In 1985, NATRI initiated an annual seminar, Orientation to Management of Religious Institutes, which was continued by RCRI in 2009 following the merger of NATRI and LRCR. The seminar was intended for new treasurers or CFOs, finance personnel and leadership who had oversight responsibilities for the institute’s finances. In 2014 the seminar was discontinued due to changing needs and other factors. 

Ten years later, building on the foundation and purpose of the OMRI seminar, RCRI will present a Webinar Series on topics related to Stewardship and Management of Religious Institutes 2024 to address current issues faced by administrators, fiscal personnel, and canonical leadership of religious institutes.

Recordings and Handouts Available Now: Click Here

The IRS also announced the standard mileage rate for 2024 will be:

• 14 cents per mile driven in service to charitable organizations, including religious institutes and sponsored ministries. The rate is set by statute and remains unchanged from 2023.

• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the US Armed Forces – a decrease of 1 cent from 2023.
  

Notice 2024-8  contains the optional 2024 standard mileage rates (click here).

On December 14, 2023, the Internal Revenue Service issued the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Click here for additional information.

Beginning on Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 67 cents per mile driven for business use, up 1.5 cents from 2023.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.

These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving expenses for members of the armed forces.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Notice 2024-8 (click here) contains the optional 2024 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan.

In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2024 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

Medicare Costs 2024 Chart

To view the full description: Click Here

A Global Analysis of Contemporary Religious Vocations for Women
Patricia Wittberg, SC, Mary L. Gautier, Gemma Simmonds, CJ, with Nathalie Becquart, XMCJ; Foreword by Patricia Murray, IBVM

Religious life is vitally necessary to the Catholic church today. But it will exist in new and varied forms which speak to the spiritual hungers of different societies, ethnic cultures, and generations. God’s Call Is Everywhere is the first comparative analysis of research in six countries investigating women who have entered vowed religious life in Catholicism in the twenty-first century. The data include survey responses from insti- tute leaders, formation directors, and the women themselves, conducted in the United States, Canada, Australia, and France, along with focus groups and interviews in Ireland, the United Kingdom, and France. Through a careful summary of these studies and comparing differences, readers of this book will have a better understanding of the hopes and concerns of those discerning a vocation to religious life and learn how to move forward in the future. 978-0-8146-6913-6 Paperback, 242 pp., $26.95 $21.56 | eBook also available
Available Fall 2023

A similar change is made in canon 501 of the CCEO with a change from “fifteen days” to “thirty days.”

The motu proprio takes effect May 7, 2023.

To view the full Motu Propio: Click Here

Standard Mileage Rate

Business:                                                                                                         65.5 cents per mile

Medical (and moving for certain members of the Armed Forces):          22 cents per mile

Charitable:                                                                                                       14 cents per mile

Exclusion amounts for “token” premiums that can be disregarded for purposes of quid pro quo contributions

Fair market value of all items received by donor does not exceed the lesser of $125 or 2% of the contribution amount, or

The payment to the charity is $62.50 or more, the premiums sent in the connection with the contribution bear the charity’s name or logo, and the cost to the charity of all such items sent to a single donor during a one-year period does not exceed $12.50.

Limits on employee salary deferrals for 401(k) and 403(b)

Individuals born after 1973:                                                                                        $22,500

Individuals born before 1974:                                                                                     $30,000

Note that some of the amounts listed above will be significantly affected in 2024 and future years due to the passage of the SECURE 2.0 Act of 2022.

Social Security Wage Base                                                                                     $160,200

Foreign earned income exclusion for individuals working abroad                    $120,000

Level of compensation causing a nonprofit employee

to be considered “highly compensated”

for purposes of certain qualified benefit plans                                                     $150,000

The compensation used in determining whether an individual is highly compensated for this purpose is that of the prior year. Thus, the amount above is the threshold of compensation paid to an employee in 2023 that, if exceeded, will cause the employee to be considered a highly compensated employee in 2024. (A person is considered a highly compensated employee in 2023 if they received more than $135,000 of compensation in 2022).

Annual Cap on deductible payins to health savings accounts (HSAs)

Single coverage                                                                       $3,850

Family coverage                                                                       $7,750

HSA owners born before 1969                                               $1,000 more than the amounts listed

Monthly parking value exclusion (qualified transportation fringe benefit)                   $300

Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 

• 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
• 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. 

