Church Accounting FAQs

Do I file taxes for states where we received a love offering? 
My husband preached in several different states. Sometimes he received a love offering. We have already included the amounts in our home state taxes, do …

How to categorize a Women's Group offerings? 
Our church has a Women's Group that collects money. Usually, from this money, we send checks to friends/family for wedding gift, baby shower gift, etc. …

Last day of the month is Sunday. Which month does the offering belong 
When the last day of the month is Sunday, do you include the offering in that month or the next. The deposit in the bank will be posted for the next …

Guidelines for providing food at church activities  
I can’t find good source that explains the does and don’ts on what is allowable when providing food at church events paid for from church funds. Pizza …

How do churches charge for meals? 
Our church is providing meals on Wednesday evenings for those who want to eat before the service. We cannot absorb the cost into our current budget. …

How to legally move payroll funds to restricted line item 
Currently, our youth pastor does not want to take pay. He would like to have the church take what he would get paid and move it from the youth pastor …

Unused Insurance Line item balance 
This year Pastor's insurance cost was lower than the amount budgeted from his package. At the end of the year do we: 1. let it expire, that budget balance …

How should we account for paying someone for guest preaching? 
What would you suggest as best practice for paying someone for pulpit supply/ or filling the pulpit from time to time? What taxes are necessary? How should …

Contribution for Future Pledge Period 
We started our pledge campaign for the upcoming July - June fiscal year (it is now May). We are receiving donations for these future pledges, most …

Accounting Manager  
The pastor is an employee of the church but he receives donations outside of his W2. Shouldn’t the pastor receive a 1099 as well?

Issuing a 1099  
we are a small Wisconsin Church and we are looking to pay a women about $200.00 per week for secretarial work as a non-employee. what must the church …

Question: Carry temp restricted balances to next FY? 
We have several temporarily restricted accounts, for example "Youth Summer Trip" where the money is designated (NTD) towards a youth trip and the costs …

Is there a fee for this service? 
Hello - just checking to see if there is a fee to ask questions? Also, we can see questions from others, but when I click on them, I don't see the answers?? …

Reporting sale of fixed asset  
Does a church need to report the sale of a fixed asset to the IRS?

Dues paid for ministers 
If a church pays offerings that is owed by a minister to a church district office, should this be withheld from the ministers gross pay? The minister …

Depreciation on New Sound Equipment 
Does one depreciate new sound equipment, total $3,000, but have individual prices? Church Building? I'm new at non-profit accounting and I see no depreciation …

Minister Housing Down Payment Loan 
Our church bylaws provides an incentive of making available a $20,000 loan to help our new pastor purchase a home. The loan must be paid back with interest, …

How does a para church organization account for staff who raise their own support? 
Is it an option to "pay" the staff as contractors and issue a 1099 to them? Or do they have to be employees and get W2s? And are there rules relating …

Worship Leader 
We pay a worship leader $50 a week. Would we give her a 1099 or a W2?

Income and Expense Reporting for small church 
I need a simple way to record Income (member donations) and expenses for a very small church (less than 50 members.) I am not a bookkeeper in all fairness. …

online paperless billing conversion  
I am attempting to set up online billing for the majority of our vendors. We have quite a lot and some may not have the ability. I am looking for some …

Question concerning how church organist is paid 
As pastor, I have just become aware that we are paying our church organist by sending her pay to her landlord for a partial on her rent. A lawyer that …

Unemployment compensation 
As independent contractor, organist, now that churches are closed during pandemic. Can I collect unemployment?

Designated Accounts 
Our church borrowed money for a building. Debit Bank / Credit Note Payable This makes my bank balance but ... How do I get the money into the designated …

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Membership Loan 
We have allowed members to borrow money from the church without interest. They pay the loan back. I wanted to know if this is legal? When they pay …

Recording church member cash gifts 
We are in encountering a situation that we don’t have an answer for. For an example. Our youth ministry has a budget for $1,000. A couple then …

Is it illegal in the state of TN for a church to pay its bills with cash? 
I recently tried paying the church I serve as pastor’s bill at the local Christian bookstore and was told it was against the law in Tennessee for a church …

Endowment donation  
We received an endowment from a former member. The check reads endowment. Does this mean the church cannot touch the principal of the donation and can …

Are minister's predetermined charitable contributions to his own church not included in taxable income on W2? 
I have a new client who is a minister. He has made an agreement with his church that they will take a predetermined amount from his salary, donate it to …

Is the Pastor Responsible 
Myth or fact, is the Pastor responsible for any church bank accounts if the church goes bad, audited, go in default?

Benevolence for Member's Auto Repair a "Luxury"? 
We recently know of an elderly couple that asked for benevolence at their church to help repair the a/c unit in their car. They were turned down because …

Accounting for money given for specific use 
We often receive money for special programs for the community. We also receive money for scholarships to church camps and flowers at Easter and Christmas. …

expense money for pastor 
If money is left in yearly expense account for pastor how do we disburse it?

