Housing Allowance Resolution: Examples of Minutes Required

How do you establish a housing allowance?

You will need to include the following example in the minutes of any business meeting of the church or board. The names of the individuals making the motion and seconding it should be included.

If the church does not provide a parsonage and pay the utilities, then the second paragraph is to be omitted.

The housing allowance cannot apply to expenses paid before the date of these minutes. A housing allowance is never retroactive.

1. It was discussed that under the tax law a minister of the gospel is not subject to federal income tax on the "housing allowance paid to him as part of his compensation to the extent used by him to rent or provide a home."
2. The parsonage owned by the church has a rental value of $_________ and is provided for the convenience of the church. Actual utility expenses will be paid by the church and they will amount to approximately $_______ for the year.
3. After considering the statement "Pastor's Estimate of Home Expenses" prepared by _____________, a motion was made and seconded and passed to adopt the following resolution:
4. Resolved that Pastor __________________ is to receive a total cash remuneration of $________(salary) for the year 20___. Of this amount, $_______ (housing expenses paid from salary) is hereby designated as housing allowance.

5. Resolved that as long as Pastor ___________ is our employee the above amount of housing/parsonage allowance shall apply to all future years until modified.

Date_________________ Signed _________________________________

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