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Q&A: What if Our Minister Requests a Housing Allowance that Exceeds His Total Salary?

A church can only allocate the total amount of its minister's yearly salary.

Q&A: What if Our Minister Requests a Housing Allowance that Exceeds His Total Salary?
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We just hired a pastor, and he is purchasing a new home with a very large down payment. This will make the cost of his housing higher than his salary. How do we handle that?

A church can only allocate an allowance up to the minister's yearly salary—presuming the minister qualifies for an allowance based on IRS requirements, and the anticipated housing costs represent compensation for ministerial services, go exclusively toward paying housing expenses, and reflect fair rental value of the home (furnished, plus utilities).

If a minister's housing expenses are higher than that, it's up to him or her to earn the difference elsewhere. If a minister does so, your church cannot designate more money for the allowance under the presumption that your minister will earn income from other jobs to make up the difference.

Let's say your minister earns $15,000 a year with your church, ...

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Posted:
  • February 14, 2017

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