Question 
How is the best way to handle and record one time large gift. We need to separate it from our regular giving so it does not inflate our future budgeting. …

Ministry items bought by church for members to purchase 
Our Women's ministry occasionally buys tshirts, crafts, books, etc. and then they are made available for purchase by the members. When they pay for these …

Donations for flowers 
Donations for flowers. Our church has envelopes at Christmas and Easter for purchase of flowers for the church most of which is not spent. Since envelopes …

Staff Raised Support 
I am the book keeper for our church and we have a staff member who raises his support through the year. How can I create a paycheck for him in Quick …

Sweep Account set up in QUickBooks  
Can anyone please explain how you have set up a sweep account in Quickbooks? I had found through some research, that it was to be set up as a "sub …

online banking 
A retired businessman thinks our church can save money by using on-line banking to pay our bills. But we are concerned about a paper trail for audit …

Where does the Savings account go in the COA, and how to you record transfers? 
My husband and I built the spreadsheet I've been using for church books years ago. I am transition over to your 5 fund church accounting spreadsheet. …

Church donates vehicle to Pastor 
How do we show the donation of a vehicle we purchased for Pastor's use in 2017 and transferred title to him in 2018?

Changing acctg from a calendar year to a fiscal year.  
We are changing from a calendar year to a fiscal year. Currently the fiscal year is Oct 1 to Sept 30. I am getting ready to report out the Q4 financial …

Restricted Account Balance at Yr End 
I have done church bookkeeping over 20 years but this is the first year with a new software. We have several "temporary restricted" accounts for things …

Using Funds From the Church to Establish Transitional Housing  
If the church ceases to operate as a church in its primary mission (lease on building used for church services is running out with no plans to renew) and …

Are tithes made by church staff tax deductible? 
I'm wondering if the tithes I donate to my church would still be eligible for tax deductions if I become an employee of the same church.

Hourly employee being paid for hours worked with her husband 
We have an hourly custodian employee who would like to have her husband help her clean and be paid for the hours that they both do together. For example …

Pastor Payroll Help 
I have just started doing the bookeeping for our small church. I am unfamiliar with pastoral payroll. I have three main questions outstanding following …

Sending Flowers 
under IRS Rules for 501c3 organizations, can a church send flowers to an individual with its fund, whether to a member or nonmember of church? In doing …

School Scholarship Donation 
We recently started a private christian school under the umbrella of our church. We had someone donate a scholarship to the school. How would …

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Sell of Church Dished 
We recently sold some dishes from the church. What kind of entry needs to be made? The women's ministry bought them 30 to 35 years ago and we no …

Compensation Package with Prepaid Debit Card  
Can you tell me if there are any stipulations to offering a prepaid debit card for an allotted amount of hospitality to a church employee as part of their …

Ways to reimburse buyers of supplies 
I have been one of the main buyers for our temple for many years, and recently the bookkeeper has told me (and others) that, to protect us in the case …

Restricted Funds 
Over the past 2 years, we have held several benefit/silent auction signings to raise money for a "Van Fund" at our church. These monies were donated …

Donations to Church Owned Preschool 
If we collect funds for Church owned Preschool, is this considered pass-through income? Or can we call it outreach when the funds are given to Preschool? …

Insurance payments for damage to property? 
Our church has recently suffered severe water damage and we are starting to receive insurance checks to help offset the costs of the repairs. How …

Quickbooks Year End Donation Report Printing 
I am pretty handy with quickbooks and have all the year's donations entered for all members under different accounts (Tithes, offering, special offerings, …

Moving from evangelism of a community to Church planting 
Evangelist, moved into a area and brought some people together. He paid all expenses thru his evangelism bank accounts. People began to give and a …

Recognizing the excess purchase price of selling the church property as a donation/contribution from the purchaser 
We sold our church for an amount significantly higher than the market value. The purchaser's attorney says the excess payment can be treated as a donation/contribution …

Employee Credit Card Fraud  
I starting keeping the books about a year ago as a volunteer while going to school. When pulling a balance sheet I noticed an account labeled fraud. …

Quid Pro Quo Gifts for Donors 
As I understand the IRS regulations, if I give a gift to a donor who has contributed over $53 I have certain limits of the cost of gifts I'm allowed to …

Youth Escrow Funds 
I'm looking for some advise about how to handle collecting youth funds that will be given back to the kids for meals. Every other year my youth group …

Can a part time pastor self fund himself through the church? 
I am handling the book keeping for a small home church. The pastor set the church up as a charitable organization with the IRS. The pastor has his …

We do not want 501c3 status! 
My religious group is starting a church from a member's home based strictly off of biblical principles and do not want 501c3 status. We believe that …

Church Musician Keeps asking me to hold her pay as her tithes 
Our church Musician who is an independent contractor has had the finance department not pay her a few times. She says this is how she pays her tithes. …

Mileage Rate for Small 501c3 Non Profit Organization 
I hope someone has the answer to this. We operate a small Non Profit Ministry that is NOT A CHURCH! We are exclusively an evangelistic outreach ministry. …

