Nov
26
2013

Is The Housing Allowance Going Away?

gavelLast week a Wisconsin Federal District Court judge ruled that the pastoral housing allowance violates the establishment clause of the first amendment. This news can be quite upsetting for church leaders across the country as they try to figure out how to fairly compensate their pastors, and for pastors who need to rethink their monthly budgets now that a major tax benefit has been ruled unconstitutional.

Yesterday morning, Todd and I had a conversation with Mike Batts, managing partner of Batts Morrison Wales & Lee. Mike and his team work exclusively with churches and pastors, and have served as trusted advisors to members of congress on policy issues related to church finances. We asked Mike about the ruling and what church leaders need to know about it. In a nutshell, here is what you need to realize now:

  • The sky is NOT falling.
  • The ruling has no effect on housing allowances at this moment.
  • The ruling will be appealed.

Click below to watch the entire conversation in order to gain a better understanding of what this means for your church:

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About the Author: Matt Steen

I love Jesus, Theresa (my wife), the Redskins & Capitals, and am currently living in Waco, Texas where I am studying the finer points of BBQ (while working on my MDiv and MBA at Baylor University). When not studying, I serve church leaders through MinistryBriefing.com and am the Director of Connections for Harris Creek Baptist Church's Downtown Campus.