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 
The DelVal WEW group formed after a number of local women took an inspiring trip to Ethiopia with MEDA. The women participating on the trip began brainstorming about how to create a more personal way for local women to learn about the impact of MEDA programs in regards to women, and the concept for WEW was born.
activities that increase understanding of the day-to-day issues women face in countries where access to education, equality and business is often challenged by their culture. During the meeting, participants get to try foods that are common to the highlighted country and there is time set aside for questions , discussion and networking. At each meeting, women will learn ways they can continue to support the work of MEDA, and make a difference in the lives of these women.
The last WEW meeting focused on Ghana, which was especially insightful because three area women had visited the projects in Ghana the month before the local meeting, and they were able to share their personal insights and photos from the trip. The meeting highlighted the work of the Ghana Grow program (Greater Rural Opportunities for Women), which has already reached over 20,000 women and provided them with improved farming techniques, nutritional awareness, financial services, and better access to markets. In turn, these improvements have led to greater income for the women, better nutrition for their families (providing more protein for their children) and an increased ‘voice’ in their families and communities, due to their farming successes.
Women are encouraged and invited to join this dynamic and growing new program! The next meeting focuses on how MEDA is supporting women entrepreneurs in Libya and will be held on Thursday, March 30 from 7:00 to 8:30 pm at Harleysville Party Rental, 851 Maple Ave. Feel free to just come, or can register ahead of time with Allison Nafiziger via email (
“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.
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.
“The extent to which we are surprised by the results of the election demonstrates the poverty of our relationships. The extent to which we don’t understand the need for immigration reform demonstrates the poverty of our relationships.” As I listened to
One of the things I love about SLT is that it turns people of authority into students for a few days. The ones I’m used to seeing up front at conference and denominational events are sitting and listening, taking notes and asking questions. At SLT, we participants — the majority of us white church leaders with a significant amount of agency in our daily lives — learned from keynote speakers Dr. Cleveland and
Using illustrations from scripture and their lives, the speakers explored the depth of race’s impact on our society. They explored how our racialized society maintains itself and why it’s so hard for white people to see and confront racism — why we need people with a “view from the underside,” in Hart’s words, to recognize it. They called the largely white audience to recognize how we’ve been socialized into racial bias, and that Jesus never called us to shame but to repentance and new life together. Dr. Cleveland showed us by example how to notice privilege in our own lives. We were being tutored in how to reach beyond ourselves as a demonstration of respect and also of our need.
But it’s not just that we need each other’s perspective, or that we need to learn from one another to understand Jesus’ message. No, we each have a role to play in dismantling racism, wherever we are. When we’re uncomfortable we can benefit by staying at the table and continuing the conversation. In fact, that’s what we were doing at the conference: listening, learning, checking our assumptions and discerning our next steps. One conference attendee asked Drew Hart, “What can I do about racism in my predominantly white community?” and Hart responded, “You’re right at the center of the action!” Throughout the conference I heard calls to learn and act right where we are, building relationships with our literal neighbors. I attended a workshop where we practiced listening to people we disagreed with. In another workshop we discussed what it means to “seek the peace of the city” where you are (Jer. 29:7) and spent some time brainstorming for our own contexts.