The concept of “love offerings” relates to any gifts being given to your pastor by members of your congregation.

102, that “gross income does not include the value of property acquired by
gift.”  This means that if “love offerings,” are truly gifts, you do not have to
include them in your gross income for Federal income tax purposes.

 The issue in question here, are “love offerings” truly gifts or are they an
attempt by the congregation to pay a minister for services being rendered as a
pastor.  If they are deemed as payment for services rendered, then they amount
to income and cannot be considered gifts.

Intent Determines Gift or Income

 The United States Supreme Court has ruled (commissioner v Duberstein, 363
U.S.278,285 (1960)) that the most critical consideration in determining whether
a “gift” to a minister is a gift verses taxable compensation, is the donor’s
intention.

 If the donor gives the gift out of a detached and disinterested generosity,
out of affection, respect, admiration, charity or like impulses, then it is
considered a gift, according to the Supreme Court’s ruling.

Make It Obvious and Clear

Having said all, it is my professional advice to you that it be made obvious
and clear to the congregation, that:

1. A “love offering” is a spontaneous and
   voluntary gift of love and affection out of a detached and disinterested
   generosity and should state so on the envelope in bold. 

2. The donor will not receive a tax deduction for the gift. 

In order for the designation of love offerings as gifts to have full merit, a
minister must be receiving a compensation package from the church, which may
include the following items:

• Salary
• Housing allowance
• Car allowance
• Retirement benefits
• Education benefits
• Life insurance

A sample love offering envelope, and complete complete policy, etc. is
available in my free

Ministry Compliance Kit. The free kit includes over a dozen tools – complete
policies, letters and forms you can customize and implement for your ministry.

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