If you’re like 90 percent of Americans, you won’t be itemizing deductions on your federal tax return. In years past, that meant your charitable contributions could not be deducted. But for the 2020 tax year, you can take an additional “above-the-line” federal income tax deduction of up to $300 per person for qualified charitable contributions you made in 2020, in addition to the standard deduction. This “above-the-line” deduction will reduce your taxable income, which will reduce the amount of federal income tax you owe.

This morning I was privileged to spend time with some of my colleagues here at Orchard Alliance as well as four financial market experts who advise us on our investments. Three of the advisors represent Morgan Stanley, and one is on Orchard Alliance’s Board of Directors. Currently, Orchard Alliance has about $100 million of reserve, operating, and fiduciary funds invested…

Guest Post by Joe Lamendola - Our president, Larry McCooey, asked me to reflect on this past year and share my thoughts. I was glad for the opportunity and found many reasons to praise the Lord. As I look back on 2019, I am thankful to see how God worked in and through Orchard Alliance to advance His Kingdom. Much was accomplished this past year, and we recognize the Lord’s blessing on our work and give Him the glory.

In October, we celebrated the one-year anniversary…

On July 31, the Federal Reserve cut interest rates for the first time since 2008. The rate was reduced by a quarter of a percentage point to a range between 2 and 2.25 percent. The Fed Board Chairman, Jerome Powell, stated that “The outlook for the U.S. economy remains favorable and this action is designed to support that outlook.”

You may have prepared a purpose or mission statement for yourself, your family, your workplace, or your ministry. It’s an expression of why we are here. For Orchard Alliance, our mission is to equip God’s stewards for greater Kingdom impact. This is a succinct way of describing what we believe to be our God-given, unique role.

There is a never-ending stream of information available to us on economies and financial markets in the U.S. and around the world. At this time of the year, much of the information focuses on best guesses about what the coming year will bring.

I recently had the great pleasure of spending time in Puerto Rico. Rosilio Roman, assistant vice president for Church Ministries of The Alliance, joined me and an ADF colleague there. As some of you might know, ADF has made loans to a large number of churches in Puerto Rico for many years. 

The Dow Jones Industrial Average and the S&P 500 went into a two-week slide after reaching all-time highs on January 26, 2018. Both stock indexes dropped by more than 10%, a margin that is typically considered a market correction. Analysts have been saying for quite some time that the market was due for a correction, so the drop was not a surprise when we consider the big picture. Even after the correction, the Dow was up 19% over the previous 12 months, and the S&P was up 12.5%. 

As I’ve mentioned in the past, ADF uses investment advisors from both Morgan Stanley and Merrill Lynch. These advisors help us invest our required reserves, and they provide insights into what factors are driving the economy and financial markets. In a recent presentation, one of our advisors mentioned the challenges of expensive stocks and bonds (relative to rates and risks). He also talked about the upward pressures of inflation, which will contribute to rising interest rates. 

Thank you for your faithful partnership in ADF’s ministry of "Building the Kingdom, Transforming Lives, One Investment at a Time." I have been reflecting on the Transforming Lives statement. Pastor and author John Piper once called transformation “a profound, blood-bought, Spirit-wrought change from the inside out.” I like this definition.

We have been hearing for a very long time that interest rates will be rising. As you know, rates are now on the move. The Fed Funds rate, which applies to funds that banks lend to and borrow from each other through the Federal Reserve, has been raised to a target level of 1%-1.25%.

In my last article, I included the following quote, which bears repeating: “The Church is God’s instrument to reach the lost. That’s why our energies and resources are poured into creating healthy, vibrant, communities of faith in the United States and around the world.” (The Alliance website, U.S. Ministries)

“The Church is God’s instrument to reach the lost. That’s why our energies and resources are poured into creating healthy, vibrant, communities of faith in the United States and around the world.” (The Alliance website, U.S. Ministries)

As a supporting ministry of The Alliance, ADF is fully committed to this endeavor.

Alliance District Superintendent David Linn recently wrote a piece that I really liked entitled, “Smart Farming.” He describes how the farmer must be smart and diligent in preparing the soil by cultivating and watering, but in the end has no idea how plants actually grow: “he goes to bed at night and gets up by day, and the seed sprouts and grows—how, he himself does not know.” (Mark 4:27, NASB) Linn applies this thought to church plants, and church and Kingdom growth.

My last article for Builders explored the idea of starting with the fact that God owns 100% of everything, and then determining what He wants us to do with what He has entrusted to us. This time, I’d like to propose a few ideas to guide our thinking as we work at discerning our individual responses.

I recently listened to a presentation by three CPAs, one was a former FBI agent and another who was also an attorney. The subject was elder fraud and financial abuse. Whether considering your own status or those of your loved ones, I thought a few key takeaways could be helpful to you.

In a book written by my coworker, Guy Burgo, entitled, Free to Give as God Intended, I recently read the following: “…the tendency of our human nature is to assume that if 10% belongs to God, the rest belongs to us. I think this line of thinking can really hinder generosity.” I had not considered this point before, at least not in this way, but I have to say I agree.

Most of us know that Medicare is the federal health insurance program primarily for people who are 65 or older and certain younger people with disabilities. There are several parts lettered A through D that cover everything from hospital and hospice care, to doctor services and prescription drugs. A great source of information and tools is located at www.medicare.gov.

You may recall a previous article of mine, “The Battle for God’s Resources.” I wrote about the spiritual battle surrounding the funding of Christian ministry and described how the battle strategy of limiting ministry resources not only means limited impact, but also limiting Christians’ growth in their wholehearted devotion to God.

Last year about this time, I wrote about the volatility that the financial markets were experiencing. While volatility waxes and wanes as part of financial market cycles, it can be very scary to observe and experience. As that volatility continues, it seems like a good time to reiterate some of what I said back then.