LifeSpirit Congregational Church
www.lifespirit.org
Appropriate Church Funds & Expenditures

 A. FUNDS

 1. Exempt Donations or Exempt Passive Income

 Examples:

Gifts:  Donations*, Gifts, Grants
Passive Income: Dividends, Interest, Royalties & Capital Gains

 2. Active Income (sometimes exempt)

Examples: Income from debt-financed property - Exempt to the extent not indebted
Income from unencumbered realty - Exempt
Funds from church-related activities - Exempt
Unrelated business income - Not usually Exempt
Work performed by Minister or Religious on behalf of Church - Usually exempt

 B. EXPENDITURES

 1.          Religious Activities (Not taxable to minister or church)

           Examples:  costs of religious services and observances (including group meals), flowers, candles, incense for altars, religious statuary and images, etc.

 2.          Charitable Activities (Not taxable to minister or church)

           Examples:  donating funds or things to needy persons or to charities

 3.          Educational & Research Activities (Not taxable to minister or church)

           Examples:  costs of educational programs, ministerís continuing education, church library, research equipment, educational trips, equipment, materials, expenses, operation of church auxiliaries and affiliated organizations (sponsoring education, wellness programs and the like)

 4.          Ministerís Professional Expenses (Not taxable to minister or church)

           Examples:  office expenses, ministerial travel & professional entertainment

 5.          Parsonage Allowance (Not taxable to minister or church) (see: Parsonage Allowance)

           Examples:  rent, utilities, maintenance and enhancements to parsonage

 6.          Ministerís Stipend

           (May be taxable to minister if exceeds minimum to file; not taxable to church)

 7.          Church Administrative Activities & Expenses (Not taxable to minister or church)

           Examples:  church office location, equipment, utilities; insurance for church; the managing of church and retirement funds.

  

* Written receipts for donations over $75.00

Back to:  Instructions for the Ministry
Back to:  www.lifespirit.org

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