Fraud Hurts

Fraud is a lucrative business.  Losses from fraud are estimated to exceed $40 billion annually.  This is at best an estimate because roughly 85% of all fraud goes unreported.  It is not only the loss of money that hurts us, there is also the loss of  trust and self-respect.

If I were the victim of a fraud, I think I would feel pretty stupid for not knowing it was a scam.  I would probably blame myself and begin to lose faith in myself and the world around me.  I would have to wonder where God was and how could He let this happen.

We hear so much of the bad in the world.  The news doesn’t report the boy down the street that raked the leaves or the next-door neighbor that mows the widow’s lawn.  These are the everyday activities that make up our world, but no newscaster reports on those people.  You don’t hear about the person who held the door for the mother with three children or the parents who cheered for the 5-year-old who made a goal even though their child was on the other team.  Instead, we hear about the bizarre and unimaginable and then we begin to believe that is normal, not what we actually see everyday.

Trust and faith are vital to our wellbeing.  We must trust in God, and as God is in each of us, by extension each other.  I know way too many wonderful people in this world, not to believe in my fellow-man and know that God is present today as much as at any time.  The Bernie Madoffs of this world are the abnormal, the vast majority of people are just like you and I trying to do what is good and right.  However, trust should not be blind.

There are hundreds of types of fraud committed everyday.  Identity theft, loan fraud, mail fraud, credit card fraud, e-mail scams and the list goes on and on.  There are things we can do to protect ourselves against fraud.  Following is a brief list of some common precautions:

1.       Never disclose personal information to someone you have not independently researched and verified. This includes over the phone, internet or in person.

2.       Never respond to an e-mail soliciting your account information, personal information or passwords.  This would include e-mails that appear to come from a bank or credit card company.

3.       Do not respond to e-mails purporting to be from various business, governmental agencies or individuals requesting your help in moving large sums of money.

4.       Secure or destroy credit card receipts, statements, bank statements, notices or anything with account numbers, social security numbers, birth dates and other personal information.

5.       Be familiar with the service or goods you are purchasing.  You should know the value of what you’re purchasing and if the offer looks too good to be true, it probably is.

6.       Never sign documents that are incomplete or have inaccurate information.

7.       Don’t access internet sites that don’t provide adequate security.  Most sites have a lock that indicates they have a level of security, though even this isn’t an absolutely assurance.

8.       Don’t post personal information in public forums such as face book or twitter.

With a few precautions, we can greatly reduce our risk of becoming a fraud victim.  If you become aware of a scam or fraud, you should report the situation to local law enforcement or on the federal government website www.stopfraud.gov.  The FBI also has a web site where you can report internet crimes at www.ic3.gov.  Reporting this activity as we become aware of it can help to reduce its impact on individuals and the society at large.

I believe God is present in each and every one of us.  It is just that some of us work really hard to hide him.

First Fruits

In Exodus 23:16 (New International Version) God tells us to “Celebrate the Feast of Harvest with the firstfruits of the crops you sow in your field.”  Now most of us think of harvest in the fall, but God’s harvest is year round.  We have already been picking strawberries from our garden and asparagus from the field.  God provides us plentiful bounty in many ways.

The Mount Auburn UMC in Greenwood is a witness to God’s bounty and a testament to God’s call. They had a huge goal of adding a family life center, kitchen, gathering mall, classrooms, meeting room and additional restrooms to their existing building.  The addition was over 2,500 sq ft and would cost in excess of 2 They really needed the space and this was going to be one big project.  Instead of focusing exclusively on themselves and what they could accomplish, they trusted God and believed in what he would accomplish.  They dedicated a tithe of the first fruits of their capital campaign toward a church in Uganda.

Mount Auburn gave $100,000 toward building a church in Jinja, Uganda.  On March 29, 2009, Trinity United Methodist Church, the first United Methodist Church of Uganda was dedicated, with over 1,000 in attendance.  For more information you can go to our website to see a full story on Mount Auburn.

Has your church experienced a “first fruits” moment?  Please share your story.

April 15th is Coming – Consider Converting Your Traditional IRA!

Did you know that starting this year (2010) you have the option of converting your traditional IRA account to a Roth account?  So what is the advantage of a Roth, you ask?  With a Roth IRA, you pay taxes on your income before you deposit it, so that means you can withdraw it tax-free in retirement. 

 The Pros

Retirees can avoid making mandatory withdrawals with a Roth.  Another tax great advantage is that your heirs can inherit a Roth IRA without having to pay the income taxes, unlike traditional IRAs. 

