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Living Rent-Free
Topic Started: Sep 15 2016, 01:46 PM (98 Views)
George K
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Finally
A church question:

As most of you know, unlike my bride, I'm not a particularly religious person. She has become quite involved with her church, and has recently accepted the position of financial secretary. It's a small congregation in a middle-class suburb just to the east of where I live. Congregation numbers about 300 or so. The church has a newish pastor who appears to be in his early 30s. Seems like a good sort, but, a bit on the conservative side - it is, after all, the Misery Missouri Synod. He and his wife have chosen to not live at the parsonage, keeping their downtown apartment.

Let's call this Church A.

There's another church, let's call it B, about 6 miles to the west, that has a faculty member in its school. He teaches music, English and I don't remember what else.

The pastor of Church B called the folks in the Church Council and asked whether, since the parsonage is empty, this teacher could live at the parsonage of Church A for free. This teacher would pay the utilities, but live rent-free.

The budget for the pastor includes his salary, his housing (I assume this is to cover the cost of his apartment's rental), health, pension, and professional expenses.

Obviously, this is bothering Mrs. George - the thought of someone living rent free. It's my understanding that the church is still on the hook for taxes and insurance. It also bothers her that, because of a loss of membership before the new pastor took over, they had to cut the new pastor's salary, as well as that of the full-time secretary.

The total budget for the pastor's money is quite reasonable for a childless couple (his wife works), when you consider that his health, retirement, etc are covered. But the fact that someone's living for free on church property, who's not even a member of the church rankles my bride.

She's mentioned that if the church started charging rent, that could affect their tax liability - I don't know enough about that, however.

Thoughts?
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TomK
HOLY CARP!!!
Rent should be charged. The parsonage is OFFERED to the pastor rent free. If he chooses not to take up the offer that's up to him. On the other hand the parsonage is church property and rent should be charged to anyone other than the pastor.

The "free rent" is perk of the job of pastor not a description of the parsonage. Besides, why can't you and the missus move in, or some homeless people or I could use a summer house?
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Rainman
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Fulla-Carp
TomK
Sep 15 2016, 01:55 PM
Rent should be charged. The parsonage is OFFERED to the pastor rent free. If he chooses not to take up the offer that's up to him. On the other hand the parsonage is church property and rent should be charged to anyone other than the pastor.

The "free rent" is perk of the job of pastor not a description of the parsonage. Besides, why can't you and the missus move in, or some homeless people or I could use a summer house?
TomK makes sense to me, I certainly agree with his perspective.

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Jolly
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Geaux Tigers!
George K
Sep 15 2016, 01:46 PM
A church question:

As most of you know, unlike my bride, I'm not a particularly religious person. She has become quite involved with her church, and has recently accepted the position of financial secretary. It's a small congregation in a middle-class suburb just to the east of where I live. Congregation numbers about 300 or so. The church has a newish pastor who appears to be in his early 30s. Seems like a good sort, but, a bit on the conservative side - it is, after all, the Misery Missouri Synod. He and his wife have chosen to not live at the parsonage, keeping their downtown apartment.

Let's call this Church A.

There's another church, let's call it B, about 6 miles to the west, that has a faculty member in its school. He teaches music, English and I don't remember what else.

The pastor of Church B called the folks in the Church Council and asked whether, since the parsonage is empty, this teacher could live at the parsonage of Church A for free. This teacher would pay the utilities, but live rent-free.

The budget for the pastor includes his salary, his housing (I assume this is to cover the cost of his apartment's rental), health, pension, and professional expenses.

Obviously, this is bothering Mrs. George - the thought of someone living rent free. It's my understanding that the church is still on the hook for taxes and insurance. It also bothers her that, because of a loss of membership before the new pastor took over, they had to cut the new pastor's salary, as well as that of the full-time secretary.

The total budget for the pastor's money is quite reasonable for a childless couple (his wife works), when you consider that his health, retirement, etc are covered. But the fact that someone's living for free on church property, who's not even a member of the church rankles my bride.

She's mentioned that if the church started charging rent, that could affect their tax liability - I don't know enough about that, however.

Thoughts?
Common deal down here.

And it all has to do with taxes. Imagine that...A pastor getting a housing supplement is better off tax-wise than a pastor living in a rent-free parsonage...That's why most pastors don't live in parsonages anymore (they did before the IRS changed the rules).

Most churches down here will charge rent for a parsonage, should somebody else live there. Now, how much rent, is dependent upon the owner. If the church wants to rent it out and they want to do somebody a favor, they can set the rate at a very attractive level, but still enough to cover repairs, etc.

Taxes, I'm not sure about. I'd run that one by an accountant.

And lastly, I don't know how things are done in her church, but to do something like that down here, in a SBC, would require a vote of the members in a business meeting.
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Axtremus
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HOLY CARP!!!
Make your decision based on your (tax) accountant's analysis. What argument/reason you give to publicly defend that decision can be dealt with later. Good luck.
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