by Conrad Martin, Director of Finance
As tax season is upon us, it is important to be aware of two things a church does that may affect the taxable income for congregational employees/pastors — one taxable and one a pre-tax deduction.
- Love Gifts/ Offerings
Some churches give their pastor(s) a “love gift” or “love offering” in special appreciation for the many things they do for their congregation. These gifts come from either the pastor’s employing church or from individual members of the church. Sometimes these
gifts come from a special offering taken by the congregation for their pastor. Sometimes an individual member will feel the need to show their appreciation personally in a financial way, sometimes even unbeknownst to the congregation. In almost every case, the IRS will view “love gifts” as compensation for services rendered and therefore taxable. If coming from the church as the employer, the church needs to either include the love gift in the calculation of the W-2 or issue a 1099-MISC to the pastor. If coming from an individual, the pastor needs to include the gift in their taxable income. If you need further clarification, consult your tax accountant.
- Section 125 Flex Plan
If your congregation offers a medical insurance plan to their employees and also charges them a portion of the cost for the premium, those employee premium costs may be deductible from the employees’ taxable income. If your congregation offers as part of their medical insurance plan a Health Savings Account (HSA), the employees may contribute personally into their HSA through payroll deductions and those payroll deductions may be deductible from the employees’ taxable income. The key is, the church needs to have a Section 125 Flexible Benefits Plan documented. Sometimes this is called a Cafeteria Plan. Whatever it is called, it must be documented. There are many companies that can write such a plan for your church, one of which is Everence. Contact your local Everence Stewardship Consultant for more information.
Any time you have questions about your church finances, contact Conrad Martin at the conference office and he will help direct you to the answer.

It’s not been an easy time in 
“Taking care of our environment is the most important social justice issue today,” said Todd. He did not, however, discourage any of us from continuing to pursue the various peace and justice activities in which we are engaged. If we are going to minimize the damage resulting from the way we have been undermining water cycles, atmosphere, soil, oceans and thermal balance for the past 200 years of industrial growth, we need to find ways for everyone to have clean water and renewable energy sources. Human society needs to transition from industrial growth for the few to sustenance of life for all. If we keep Jesus at the center of our work locally, in our state and nation, and worldwide, the church can offer the world hope, love and peace as we work for this transition.
By the end of the final session, we felt highly energized and hopeful. Many of us want to continue this environmental theme for the next five years, at least as part of what we do at Peace Retreat. Some are motivated to form two or three ongoing regional groups within our two Conferences, to get together more often to encourage each other in efforts to care for God’s creation. Any who are interested in being part of that may contact John Stoltzfus who will coordinate the effort. Congregations, groups, or individuals are also encouraged to join the Watershed Way sponsored by the Mennonite Creation Care Network, and/or to accept a voluntary Carbon Tax.
This year I joined the shared worship at Blooming Glen, jointly planned with Deep Run East and Perkasie congregations. Each of the congregations’ pastoral leaders had a part. I found my eyes becoming full as I watched them mark each other’s foreheads, after finishing marking those who came forward. There was something both beautiful and awful in the fragility of the statement “from dust you’ve been created, and to dust you shall return,” being spoken to pastoral colleagues I know and love.
Last Thursday, we honored the relationships we have with our credentialed leaders in an evening dinner with music. It was a lovely night with good food and fellowship around tables while listening to some Gospel Folk music by The King’s Strings. It felt like an extravagant night out for some of us. A few pastors incredulously and skeptically wondered how the costs had been covered. Two families from our community paid the bill as a gift, to show their appreciation for our credentialed leaders and conference. Our pastors who attended felt honored. It’s one of the ways we honor life’s fragility, through generosity and appreciation. I’m grateful for our donors and our time together.
We were all drawn together on that cold, windy Monday evening, February 13, by the promise of fresh enchiladas and tostadas made by the members of Centro de Alabanza, along with some warm conversation with James Krabill of
Throughout the the evening, James shared Biblical principles about how the Cross brings reconciliation on a cosmic yet personal scale. He then reminded us that the ministry of reconciliation is God’s highest priority in the cosmos. At this point I leaned in, realizing how often this simple calling gets strangled by the tyranny of the urgent.
At this point, we changed tables to meet someone new and to share about our experiments and obstacles encountered in mission. I had the privilege of sitting with Lynne Allebach, the lay pastor from Arise Community Outreach, and Fernando Loyola, pastor of Centro de Alabanza. We reminisced about our own unexpected appointments, and commented on the unique shape of the ministry of reconciliation in our different settings. At the end of the evening, James offered a few final remarks, namely that Christianity comprises about one third of our planet, and that Islam comprises about one fourth of our planet. This is paramount to the ministry of reconciliation. We must recognize the task before us now, for the life of the world!
When Steve Kriss, Conference Executive Minister, invited me to consider being a LEADership Minister, I thought I had a pretty good idea of what to expect. I have a LEADership minister and I have been in the conference long enough to remember the early conversations of the role of a LEADership Minister. However, one of my first interactions, a phone call from an elder of a congregation I now serve as a LEADership Minster, caught me by surprise. Steve never warned me of such a call, nor was it listed in the memo of understanding I signed. I attended the training on mandatory reporting; Barbie Fischer, Conference Communication Manager, provided some guidelines for communication protocol so that confidentiality is maintained. I was ready to go, so I thought.
To not have history repeat itself it is important for both people of color and the white culture, to be intentional about inviting and retaining people of color. Hope for the Future allows space for discussion on how various things impact people in different ways. This year, discussions focused on what it means to be a peace church in consideration of the lived reality of people of color in this country, how to monitor and change when policies are being implemented inconsistently, and visioning for Hope for the Future.
its winter beauty, a dazzling display. Sunday afternoon when I’d plan to return home, four inches of new snow blanketed our vehicles. Vermonters for whom that is no big deal,
My change of plans was a minor inconvenience. But other situations feel more major. Heather Wolfe, member of the Taftsville Transition Team reflected on a piece of their four year pastoral search process. At one point, two pastoral candidates seemed to be real possibilities. However, both people withdrew their names from consideration. Dorcas Lehman, who was an interim pastor at that time, reminded the Team that Moses wandered in the wilderness for forty years before reaching the Promised Land. Surely Moses felt much disorientation, and disappointment. Heather remarked that they hoped it didn’t take 34 more years to get to their Promised Land of finding a pastor!
Krista began with her own story of disoriented following. She was about to graduate from seminary. A congregation inquired about her openness to a pastoral call. While on a silent retreat she sensed the Spirit validating her call to pastoral ministry. Soon there were multiple long-distance Skype interviews with a search committee resulting in a call to candidate at that church. Krista purchased plane tickets but then suddenly questions began to emerge from the search committee and the offer to be the pastoral candidate was withdrawn. Krista was obviously disoriented and devastated. Questions about that experience remain, but she testifies that it led to growth and new opportunities.