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Love Offering received from non-church member for a staff member

My church has been receiving a love offering for a Pastor on staff from a non-church member just to help the staff member, kind of like supporting a missionary. Since this offering is just "passed through" the church and was not solicited, is it considered taxable income to the staff Pastor? Is it reported on their W-2 or should a 1099 be issued?

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Aug 01, 2013
1099 or W-2 love offerings answer
by: Anonymous

Churches sometimes collect a love offerings from the congregation for a pastor, intern, or other staff member in recognition of services rendered. Such offerings must be reported as taxable income. If the recipient is an employee, the love offering should be added to his or her Form W-2. If the recipient is not an employee, the income should be reported on a Form 1099-MISC if $600 or more.

For more details, including specific examples and case references that support this position, check out the 2012 Church & Clergy Tax Guide at (the 2013 Church & Clergy Tax Guide is also available for pre-order).

Aug 01, 2013
Love Offering Received from Non-Church Member for a staff member.
by: Anonymous

thanks anonymous for the answer and your reference. However, does the answer also apply when the love offering is received in the mail from out of state when marked for a staff member?

Aug 02, 2013
by: Sandi

all monies received for employees must be reported,

however I suggest checking with the IRS because it is my understanding that the money would go towards the amount given by the church not in addition to it. (got this from a workshop given by the IRS Exempt Organization) also see inurement...

If the person wants to give in addition to the approved pay they should give it to them directly.

kind of silly in my mind to designate funds to an employee instead of to the church, if given to the church and not designated it would be a deductible contribution.

The church pays the employees and to designate it to them only prevents a deduction, no benefit to anyone....

hope this helps

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