This lesson focuses on the issue of Safety Net Housing Allowances. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.
A church hires a new associate pastor in July. The church board approves a compensation package, but neglects to designate a housing allowance for the new pastor who has just purchased a new home. The board does not discover its omission until a compensation planning meeting at the end of the year. How could this outcome have been avoided?
Instructions Click on the correct answer for each of the following questions.
Churches should consider adopting a "safety net" allowance to protect against the loss of this significant tax benefit due to the inadvertent failure by the church to ...