The Open Door

I am sure that the word has been well broadcast by now that we are initiating an automobile fleet program for our traveling employees who drive at least 7,500 miles in their work for the Convention.

The idea of going to a fleet of automobiles is not a new thing. I had not been with the Convention very long when Bill Townes approached me with the concept. We reviewed the numbers and decided against it because it just did not work financially. The cost to the Convention was considerable and the advantage for the employee was not convincing. Since that first discussion, the subject has come up a couple of other times with the same result.

Recently, Toby Howell, our Chief Financial Officer, after working diligently for some time with Enterprise, approached me with the idea of providing a fleet of automobiles for the staff. This time the numbers were much better for several reasons. Certainly, foremost is the fact that gasoline has climbed incredibly high over the past year and the Internal Revenue Service rate for reimbursement is now at $.44 per gallon. Add to that the appropriate policy of providing a $2,000 travel stipend for traveling staff and the numbers took on a new look. Add to that the very fine arrangement that Toby was able to work out with Enterprise and the deal not only became workable, but advisable.

The advantages financially include the fact that the Convention will stand to save about $80,000 per year on the new arrangement. The participating staff will also win by saving over $3,000 over the life of the car’s operation to a total of 85,000 miles before turning it over for a new automobile. Assisting these numbers will be a $100 per month contribution by each participating employee for a total of $1200 per year. “Okay, so wait a minute. The staff member is giving up that reimbursement of $.44 per mile and is giving up the $2,000 per year and then has to pay $1,200 per year for the program. How is that better for the employee?”

Think about it. Remember that, taking all of these things into consideration, there is a several thousand-dollar savings for the employee over the life of the car. This comes from the fact that all maintenance is provided; insurance is provided. There will even be a gas card provided for fueling the car. The employee will keep track of the miles to be able to accurately report how many miles were for business and how many were personal.

At the end of the year, based on reported miles, the CFO will calculate the amount that will be placed on the employee’s W-2 form to reflect personal use. This line item will be less the $1,200 amount provided by the employee. Therefore, as you would expect, the employee will be responsible for paying taxes on the amount of personal usage of the vehicle throughout the year. This is the appropriate way to handle the tax obligation.

Perhaps the thing that pleases me most is the fact that traveling employees will be provided an excellent automobile for their ministry responsibilities. The burden of upkeep and replacement of the vehicle used in Convention work has been considerable for our employees. They will no longer have to be concerned about either.

They put an incredible number of miles on their personal vehicles and have to provide for the financing of these vehicles when a new vehicle is required. As a result, some of our employees have been driving their cars in excess of 150,000 to 200,000 miles. I have not been happy with this because of the safety and security issues involved in traveling Georgia’s rural highways late into the night as well as operating at Interstate speeds across the state.

Georgia Baptists are blessed with an outstanding staff of committed and diligent workers. Providing for the safety and security of our staff as they travel our state is the right thing to do.