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!
I went through the process of of the sales receipt and bank deposit to account for on-line processing fees. But when I run a Statement of Activity by
A pastor of a small church the He pioneered. He only receives a honorarium each month. Is he required to file a w-2?
The pastor lives in a church provided parsonage. The church pays for the utilities (not transferred to the pastor's name). Let's say the pastor is paid
1. Can the Church pay the minister’s rent directly to the landlord? (This question applies for the state of Virginia) 2. In what cases is permitted that
Our church has a Women's Group that collects money. Usually, from this money, we send checks to friends/family for wedding gift, baby shower gift, etc.
Continue reading "How to categorize a Women's Group offerings?"
Is it legal to contribute to the 401k of a retired pastor for the church?
Continue reading "Post retirement contributions to 401k for pastor"
Can a church volunteer about to receive a 1099Misc form choose to donate it back to the church to avoid receiving a 1099-Misc?
I'm a volunteer at a small church helping with finances and in reviewing the books I noticed the Pastor is having SS and Medicare taxes withheld from the
How do you record a donation of items purchased for an expense. (cash basis, quickbooks intuit desktop) Someone gave me a list of items purchased for
Continue reading "How do you handle inkind donations for expense items "
Our church is going through mold remediation. Our total restricted earmarked funds are currently at $65,000. I know how to handle restricted funds.
Continue reading "Buying Capital Assets with Restricted Funds"
A local church receives donations to provide for an associate pastor in the future. Are these tax-deductible? A local church used a limited-term grant
Continue reading "Are contributions for associate pastor compensation tax-deductible?"
Can I put a disclaimer on contributions that they can not be refunded?
How should you treat a board approved amount of funds to be given to the pastor? The church does not have an existing plan, but will give pastor a certain
Continue reading "Church accounting for contribution paid to pastors retirement fund"
Our assistant pastor receives is a bi-vocational licensed minister. His monthly compensation is $1,000 per month ($500 designated as salary, and $500
Continue reading "Housing allowance for bi-vocational minister"
I retired the first week in January of 2023. The church took up a love offering and sent me a check for $27,800 which was collected from the members of
Continue reading "Love offering for a pastor retiring on disability."
When the last day of the month is Sunday, do you include the offering in that month or the next. The deposit in the bank will be posted for the next
Continue reading "Last day of the month is Sunday. Which month does the offering belong"
I can’t find good source that explains the does and don’ts on what is allowable when providing food at church events paid for from church funds. Pizza
Continue reading "Guidelines for providing food at church activities "
Are churches still required to maintain paper or digital records of contributions? i.e. copies of checks, OR do the records of church and annual statements
I WOULD LOVE TO KNOW WHERE YOU CAN FIND THIS INFORMATION FOR LEGAL PURPOSES YOUR THEORY ON BI-VOCATIONAL MINISTERS ALL THEIR WAGES GOING INTO HOUSING.
An existing church empoyee becomes ordained as a minister in the middle of the year. I understand that a housing allowance can be established mid year,
Our church hosts a golf tournament that raises money for four specific mission organizations. A “hole sponsor”, giving a $100 gift, has a sign posted
Is it possible for the church to pay long term care premiums for a minister as a fringe benefit?
My church reimburses our Pastor for health insurance premiums paid through his wife's employer, which is a tax-free benefit under their cafeteria plan.
Is a benevolent payment made prior to an employee's start date taxable if that payment occurs in same calendar year as becoming an employee of the church
What would constitute being reimbursed for a meal? A pastor at our church likes to go out for lunch after church with church members, just to get together.
Our pastors are given a monthly reimbursment for part of their cell phone cost, but I know of no evidence as to the percentage of the phone being used
Our church is providing meals on Wednesday evenings for those who want to eat before the service. We cannot absorb the cost into our current budget.
If an older minister from a different state comes and preaches a few meetings for our local church, is the love gift, that the people gave the church to
Is the church required to send/file a W2 to the IRS or to the pastor when his church income is a round 21,000 but the housing allowance or fair market
Would you put the fair market value of the parsonage a pastor used in box 14 of his w2?
Continue reading "Do we include the FMV of the use of a parsonage on a W2? "
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 =)