Closing a Minister's Benefit Facility when a Minister moves on
Does your organisation currently employ a Minister who is moving on to a new placement? If so, it is important to ensure the right people are informed to avoid financial and administrative issues down the track.
Does your organisation currently employ a Minister who is moving on to a new placement? If so, it is important to ensure the right people are informed to avoid financial and administrative issues down the track.
The Ministers Benefit Facility (MBF) is a financial product designed specifically for Ministers, allowing Ministers to place up to 30% of their stipend and 100% of their allowances into a tax-advantaged environment. Typically, Ministers have a Corporate Card attached to the MBF to spend on allowable expenses.
MBFs are set up by Uniting Financial Services (UFS) on behalf of the appointing body, such as a congregation, and the appointing body is ultimately responsible for the facility and any associated cards.
If a Minister is leaving your organisation, please complete the following checklist:
- Ministers should be advised to stop using their UFS Corporate Card once they have concluded their placement.
- Send instructions to UFS to cancel the Corporate Card and close the MBF with beneficiary details for transfer of any funds held.
- Once the card is paid off in the next cycle, UFS will close the facility and transfer any remaining funds according to the congregation's instructions.
It is important that congregations notify UFS expediently to avoid any overdrawn balances in the MBF tied to a Minister who has left their placement. This is because the Church entity or congregation is responsible for settling any overdrawn amounts or outstanding Corporate Card balances.
For questions or enquiries
If you have questions about the process when a Minister or a signatory is finishing up, UFS is here to help. You can get in touch by emailing contactus@unitingfinancial.com.au