This Week's LessonWeek of October 28
This week we turn our attention to Church Credit Cards. Start by completing the following quiz. Then review the Executive Summary for the key points on this topic, or read the Weekly Lesson for a complete discussion of this topic.
A church issues Pastor Bob a credit card with a $3,000 limit. Pastor Bob frequently uses the card to pay for gas, church-related meals, books, and supplies. The credit card company sends monthly invoices to the church, which are paid promptly. Pastor Bob is not required to substantiate the business nature of any expense because of a church policy restricting the use of the credit card to business-related expenses. Should the church report any of the credit card expenses that it pays as taxable income to Pastor Bob?
Instructions Click on the correct answer for each of the following questions.
Church credit cards are a convenient way for pastors and other staff members to pay for church-related expenses. However, it is important for church administrators to recognize that a church's payment of credit card bills may represent taxable income to the cardholder, depending on the amount of substantiation that the church requires before paying the bills. This week's lesson addresses what church administrators need to know about credit cards.