See the church accounting blog below for questions, answers, and tips from church AND nonprofit staff and volunteers.
Please use the "Site Map" or "Site Search" (links to both are at the top of the home page) BEFORE submitting your own question as there are THOUSANDS of Q&A in this FAQ section and you can probably find the answer to your questions much quicker that way =) Plus... I won't post the same questions over and over again.
NOTE: Please consider adding a reply/comment on some of the readers' post below. My husband is having some medical issues and I am not able to reply to all of the questions that my awesome readers submit.
Do not worry about being "expert" on the subject matter! We love hearing your suggestions, advise, and past experience on the subject.
All of my readers know that they should always "research" for themselves or SEEK the ADVICE of a professional before taking the word of everything they read on the internet as I "remind" them of that very important fact in almost all of my replies =)
But many times, hearing how someone else has handled a similar issue, is a great help!
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Feb 14, 2025
NO TAXABLE INCOME
Our small church is only paying our retired pastor for reimbursable expenses & a housing allowance. If we are not paying him any taxable income, do we
Feb 06, 2025
Pastor housing stipend reporting
We are a small church and pay our pastor a housing stipend monthly. We've been taxing this payment. How do we report on the W2?
Jan 27, 2025
How to calculate when NOT to take a housing allowance?
I've heard a few experienced ministers and ordained ministry leaders say that there are times when it costs more in taxes to claim a housing allowance
Continue reading "How to calculate when NOT to take a housing allowance?"
Jan 27, 2025
How do clergy voluntary retirement payroll deductions and matching contribution by the church impact W-2s?
I understand W-2 line 1 wages exclude voluntary retirement deductions, but does the church matching contribution go unreported on the W-2 since it is sent
Jan 27, 2025
Capital Improvements Listed on the books
I took over the church accounting from a CPA. There is capital improvements listed on the books. No one can give an account for it. The prior CPA did
Nov 17, 2024
Top 5 Church Payroll Mistakes
Church payroll mistakes can be costly. Learn what to do and what not to do!
Nov 17, 2024
Annual To Do List for Churches and Nonprofits
Important to do list for churches and nonprofit organizations at the end of the year and beginning of the next year.
Continue reading "Annual To Do List for Churches and Nonprofits"
Nov 07, 2024
W2's and filling out all income
We are trying to help our church with their finances. The church is giving a cash allowance for medical and retirement $3000 per month. On the past W-2s
Oct 07, 2024
Financial Statements Checklist
16 Steps to take prior to generating monthly financial statements for a church or nonprofit.
Oct 06, 2024
Year End Checklist for Churches and Nonprofits
Review this year end checklist for churches and nonprofits. Includes tasks that should be completed before the end of the year to ensure a smooth transition into the new year.
Continue reading "Year End Checklist for Churches and Nonprofits"
Sep 23, 2024
Housing Allowance Vs. Salary As Retiree Serving Church
I have been declaring my pension as housing Allowance for several years subject to tax on the amount not used for pay SE tax on. Since total income
Continue reading "Housing Allowance Vs. Salary As Retiree Serving Church"
Sep 17, 2024
Which EIN, my local church or my denomination?
Which EIN is better to use? Should I use the EIN of the local church from which I am receiving a salary or the Denominations EIN?
Continue reading "Which EIN, my local church or my denomination?"
Sep 08, 2024
Figuring Fair Rental Value for a Housing Allowance
Figuring fair rental value of your home or parsonage is critical when it comes to actually claiming the exclusion for a housing allowance. See explanations and examples on how to figure out the FRV.
Continue reading "Figuring Fair Rental Value for a Housing Allowance"
Sep 08, 2024
Housing Allowance for Ministers
A housing allowance is a great tax benefit for ministers. See how to set up and administer this allowance. Q and A forum.
Sep 08, 2024
Excessive Benefits and Private Inurement
Could unintentional excessive benefits and private inurement potentially harm your pastor, church or nonprofit organization?
Continue reading "Excessive Benefits and Private Inurement "
Sep 06, 2024
Compensating Ministers Package
Series on compensating ministers correctly and understanding what benefits for ministers are considered taxable income.
Aug 15, 2024
Spreadsheet Package for Churches and Nonprofits
This spreadsheet package includes a contribution tracking workbook, an automatic accounting workbook, and several more spreadsheets and documents to aid in your nonprofit accounting.
Continue reading "Spreadsheet Package for Churches and Nonprofits"
Aug 15, 2024
Donation Guidelines for Churches and Nonprofits
Donation guidelines for handling cash, noncash, stock, quid pro quo, DAF, and other unique donations.
Continue reading "Donation Guidelines for Churches and Nonprofits"
Aug 15, 2024
Policies and Procedures for Churches and Nonprofits
Policies and Procedures for churches and nonprofits. Learn more about benevolence funds, accountable reimbursement plans, internal controls, and much more!
Continue reading "Policies and Procedures for Churches and Nonprofits"
Aug 14, 2024
Bookkeeping for Churches Package
A series on Bookkeeping for Churches that includes 4 ebooks and a QBO chart of accounts template.
Aug 11, 2024
Benevolence Fund
See guidelines on setting up a benevolence fund and properly administering it.
Jul 16, 2024
Housing Allowance for more than one ministerial job
If a qualified minister holds more than one ministerial jobs, can he claim a housing allowance for both jobs?
Continue reading "Housing Allowance for more than one ministerial job"
Jun 06, 2024
Church Audit and Alternatives
A non-profit or church audit can be beneficial for your financial staff, your donors, and your organization. Learn what a church audit is and how to prepare for it.
Jun 06, 2024
are there restrictions on church to church contributions
Are there any special rules for contributions that are given to, or received from, another church? Specifically if a church is liquidating. This is assuming
Continue reading "are there restrictions on church to church contributions"
May 21, 2024
How to Spot Bookkeeper Errors for a Church or Nonprofit Organization
Bookkeeper errors are hard to spot for many church administrators. See what to look for to know if your bookkeeper is keeping your books correctly.
Continue reading "How to Spot Bookkeeper Errors for a Church or Nonprofit Organization"
May 21, 2024
Earned Mission Trip Credit
We have a member who donated a lump sum of money to help kids with the cost of their mission trip. The donor wants the kids to earn credit towards their
Apr 12, 2024
Accountable Reimbursement Plan Guidelines
Review the 3 requirements for accountable reimbursement plan reimbursements to be considered accountable.
Continue reading "Accountable Reimbursement Plan Guidelines"
Apr 03, 2024
Church Accounting Package
The Church Accounting Package includes information on fund accounting, contributions, minister taxes, internal controls, accounting systems, and much more.
Mar 31, 2024
Misclassification of Workers in a Church or Nonprofit
Misclassification of workers is a big issue with many small churches and nonprofits.
Continue reading "Misclassification of Workers in a Church or Nonprofit"
Mar 28, 2024
Annual Internal Audit Checklist
An internal audit checklist for church or nonprofit committees to print and use. Remember that good accounting records and good stewardship go hand in hand.