Accountable Reimbursement Plan
An accountable reimbursement plan is a highly effective and tax-efficient way for churches to provide financial support to pastors and staff while maintaining proper stewardship and compliance. Under this design, ministry-related expenses—such as travel, professional development, books, and certain work-related costs—are reimbursed by the church and are not treated as taxable income to the employee.
The value of an accountable plan lies in its ability to maximize tax savings while ensuring transparency and accountability. Employees submit documentation for legitimate ministry expenses, and the church reimburses those costs directly, allowing funds to be used for ministry purposes rather than lost to taxes. At the same time, the church benefits by properly structuring compensation, avoiding unnecessary payroll taxes, and maintaining clear, compliant financial records.
Overall, an accountable reimbursement plan helps churches support their leaders more effectively, reduce tax burdens, and promote responsible financial management in alignment with IRS guidelines.
2026 Housing Allowance Guide
2026 Housing Allowance Guide
The “Housing Allowance Exclusion” allows Clergy to exclude a portion of their income from Federal income tax in order to pay for housing. This results in less taxable income and less income tax. The “Housing Allowance Exclusion” is one of the biggest and best tax benefits currently available to Clergy, but it is also one of the most frequently misapplied.
This housing allowance guide provides following information:
- Housing Allowance Eligibility
- Different Types of Allowances
- What Expenses Qualify
- What expenses do not qualify?
- Substantiating expenses
- Designating a Housing Allowance
- How do I designate part of my salary as a Housing Allowance?
- How do I amend my Housing Allowance?
- Are there restrictions on how often or when I can change my
- Housing Allowance?
- Housing Allowance Limitations
- What is the Fair Rental Value of a Property?
- How do I calculate the Fair Rental Value of my Home?
- Housing / Manse / Parsonage Worksheet
- Housing / Manse / Parsonage Annual Form
2025 Housing Guide – PDF Download
The “Housing Allowance Exclusion” allows Clergy to exclude a portion of their income from Federal income tax in order to pay for housing. This results in less taxable income and less income tax. The “Housing Allowance Exclusion” is one of the biggest and best tax benefits currently available to Clergy, but it is also one of the most frequently misapplied.
This housing allowance guide provides following information:
- Housing Allowance Eligibility
- Different Types of Allowances
- What Expenses Qualify
- What expenses do not qualify?
- Substantiating expenses
- Designating a Housing Allowance
- How do I designate part of my salary as a Housing Allowance?
- How do I amend my Housing Allowance?
- Are there restrictions on how often or when I can change my
- Housing Allowance?
- Housing Allowance Limitations
- What is the Fair Rental Value of a Property?
- How do I calculate the Fair Rental Value of my Home?
- Housing / Manse / Parsonage Worksheet
- Housing / Manse / Parsonage Annual Form
Retainer
Example: If your retainer amount is $500.00, enter 500 in the quantity box.
Retainer Agreement
A retainer fee is an advance payment that’s made by a client that is considered a down payment on the future services rendered by Clergy Financial Resources.
This Agreement acknowledges that Clergy Financial Resources will represent the client based on the fee arrangement. A retainer fee may be paid on a fixed, pre-negotiated rate or on a variable hourly rate depending on the nature of retainer.
Retainer fees do not guarantee an outcome of the final service.
2024 Housing Guide – PDF Download
The “Housing Allowance Exclusion” allows Clergy to exclude a portion of their income from Federal income tax in order to pay for housing. This results in less taxable income and less income tax. The “Housing Allowance Exclusion” is one of the biggest and best tax benefits currently available to Clergy, but it is also one of the most frequently misapplied.
This housing allowance guide provides following information:
- Housing Allowance Eligibility
- Different Types of Allowances
- What Expenses Qualify
- What expenses do not qualify?
- Substantiating expenses
- Designating a Housing Allowance
- How do I designate part of my salary as a Housing Allowance?
- How do I amend my Housing Allowance?
- Are there restrictions on how often or when I can change my
- Housing Allowance?
- Housing Allowance Limitations
- What is the Fair Rental Value of a Property?
- How do I calculate the Fair Rental Value of my Home?
- Housing / Manse / Parsonage Worksheet
- Housing / Manse / Parsonage Annual Form
Online Organizer Instructions
NEW 2017 ONLINE ORGANIZER IS NOW AVAILABLE! Thank you for selecting the Clergy Tax Organizer ® to assist you with preparation of your tax returns. The organzier will help clergy accumulate and summarize their tax information to prepare a more accurate return. Each year we publish an organizer for clergy, which is designed to be…
Clergy Housing Allowance
Clergy Housing Allowance Ministers who own their home can not only take advantage of the housing allowance by including mortgage payments as housing expenses but also can deduct mortgage interest and property taxes on their itemized deductions. This is often referred to as a “double deduction. Once ministers pay off their mortgages, however, they can…
Estimated Payment Support
Is this your first ministry position? Have you had a change in compensation? With this innovative support plan, you no longer need to concern yourself with incurring endless charges at an hourly rate. We have simplified the process, one flat rate to calculate your estimated payments or optional withholdings. This service will ensure that your federal, social security and state tax liabilities are paid on time and no surprises at the end of the year.
Dependent Care Assistance Plan (IRC 129)
A Dependent Care Assistance Plan (DCAP) is a valuable, tax-advantaged benefit that allows churches to help pastors and staff cover the cost of qualifying dependent care expenses—such as childcare, preschool, or adult day care—while they are working or performing their ministry duties.
Through a DCAP, the church can reimburse eligible employees for these expenses on a pre-tax basis, meaning the funds are not subject to federal income or payroll taxes. This results in meaningful tax savings for employees while also reducing the church’s payroll tax obligations.
The benefit and value of a DCAP lie in its ability to:
- Lower out-of-pocket childcare costs for employees
- Increase take-home pay through tax-free reimbursements
- Provide a family-friendly benefit that supports work-life balance
Webinar – Principles of Compensation Planning for Clergy
Clergy Financial Resources would like to invite you to a webinar designed to teach the principles of compensation planning. The webinar is designed for clergy who are interested in recognizing new ways to minimize their own tax liability, in addition to, gaining a better understanding of the current tax laws that affect clergy today. Each webinar will be led by a clergy tax professional and will last between 45 to 60 minutes based on the level of discussion during the session.
Time: One-to-One | Contact Office To Schedule
Topics: Principles of Compensation Planning for Clergy
Who Should Attend:
• Clergy
• Associate Pastors
• Youth Pastors
• Seminary Students
• Lay Leaders
• Church Employees
What You Will Learn:
• How to build your salary package
• Allowance vs. Reimbursement
• Auto Expenses
• Professional Expenses
• Housing/Manse/Parsonage
• Ways to reduce your overall tax liability
• and more…
• Course Material included
Education level: Basic
If you would like to register more than one individual for this webinar, please enter the correct number of participants in the quantity box below, e.g. 2=two person, 3=three people, etc.