Solutions from church and donor management software providers keep improving in their ability to help churches and ministries fulfill their mission! Their features to track and communicate with people, their web and mobile device interfaces, and their powerful database tools make this category of software a big help and valuable asset for today’s ministries ….

Housing allowance is a portion of clergy income that may be excluded from income for federal income tax purposes (W-2 “Box 1” wages) under Section 107 of the Internal Revenue Code. Housing allowance is reported in box 14. To be eligible, the pastor/clergy must be a “minister of the gospel” and be ordained, licensed, or…

For help with church compensation, check out the 2016-2017 Compensation Handbook for Church Staff.              

Most of the time, clergy get reimbursed by their church for any ministry/business expenses they pay for themselves. As a result, the IRS looks carefully at unreimbursed ministry/business expenses. Many items are potentially deductible, including dues and license fees, subscriptions to subscriptions and publications related to your ministry, supplies, and professional clothing. Yet the temptation among…

Getting audited can be the worst nightmare for clergy, but that shouldn’t stop you from taking advantage of the tax deductions you’re legally entitled to take. You should just take care to make sure you have the documentation you need to back up your deduction if the IRS decides to take a closer look at your return….

A minister who wishes to be exempt from social security/Medicare tax must file a Form 4361 with the IRS for approval. Before your application can be approved, the IRS must verify that you are aware of the grounds for exemption and that you want the exemption on that basis. IRS Form 4361 When your completed…

Equipment and materials can qualify for the Energy Property Credit only if they meet technical efficiency standards set by the Department of Energy. The manufacturer can tell you whether a particular item meets those standards. For this credit, the IRS distinguishes between two kinds of upgrades. The first is “qualified energy efficiency improvements,” and it…

It’s easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles, and it will tow it away. If you want to maximize the benefits for both the charity and yourself, however, it’s more complicated. Until 2005, it was easy…

How to Update an Employee Handbook for 2017 Churches should take note as a number of significant legal changes on the federal and state level have or will have a substantial impact on workplace policies and employee handbooks. Thus, it is essential for the church to review, amend and properly update its handbook for 2017  so that it reflects…