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Weekly designated gift to pastor & W2

This past year, a new member started designating gifts to our two pastors each week.

One is a close relative to whom he gives a couple hundred each week; the other he gives $25.

I was planning to include it as income on line 1 of their W2s. However, if I read the above correctly, because this is not a solicited donation, I would not have to include this in their income. (I did inform him that he could not claim his donation as a tax deduction.)

Am I understanding that correctly?

Comments for Weekly designated gift to pastor & W2

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Jan 22, 2022
 Offerings Designated for Ministers
by: Vickey

You are correct in that a donation designated for an individual is not a "tax deductible" donation; however, it is taxable income for the recipient of those funds.

I run those "support NTD (non tax deductible) donations" through the minister's payroll...so they are reported in Box 1 of their W-2.

BUT, if that donor gave the "support donations" DIRECTLY to the ministers and it was not run thru the church records...then it would be up to those ministers to report the "other income" on their personal tax returns and the church would not be responsible to report it on their W-2.
Jan 23, 2022
 Gifts to pastors
by: JLS-CPA-CKA

If the funds are given DIRECTLY to the pastors, if us considered a "gift" by the IRS, which is NOT taxable by the receiver unless the amount exceeds $14,000.

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