Pastors Monetary Gifts

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

Comments for Pastors Monetary Gifts

Click here to add your own comments

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.

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 Earmarked Contributions.



Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping and/or payroll?



Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!