Nonprofit and Church Accounting Blog

This accounting blog...

  • informs you when any new web pages appear on my site,
  • shows you the latest question, comment, or tip posted by readers...(please feel free to browse the questions below and answer the ones you feel comfortable answering),
  • let's you know when an error is found in my free financial spreadsheets and how to correct them.

Jun 17, 2018

Understanding Financial Statements for a Church

Preparing and understanding financial statements for a church or nonprofit.

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Jun 17, 2018

Accountable Reimbursement Plan Guidelines

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

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Jun 03, 2018

W2 Box 1 negative when including Housing Allowance and Retirement Contribution

My denomination allots a housing allowance of 75% of gross income, for which I can fully utilize by making additional house payments toward the mortgage

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Jun 01, 2018

Compensation Package with Prepaid Debit Card

Can you tell me if there are any stipulations to offering a prepaid debit card for an allotted amount of hospitality to a church employee as part of their

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Jun 01, 2018

Housing Stipend to minister/pastor and equity share that amount to the church?

If the church gives a housing stipend of say $2,000/mo ($24K/year) can there also be an equity share agreement with the church for that contribution.

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Jun 01, 2018

Does the Housing Allowance belong anywhere on the 941 Form?

Does the Housing Allowance belong anywhere on the 941 Form? Vickey's Reply: NO. Do not include housing allowance payments on the 941 form. The only

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Jun 01, 2018

Housing Allowance and Medical ONLY

I am a bivocational pastor of a small church. The church has grown to the point where they are able to start thinking about a small compensation package

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Jun 01, 2018

School Scholarship Donation

We recently started a private christian school under the umbrella of our church. We had someone donate a scholarship to the school. How would you

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May 30, 2018

Sell of Church Dished

We recently sold some dishes from the church. What kind of entry needs to be made? The women's ministry bought them 30 to 35 years ago and we no longer

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May 30, 2018

Donations made monthly to specific missionary family in a foreign county

We receive monthly donations for missionaries in foreign countries. We send the money direct to them from our contributions funds according to donors request.

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May 30, 2018

Clarification on Earmarking Donations

If I cannot earmark my donation to a specific person that I want to benefit from my donation, how is it possible that at Christmas Time when the newspaper

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May 02, 2018

Form 941 and What is Reported on W-2

Our church reports income tax on Pastor's Gross Salary quarterly on the 941. When the W-2 is completed, $0 is entered for Box 2, Federal Income Tax.

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May 02, 2018

HA is not approved for a Mortgage Loan

We were just denied a mortgage loan because our HA has not been effective for 12 months. Apparently this was written into effect in Trump’s new law as

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May 02, 2018

Ways to reimburse buyers of supplies

I have been one of the main buyers for our temple for many years, and recently the bookkeeper has told me (and others) that, to protect us in the case

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May 02, 2018

Opt back in to SECA

Is there an IRS form for clergy to opt back into SECA? Or do they simply start paying self-employment taxes on Schedule E? Will this trigger an audit?

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May 02, 2018

Is there a list of business reimbursements that are qualified to reimburse and a list that is not?

I work for a church, is there a list of business reimbursements that qualify to be reimbursed and a list that do not qualify?

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Apr 17, 2018

Can a pastor file schedule c to reduce his earnings for self employment tax purposes?

Should a Pastor file schedule c to reduce his self-employment income by any deductions since he is considered self-employed for social security tax purposes

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Apr 17, 2018

Pastor's Severance Pay, reported on W2 in box 1 or box 14?

I'm wondering if a Pastor's severance pay would get reported on their W2 with wages reported in box 1, or in box 14 alongside housing. Thank you!

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Apr 10, 2018

What qualifies as "actual housing expenses"

I had all my pay distributed as Housing Allowance & received a W2 showing no wages. I'm trying to determine the actual housing expenses but wasn't sure

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Apr 08, 2018

Reimbursing meals under TCJA

TCJA says that meals are only 50% deductible. Can I still reimburse my pastor under an accountable reimbursement plan for 100% of his meal expense or

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Apr 08, 2018

Salary reduction to make church contributions

I want to make substantial donation to my church. Can I effect that donation by not taking the salary budgeted by the church? Can my W-2 income be only

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Apr 08, 2018

Reporting Housing Allowance

What form do I use to report housing allowance for a bi-vocational pastor that receives no salary (only housing allowance)?

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Apr 04, 2018

Withholding on Housing

Can the church elect to withhold FICA taxes on Housing and pay the employer portion on 941 quarterly tax forms and include the housing payments in the

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Apr 04, 2018

Housing allowance

Is there a code for line 14 when you claim a housing allowance?

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Apr 04, 2018

Expenses as Donations

I'm assuming that if a church cannot afford to reimburse legitimate expenses, the church could make a receipt available to recognize the expense as a donation

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Apr 04, 2018

Restricted Funds

Over the past 2 years, we have held several benefit/silent auction signings to raise money for a Van Fund at our church. These monies were donated &

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Apr 04, 2018

"Love Offerings" for Guest Speakers, Singers, Musicians, Pastor's Birthday

I am trying to get a handle on how to properly process and record donations/contributions received through special offerings specifically designated for

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Mar 25, 2018

Donations to Church Owned Preschool

If we collect funds for Church owned Preschool, is this considered pass-through income? Or can we call it outreach when the funds are given to Preschool

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Mar 11, 2018

Housing Allowance reporting

so when filling out W3 form we wouldn't include the Pastor's housing allowance as wages if all the salary that the Pastor is receiving is the Housing Allowance?

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Mar 10, 2018

Housing Allowance is hurting me, I think

My church allocated $20000. towards housing allowance for me, which is my whole salary. It feels like I am paying more because of the self-employment

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