The Cons

The big downside is, if you convert your traditional IRA to a Roth, you will have to pay the taxes (report as income) on the converted funds.  Experts say, unless you have the funds on hand to pay the taxes (not using your IRA funds to pay the taxes), it isn’t worth the benefit.  A short-lived advantage is that in 2010 only, a taxpayer may report the income from the conversion in 2010 or choose to spread the income equally over 2011 and 2012.

 Minimizing the Taxes for Conversion

To minimize the impact of reporting the income from an IRA conversion, charitable deductions can offset the conversion income on a dollar-for-dollar basis.  You can help minimize taxes that would otherwise be due, and fulfill your charitable goals!  A Donor Advised Fund is a great tool to use in this case.  You can set up a Donor Advised Fund, take the tax deduction now, and make your charitable grants later.  Click here for more information about Donor Advised Funds.

 Even if you don’t convert, it is a great time to open a new Roth account.  You are eligible to open a Roth if:  You are single with a modified adjusted gross income of $120,000 or less, or married making $176,000 or less in 2009. 

 Remember, if you deposit money in a Roth or traditional IRA before April 15^th, you can count any contributions toward your $5,000 limit for 2009 and $5,000 for 2010 on your income taxes. 

 As always, individuals should consult with appropriate advisors before deciding to convert a traditional IRA to a Roth IRA. 

 Click here for more information and rules pertaining to IRAs.

 Our Loan Fund has great rates on both traditional and Roth IRAs.  Check them out.

Pros & Cons of Children Working While in School

I recently read an article that discussed the pros and cons of children working while in school.  I realize that it is a necessity in many households, but what about the households where the parents are in a financial position where they could easily pay for everything (expenses while in high school and college)?  Some people feel that getting good grades and earning scholarships should be the child’s focus while others feel the child takes more pride and ownership if they have some “sweat equity” in their possessions, expenses and education.  How does your household handle this?

Busy Busy Busy

We are all so busy; it makes it very difficult to focus on the things we feel we should.  God, family, and  friends should be top priorities in our lives, but when we look at where we spend our resources (time and money) we see a different picture.   One little tool I use to keep God at the front of the line is to write my check to the church first and then pay my bills next.  What tricks do you have to keep God up front in your life?

Witness to Our Children

I was recently in a seminar where the leader mentioned a stat that set me back.  Teens, 16 to 17, have on average $92 per week in disposable income.  As I was thinking about that, I wondered how much of that made it into the offering plate or a savings account.

Now my own teenagers don’t get anyway near the average, but I realized that while my husband and I have set specific goals on savings, we have no set expectations on tithing.  When and how do you start encouraging your children to tithe?  Do you set specific amounts?  How do you enforce their giving and is it really their giving if you “enforce” it?

What’s Up?

By: Manet Shettle, CPA & Executive Director

 Have you heard the kids greet each other with “What’s Up?”? Well it certainly wasn’t the market this year. This has been a rough year in many ways. We have watched friends lose jobs, savings disappear, and buying power evaporate. For some it has hit even closer to home. It seems everything is in chaos.

A normal reaction to chaos is to seek stability. The Loan Fund provides a very stable investment environment. In the five years the Loan Fund has been operating, we have yet to experience a default on a loan. We rarely even experience late payments.

Why haven’t we experienced the same devastating default rates that other lending institutions have experienced this year? There is a multipart answer to that question, but the primary answer is the Loan Fund’s focus differs significantly than most for profit organizations. The Loan Fund is focusing on the ministry of the churches that borrow from us. We don’t just care whether they can repay the loan, we want to see that they will be able to continue the wonderful ministries they are supporting that required the expansion in the first place.

A beautiful empty building isn’t serving God. The loans we make aren’t about the new children’s wing, the new elevator or even the new worship center. It is about the children that will fill that wing and people challenged by stairs. It is about bringing more people in to share the love and warmth God has shared with us. This focus allows us to assist churches in their successful ministries. A byproduct of this focus is that churches have the resources to repay their loans so we can in turn use those funds to help even more churches.

The stability on the lending side of the Loan Fund means we have been able to offer outstanding rates on the deposit side. That means our investors have also received the benefit of this stability in the Loan Fund.

We never know what the future holds. In looking toward the future, we can only trust God to lead us where we should be. We believe that we have been following God’s call and have seen the outstanding ministries in Indiana that have been able to develop or expand because of this call. We would like to thank all of our investors that have joined us in that call.