Honoring Our Pastors: Getting Ready for Pastor Appreciation Day
By Analiese Rivera
A Time to Celebrate Our Spiritual Leaders
Pastors stand with us through some of life’s most significant moments: weddings, funerals, baby dedications, etc. They’re the spiritual anchors we turn to in times of need. That’s why each year, we dedicate time to celebrate their unwavering commitment and leadership.
The Apostle Paul encouraged honoring believers who shepherd the church well. In 1 Timothy and again in 1 Thessalonians, he emphasizes that spiritual leaders are "worthy of double honor."
3 Creative and Tax-Friendly Ways to Show Your Gratitude
Here are practical ideas that uplift while respecting pastor tax implications:
- Handwritten Cards & Encouragement Jars
Nothing beats the impact of heartfelt words. A personal note or a jar filled with encouraging messages and Bible verses is a meaningful way to express gratitude. - Working Condition Fringe Benefits
Consider giving your pastor something that benefits their ministry, like registration for a pastoral conference. IRS codes cover this type of gift, which can be tax-exempt when it’s related to their job. - Qualified Employee Achievement Awards
The IRS allows tangible, meaningful gifts given in recognition of service. Under IRC sections 74 and 274(j)(B), churches can award items like electronics, gift certificates, and tickets to sports games, provided they meet the criteria for length-of-service awards and don't exceed $1,600 in value (averaging not more than $400 per employee).
A Few Important Tax Guidelines
While honoring your pastor is a beautiful gesture, be mindful of this key tax guidance:
- Gifts of cash, gift cards, or certificates are taxable. The IRS considers these equivalent to income and requires them to be reported accordingly.
- Valuable tangible items, like electronics or cars, must also be treated as taxable fringe benefits unless they meet specific IRS exceptions. (ie, the Qualified Employee Achievement Awards mentioned above).
- Small, thoughtful items, like a gift basket, usually qualify as "de minimis fringe benefits" and do not need reporting.
Final Thoughts And Next Steps
Our pastors give so much to help our communities; honoring them with care and intentionality matters. As we approach Pastor Appreciation Day, consider celebrating with meaningful gestures that reflect both heartfelt appreciation and wise stewardship.
So many church and ministry leaders don't know where to start regarding compliance. StartCHURCH University is a comprehensive, self-paced course that simplifies the complexities of church law and regulations, making it easier than ever to begin your journey towards compliance. Give us a call at 770-638-3444 to learn more.
%schedule-a-call-cta%