Editor’s Note: A resolution can only be applied prospectively, never retroactively. For a church to have a resolution in place for a specific calendar year, it needs to adopt the resolution by December 31 of the previous year. A resolution can be adopted after the start of a new calendar year, but it only applies from the date of the adoption and going forward.

Church boards can use the language below to create a resolution for a pastor who owns or rents a home.

The following resolution was duly adopted by the board of directors of [Name of Church] at a regularly scheduled meeting held on [Day/Month/Year], a quorum being present:

Whereas, ministers who own or rent their home do not pay federal income taxes on the amount of their compensation that their employing church designates in advance as a housing allowance, to the extent that the allowance represents compensation for ministerial services, is used to pay housing expenses, and does not exceed the fair rental value of the home (furnished, plus utilities); and

Whereas, Pastor [First/Last Name] is compensated by [Name of Church] exclusively for services as a minister of the gospel; and

Whereas, [Church Name] does not provide Pastor [First/Last Name] with a parsonage; therefore, it is hereby

Resolved, that the total compensation paid to Pastor [First/Last Name] for calendar year 20__ shall be [Pastor’s Compenstation $00,000,] of which [Amount $00,000] is hereby designated as a housing allowance; and it is further

Resolved, that the designation of [Amount $00,000] as a housing allowance shall apply to calendar year 20__ and all future years unless otherwise provided.

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