Can a part time pastor self fund himself through the church?

by Brian
(Portland, OR, USA)

I am handling the book keeping for a small home church.


The pastor set the church up as a charitable organization with the IRS. The pastor has his own business, and works at the church part time.

Recently, the pastor recommended that the church provide an expense account and housing allowance (the board of directors already approved a housing allowance that is paid out monthly, but not the expense account.)

The pastors recommendation is, instead of using tithes and offers for his expense account and housing allowance, he would deposit money into a separate tax deductible donation church account, then use that money as his housing allowance and expense account, leaving church donations for helping others.

If the pastor does not earn enough money to cover all his housing allowance and approved expenses, he would be short that month.

Would this be considered a legal, tax deductible donation for the pastor...a kind of self funded, tax deductible, non-taxable support for the pastor?

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