Rec Ministries

“REC Ministries does have a Conflict of Interest policy in place. It is consistent with the policy recommended by the IRS.”

“As mentioned above, Barry Thomas has been hired to take on some of the responsibilies that Joanne Cottle so efficiently did in prior years.”

“The amount shown as reportable compensation for Dr Cottle in the amount of 72,600 is mostly housing allowance. Due to the cash shortage REC has sustained over the past several years, his salary had been significately reduced. His housing is separately shown on part IX, line 9, as employee benefits.”

“As explained above, in a prior year, REC Ministries acquired the real estate assets of a church in Warner Robbins, GA. For about six months in 2020, the facility was rented by the fellowship and this gross rent amount is shown on line 6a of Part VIII.”

“In the middle of 2020, the fellowship was strong enough to purchase the property and REC Ministries financed the purchase due to their lack of funding ability. The agreement gives the purchaser two years to acquire the long-term financing at an interest rate of 5. Until the refinancing is obtained, the books and records of REC Ministries reflect the sale and the gain is reportable as an installment sale. Consequently, the unreported gain on the sale is reflected as a liability on the balance sheet and shown as deferred gain. The portion of gain reportable in 2020 is 6,150, plus interest.”

“The ministry of REC Ministries includes the teaching and preaching ministry of Ronald E Cottle Sr of Catuala, GA. In past years, Dr Cottle would travel all across America to reach others for Christ. However, in 2020, due to the COVID pandemic and the illness and passing of his sweet wife of many years, Dr Cottle traveled very little. Instead, most of the teaching and preaching minsitry was done virtual and on Facebook. The move in a prior year of all the REC studio equipment, etc. to the basement of their home turned out to be a real blessing in 2020 due to the travel and other restrictions. Over the past several years, Dr Cottle also has helped many struggling churches by helping them with spiritual and financial guidance. In several cases, due to foreclosures, REC Ministries would purchase the property and work with the present pastor and people, or a new ministry, to repurchase the property with the idea that one day they might be able to reestablish their ministry with a strong local fellowship.”

“The ministry of REC Ministries, its people and its many followers were saddened when the precious wife of Dr. Cottle, Joanne Cottle, went to be with Jesus on October 13. Her passing leaves a huge void, no doubt. She was an active board member and for many years, actively participated in the ministry, including the necessary steps of proof reading the many items created by the ministry on an annual basis. To some extent, Mr. Barry Thomas has been hired to fill in where he can. Additionally, as explained on the 2019 Form 990, the ministry, REC Ministries provides the spiritual covering for a small Christian ministry in the country of Nepal, led by Shashi Bhandari. During the current year 2020, less than 6,000 was received for the ministry and every penny given was sent to Nepal to further that small work for God.”

“In 2020, several individuals were contracted to help with filming, teaching, ghost-writing, etc. Where required, proper reports were filed with the IRS 1099s, etc.. These amounts are reflected on Line 24a of Part IX in this return.”

“The amount shown on line 9 represents housing allowance paid to Dr Cottle for 2020.”

“As explained in the tax return filed for 2019 and referenced above, the full downstairs of the Cottle home now houses the complete ministry of REC Ministries. The downstairs represents 27 of the total square footage of the home and includes a bedroom for visting teachers/preachers, a recording studio, and a ministry library. The CPA determines the reimbursment for expenses each year. Additionally, any costs and expenses appllicable to the bottom floor are not used to determine housing related expenses. In 2020, the amount of reimbursement was 14,520.”

“In 2020, approximately 21,500 was paid to contractors, ghost writers, teachers, etc. Where required, Forms 1099 were issued to each recipient.”

“As explained above, the ministry presently is financing the purchase of two church facilities. A church in Meridian, MS as well as in Warner Robbins, GA. The balance due from each is recorded as an asset on the balance sheet.”

“During the COVID pandemic, REC Ministries obtained a loan from the Small Business Association SBA in the amount of 151,900. Terms and conditions call for amortization to begin in the summer of 2021. This amount is shown as a liability on the balance sheet. Additionally, in 2020, REC Ministries obtained a PPP loan in the amount of 16,667. As of the date of the filing, formal forgiveness has not been obtained. Accordingly, this amount is shown as a liability on the balance sheet as well.”