Pastor love offerings

Can love offering to a pastor be placed in another account in the church's name (pastoral account) for the pastor to use at will with debit card?

Comments for Pastor love offerings

Click here to add your own comments

Oct 16, 2012
Use of Love offering funds
by: Anonymous

Love offerings are counted as "other income" -this includes gift cards-to the recipient. Donors giving to specified individuals do not receive a tax deduction on the amount given. If the church has a "general" account and wishes to reimburse expenses as long as the "accountable" method is used (receipts for business related items, which is the best for all parties involved. More paperwork and approval process but then it wouldn't be income and it would be a tax deduction (if not specified for a specific individual or item).
I attended an IRS workshop and the speaker stated that policy should state the church has complete control over donation (on each policy)so that the church-nonprofit organization can move funds as needed.
So... after all that.. it depends on your policies.
Hope this helped!

Jan 22, 2013
Church Checking Accounts
by: Vickey

The post from Anonymous was excellent advice.

I just wanted to elaborate on the church having complete control over contributions and checking accounts.

What you are suggesting could put your church in jeopardy of losing its tax exempt status and get your pastor in trouble with the IRS.

A checking account used exclusively by your pastor for his personal expenses could be viewed as private inurement.

Private inurement and excessive benefit transactions can cost a minister up to 325 times the excessive benefit, cause his church to lose its tax exemption, and cause other church leaders to pay a 10 percent penalty as well.

See this page on Private Inurement

It is not against the law to give a pastor a love offering as long as it is not excessive, but it must be included when reporting his wages on a W-2 or 1099.

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.

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!