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. 

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces. 

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. 

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen. 

Notice 2023-03 contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2023 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

2023

Hospital Insurance (Part A)

Premium                                Free if one has worked 10 years or more

                                                $278 per month if one has worked between 7.5 and 10 years

                                                $506 per month if one has worked fewer than 7.5 years

Deductible                             $1,600 each benefit period

Hospital coinsurance          $0 for the first 60 days of inpatient care each benefit period

                                                $400 per day for days 61-90 each benefit period

$800 per lifetime reserve day after day 90 in a benefit period (one has 60 lifetime reserve days that can only be used once. They are not renewable.)

Skilled Nursing Facility       $0 for the first 20 days of inpatient care each benefit period

(SNF) coinsurance              $200 per day for days 21-100 each benefit period

Medical Insurance (Part B)

Premium                                $164.90/month is the standard premium

Deductible                             $226 per year

Coinsurance                         20% for most services Part B covers

Prescription Drug Insurance (Part D)

Each Part D plan charges a different premium and deductible.

Premium                                Base premium is $32.74 per month

Deductible                             No more than $505 per year

Definitions

Premium:                               The monthly fee one pays to have Medicare.

Deductible:                            What one must pay out of pocket before Medicare starts paying for one’s care.

Copayment/Coinsurance Benefit Period:

  The amount one pays for each service. Period that begins the day one starts getting inpatient care. It ends when one has not received inpatient hospital or skilled nursing facility care for 60 days in a row.

• National Conference 2022
• Election Reminder
• Should Our Religious Institute Buy or Lease a Photocopier
• Social Security, SSI & Medicare for 2023
• Snapshots from the Conference
• IRS Provides Tax Inflation Adjustments for Tax Year 2023
• Establishment Clause Test Overturned and Developed
• Inflation Reduction Act and the Religious Institute and Sponsored Ministry
• New Resources
• About Us
• Click Here to View the NIB!

The 2022 Memorandum that accompanies the Group Ruling: Click Here

The Holy Father, Pope Francis, has issued an apostolic letter motu proprio  Competentias quasdam decernere “assignment of certain competencies,” made public February 15, 2022, giving direct decision-making authority, through the transfer of certain responsibilities, from the Holy See to local diocesan bishops and major superiors. Pope Francis states that the intention of the changes, is to foster a spirit of collegiality and pastoral responsibility on the part of bishops and major superiors and to support the “principles of rationality, effectiveness, and efficiency.”

Several canons in the Code of Canon Law (CIC) and the Code of Canons of the Eastern Churches (CCEO) are modified by the motu proprio, among which are three articles that concern the canons on separation from the institute (exclaustration, departure and dismissal) transferring some responsibilities from the Holy See or diocesan bishops to major superiors. Below is an overview of the changes in the CIC canons affecting religious institutes.

Article 5

Canon 686§1 concerns the granting of an indult of exclaustration by the supreme moderator with the consent of the council, for a grave cause, to a perpetually professed member. The new provision extends the period of time for the indult from three years to up to five years. For an extension beyond five years the permission of the Holy See for pontifical institutes or the diocesan bishop for diocesan institutes is required. If it is a cleric, the prior consent of the ordinary of place in which the cleric will reside is required.

Article 6

Canon 688§2 provides that temporary professed members of religious institutes who ask to leave the institute for a grave reason can obtain an indult from the Supreme Moderator with the consent of his/her council. The applies to institutes of pontifical right and diocesan right. The new language eliminates the need for the supreme moderators of institutes of diocesan right to obtain confirmation from diocesan bishop of the house of assignment. 

Article 7

Canon 699§2 and 700 are modified so the decree of dismissal of a temporary or perpetually professed member from an institute for a grave reason, issued by the supreme moderator, takes effect upon notification of the member. The decree must indicate the right of appeal to the competent authority within ten days of receipt of the notification. The appeal has suspensive effect.

Canon 699§2 now states that dismissal of a professed member in the monasteries of canon 615 belongs to the major superior with the consent of the council.

Article 9

The major modification in paragraph 1 of canon 1308 transfers the responsibility for a reduction of the obligation of Masses for a just and necessary cause from the Holy See to the diocesan bishop for their dioceses and to supreme moderators for clerical institutes/societies.