Carrying a loss on sold property 
Our church owned a rental that was losing us money each month. We sold the property, also at a loss, but at least are not losing more money each month. …

Selling My Church 
Due to some unfortunate events and shrinking congregation we have decided to close the doors on our lovely little church after 17 years. I am a volunteer …

Quarterly Checking Account Balance Brought Forward 
How should the checking account balance brought forward from the end of the previous quarter be recorded in the following quarter report? At …

How to reimburse pastor for a cash payment he made to contractor 
One of our church members cleans our building for $50/week, which I normally write a check for. One week I was out sick and the pastor paid him out of …

Unwanted Designated Gifts 
My church's financial balance sheet has monies set aside as part of designated gifts that were collected over the years. The church does not have …

Cash Payment with No Receipt 
Anyone know how cash payments ought to be made to people who perform services for our church? As the Pastor, I authorized one of our …

Contribution Records retention guidelines 
How long do I need to retain records of contributions to the church? The church I work for has been saving them forever, including the numbered donation …

Is it ever OK to reimburse small cash purchases without a receipt? 
We are a really small- 25 active members-, rural church in NY. Every month for the past 20 years we have hosted a community luncheon for the elderly …

Paid Payroll Tax but did not file W-3 HELP! 
I help at a fairly small church and they have been paying their payroll taxes online monthly for years as well as sending in their 941's quarterly. …

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Credit for Church Member Donations 
As the financial secretary, I have members who want credit for donations to the church. They will put their receipt in the envelope for me to write it …

Pastor Supplemental Salary Fund 
Our current pastor is part time (roughly 50%-salary $27,000) and teaches school to help ends meet. We recently received a large stock distribution …

Borrowing money from members  
Last year, multiple members of the church loaned money for the purpose of buying the property next door. We have been making payments back to those …

Quickbooks Recording Income to Expenses Account 
Let me give an example. The church pays $2100 for campground rental fee upfront. The members, once the camp is done, pays back the church for $2000. …

missionary donations 
If a church donates $600 or more to a missionary and as requested checks are made payable for example to "John Smith Missionary" and the funds are used …

definition of a building fund 
What is a good definition for a building fund?

How should a church make reimbursement for purchases made by a volunteer? 
Every once in a while, a volunteer will purchase a curriculum or supplies for a church related activity or ministry. Is there a right or wrong way for …

Church Funding On the Books 
True Story. I am speaking to a situation I've been made aware of recently and I don't know how to advise. Lost money for a new start up church had …

Benevolent Fund 
Our church as a large amount of money in it's benevolent fund, and would like to use some of that money towards other expenses in the church. Can money …

Escrow HELP- Am i recording interest paid to Escrow and fees paid from Escrow correct 
I am not accountant, took on the job as a treasurer in my church. Using Aplos to keep me sane. Escrow. It is setup as an Asset. When we pay the …

How do you treat Visa Gift Cards that someone wants to use as payment? 
We have another church that attends our church camp & this year they gave us visa gift cards to pay for part of their registration fees, which our person …

Repayment of Moneys given from Church member to Church for Remodel Questions 
I have a question, we are a small church in North Carolina. At the time of this project, our church had no money for the renovation/repairs of the …

Church Preschool Question 
I have a question. I was reading the response about preschools within a church. Our church is in the process of doing this. The advice about having a separate …

Honorarium or Gift reporting 
Our church employed a retired pastor to assist our Regular pastor with visitations and occasionally other backup support to the full time pastor. He was …

Do Refunds Require a Form 1099? 
A parish has a restricted building fund and the parish has now decided not to move forward with the construction. They are going to ask the donors if …

Emergency fund for small house church 
I am a member of a small church that meets at the home of one of the elders. No one gets paid, and we aren't inclined to seek 501(c)(3) status, but we …

What to do with 1099 after we give them to "vendors"? 
So I know any contractor making over $600 gets a 1099, but then what? We don't file any taxes as a tiny congregation. So where do i file these with the …

Donor wants to combine personal and organizational contributions. Is that ok? 
We have a member who donates to the church with a personal account, and they also run a non profit organization and contribute from that account as well. …

Printing Donor Addresses on QB Tithing Reports 
I transitioned our church over to QuickBooks this year and I'm at the point I wanted to print tithing reports for 2015. Several of the questions asked …

Payroll Support through Online Giving 
We have several staff members at our church who raise support for part of their salary. They are deputized fundraisers. We use online giving and have …

Church construction. 
We are a non profit organization. We purchased our land in cash and we recorded the transaction to fixed asset. We are now building our church on said …

Church resources  
If a church creates material for sunday school and small groups and sales them to other churches and groups is all the revenue still untaxed because it …

Donations by members for annual dinner 
All year long, our members contribute to our "Christmas Fund". At the end of the year, anyone is welcome to go out and eat for the church dinner, and …

