property is owned by an exempt or not-for-profit entity and used exclusively or predominately for an exempt purpose. The term “exclusively and predominately” is very subjective and leaves the door open for the local property tax collectors to deny exemption for any level of non-exempt activity. Presently, Miami’s property tax collector is sending churches who rent space to for-profit companies tax bills for back taxes and pulling their tax-exempt status as it relates to property taxes. Currently, there are churches who have received back tax bills for $10,000, $100,000 and, in the case of First Presbyterian of Miami, $7 million. This has the potential to close a church completely down.

If you think you might need some help with a tax situation, call your CPA and ask some questions. They can either answer them or refer you to a tax expert. If you don’t have a CPA, please email Pr. Rob Rose. He is the Bishop’s Assistant for Administration and he can help you find the experts you need. You can email him at robr@fbsynod.org.
Important Reminder!
Election Day is November 3rd!
It is both privilege and responsibility for Lutherans in the United States to approach Election 2020 as faith-informed voters. Aware of needs and priorities in our own lives and connected with our neighbors who are equally beloved children of God, “Lutherans care about government because it is a gift from God intended for the safety and flourishing of human life.”
Ask yourself these important questions:
  • Do you have your plan in place for voting?
  • Can you encourage and inform others through your congregation and/or personal circles?
  • Have you reflected on election challenges – for vote casting and after Election Day – in our unique 2020 context?

With mere days remaining in advance of Election Day 2020, here is a review of material associated with the ELCAvotes initiative.
Prayer of the Week from our Racial Justice Think Tank
 
Almighty God, the God of Truth, may you fill our hearts with your truth and our lives with wisdom to live as your true disciples. May this truth move us to be freed from our false identities and conformed to yours in order to love and respect our neighbors. Lord in your mercy...
 
Hear our prayer. 
 
Sovereign God, the God of Justice, you will judge the living and the dead. You alone are merciful and just. By your grace, move us to work for justice and to defend your truth, which calls us to sacrifice for the sake of others as you did for us in the person of Jesus. May our works of justice be our sacrifice to love and honor the stranger and the marginalized. Lord in your mercy...
 
Hear our prayer.
 
Forgiving God, the God of Reconciliation, you alone can forgive us our sins and restore us back to your image. Turn us back from our sins, namely those in which we neglected the poor or the weak, or when we did not speak truth to power, raise our voices to confront racism, fight discrimination, and care for our neighbor. May your reconciling power help us to bear with each other, forgive one another and be kind and compassionate to one another. Lord in your mercy...
 
Hear our prayer.
 
Loving God, the God of Peace, through the death and resurrection of your son Jesus the Christ you made peace with us and each other, and opened the way to eternal life. May this peace be lived among your people free of fear, worries, brokenness, war, the unjust killing of our brothers and sisters in vain, and the dehumanizing of people because of their skin color or because they speak with an accent. May this powerful gift of peace rule our hearts for the sake of living in peace and dignity as your holy people. Lord in your mercy...

Hear our prayer.
 
This prayer was submitted on behalf of the Racial Justice Think Tank by Pastor Khader El-Yateem, Assistant to the Bishop and Director of Evangelical Mission for the South Region.
An Update on the First Call Theological Education Team

Thank You to all who responded to our search for additional First Call Theological Education (FCTE) team members. Our new team members were selected based on the current needs of the team. Please join us in welcoming Pastor Rusty May and Pastor Josh Gyson! FCTE team (alphabetically): Pastor Rob Endrushat, Pastor Josh Gyson, Deacon Kimberly Heindl, Pastor Maryanne Kehlenbach and Pastor Rusty May. [A special thank you to Pastor Rob, Deacon Kim and Pastor Maryanne for your ongoing service!]

New Opportunity!
Synod Parish Deacon Oversight Committee

Another opportunity! We are now seeking Synod Parish Deacon Oversight Committee members. According to committee guidelines, we need one Synod Parish Deacon and two clergy who have at least one active Synod Parish Deacon. Please review the Synod Parish Deacon Handbook, found by clicking here, to learn more about the role of the Bishop’s Oversight Committee. If you feel that the Holy Spirit might be calling you to serve in this capacity, please submit a one-page reflection, directed to Bishop Suarez, as to why you feel called to serve in this capacity, and tell us a bit about the gifts and experience that you would bring to the committee. Please email reflections to Deacon Connie Schmucker at connies@fbsynod.org by November 3rd. Bishop Suárez and the chair of the Bishop’s Oversight Committee, Jennifer Grumbling, and Deacon Connie Schmucker will review all submitted reflections.
In Case You Missed It...
ELCAvotes

We are called to conversation and prayer around our role as U.S. residents and as people of faith in ensuring our election systems promote dignity and respect for all. 

We are called to act by speaking out as advocates and engaging in local efforts to guarantee the right to vote to all citizens. To sign up for up-to-date information on ELCAvotes, click here!