Can a housing allowance be cut in the middle of the fiscal year due to budget cut?

by annonimous
(North Carolina)

Our budget to our church had to be revised due to bad times and in that budget cut was the part time ministers housing allowance. Can this be done after approving the amount at the beginning of the year. Can it be retroactive? If so would it be compensation due to the fact that housing allowance can not be retroactive?

Comments for Can a housing allowance be cut in the middle of the fiscal year due to budget cut?

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Jul 25, 2013
 Cutting housing allowance of pastor
by: MarcusNTexas

If your church's fiscal situation is so serious that you are required to make major cuts, it would seem that your pastor should be fully aware of this condition and that he would most likely agree to an appropriate reduction in his housing allowance. If you don't have the money you don't have the money and you cannot spend what you don't have. If the elected stewardship / finance committee of the church has found that major budget cuts are needed, then it would seem appropriate to bring the matter to the membership of the church for a vote to make specific cuts in the budget, including cutting the pastor's housing allowance, but it should probably be one of the last expenses you cut. Making such cuts would not be a legal matter as much as a moral or ethical matter.

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