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Compensation and Benefits

A Maryland court ruled that it was not barred from resolving a lawsuit claiming the church acted improperly in paying off the home mortgage loans of the church's pastor.

Key point 2-03. Clergy compensation consists of a number of items that often are not well understood. Clergy compensation that is unreasonable in amount may jeopardize a church's tax-exempt status or trigger "intermediate sanctions" in the form of excise taxes that can be assessed against a recipient of unreasonable compensation.
Clergy Compensation

* A Maryland court ruled that it was not barred by the first amendment from resolving a lawsuit brought by church members claiming that their church acted improperly in paying off the home mortgage loans of the church's pastor and his son. A church congregation voted to sell the church property to another church for $900,000 in a duly called special business meeting. The congregation later convened another meeting to determine how to use the sales proceeds. A majority voted to use $400,000 to pay off mortgage loans on homes ...

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Posted:
  • January 3, 2005

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