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Pastor

Continuing education for ministry leaders
Pastor
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

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This Week's LessonWeek of April 12

Loans to Pastors - Part 1

Introduction

This week we turn our attention to Part 1 of Loans to Pastors. 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.

Pastor D would like to purchase a new home, but needs help with a down payment. The church board agrees to loan Pastor D $25,000 at no interest, payable on demand. Does the church have the legal authority to enter into such a transaction?

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Many churches have made loans to a pastor. But few church leaders understand the legal and tax implications associated with such loans. For example, the nonprofit corporation laws of many states prohibit incorporated churches from making loans to an officer or director. Such law often will apply ...

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