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!
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
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?
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
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
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.
Continue reading "How to categorize a Women's Group offerings?"
Aug 07, 2023
Post retirement contributions to 401k for pastor
Is it legal to contribute to the 401k of a retired pastor for the church?
Continue reading "Post retirement contributions to 401k for pastor"
Aug 02, 2023
Can a church volunteer about to receive a 1099Misc form donate it back to the church
Can a church volunteer about to receive a 1099Misc form choose to donate it back to the church to avoid receiving a 1099-Misc?
Jul 18, 2023
Payroll has been deducting SS and Medicare from Pastor's pay check, is that correct?
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
Jul 18, 2023
How do you handle inkind donations for expense items
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 "
Jul 14, 2023
Buying Capital Assets with Restricted Funds
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"
Jun 22, 2023
Are contributions for associate pastor compensation tax-deductible?
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?"
Jun 14, 2023
Requested refund of a contribution
Can I put a disclaimer on contributions that they can not be refunded?
Jun 14, 2023
Church accounting for contribution paid to pastors retirement fund
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"
Jun 06, 2023
Housing allowance for bi-vocational minister
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"
May 09, 2023
Love offering for a pastor retiring on disability.
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."
May 04, 2023
Last day of the month is Sunday. Which month does the offering belong
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"
Apr 08, 2023
Guidelines for providing food at church activities
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 "
Apr 03, 2023
required backup paperwork Contributions
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
Apr 03, 2023
WHERE DO I FIND THE INFORMATION AT?
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.
Apr 03, 2023
A non-minister church employee becomes ordained as a minister in the middle of the year.
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,
Apr 03, 2023
Sign nullifies donation?
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
Apr 03, 2023
Long Term Care Insurance
Is it possible for the church to pay long term care premiums for a minister as a fringe benefit?
Mar 21, 2023
Health Insurance Reimburesement
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.
Mar 21, 2023
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?
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
Mar 21, 2023
Meal reimbursements
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.
Mar 21, 2023
Monthly cell phone reimbursement
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
Feb 10, 2023
How do churches charge for meals?
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.
Feb 05, 2023
A visiting speaker
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
Jan 29, 2023
W2 required to be filed
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
Jan 29, 2023
Do we include the FMV of the use of a parsonage on a W2?
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 =)
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