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Pastoral Gifts

Once a month our ministry has a set date to give our pastor a monetary gift. If the amount is not a certain number, an additional check is written out of the church account. Is this legal and should the pastoral gift be taxable? The date for this love gift is the same month after month. I need some clarification.

Answer

It is perfectly legal. It just does not meet the IRS’s guidelines for a nontaxable love offering… mostly because it is not spontaneous. Any regularly occurring offering is usually considered taxable income by the IRS.

Hope this helps.



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Comments for
Pastoral Gifts

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Feb 22, 2010
Rating
starstarstarstarstar 		Taxability of Gits to Pastor
by: Marcus in Texas

Wouldn't the "rule" be that if those contributing toward the gift to the pastor consider such contributions to be tax deductible contributions, then the monetary gift received by the pastor would have to be consider taxable income by the pastor?
Feb 22, 2010
Rating
starstarstarstarstar 		Love Offering Guidelines
by: Vickey

As I stated on my love offering page, there are not any specific written guidelines from the IRS that states in black and white when a love offering is considered taxable or not.

The guidelines I have provided on that page come from studying prior IRS cases regarding love offerings and researching material written by well respected CPAs.

However...general rule of thumb is:
Contributions to individuals are not tax deductible and love offerings to ministers are usually considered taxable income.

P.S. Please keep posting your comments, Marcus. I like your insight and I know my readers enjoy hearing from someone other than me all the time. Church accounting has many gray areas such as love offerings and different opinions are very much appreciated and welcomed :-)

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