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?

Click here to add your own comments

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.

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 Housing Allowance.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!