by James L.
(Anderson County, TN)
Our church bylaws provides an incentive of making available a $20,000 loan to help our new pastor purchase a home. The loan must be paid back with interest, although payments are not required while the pastor is employed by the church. The loan must be paid back no later than 6 months after he is called to another church or retires.
How do we handle the interest earned?
We debit cash, but what do we credit? (interest earned) or (investment income)? Do we identify this in the same way we handle the interest on our endowment investment?
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 =)