Best Practices for Payroll Account 
We currently have a general fund account, savings account, and a payroll account. For payroll, we transfer funds from the general account to the payroll …

Church expense vs personal expense 
Have more questions? Our Ebook can help! I do the bookkeeping for our church and am unsure if we are correctly expensing certain items to …

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How to handle collecting money for an event 
The senior adults in our church attend annually a senior luncheon. This is a District event and the cost varies each year. This event is not paid through …

Micro Church Launching 
My husband and I are wanting to start a home-church or micro-church in another setting. We have been working with several individuals one-on-one (discipling) …

Can you capitalize as fixed assets major repairs and maintenance expense? 
I am currently working with a bookkeeper who is helping us to change to QuickBooks Non-Profit. Our board is wondering why we are depreciating the assets …

Gift for Pastor 
Can the church pay to have a robe made to be given to the pastor as a pastoral anniversary gift?

Church Incorporation? Does our church need to be incorporated? 
I do not know if our church is incorporated or not. We affiliate in fellowship with an organization that is now wanting us to send them our articles …

Audit Information 
For an audit of the church accounts, does the church have to perform an audit in the same month as the annual meeting or can an audit be done at any time? …

journal entry 
1) How to record an entry when the pastor buys groceries from Walmart to cook dinner for church members? 2) When pastor took guest to dinner (picadilly's) …

Savings Account Interest  
Does the interest that we get on a savings or money market account have to be reported to the IRS each year?

Can member designate money to fund in lieu of compensatioin? 
Our only employee is the pastor who gets only a housing allowance. Our church cleaning was being done by members from a signup list. That wasn’t working …

Sold Church Building 
We sold our church building. Do we owe the IRS any taxes from this sale?

1099 for custodian 
Our church custodian is a member of our church. We pay her approximately 4000.00 a year. I have been treasurer for 9 years and we have never issued a 1099. …

Unemployment Return  
Does churches have to file unemployment returns?

using Benevolence funds for childcare 
Should a church ever consider using Benevolence funds to help church attenders pay for childcare so that the attenders/members could attend home bible …

Church name change 
We are changing the name of our church. Do I need to get a new ein? We are in Texas

Do I need to file 941x 
After filing our 941 I realized there was an error in the wages line 2. The error only involved income for the Pastor and not the secretary. The Pastor's …

setting up preschool in church's accounting system 
We will begin to pay our preschool's salary including appropriate taxes. I want to set this up in accounts receivable because they do pay the church back …

Deleting past years accounting 
We now have several years accounting records/bank ledger docs. It has become very cumbersome. I would like to delete all but the prior year accounting …

Pastor Book Allowance 
I understand that the church can purchase books for pastors to help with sermons and such. It is also my understanding that if the church gifts the books …

Reimburse for Sales tax on an expense  
Our group has had a long standing policy of not reimbursing sales tax if a member made a purchase and paid sales tax. However, the reason given is that …

Budget 
It's my first time preparing a budget for our small church & I could use some help! In rolling over our designated funds balances, do I include them …

How to make up for previous unwithheld payroll payments? 
We are a small church that is planting. I am in the process of setting up payroll for our 2 employees (pastor and music director). I have made 2 payments …

Is it legal for a Pastor to give secret loans.  
1. Is it legal for a Pastor to give a secret loan without any board knowledge to someone in the church using church funds? 2. Is it legal to re-appropriate …

Churches and Religious Organizations Do's & Don'ts concerning Tax Exemption 
I ran across this very helpful video from the IRS concerning the Do's and Don'ts of a 501(c)(3) organization, particular to churches and religious organizations. …

Paying help 
Our church recently paid two people to help around the church to assist with some projects we have going on. Both checks were under $400.00. when entering …

Do all part time employees have to be paid on an hourly basis? 
Do all part time employees have to be paid on an hourly basis? For example, our Janitor works less than 20 hours per week. can we pay him a set salary …

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Question: Christian Non-profit & Rental Fee 
Dear Church Community, Fall greetings! I run a Christian non-profit out of my house and am interested in renting out a room to a member of my church …

Credit cards 
Do you have a policy regarding Credit Card uses and users?

Month end/year end closing help needed 
Month end/Year end CLOSING: I am new to doing the books for my church. I've had years of experience in various areas of accounting/auditing but have never …

Paint for parsonage 
We have a new interim pastor and he has agreed to do some painting at the parsonage that the church provides to him as part of his package. What category …

Fixed Assets on Balance Sheet 
Our church has fixed assets on the Balance Sheet with no depreciation being booked. I have been told churches need not depreciate fixed assets; just …

Church using Pastor's Personal credit card for purchases 
Is it semipermeable according the IRS, law, etc.. for a pastor to be making purchases for the church with HIS personal credit card and the church then …

Pastor's Christmas Club 
As a church, we give towards a Christmas Club fund (in the General Fund) and at the end of the year we give the Pastor what was has been given for the …

Question About Funding and Accounting For Independent Missionaries 
My wife and I have started a small ministry and we know missionaries all over the world. On occasion I get the question "can we run our 'support' through …

Can I have a business bank account as a traveling minister? 
I am asked to speak and lead worship at other churches all over the country. I am paid an honorarium or am given any collected offerings. I would feel …

Pledges 
What do you do when members make pledges to a building fund and then leave the church before satisfying the pledge? Some say "sue". Some say "forget …

As Sr pastor I receive only parsonage. Wages=$0, Do I need W2? 
As Sr pastor I receive only parsonage. My total wages are $0. I am bi-vocational and work outside of church to support my family. Does my church still …

Deacon and trustee board 
Can a deacon be a trustee?

