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!

Oct 06, 2024

Year End Checklist for Churches and Nonprofits

Year End Sign

Review this year end checklist for churches and nonprofits. 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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Sep 23, 2024

Housing Allowance Vs. Salary As Retiree Serving Church

I have been declaring my pension as housing Allowance for several years subject to tax on the amount not used for pay SE tax on. Since total income

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Sep 17, 2024

Which EIN, my local church or my denomination?

Which EIN is better to use? Should I use the EIN of the local church from which I am receiving a salary or the Denominations EIN?

Continue reading "Which EIN, my local church or my denomination?"

Sep 08, 2024

Figuring Fair Rental Value for a Housing Allowance

Realtor

Figuring fair rental value of your home or parsonage is critical when it comes to actually claiming the exclusion for a housing allowance. See explanations and examples on how to figure out the FRV.

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Sep 08, 2024

Housing Allowance for Ministers

minister

A housing allowance is a great tax benefit for ministers. See how to set up and administer this allowance. Q and A forum.

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Sep 08, 2024

Excessive Benefits and Private Inurement

Resticted

Could unintentional excessive benefits and private inurement potentially harm your pastor, church or nonprofit organization?

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Sep 06, 2024

Compensating Ministers Package

CM Book Package cover

Series on compensating ministers correctly and understanding what benefits for ministers are considered taxable income.

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Aug 15, 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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Aug 15, 2024

Donation Guidelines for Churches and Nonprofits

Donation Guidelines Package cover

Donation guidelines for handling cash, noncash, stock, quid pro quo, DAF, and other unique donations.

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Aug 15, 2024

Policies and Procedures for Churches and Nonprofits

PP Package Cover

Policies and Procedures for churches and nonprofits. Learn more about benevolence funds, accountable reimbursement plans, internal controls, and much more!

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Aug 14, 2024

Bookkeeping for Churches Package

BFC Package Cover

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

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Aug 11, 2024

Benevolence Fund

Help Up

See guidelines on setting up a benevolence fund and properly administering it.

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Jul 16, 2024

Housing Allowance for more than one ministerial job

If a qualified minister holds more than one ministerial jobs, can he claim a housing allowance for both jobs?

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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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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

Continue reading "Earned Mission Trip Credit"

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.

Continue reading "Accountable Reimbursement Plan Guidelines"

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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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.

Continue reading "Tax Exempt Status for Churches and Nonprofits."

Mar 24, 2024

Reimbursing Church Business Expenses

Reimbursing Church Business Expenses

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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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