April 12, 2011
Should Congress Change Pastors' Housing Allowances?
Several voices weigh in on an important tax benefit for clergy.
The newest issue of Christianity Today poses an interesting question: Should Congress change pastors' housing allowances?
Expect to hear a lot more on the topic in the weeks and months ahead. Since the conclusion of Sen. Charles Grassley's (R-Iowa) financial investigation of six large televangelism ministries, the Evangelical Council for Financial Accountability (ECFA) has been chosen to lead a commission responding to Grassley's eight remaining questions about ministry finances, including "Should there be specific guidelines controlling pastoral housing allowances?" The current tax code excludes the rental value of a home from pastors' taxable income.
Christianity Today posed the question to a variety of people involved in theological, nonprofit, and church leadership, including our own Richard Hammar. Read these three responses, then weigh in with yours:
"In the paradoxical Christian spirit that a little sacrifice by some assures a more abundant future for all, reductions could reflect typical mortgage deductions by phasing out the allowance for pastors who make more than the typical American while leaving the allowance for the rest." —Gary Moore, founder, The Financial Seminary
"I'm all for saving tax money, but I do see the legal complication of giving tax breaks just to ministers, structured the way it is. A lot of ministers depend on it, and I don't want pastors to suffer. I hope it's retained, but at the same time it's hard for me to find reasons why it should be." —Gene Edward Veith, provost, Patrick Henry College
"The courts have consistently upheld the constitutionality of state and federal grants and loans that flow to clergy and ministerial students attending seminaries. Why? Because the beneficiary is the individual, not 'religion.' The housing allowance is similar." —Richard Hammar, senior editor, Church Law & Tax Report