My Sunday Message and the Constructive Receipt Doctrine

By Raul Rivera

Have you ever felt impressed by the Lord to prepare a certain message that you know will have a major impact on the congregation? Well, let me tell you my experience about just such a message. I spent many hours preparing for a particular message on redemption. As I studied Scripture and went over the main points of the message, I could not get a release from the Lord. More study and meditation was required of me until finally, after three days and over 12 hours of my time invested, I felt like it was the "best message ever." In my mind it was going to be great... step aside, Mr. Jakes...this message is going to be great!

Sunday Morning

As Sunday approached, the excitement level in my heart was at an all time high. I could not remember a time when I was so excited to share a message. As soon as praise and worship ended, announcements were given, and the offering was over, I took the pulpit and began to deliver my message. I shared how God redeems by forgiving, restoring and lifting up.  I was feeling it as I shared it. In fact, I knew that if I was not the preacher, but instead a congregant that day, I would have likely responded to the altar call. Closing the message, I made the call, "Anyone whose life is battered and in need of redemption for their souls, please come to the altar and I will pray for you." To my dismay, not one person responded. To no avail, I tried to help the Holy Ghost, by making the call a second time. The response was nothing, nada....all you could hear were the sound of crickets.
 
My great excitement and anticipation of a world-changing message with an anointed altar call turned into indignation and depression. I closed the message and ended the service by dismissing everyone. There was the typical shaking of hands, and as is true to the Spanish culture, hugs and kisses.

How one man's life changed

As the sanctuary was emptying, one man approached me with tears in his eyes. He was noticeably moved at an emotional and spiritual level. He held me tight in his arms and I felt the trembling caused by his sobs. "Pastor, thank you for that word. I was about to quit coming to church and go back to my life of drinking and fighting. I never got a chance to say goodbye to my father or hear one affirming word from him before he passed. Your message reminded me that I have a Father in heaven who affirms me. Now, I have nothing to fear."

The economic benefit doctrine

The man left my presence but shortly returned and handed me an envelope. In it was a note that simply read "thank you." With the note were three crisp 100 dollar bills. I was blessed. But then repented for being upset earlier. I had a revelation that my 12 hours of message preparation were for one man. Talk about leaving the 99 and going for the one. Now for the million dollar question..."Is the $300 offering taxable? Should I report it on my tax return?"

The definition of a minister

The answer lies in two sections of the IRS code and income tax regulation 1.45. section 3401(a)(9), which defines a minister as a self-employed individual performing religious services for remuneration (compensation). Moreover, section 61 defines gross income for tax purposes as "all income from whatever source derived." Because a minister's livelihood comes from the preaching and teaching of the Word, any income he or she receives from it is taxable even if it does not come from an officially established church or ministry. You see, the man that gave me the $300 was motivated to do so because of a religious service I rendered unto him. Therefore, the tax code and the constructive receipt doctrine made it taxable.

What is the constructive receipt doctrine?

You may have thought when you read the title that the constructive receipt doctrine was a new biblical concept or something similar. Unfortunately, it is a legal doctrine used to determine when income is taxable and when it is not. In my case, as the preacher of a message, the constructive receipt doctrine kicked in as soon as the context of the reason for which the man gave me the offering established two things:.

1. He was motivated to give because of a service I performed as a minister.
2. I had unfettered command of the money and;
3. I was free to enjoy it at my own option.

I never cease to be amazed at the far-reaching arm of Congress to ensure that all income-producing activities fall under some tax code or regulation. Nevertheless, the law is the law and a minister is under a legal and moral obligation to include such love offerings on his or her personal income tax returns.  There are numerous other scenarios that play out every Sunday which make many transactions taxable, while at the same time there are numbers of strategies that exist to channel love offerings properly in order to reduce their taxability, if not eliminate taxes altogether.

How to do it right

At all of our conferences we teach the proper way to receive a love offering and report it on a tax return, and we explain how to keep it almost entirely tax free. This and other valuable information is thoroughly covered in our Church Compliance and Ministry Empowerment seminar and there has never been a better time to register than now.  To help you and your ministry learn all you can about this and other critical topics, for the month of August we are offering our register-one-person-get-one-person-free promotion. Take advantage of the offer today and start the journey that will help move your church to the next level. Blessings to you!