LEGAL OR ILLEGAL ACCORDING TO 501(C)3???

by Charlie
(Winston-Salem, NC 27106)

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 of the $20,000 put out up front was not recouped. I tried to find something in the 501(c) 3 to no avail. I am very hesitant to put the church in this situation. The Pastor thinks this is ok. I disagree. Let me know if you have an opinion or have had anyone report on anything of this nature.

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salary for fundraiser
by: Anonymous

There are way's to deduct donations to charities from a paycheck to lower the taxable amount, however churches do not take out tax from pastors anyway so the easiest way would be:
pay him then he would donate it back to the church, it is income to him but becomes a tax deduction (if given to a "general" fund account) and he would get a statement at the end of the year.
I do not advise making a deduction in his salary unless you talk to an accountant as there are bound to be specific rules to follow on pre tax salary deductions.
Hope this helps

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