Blog
What Is Fund Accounting for Churches?
While the fundamentals of accounting are similar across industries, the desired outcome of the accounting function does vary depending on the nature of the organization. Unlike the corporate accounting methods used by for-profit businesses, fund accounting focuses on...
Church Accounting 101: Best Practices and Expert Insights
Church accounting is a specialized form of nonprofit accounting that records and tracks the revenue collected, expenditures incurred, assets purchased, and liabilities incurred for churches and their related entities. For over two decades, our team has focused...
What Is Bookkeeping for Churches and Is It the Right Choice for Your Organization?
Similar to other nonprofit organizations, churches must fund their mission while complying with a variety of record keeping requirements and laws. This means that they must keep accurate records of revenue collected, expenditures incurred, assets purchased and...
Can my church legally show the Super B*wl?
In short, yes, but there are stipulations. First off, it’s probably best to avoid the use of the term “Super Bowl” as it is protected trademark of the NFL. Secondly, a church should only use equipment that it uses on an ongoing basis for ministry purposes(i.e. don’t...
Do your volunteers’ hours constitute non-cash revenue?
The recognition of volunteer labor as non-cash revenue is dictated by FASB ASC 958-605-25-16, Contributed Services. This standard dictates that if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by people with...
Donations designated for individuals are not deductible in most cases
A gift which is made to a church but designated for a specific individual is normally not tax-deductible to the donor. The rationale for this rule is that the gift is not intended for the benefit of the church but, rather, for the benefit of an individual. The...
The importance of donor letters
Just how important are those end of year donor letters and statements that charitable organizations send? Very important, according to the IRS. In a recent case, courts disallowed a charitable contribution deduction for a donor because of a defective donor letter sent...
Are Love Offerings Taxable to the Recipient?
At times, churches can receive funds from members of their congregations specifically for a pastor, musician, or another individual to honor and bless them for their service to the church. These funds are often referred to as “love offerings,” and these amounts must...
Fun with FICA tax!
One confusing area of church payroll is how to handle Social Security & Medicare taxes for Ordained/Licensed ministers. Ordained/Licensed ministers are considered to be self-employed when it comes to their income from the church. This means that churches are not...
Employee Classification
One of the things that have been on the IRS’ radar in recent years is employee mis-classification. Companies are tempted to classify workers as contract labor rather than employees because it saves them money on taxes. Others just simply don’t know the difference...