Buying Item off Craigslist for Church (Paying Cash, No Receipt) 
My church is in need of a new drum set. We're a small church and don't have much of a budget for one. We would like to buy one off of Craigslist, but we …

Giving Away Church T Shirts 
Giving away church T shirts, can we put a donation plate out to offset cost of shirts and avoid having to charge sales tax?

Nursery worker taxes 
We have a nusery worker on Sundays for an average of 2-2 1/2 hrs. We pay $25 each Sunday . Do we need to do a 1099 at the end of the year?

Payroll company didn't withold 2013 State & Federal taxes. 
Our payroll company did not withhold any 2013 Federal or State income taxes (just human error). They've submitted 2013 W2's & W3 to IRS. How do I fix …

donations 
I have a member of our body that donates coffee, cups, paper towels, toilet paper on a regular basis in which she is not reimburse for. Do I give them …

Account Titles for new bookkeeping position in Sunday School  
Hello! My church has very little financial organization. We are very small and have never organized our finances using accounting techniques. I have been …

Changing to a fiscal year  
Our tax year is different from the calendar year. Is there a way to change the automatic accounting sheets to a different fiscal year instead of Jan. - …

W_2 
Our current pastor has been receiving a 1099 & in reading your site I think he should be getting a W-2. How to start the process? Do you have to have software …

1099's 
Our church separated the designated Cemetery Fund into it's own checking account. The church paid a landscaping company for the work that was done on the …

Building Fund 
Is this used for general maintenance on the buildings or only for special projects that are being built?

Taxes 
I have started volunteering @ our church in the office. What are the legal documents we are to file each year for the state & IRS. Due to the person once …

Back pay 
In an audit it was discovered that one of our employees was short paid thru out several years. In reimbursing this person will it be added with his regular …

Pastor's pay 
Our deacon board recommended to drop from three services a week to two based on attendance. Our members agreed to this. Now the question has come up "should …

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how to report insurance benefits 
How should insurance benefits for pastors (health, dental, vision, health savings accounts, retirement, life insurance, disability insurance) be reported …

Benevolence 
We recently had an employee that left her salaried position to have open heart surgery. We are looking for someone to take over the responsibilities of …

Multiple Bank Accounts 
I was just told that it is illegal for a church to have multiple bank accounts i.e. General, Savings, Special, Mens, Ladies, etc. I also was told that …

Pastor's outside income 
Can a pastor have his guest speaker fee made payable to his home church and have the home church use the funds for his pension contribution?

Designated Funds 
Hi. On our Treasurer report each month the Children's budget is listed ex:$2,500.00 & ex:$1,300.00 is used so far this year. On the final pg is the designated …

Church Collections 
Is it illegal to take cash right out of church collections and put it into your petty cash? Also, is it illegal to cash personal checks right out of the …

sale of the church van 
The church sold our van. I was told by several members I can not list the proceeds as revenue in the general ledger. Please let me know any suggestions, …

Counting Team 
How many churches out there have a counting team/committee that counts the Sunday offering? Has anyone had problems with a Counting team/committee revealing …

Paper Trail 
I'm curious how others handle a disbursement that does not have an invoice. For instance, at my small church we set aside funds from our tithes & offerings …

Church Incorporation 
I do not know if our church is incorporated or not. We affiliate in fellowship with an organization that is now wanting us to send them our articles …

Question: tax forms/obligation for one time worker 
We are a small church; planning to pay a onetime worker $10/hour to assist in the nursery for a special event and simply cut her a check (which is posted …

Winding up process 
I have try to search your site on what the winding up process is for closing out the books but I didn't see anything. Can anyone help answer my question …

Office  
We have a small church.Our current copier is a Cannon and was bought years ago when we had a larger need for a lot of copies. It is now on its last legs. …

Can you have a volunteer position but pay for the individuals clergy classes? 
We have a proposal for a "position" in our church for an individual to complete some job duties but only wants to be reimbursed some clergy classes for …

refundable insurance premiums paid for pastor 
This is concerning Form 8941 to apply for the credit for paying insurance premiums for employees. After doing all the math and proving by common law …

1099's for traveling ministers 
Do you include payments to the minister for reimbursable expenses i.e. airfare, hotel etc. if it's paid directly to the minister rather than the airline …

Flowers 
At our church we have altar flowers each Sunday. A member from the church signs up for them and puts the $20 in the offering plate for them marked flowers. …

Reimbursement 
We are trying to go paperless. Is it ok to have people submit a picture of their receipt. Do we actually need the physical copies?

