Gift for Volunteer Elder

by Mike Montoya
(Thornton, CO USA)

We have an outgoing volunteer elder/pastor. We thought it would be nice to gift him with $2,500.00 gift.

This would come out of our general fund.

So, my question is, what do I have to do to stay legal and above board in this possible gift?

Mike

Comments for Gift for Volunteer Elder

Click here to add your own comments

Aug 10, 2019
It is Taxable Income for Him
by: Vickey

The IRS would consider it a "gift" for his "service" to the church, so it would definitely be considered taxable income.

The hard part would be in determining if ....by paying this volunteer....would you have to withhold and match FICA as an employee or simply have him complete a W-9 and report the income on a 1099.

Read my article on Misclassification of Workers: https://www.freechurchaccounting.com/misclassification-of-workers.html

AND click on the IRS reference link in that article.

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 Love Offerings.

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.