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.

Aug 10, 2019

Gift for Volunteer Elder

We have an outgoing volunteer elder/pastor. We thought it would be nice to gift him with $2,500.00 gift. This would come out of our general fund. So,

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Aug 10, 2019

Required Love offering

My organization uses a church building that is offered to us for free. My organization REQUIRES each family to pay a set amount twice a year as a love

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Aug 10, 2019

401K donation earmarked to pastor

An individual is having his 401k make distributions to a church in order to take a charitable contribution but not pay income tax on the distribution.

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Aug 10, 2019

Housing Allowance Change in July

Our church has semi-annual business meetings--one in January and one in July. In the July business meeting in 2019, it was recommended that the pastor's

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Aug 10, 2019

Question

How is the best way to handle and record one time large gift. We need to separate it from our regular giving so it does not inflate our future budgeting.

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Aug 10, 2019

collecting SSDI and taking a Sr. Pastor Position do I have to report Housing allowance

I have been collecting SSDI for 20 years, I have Muscular Dystrophy, I was asked to take over as Sr. Pastor of a small church. The church wants to pay

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Aug 10, 2019

Retired pastor receives gift from church.

Church donates a home to retiring pastor, what are the tax consequences to him?

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Jul 05, 2019

Need help completing pastor compensation contract correctly.

We are paying our pastor a salary and giving a housing allowance. On the contract, do we add both amounts to arrive at his total income or do we only include

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Jun 30, 2019

Can you pay your pastor's housing allowance if he does not actually receive a paycheck from the church?

Is the pastor still considered an employee of the church if he does not receive a salary, and if he is considered an employee of the church can he be paid

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Jun 30, 2019

Retirement Plan Contributions

Can a church contribute to a private-owned retirement plan of its pastor without reporting/filing the contributions to the IRS or DOL?

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Jun 30, 2019

Housing Allowance, Social Security, Medicare

What if a church pays a housing allowance, withholds social security and Medicare and match both social security and Medicare? Should the church stop withholding

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Jun 30, 2019

Maintained separate accounts for clergy

If the church maintains a separate operating account and an account for the clergy, and upon donation the donor specifies a certain percentage to the operating

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Jun 11, 2019

Ministry items bought by church for members to purchase

Our Women's ministry occasionally buys tshirts, crafts, books, etc. and then they are made available for purchase by the members. When they pay for these

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Jun 11, 2019

Remodeling and Pastor's Housing Allowance

I am in the process of remodeling an old house for my wife and me to live in for retirement. I am presently serving a small rural congregation. The

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May 27, 2019

Donations for flowers

Donations for flowers. Our church has envelopes at Christmas and Easter for purchase of flowers for the church most of which is not spent. Since envelopes

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May 27, 2019

100% of church pay is housing allowance. So how do I report mileage?

My church is very small. Both my pastor and I (assistant) are paid housing allowances, but no salary. Our housing allowances are less than our annual

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May 10, 2019

Reimbursement of Church Expenses

We received donations from church members for a reimbursement of a mission leader appreciation dinner. I do not know how this should be added to QBO!

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May 10, 2019

Staff Raised Support

I am the book keeper for our church and we have a staff member who raises his support through the year. How can I create a paycheck for him in Quick

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May 04, 2019

Qualifications as a "minister" per IRS/Tax definition and Housing Allowance

I am a pastor of a Church through a recognized denomination. I will be installed (commissioned?), however I am not ordained. From what I understand,

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May 04, 2019

Can Renovation Expenses be included as part of a Housing Allowance?

Can a Minister include renovation expenses as part of her Housing allowance? Should she use the higher estimate or the lower estimate of the planned renovation?

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May 02, 2019

Housing Allowance and Minimum Wage Requirements?

I see a lot of questions here related to clergy housing allowances and how much should and/or can be applied for a clergy's compensation. My question

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Apr 23, 2019

Do I include the pastor in the "Number" of employees on line one or do I just include the non-clergy employees?

We have only 1 employee in our church, the secretary. The pastor is self-employed, but elects voluntary withholding. When completed my 941, do I only

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Apr 23, 2019

Reporting Housing Allowance

I agree with your reasoning. Are ministers to receive a W2 with only housing allowance listed in Box 14? I did read the answer to this question in a submission

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Apr 17, 2019

Vickeys Bookkeeping Services for Churches

Vickeys Bookkeeping services include bookkeeping for churches and small nonprofits. Contact for more details on our 3 different customizable levels of services.

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Apr 13, 2019

How to report 100% Housing allowance

If a church were to pay its pastor a small amount and designate it all as housing allowance, such as in your $500 / month example above, how would it be

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Apr 13, 2019

Moving monies between funds

Thank you for all of your help using QB within a church. We have been using QB for a couple of years. My question: we recently moved monies out of

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Apr 13, 2019

where do I place housing allowance on my IRS form

Where do I place my housing allowance deduction on my IRS form as it is included in my salary?

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Apr 13, 2019

The church pays the half of the pastor's tax.

My church pays half of the taxes of the pastor quarterly. I know the financial support for his tax from the church should be added to his income. What

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Apr 13, 2019

Sweep Account set up in QUickBooks

Can anyone please explain how you have set up a sweep account in Quickbooks? I had found through some research, that it was to be set up as a sub bank

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Mar 31, 2019

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.

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