Is a love offering for the pastor considered taxable income?
According to Richard Hammar, author of “Church and Clergy Tax Guide,” there are several tax cases one can draw upon regarding special occasion gifts. One criterion in determining whether the gift is taxable or nontaxable is the intent with which the money is given. If the donor wants to provide additional compensation to his/her minister in recognition of services rendered, then the contribution ordinarily will be taxable compensation rather than a tax-free gift. If the contribution “proceeds from a detached and disinterested generosity” and is offered out of sincere affection, respect and admiration, not out of a desire to compensate the pastor more fully for services rendered, it might qualify as a gift. In all cases, the contribution must be made directly to the pastor, not the church, and the giver receives no tax deduction. One of the examples in the tax guide is that of a Christmas gift offering. The offering is announced, and members are informed to make their gifts directly to