Categories/Accounts for Income and Expense 
Question: We just recently issued to checks for refunds. One was given to the pastor for writing a personal check to another church as a love offering. …

Giving Financial Statements to Member 
I have been a member of my church for almost two years. Recently I was talking to a former member and was told that the pastor made a statement from the …

pulpit supply allowable deductions? 
in 2012 I was asked to be pulpit supply for a rural church, Sunday and mid-week services. I filled in about 10-12 weeks for this church while still working …

Entering shirts in fund accounting. 
Our church took orders for shirts with our name and logo on them. Anyone who wanted a shirt could reimburse the church for the cost of a shirt. I need …

Gift to pastor used for housing equity allowance 
Our church recently received a sizeable contribution ($10,000) designated as a pastoral love gift. Our finance committee is unsure how to handle it, particularly …

Gifts to Associations 
We send monthly support to our associations, both local and others like BGCT. Is there any paperwork we need to issue or anything to substantiate our …

Church donation question 
Our church has supported a children's ministry for several years which has recently lost it's 501(C)3 exemption. The leaders of the ministry are not employees …

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Activities for Women's Ministry 
Could the membership give me some ideas for activities in our Women's Ministry Department? We are only 3 yrs old. Awaiting your response. Thank …

Restricted vs Unrestricted-Monetary Restricted 
Several years ago our Fall Festival Committee used funds raised at the Fall Festival to purchase "Balcony" chairs. Session has recently decided it would …

LEGAL OR ILLEGAL ACCORDING TO 501(C)3??? 
My pastor wants to use his future salary of $20,000 to help fund a GOSPELFEST Fundraiser.Being a small Church, the church would not be responsible if all …

what taxes are paid by churches that are not 501c3? 
What taxes are paid by ministries/churches each year that are not 501c3 eligible?

CEMETARY BOARDS AND CHURCH BOARDS 
DO CHURCHES HAVE TO HAVE A CEMETARY BOARD SEPERATE FROM A CHURCH BOARD IN THE STATE OF ILLINOIS?

Church Acting as Agency for Missionary - leftover funds 
We have a missionary doing fundraising for her own mission trip. We are managing the donations received for her mission trip. Checks are payable to our …

paying for yardwork 
Church is approached by individual needing some money (family in need) but willing to work for it, they offer to do some yard work at church for $50.00. …

How to set up a church secretary as an employee? 
How to set up a church secretary as an employee?

Church Program Definition 
Would someone please explain the "Church Program Definition"? Thank you!

Bank for church loan 
We are in process of buying a church property. I am search for a lender for church loan in roselle park, NJ Thanks

church administrator 
Does the church have to send any annual reports or documents other than the 941 quarterly report to the IRS or Secretary of State. Our church is 501(c)3 …

Small funds as other current liabilities 
Our church uses fund accounting, but has several small liability accounts for projects with remaining balances. Can/should funds be shown as liabilities …

Quickbooks question 
I am the treasurer of our church and we just started using Quickbooks. I am hoping someone can give me step by step instructions on how to set up a CD. …

Available for MAC? 
Is this program useable on a MAC? I've just been elected treasurer, and the previous treasurer used it on his pc. Thanks.

Churches and Benefit Dinners 
A church member recently contacted me to see if they could hold a Benefit Dinner and Silent Auction at the church for her ill daughter. They have area …

Missionary tax return. 
I need some help with a missionary's tax return. it seems like it may be similar to ministers taxes but I am not sure. Any help or where to research …

Question: Should a church should withhold taxes from a pastor ? 
Some sites say a church needs to withhold taxes, except FICA, from a pastor wages. Some sites say not to. Some sites say a pastor has to request taxes …

Clothing Donations 
Our church would like to start a ministry where we collect clothing and give it away to needy families. What things do we need to do in order to cover …

Contract for Musican 
I need a contract for our church musican!

Stuck in "Read Only" mode 
My spreadsheet has somehow gotten stuck in the "read only" mode. I can't figure out how to change it back. Help!

Love offering to church member 
If our small church would like to pay for a member's roof to be fixed as a charitable gift, can we do that? Can we just write a check to pay the repairman? …

Employee Income 
Our church employees receive a discounted rate for their children enrolled in our Preschool (2 - 4 years old). Is the difference in the discounted …

Audit of Church Books 
As the church treasurer, I have been asked to give to our internal auditor a copy of all individual contribution statements. Is this okay to do? Do I …

pastor health care 
has anyone heard of Christian Health Ministries? http://www.chministries.org/ our pastor recently had us change him to this and I am wondering if it qualifies …

Does a church have to pay taxes on the sale of a burial plot? 
Our church policies provide for the sale of burial plots in our church cemetery. Are federal and state sales taxes (or any other tax) due on the sale? …

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Tax write off eligible before 501c3 is filed? 
We are wondering if our church members can receive tax write offs for offerings given before the 501c3 is filed for the church?

