Pastors Monetary Gifts

If money is given to pastor as a gift how should it be handled as far as recording purposes?

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Feb 08, 2014
Gifts to Pastors
by: Bill OConnell

Gifts to clergy are simply compensation in disguise.

To quote Dan Busby on page 57 of his 2014 Minister's Tax and Financial Guide:
"...gifts paid by a church to its minister are typically taxable compensation. This is true if the gift came from the general fund of the church or from an offering in which tax deductible contributions were made to the church for the benefit of the minister."

He goes on to say:
"But if the church gives [the pastor] cash or an item that you can easily exchange for cash, such as a gift certificate, the gift is extra compensation regardless of the amount involved."

I recommend that every church purchase Busby's companion sets of Tax and Financial Guides - one for Ministers (see link above) and the other for Churches (2014 Church and Nonprofit Tax and Financial Guide). Cheap and great guidance available on Amazon.

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

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 =)



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