Accounting for facility rental fees.

by Bob
(Covington, KY)

Our church lets outside groups use our facility and asks for a "donation" for use of such areas, I assume to avoid unrelated business use issues. Should I record these "contributions" as a donation or as other revenue?

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Accounting for facility rental fees.

Click here to add your own comments

Aug 23, 2010
Unrelated Business Income
by: Vickey

Other Revenue. It would not be a donation as the donors receive something for it (the use of the facility). It would probably be considered unrelated business income; however, you wouldn’t have to file a form 990-T, unless you have over $1,000 of gross UBI in a given fiscal year.

Sep 29, 2010
"related" income
by: Anonymous

If said rental was for a ministry which fits within the mission of our church, does it still need to be considered unrelated income? E.g. a Korean Church pays us a small, monthly rental fee to meet in our building. We view this as an outreach of our church and the income covers our expenses (but not much more).

Aug 30, 2011
Unrelated Business Income
by: Anonymous

Is rent income from a house owned by the church and located on the same property as another church facility considered as unrelated business income?

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Contributions .

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.