Tax & Compensation
Clergy Compensation
Earnings for Clergy — Federal Tax Implications
Clergy compensation is handled significantly different than other occupations. A document describing these implications can be found at the following IRS Document and is the best place to get a foundational understanding of the implications.
Compensation Q&A
Coming soon.
Helpful Forms & Documents
The following forms & documents are provided as tools for the local church. Most are not required by the GMC or SGAGMC but may be helpful for specific situations or circumstances:
Helpful Information Videos
The GMC Treasurer, Jeff Pospisil has posted a number of useful videos on his personal website that include training and details on clergy compensation and tax implications
Tax Exempt Status
Who do I contact for detailed information?
For questions beyond this information, please contact info@sgagmc.org.
Is our church tax-exempt from Federal taxes or must we file as a 501(c)(3)?
According to the United States Internal Revenue Service (the “IRS”), “Churches that meet the requirements of § 501(c)(3) of the Internal Revenue Code (the “IRC) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS” (See IRS Publication 1828). This ruling applies to (i) all U.S.-based churches that have been accepted as a member of the Global Methodist denomination (the “GMC”) and (ii) federal non-profit status.
What if I need documented proof of tax-exempt status?
Despite the clear language of the IRC and corresponding IRS Publications, some government agencies and private vendors are requiring proof that the entity is indeed a church meeting the requirements of IRC § 501(c)(3). While the GMC does not currently have a Group Ruling, it is currently working with the IRS to obtain a ruling that can be utilized by all member churches.
In the interim, the Treasurer of the GMC has developed a Tax-Exempt Confirmation Letter (the “Exemption Letter”) that can be requested to document that your organization is a Church and tax-exempt pursuant to IRC § 501(c)(3).
This form is available here along with an explanatory video.