Purse offering for retiring priest

by Kent
(Texas)

I am confused. Our priest is retiring. We plan on collecting a purse for him. We will tell the congregation that their contributions are not tax deductible. How will this be treated for the priest?

Comments for Purse offering for retiring priest

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Purse Offering Taxable Income to the Receipient
by: Vickey

I respectively disagree with Anonymous on Dec 16th 2022.

Even if the checks were written to the minister and NOT ran thru the church's accounting records and payroll, the IRS would still consider it "a payment for services" and classify it as taxable income.

The difference would be that it would then be the minister's responsibility to report the "income".
Not payroll
by: Anonymous

Have checks made out to an individual(senior warden). Checks and cash collected and recorded by junior warden. Once recorded, senior warden deposits and gets cashiers check or gift card for total gift. It is not income and should not be run through the church payroll.
income
by: Anonymous

all monies received through the church for the pastor are considered income and reported on W-2 box 1.

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