Funds Received From Anniversary
(Chicago, IL, USA)
I'm not sure how to handle the funds received in our Pastor's Anniversary. Our pastor does not receive a salary and so the monies received during the Anniversary are generally designated as a love offering for the pastor.
Most of the offerings received for the pastor are checks written out to the church. How or can we deposit the money in the church account and write the pastor a check? And if so, would it be considered taxable income for the pastor?Answer
Yes it would be taxable income for your pastor. With the checks made out to the church, you will have to deposit them and write out a check to your pastor and include it in your wage reporting for him.
You would also NOT issue contribution receipts to the donors if
the contributions were designated for the pstor.Church Accounting Package www.freechurchaccounting.com