In addition, the second paragraph of the former canon 1308 has been deleted in the new canon. Presumably the reason is that its content is now incorporated in the new language of paragraph one.

Canon 1308§1 on reducing the obligations of Masses modifies competence, and now reads:

§1: A reduction of the obligations of Masses, to be made only for a just and necessary cause, is reserved to the diocesan bishop and to the supreme moderator of a clerical institute of consecrated life or a society of apostolic life.

Below is a link to an English translation of the Apostolic Letter.

https://www.vatican.va/content/francesco/it/motu_proprio/documents/20220211-motu-proprio-assegnare-alcune-competenze.html

Resource Center for Religious Institutes

February 15, 2022

The updated technical assistance from the EEOC is located here.

MARCH 15, 2021 - The Internal Revenue Service announced on March 12, 2021 that the third round of Economic Impact Payments will begin reaching eligible members of religious institutes over the following week.

Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients started receiving as early as the weekend of March 13-14, 2021 and with more receiving the following week.

Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of these payments will be by direct deposit.

No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how members of religious institutes received the first and second round of Economic Impact Payments in 2020. Members can check the “Get My Payment” tool on IRS.gov beginning Monday, March 15, 2021 to see the payment status of the third stimulus payment.

In general, most eligible members will receive a $1,400 payment. As with the first two Economic Impact Payments in 2020, most members of religious institutes will receive their money without having to take any action. Some members may see the direct deposit payments as pending or as provisional payments before the official payment date of March 17.

Because these payments are automatic for most eligible people, contacting either financial institutions or the IRS on payment timing will not speed up their arrival. Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits. A payment date for this group will be announced shortly.

The third round of Economic Impact Payments (EIP3) will be based on the member’s latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered online at IRS.gov using the agency’s Non-Filers tool last year.

In addition, the IRS will automatically send EIP3 to people who didn’t file a return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. This is similar to the first and second rounds of Economic Impact Payments, often referred to as EIP1 and EIP2.

Like last year, RCRI continues to remain wary of recommending that a member of a religious institute file a zero-return 2019 or 2020 income tax return in order to receive a stimulus payment if they do not receive Social Security and other federal benefits and do not have a recent history of filing an income tax return as a member of the institute. To do so in order to receive a stimulus payment may draw scrutiny from the IRS in the future if an income tax return is not filed during those future years.

For those who received EIP1 or EIP2 but did not receive a payment via direct deposit, they will generally receive a check or, in some instances, a prepaid debit card (referred to as an “EIP Card”). A payment will not be added to an existing EIP card mailed for the first or second round of stimulus payments. 

The IRS reminds taxpayers that the income levels in this new round of stimulus payments have changed. This means that some people won't be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income. The reduced payments end at $80,000 for individuals; people above these levels are ineligible for a payment. More information is available on IRS.gov.

• • 62.5 cents per mile driven for business use,
  • 22 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces
  • 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.
  
  
  See Notice 2022-03 for further details.

As is well known, charitable donations to religious institutes may be tax deductible. These deductions basically reduce the amount of taxable income. Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.

However, taxpayers who do not itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 

The CARES Act also suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.

• Form 990-series annual information returns (Forms 990, 990-EZ, inter alia)
• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
• Form 990-T, Exempt Organization Business Income Tax Return

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At the same time, the TCJA originally provided that the unrelated business taxable income of a tax-exempt organization, such as a religious institute, was increased by the amount of the QTF expense that is nondeductible. However, on December 20, 2019, this provision was repealed as part of the Further Consolidated Appropriations Act of 2020. This repeal was retroactive to the original date of enactment by the TCJA, that is, January 1, 2018, as if the tax was never in the original TCJA.

On Friday, June 19, 2020, the Internal Revenue Service issued proposed regulations that provide guidance for the deduction of the qualified transportation fringe and commuting expenses. These proposed regulations specifically address the elimination of the deduction for expenses related to QTFs provided to an employee of the taxpayer. The proposed regulations also provide guidance and methodologies to determine the amount of QTF parking expense that is nondeductible.

The guidance also includes definitions and special rules to clarify and simplify the calculations underlying the methodologies. For more information about this and other TCJA provisions, visit IRS.gov/taxreform.

See also RCRI’s News In Brief from Spring 2020 on page 4 for additional information: Click Here