FAQS and Church Accounting Blog

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!

Jun 06, 2024

Church Audit and Alternatives

White Figure Research

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.

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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

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Jun 05, 2024

Bookkeeping for Churches Package

Bookkeeping Binders

A series on Bookkeeping for Churches that includes 4 ebooks and a QBO chart of accounts template.

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May 21, 2024

How to Spot Bookkeeper Errors for a Church or Nonprofit Organization

laptop on glass table

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.

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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

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May 14, 2024

Financial Statements Prior Preparation

balance sheet binder

Steps to take prior to generating monthly financial statements for a church or nonprofit.

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Apr 12, 2024

Accountable Reimbursement Plan Guidelines

Receipts White

Review the 3 requirements for accountable reimbursement plan reimbursements to be considered accountable.

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Apr 03, 2024

Church Accounting Package

Overwhelmed

The Church Accounting Package includes information on fund accounting, contributions, minister taxes, internal controls, accounting systems, and much more.

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Apr 03, 2024

Spreadsheet Package for Churches and Nonprofits

Spreadsheet Pkg2

This spreadsheet package includes a contribution tracking workbook, an automatic accounting workbook, and several more spreadsheets and documents to aid in your nonprofit accounting.

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Mar 31, 2024

Misclassification of Workers in a Church or Nonprofit

White Figure Research

Misclassification of workers is a big issue with many small churches and nonprofits.

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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.

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Mar 24, 2024

Tax Exempt Status for Churches and Nonprofits.

Tax Exempt

Find out what the tax exempt status qualifications are for churches and nonprofits.

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Mar 24, 2024

Reimbursing Church Business Expenses

Reimbursing Church Business Expenses

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Mar 24, 2024

Contribution Receipts Questions and Answers

Contribution Receipts Questions and Answers

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Mar 18, 2024

Example of Pastors W-2 Form

Ministers W-2 Example

See an example of pastors W-2 forms with step-by-step instructions on how to fill out a ministers W-2 form.

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Mar 11, 2024

5 QuickBooks Online for Churches Tips

Accounting Binders

See 5 tips for using QuickBooks Online for churches and nonprofits effectively

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Mar 10, 2024

QuickBooks Online for Nonprofits Accounting Guide

Lisa London

Updated QuickBooks Online for Nonprofits Accounting Guide

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Mar 06, 2024

Do I file taxes for states where we received a love offering?

My husband preached in several different states. Sometimes he received a love offering. We have already included the amounts in our home state taxes, do

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Mar 03, 2024

Anonymous Gift Designated for Church Staff

A member donated $3000, and requested it be given to six different staff members ($500 each). The donor wished to remain anonymous, and only gave the

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Feb 14, 2024

1099 or W-2 for working minister

If a minister is employed full-time with another job and receives a $500 housing allowance from the church, he pastors, would he receive a 1099 and or

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Jan 09, 2024

Christmas Bonus

Our Pastor received a Christmas bonus under $200.00. Do I put the full amount on his W-2 since no taxes were taken out? He qualifies for his regular salary

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Dec 18, 2023

Do I still have to do a letter to the Minister's for housing allowance if its on their W2 ?

If the housing allowance is on the W2 do I still need to give them a letter for the amount of the allowance?

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Dec 08, 2023

Christmas Bonus

Our Pastor's salary this year has been designated to Housing Allowance. Will his Christmas Bonus go on a W-2 even if it's only a small sum? Thanks, D

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Oct 22, 2023

Alms Giving Directly by the Church to the Community

What contributions can the church make to individuals under an alms program? (i.e. payments for Food, housing, etc).

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Oct 04, 2023

Love Gift to Pastor - not related to services performed - reportable?

If a pastor is experiencing high medical costs not covered by insurance and the Board wants to provide them a small love gift (< $3,000) to show support

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Sep 18, 2023

Accounting for Online Donations Issue

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

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Sep 14, 2023

Is a Pastor required to file a w-2

A pastor of a small church the He pioneered. He only receives a honorarium each month. Is he required to file a w-2?

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Sep 14, 2023

Pastor in church provided parsonage

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

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Sep 05, 2023

Can the Church pay the minister’s rent directly to the landlord? (This question applies for the state of Virginia)

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

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Aug 11, 2023

How to categorize a Women's Group offerings?

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.

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