Minister's Compensation

by donna
(Michigan)

What is the percentage of the total church income supposed to go to ministers' or pastors' compensation/salaries?

vickey's reply

There is no set percentage.

Dan Busby, CPA, states that employees of churches may receive reasonable compensation for their efforts. Excessive compensation can result in private inurnment and may jeopardize the tax-exempt status of the church.

Reasonable compensation is based on what would ordinarily be paid for like services by a like organization under similar circumstances. Taken from Zondervan 2010 Church and Nonprofit Tax and Financial Guide

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