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.

Jan 11, 2021

Income and Expense Reporting for small church

I need a simple way to record Income (member donations) and expenses for a very small church (less than 50 members.) I am not a bookkeeper in all fairness.

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Jan 11, 2021

What EIN is a pastor's income reported under with mulitple churches for 941 and W2

We have one pastor with 3 charges. We are looking having one lead church that pays his monthly salary and then the other 2 reimburse the lead church for

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Jan 11, 2021

Last year's Contributions

Can I add January 2021 contributions to 2020 contribution report?

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Jan 09, 2021

No Form Subscribe

I have not been able to find the form to subscribe in order to download free spreadsheet. Can someone help?

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Dec 24, 2020

Why not include housing allowance in W-2?

Is there some logical reason not to include housing allowance on the W-2 form? I know that the cleric is not required to pay income tax on the clergy

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Dec 24, 2020

Gift of Parsonage to Preacher

The church gave the preacher the parsonage via a Gift Deed. Value of the house/property is about $215K. At year end, do we need to provide a 1099

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Dec 24, 2020

When is a love gift not considered income and considered a gift tax?

Our church for decades has collected a free will offering at the end of the year to gift to our pastor. It does not go through the church books at all,

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Dec 08, 2020

Can churches give a gift to try to get more money for Lottie Moon?

We were wondering if to try to get more money for our Lottie Moon Christmas offering our church wanted to give a coffee mug to those who give and it doesn’t

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Dec 08, 2020

Financial Gifts to an Unsalaried Pastor

Our pastor is not full time and holds another employment. The church gave him a love offering and financial gifts throughout the year that totals more

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Nov 18, 2020

online paperless billing conversion

I am attempting to set up online billing for the majority of our vendors. We have quite a lot and some may not have the ability. I am looking for some

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Nov 18, 2020

Can home renovations be used for UMC household furnishings allowance?

We are planning on renovating the kitchen which would include new cabinets and counters. I have a housing allowance but am wondering if I can make use

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Nov 11, 2020

Year End Checklist for Churches

See a year end checklist for churches. Includes tasks that should be completed before the end of the year to ensure a smooth transition into the new year.

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Oct 23, 2020

How to Handle Clergy Tax

Clergy tax factors you need to know before setting up your pastor's payroll or to ensure you are doing it right.

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Oct 22, 2020

Opt Out of Social Security Form 4361

For a minister to opt out of social security there are several conditions that must be met before they can file an IRS Form 4361.

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Oct 15, 2020

Love offerings taxable from other churches?

I recently left my position as a worship pastor at a church in Maryland and are relaunching a church in Arizona as the senior pastor. In the process,

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Oct 15, 2020

Taxable for Pastor, but tax deductible for giver?

I'm still unsure about this. I've read quite a few articles and most tend to agree that the love offering donations are taxable income for the Pastor who

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Oct 15, 2020

A Pastor who is collecting Social Security retirement benefit, but still works for the church...

If a Pastor is retired from secular work and is collecting Social Security, is he still limited to what the church can pay him without interfering with

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Oct 15, 2020

Tax Deferred Retirement Account

We have a new interim pastor who wants $19,000 cash salary, $20,000 housing allowance, and $26,000 deferred compensation. He has set up an account with

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Oct 15, 2020

Non-requested Donations?

I am a commissioned counseling minister and also ordained by a church and act as a pastor with no salary. When I begin a counseling relationship, I take

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Oct 15, 2020

Local church giving money to parishioners to invest

A local church in mt are gave parishoners thousands of dollars to invest for the next several weeks. Then they give it back, and interest collected goes

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Oct 15, 2020

Should all types of giving be recorded on the end of year contribution statement.

My church accepts Tithes and Offering 3 different ways. In person giving during service, through Givelify an online giving site, and through cash app.

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Sep 17, 2020

Does your church or denomination have to sign anything when you inform them of the opting out?

We are paying someone to help us with the completion of form 4361. They are asking me to send a 'letter of intent to exempt'. This form needs a signature

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Sep 17, 2020

Non-Cash Gift for Pastor

Our pastor announced his resignation earlier this month. Our deacon board decided to hire someone to paint a painting of our church as a farewell gift.

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Sep 09, 2020

Need a official W-2 and W-3

How do I obtain a W-2 and W-3 to complete for my pastor? I have signed up thru the IRS several times but it will not let me download the forms. Tired

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Sep 09, 2020

Accountable reimbursement plan vs. church credit card

If each pastor has a credit card in the church's name that is paid for by the church, to be used for church/ministry expenses, is there any reason to also

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Aug 24, 2020

How to record donations by check

How should a nonprofit record donations by check, specifically when it is from a joint bank account? Should they be recorded as being from the person who

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Jul 14, 2020

H&R Block Housing Allowance for pastors

I had to go back and file my 2018 taxes. I am using H&R Block software. The church I pastored did not report my housing allowance on the W-2, which was

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Jun 01, 2020

With Aplos, are there transaction fees for using online giving in addition to the monthly subscription?

Are there transaction fees for using online giving in addition to the monthly subscription? Many sites charge 2%-5% of the transaction amount plus .30

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Jun 01, 2020

2 year rule

My husband and I went into ministry 6 years ago. When I filed our taxes with H&R Block, I inquired about why we were paying self-employment taxes. I

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May 08, 2020

State Sales Tax - LA

Louisiana does not exempt churches from sales tax. Sales tax not collected at time of purchase on items used in the operation of the church such as bibles,

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