Full-time Student Pastor not Ordained or Licensed  
I am a Full-time Student Pastor not Ordained or Licensed and the church is not withholding anything from my paycheck. Are they supposed to be paying half …

Scholarship recipient, 1099 misc or w2 or don't report. 
Our church setup a scholarship to support seminary students last year. The student helped us to lead youth program in the summer but that's not the condition …

Pastor cell phone credit 
Pastor traded in cell phone for a new one and received $240 credit to be applied to future cell phone bills. Should credit be booked as income or do not …

Payroll-related tax forms possible for churches 
Are the only possible payroll-related tax forms required for churches to file 941s, 940s, 944, W-2s, W-3, and 1099-MISCs and 1096s if the church pays independent …

Mid-Year Budget Change 
Our church leadership has been advised to raise certain budget line items mid-year. Specifically, when an expense class has been exceeded, the deacons …

Training workshops 
I have more of a question.....Are there ever any workshops or seminars for Administrators of growing churches?

Church Accounting Book 
Do you have the Church Accounting Book in "book" form instead of E Book? I like something in my hand I can read. vickey's reply Yes and no. …

Handling of payment to childcare workers 
We are going to pay individuals for childcare during our church activities. What is the best way to handle this? Should these people be treated as independent …

Contribution Letter for the Donation on an Organ 
I need to write an annual contribution letter for the donation of an organ to someone so they can have documentation for tax purposes. Does any have a …

Can't locate w-2 for pastor 
Where do we get a W-2 for the pastor vickey's reply You cannot download a W-2 form, you can order official IRS forms, call 1-800-TAX-FORM …

severence pay 
What is the average severance pay for an assistant pastor that worked for 2 1/2 years, that is laid off due to church's financial situation and the economy? …

Moving Expenses 
My husband (ordained elder) and I moved to Florida to because he was offered a position as assistant pastor at a church. However, after moving that position …

Treasurer 
Question: What is the standard definition of Severance Pay, and how is it used on your employees? I was always under the impression severance pay was …

Stipends 
Do we have to withhold tax for stipends given to a seminary student ministering in our church? Thanks. Know the answer? Face the same situation? …

Wife of a Retiring Minister 
My husband is retiring after 35 years of full time ministry as a pastor. My question is: can he deduct our moving expenses to relocate to the place …

Signing Checks 
We require 2 signatures on all checks written from either of our fund accounts. We have 5 people on the signature card at the bank. Two of the signers …

Books for Minister 
Our preacher receives a book allowance each month. Do the books belong to the church or to the minister? If they belong to the minister, does it need …

Health Insurance Payment 
I am a part of a small church. Both myself and the other pastor have private health insurance. 1) Are the health insurance costs considered benefits …

Health Savings Account 
Can the church pay directly into a Pastor's Health Savings Account? If they can does that exempt the pastor from Self-employment taxes on the Health Savings …

allowance 
Is the minister allowed to use the churches credit card for personals Answer No. Church credit cards are for church business only.

Church Personnel Policy Manual 
Guidelines for vacation, personal time, and sick for senior pastor and youth pastor. The Board does not have a policy prepare as of yet we are a 4 year …

Correcting entry regarding income entries(QUESTION) 
1)Contributions are made and the initial entry is a debit to regular checking account(unrestricted fund)and a credit to adult church support(income account). …

Gifts of Property 
How do we handle gifts of property to the church such as car, boat, house? Answer There are special IRS requirements for contributions of …

1099 vs. W-2? Housing vs. Salary vs. Love Offerings? 
Question regarding pastoral support: I've read through a ton of your posts and first want to say thank you and the other participants. I am helping …

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1099 question 
In your article on 1099-MISC filing you state, 'direct payment to traveling evangelists and missionaries would also receive a 1009-MISC. Does that include …

Tax Exempt Letter 
We are a church with a 501-c and my question is about the tax exempt letter you take when you go shopping for the church. We live in North Carolina …

Accounting for loose offering 
Sometimes we don't make payroll for our pastor. The finance person takes the loose offering and gives it to him to makeup for what he has not received. …

Debit or Credit 
I took an intensive accounting course for six weeks, prayerfully got a "B" but never understood fully what you count as a "debit or credit". Can anyone …

Designated Funds or Restricted Funds 
What's the difference between designated funds and restricted funds. Know the answer? Face the same situation? Please post your answer or comment …

Amount of Time to Decide to use Monies From Building Fund 
We have a small church (about 125 in attendance). We don't have any building projects in progress or any planned for the future presently. But sometimes …

Hospitality or Benevolence 
What is the difference between hospitailty expenses and benevolence expenses? When groceries are brought with a church check to prepare a meal after a …

CLERGY/PASTOR KNOWLEDGE OF GIVING 
Having served as a Pastor for several years in large and small congregations .......... It seems the Senior Pastor may want to know if his leadership …

