Did you know these legal and financial tidbits?
by C. Conrad Martin
Are churches a 501c3 charity?
Did you know that churches are automatically a charitable organization (or a 501c3 organization) and do not need to apply for their own 501c3 status? According to the Internal Revenue Service (IRS) the only requirements for a church to be considered a charity is that they be organized and operating exclusively for charitable or religious purposes, not sharing earnings with individuals, and not influencing legislation. So in simple terms, if your church is following the above then your church is a charity.
Sometimes donors want proof that a church is indeed a charity. How can you prove that your church is a charity? If your church is a member congregation of Franconia Conference, conference staff can provide your church with a document stating that your church is in fact a church as defined by the IRS and therefore a charity. This document works to satisfy the needs of donors.
What is a ministers housing allowance, who is eligible to claim this, and how much can be claimed?
Did you know that ministers, as defined by the IRS, can designate a portion of their gross salary as a housing allowance which is not subject to federal income taxes? In the past churches used to provide housing for their ministers, however in more recent years ministers often have their own housing arrangements. Therefore a housing allowance was created to provide a similar benefit for those ministers.
Who is a minister as defined by the IRS? A person who: 1) is ordained, commissioned or licensed, 2) administers the sacraments of the church, 3) conducts religious worship, 4) has management responsibilities in the local church or parent denomination, and 5) is considered to be a religious leader by the church or parent denomination. Number 1 is definitely required and some balance of the other four is factored in.
How much can a minister claim for housing allowance? If the minister rents their home, then the fair market rental value can be included. If they own their own home, then the down payment, mortgage payments, real estate taxes, and property insurance can be included. Also included in the calculation of housing allowance can be utilities, furnishings and appliances, structural repairs and remodeling, yard maintenance and improvements, maintenance items and homeowners association dues.
Who designates this housing allowance? The governing body of the church designates how much of the minister(s) income is allowed to be designated for housing. This is to be done by official action prior to January 1. If a church fails to do this in a timely manner, housing allowance deductions are not retroactive, but can be applied from the approval date forward. How does the governing body know how much to declare? The minister should calculate their housing costs, as mentioned above, and submit this request to the governing body.
For more details on these and other legal and financial tidbits, contact Conrad Martin, Director of Finance, Franconia Mennonite Conference.


I was raised in an Anabaptist home and when it comes to being Jewish, my family is far more Anabaptist then Jewish. My parents were both raised as Christians and don’t observe any Jewish traditions. However, at a young age I became enamored with stories from the holocaust and reading about the lives of Jews in the late 1800s and early 1900s. I was struck by stories like Lois Gunden’s of people who risked their own lives to save others.
On Sunday we celebrated the pastoral licensing of Fernando Loyola and Letty Cortes as ministers in Franconia Conference. Letty was radiant, clothed elegantly with gifts she said were from women in the congregation. Fernando, steady, firm, serious as usual in the task of leading. They lead together as a team, the boomerang of the fruit of Mennonite mission efforts from Franconia Conference to Mexico City in the 90’s. No one would have expected that support for Kirk Hanger, who left his role at Methacton Mennonite to work at church-planting in Mexico City, would have meant that Centro de Alabanza would emerge to join Franconia Conference.
In working with credentialing new leaders and in the slow work that we do in establishing new congregations, I cannot help but see all of the connections that make new things possible. I notice the small things along the way that when invested in the dream of God, result in unexpected blessing and possibility. It is the widow’s mite given in faith and generosity, the mustard seed that grows into a tree, the leaven that transforms the whole loaf of bread.
We bring all of those gifts and parts, all of who we are, all of the possibilities and relationships into the great Matrix of God … and they are used. Nothing is lost, everything is found and even the smallest thing can mean real transformation. Kirk told the story of meeting Letty while washing dishes in Mexico City. A wholly ordinary conversation that has led eventually to this new community flourishing in South Philadelphia and the naming of the first Latina Mennonite minister in Franconia Conference. And for those small things, which become eternally significant, and the ability to notice them later and to celebrate together over pollo, frijoles y arroz, I am grateful.

As we go through the steps of identifying and listening to those who have been marginalized, partnering locally and globally, sharing the gospel and planting churches, how might the Holy Spirit be inviting us to explore beyond our patterns, stereotypes and intuition in order to develop alternate ways of seeing and experiencing reality. What might we learn from another’s point of view?















Perhaps we spend so much time trying to figure out what God is doing and saying through our epiphanies that we miss the real purpose of them – to draw us to worship. The sight of the star set the Magi into motion. They saw the star and they freed themselves to make the trip to worship the newborn savior king. Maybe we all need some sort of epiphany to point us to the place or posture of worship.
Care & Share Thrift Shoppes
The impact of Care & Share is felt both locally and worldwide. Locally, Care & Share provides affordable clothes and goods along with the employees and volunteers of the shoppes spreading God’s love through serving with kindness.
Bergin stresses that this work would not happen without the over 1,000 volunteers giving their time at Care & Share.