Emergency fund for small house church

by Ryan

I am a member of a small church that meets at the home of one of the elders. No one gets paid, and we aren't inclined to seek 501(c)(3) status, but we aren't completely opposed either.

We keep a small emergency fund that we use to help out members who may be struggling with bills or unexpected expenses. Currently that fund is in cash, but we have been talking about setting up a PayPal account in the name of at least two of the members to eliminate the need for cash and make giving more convenient.

My question is could such an account cause tax trouble for the people whose names are on it?

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Feb 25, 2016
Emergency fund for small "house church"
by: Lewis in NC

When starting any organization there are always risks involved. To help manage the risks to the two people whom you say will have a church account in their names, give great thought to the way the account is opened.

Check with PayPal or a bank in setting up the account and see if a church name can be used in conjunction with the individuals' names and have at least a joint signature requirement for using the account to set administrative controls over this money.

Churches must secure their funds in a way to avoid any appearance of mishandling them.

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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 =)

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