Church Loan

Can a member loan the church money? If so, how is the repayment amounts recorded in the books? I would like to hear your advice/comments.


I believe it would be handled the same as if the church had acquired a bank loan.

If you are using a double entry bookkeeping system, you would debit cash and credit notes payable when you first receive the loan. Then for the repayments, you would do the opposite: debit notes payable and credit cash.

If you are using a single entry bookkeeping system such as my spreadsheets, I would set up an expense account and record the repayments in it.

Hope this helps,

Learn how to record basic church accounting transactions.
Church Accounting Package

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Church Loan

Click here to add your own comments

Feb 15, 2017
paying interest
by: Anonymous

How would make entries for paying back the member with interest. Also would I need to issue them a 1099-INT for the interest paid to them. If so, how is this entered on the 1099-INT?

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

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 =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.