Are Traveling Evangelists Entitled to a Housing Allowance?
At the beginning of December each year we usually receive a multitude of questions concerning housing allowances. One of the most frequent questions is whether a traveling evangelist is entitled to such a benefit. The answer is yes if the following criteria is met:
(1) The traveling evangelists maintains a permanent home;
(2) Have local churches in which they conduct religious meetings; and
(3) Declare in advance a portion of their compensation as a housing allowance.
The requirement that each church designate a portion of an evangelist’s compensation as a housing allowance is certainly an inconvenience, but it is well worth it.
Some evangelists have created nonprofit corporations to avoid such an inconvenience. One of the justifications sometimes given for this procedure is to enable the evangelist to avoid the inconvenience of having each church designate a portion of his or her compensation has a housing or rental allowance—the idea being that the corporation can designate a portion of the evangelist’s annual income as a housing allowance in a single action.
To ensure accountability, analysts recommend that churches issue evangelists and other guest speakers a Form 1099 if the church pays them compensation of $600 or more. The church should include a housing allowance designation when computing the compensation, but also provide the evangelist or guest speaker with a written housing allowance designation on the church’s stationary to confirm the housing allowance amount.
This is helpful information, however, if the compensation is less than $600 do they just need the letter from the church designating the housing allowance amount? I have always been a little unclear as to housing allowances, but this starts to iron out some of the questions relating to this. I can see where accountability is vital for even the smallest church.