gift to unpaid pastor

by Silas Fowler

Our church is a free church and as such is not registered as a 501(c)(3) although we meet the qualifications and our members are allowed to take a deduction for their donations under the mandatory exception rule under 508(c)(1)(a).

Furthermore, we are structured as a brotherhood where the authority lies with the congregation and not a pastor. We have four elders who handle all do the teaching on a volunteer basis. They receive no compensation from the church. Their only source of income are in the secular workforce.

If we as a body decide to give the elders a one time gift of groceries totaling $500 each (total of $2000) as an expression of gratitude is this taxable for either party? These four elders served faithfully teaching, counseling, performing weddings and funerals for ten years without ever asking for compensation. We want to do something but don't want it to result in a bigger burden for them.

Click here to post comments

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

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

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.