What You Need to Know Before Supporting Missions

By Raul Rivera

From the time he was a young teenager, Chris understood that the most important need in the world was for all people to come into relationship with God through Jesus Christ. He was passionate about delivering the gospel to unreached nations across the earth.

Now, in his early 30s, the Lord called him to pastor a relatively young church, but he was still compelled to be a part of the Great Commission. After all, it was through Matthew 28 that Chris heard the call of the Lord on his life. 

Chris began to explore like-minded ministries that were involved in global missions with which his church could partner. After much prayerful consideration, Chris and his leadership team found a ministry to support. Through this organization, his church members would also have the opportunity to participate in mission trips.

The vision that God put in Chris’s heart was finally coming to fulfillment! He could envision the many lives that would be impacted through the ministry and changed for eternity. 

There were, however, some aspects of supporting missions that Chris had not previously considered.

A new perspective on missions work for churches

Like Chris, when we consider missions, generally we think of the spiritual and practical needs of the individuals we are trying to reach as well as the logistics of the work.

Yet in the midst of planning and implementing the Great Commission to other nations, there are important administrative and legal matters to consider.

When it comes to missions abroad, the government has strict guidelines for the proper management of funds used overseas. 

Furthermore, when compensating foreign ministers, churches must be aware of the special rules concerning employment taxes for those who are not U.S. citizens.

In this article, I will review two important legal requirements that U.S. churches and ministries should follow when doing certain missions activities.

(Recommended reading: “Are You Funding the Mission or Missionary?”)

Does your church or ministry have an anti-terrorism policy?

Nonprofit organizations in the U.S. are allowed to donate funds and host activities outside of the country. 

However, there are a couple of things you need to keep in mind:

• A church engaging in missions work must limit foreign activities to those that further its exempt purpose. The church must retain control over the use of its funds in other nations. This is same for all tax-exempt organizations. (See Revenue Ruling 68-489)
• All organizations (churches included) as well as U.S. citizens are prohibited from making transactions with certain corporations or people who commit, or threaten to commit, terrorism. There are also countries that we are prohibited from visiting. (See Executive Order 12947 and 13099)
• Before your church supports any foreign organization, it should look up the entity on the Office of Foreign Asset Control’s list of sanctioned countries, companies, and individuals to be sure it is okay to transact business. (The “Specially Designated Nationals and Blocked Persons List” and the “List of Sanctioned Countries” are specific sections to be checked. These lists can be found here and here.)

Considering these guidelines, it is important for your church to establish an anti-terrorism policy. This is a policy that we give to all churches and ministries that go through our StartRIGHT® Program. For more information about how this applies to your church or ministry, give us a call at 877-494-4655.

Guidelines your church should consider regarding missions

With a solid anti-terrorism policy in place, your church should also consider the following (before supporting a missions organization or traveling overseas):

1. Know to whom you are giving and why.
2. Document that you have checked the website of the Office of Foreign Asset Control to be sure you can support the people and send funds to the nation where they are operating. 
3. Take note of the agreement with the ministry that you are supporting for use of the funds. 
4. Require a financial report from the ministry to be sure it is properly using the funds.
5. Send a representative from your organization to oversee necessary purchases, and verify that the funds have been properly used.
6. Withdraw funding immediately if abuse of the preset agreement has been violated.

Take note that the anti-terrorism policy also applies when sending funds to support a nonprofit’s operation in another country.

This support may include, but is not limited to, financial contributions, purchasing supplies for an orphanage, paying school fees for children, and buying items to feed and clothe the poor.

Next, let us review another action of many churches that is closely related to what we have been talking about - compensating non-U.S. citizens for their ministerial work.

What churches need to know about paying foreign guest speakers

Properly paying honorariums (love offerings) to guest speakers can be complex without knowing the right information. When you compensate a foreign guest speaker, there are new sets of administrative requirements that you will need to consider.

(Recommended reading: "Do You Know How to Pay Guest Speakers?")

Below are some general guidelines to ensure that you are maintaining compliance when compensating guest speakers from other countries:

1. Make sure the speaker has a valid VISA to be in the U.S. If the speaker does not have a valid VISA, and he/she is in regular relationship with your ministry, the speaker should consult with an experienced immigration attorney.  
2. Make sure the speaker has an individual taxpayer identification number (ITIN) or a social security number (SSN). If the speaker does not have a SSN, he/she may apply for an ITIN using Form W-7. 
3. Provide the minister with IRS Form 8233 and IRS Publication 515 to see if he/she is a “resident of a treaty country.” Most churches are not aware that the U.S. has treaties with many countries exempting nonresident foreign nationals from backup withholdings when earning honorarium income. 
4. If the speaker is from a country with which the U.S. does not have a treaty, the church will need to withhold 30% of the love offering collected and send it to the IRS by the 15th day of the next month. The church will also need to give him/her Form W-8BEN instead of Form 8233.
5. After paying the honorarium to the guest speaker, the church must deposit the withheld money in a federal reserve bank using Form 8109-B, Federal Tax Deposit Coupon. 
6. At the end of the year, the church must fill out IRS Form 945 to report backup withholding for foreign guest speaker honorariums. Form 945 is due by January 31st of the following calendar year.

“Go and make disciples of all nations”

Conducting global missions work, strengthening our brothers and sisters in other nations, and seeing the gospel go forth are examples of extraordinary work that I do not take for granted. 

You are anointed and called to preach the Good News and to make disciples of all nations, but there are times when you will need to sharpen the skills that have been given to you. 

Our goal at StartCHURCH is to empower you to continue your efforts with the utmost confidence that your organization is protected on every side so you can fearlessly walk in your calling. 

Call us at 7706383444 or click below to let us know how we may serve you!

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