BALANCE SHEET 
Vickey, Thank you for your kindness and generosity in sharing your expertise. So sorry to learn of your husband's challenge and yours also. I am working …

Filing church records 
I need to know from church secretaries what filing system they use to file church correspondence, financial records, personnel records, etc. or can they …

Timecards and Salaried/Exempt employees 
Is it a common practice to have salaried employees fill out timecards and sign them. Our payroll clerk fills out a timecard sheet for all salaried employees …

Returned Check 
How should a small church handle returned checks? Know the answer? Face the same situation? Please post your answer or comment by using the "comment" …

Salaries & Benefits vs Total Budget 
What is the business ratio for Salaries and Benefits versus the Total Budget for the church? 25% in the budget, 50% of the budget? We are reviewing our …

How does the church record & report for tax purposes when giving the pastor a car? 
Our church board has approved the purchase of a car for our pastor to replace his old one. As church secretary/treasurer, how would I record & report this …

Church Loan 
Can a member loan the church money? If so, how is the repayment amounts recorded in the books? I would like to hear your advice/comments. Answer …

Using the Reimbursement method??? 
Is it a best way to reimburse the Staff who take care of buying materials, supplies for the church. He/She turns in the receipts with total then the church …

Missionary Support 
Our church has been receiving missionary support for a couple who were getting ready to go overseas. They were going through the process of being …

Loan from General Fund to Pastor 
We have a small 200-300 member church located in Maryland. Recently the air-conditioning/heating unit at our pastor's residence went bad. (he does …

Church Paying Medical Expenses Considered Income? 
In addition to paying the premium on our Pastor's Individual insurance plan our church has decided to cover certain additional medical and dental expenses …

Permanent record retention schedule 
Our church closed & reopened under district ruling. do we need to keep the past churches bank statements & ccl checks etc. or can we destroy them since …

Filing church taxes 
Do all small churches, no mater how small, file church taxes each year if they are set up as non proper/tax exempt? Know the answer? Face the same …

Worker's Comp Insurance 
Are churches required to carry a worker compensation policy? Know the answer? Face the same situation? Please post your answer or comment by using …

CPE Units? 
Hello, I was recently told that anyone handling church bookkeeping needs to have something like 21 units of CPE credits annually. Can you help shed …

Treasurer 
I have a couple of questions: 1. We are a very small church (about 60 regular attendees). Our pastor has a jail ministry and at this time has a married …

Is our church truly exempt from tax filing? 
Our church has never filed a Form 941 to my knowledge. However, I want to make sure we are right in not doing it. I am the pastor and the only employee …

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Forms or Documentation for International Visiting Pastors 
Are international visiting pastors supposed to fill out a form for money given when they preach? Have a suggestion or comment? Please click on …

Church Bank Accounts 
Is it illegal for the women’s auxiliary to have their own Bank account. Know the answer? Face the same situation? Please post your answer or comment …

depreciation 
How does a church record depreciation? Is it reported on tax filings? Vickey's Answer This post explains more about depreciation . …

CPA accounting for small churches 
Should pastors do books and know who pays tithes within a small church? Answer That depends on the pastor and the availability of staff. …

Paying Visiting Ministers 
I have handled accounting for several small churches in the past/present. I continually hear disagreements on what to call the amount of money given to …

what tax forms do we need to file? 
We are a small church(less than 50 members).We don't have any employees and we don't pay a pastor. Do we need to file any tax forms with the IRS? Answer …

Prayer / Testimonie 
God be with you and your husband Kevin, Vickie through this tough time, this is just another hurdle for you to climb using your faith, God is the greatest. …

Clergy Tax Preparation 
Can you direct me towards a good clergy tax preparing in my area? I have been sending my taxes out of town for the past 20 years. :) Burnsville, MN …

Annual Financial Report - When should you give it out? 
My husband and I are the Youth Pastor's at our church and we just had our Annual Review meeting for our church (Febuary 2010). We were given the Annual …

Bank Accounts 
Is it OK for a pastor to have a separate personal bank account in the name of the church? Answer The only way I can think of that would be …

Medical Insurance, Life Insurance & Health Savings Accounts for Pastor's 
We are in the process of having the board write up a church plan to be placed in our board minutes to exclude certain benefits from taxable income for …

Automatic Bill Pay 
Question regarding on-line bill paying: Our treasurer is trying to retire after many years of being our treasurer. Everything has been done by hand …

Changed Budget Mid-Year 
We just voted in a changed budget 6 months into the year. Do we put the budget amount in to divide it up by 12 months or keep the past six months figures …

writing checks vs.online bill pay 
Is it recommended that I pay our church's bills by writing a check ONLY, or is it ok to pay bills online directly to the creditor? Vickey's Reply …

Mail Merge Question 
Question about using mail merge for annual contribution statement: Vickey, We've used your contribution spreadsheets this past year, and they have …

Startup Budget 
I am building a business plan for a new work in Oregon. My question is how to setup a budget for the first year with projections out to 5 years. I will …