We are an independent reformed church, our clergy do not receive a paycheck of any kind, they work for the love of God. However, by general consensus we wish to begin giving them a regular love offering. Is it allowed, and is it taxable to them?
Understand that this is NOT a payment for service but in appreciation for their sacrifices for God.
vickey's reply
Yes, it is allowed, but it would be taxable income for them. There are certain aspects of it that makes it definitely considered taxable income by the IRS. The biggest one is that is not spontaneous in nature.