Clergy Tax Facts®

Clergy Love Gifts

Gifts from individual can be considered non-taxable if it is motivated by "love and affection." In order to be certain that such payments will be tax-free, all the conditions below must be met. Gifts received from the church are generally considered taxable income, i.e. Christmas or holiday bonus, compensation incentives, fee for performing weddings, funerals, and baptisms, etc.

love offerings cannot be solicited
are not conditioned on further services
must be spontaneous in nature
must be clearly ascertainable as a gift with no service attached
cannot qualify as a tax deduction for the donor
are motivated out of affection of an individual for another individual