Tax Time! - What is a Ministerial Housing Allowance?

Any licensed or ordained minister in the U.S. who performs ministerial duties and who is employed by the church qualifies for a housing allowance which is a great tax benefit. Housing allowances are not taxable to federal or state income taxes, so you can save taxes by utilizing the housing allowance. In general the rules are as follows.

To have a housing allowance, you must have a resolution pre-authorizing the housing allowance. A pastor cannot designate his own housing…it must be done by either the church board or the church membership. The amount designated goes to pay all housing expenses: rent or house payment, utilities, taxes, insurance, repairs & maintenance, upkeep, association dues, furnishing & appliances (purchase or repair). Any expenditure that is for the upkeep of the house you live in is included in the housing allowance.

The housing allowance is ONLY for your primary residence, not any other vacation home, etc. The allowance is paid by church funds as a portion of the overall compensation of the minister. The housing allowance used cannot exceed the actual expenses incurred for the housing expenses. The amount paid toward the house payment cannot exceed the fair rental value of the home.

The Healthy Pastoral Leader

In his research of leaders, both historical and contemporary, author Robert Clinton found that few leaders actually finish the race well. His two books, The Making of a Leader (NavPress) and The Mentor Handbook (Barnabas), explain that finishing well could be defined as a life that until its end is increasingly more in love with Christ, more committed to His service and more devoted to godly leadership.

What causes a leader to continue to grow, to stay on track and to finish well in life and ministry?

Five Habits of effectiveness. Effective leaders learn to become intentional about their character growth and formation. In this development of a leader we can make three general observations:

1. God develops a leader over a lifetime;
   
2. God uses people, circumstances and ministry assignments to shape the life of a leader; and
   
3. Leadership plateau is often indicative of a growth issue within a leader's life.
   

To help us become more intentional about our health as leaders, let's explore five insights from leaders who have finished well.

1. Healthy leaders are lifelong learners. Leaders pursue three types of training: personal training, (personal growth, projects, personal research); informal training (workshops, seminars, conferences); and formal training (continuing education, degree programs).
   
2. Healthy leaders are committed to serve and develop others. Be alert to potential leaders in your sphere of influence (II Cor. 1:3-4; II Tim. 2:2).
   

Utilizing Kingdom Resources

Jesus died for the sins of the world. He did not die for most, several or some. He died for all. When He suffered on the cross, He did not have only a few hundred or a few thousand on His mind. What held Him to that tree was every single man, woman, boy and girl who would ever live on this planet. Is our own directive the same?  

How many churches would be quite satisfied if they could just reach a few hundred from their community.  Think about it, if your church directly affected 300-500 souls on a weekly basis, would you be satisfied? I would. For a while any way.

We've got to stop thinking small. Jesus did not think small. The scripture does not speak small. This gospel was given that every single person ever conceived could have a relationship with Him. For too long the Church’s growth has been limited by our small thinking.

There are well over 6 billion people on this planet today. Some would say that God will add to the church in His time. That growth will happen when He wills it to happen. Jesus proved his commitment and desire to see every person in your city saved when he suffered that horrific beating and the cruel death of the cross.

Revival has nothing to do with God’s will for it to happen. He has proven His will. It has everything to do with our putting ourselves in a position to allow it to happen and to receive and maintain it when it comes.

What Motivates Me?

Have you ever thought of the various motivators in your life?

Early in my life I found my father to be a great motivator. His way of motivating is not one I would quickly recommend. I remember one morning when my brother and I were making a little too much noise, a little too early in the morning. Dad wanted to encourage us to “Quite Down!”. His way of motivating us to a more docile nature was to cause our heads to come together with such force as to render us almost unconscious. This was one of the more unkind ways my dad had of motivating his kids.

Thank God that all the people in my life weren’t so barbaric in their way of motivating me.

I remember Mrs. Klewer. She was my 8th grade English teacher who motivated me to learn to read. She allowed me to get a passing grade if I would read a short story of about 20 pages. The reading material was probably on the 1st or 2nd grade level. However, she knew that even this was a great challenge for me and encouraged me in my struggle. As soon as I finished the short story, she put another one in front of me. And so on and so on, until I was getting straight A’s in her class and found a love for reading which I never knew I had. Throughout my high school and college career I would get straight A’s in English because of the gentle nudging (motivating) of someone who could have overlooked my potential but didn’t.

Motivators, some times they come in the form of the Policeman who writes the citation motivating us to “slow down”. In other times they are the kind hearts around us who cheer from the sideline of our life, “You can do it!”. We are all motivated by something. Money. Recognition. Love. Personal Ambition. This list could get very long and would change depending on the person making it.

I wonder though, how often I have allowed God’s Purpose be my motivation. His Purpose takes me beyond my personal goals. Why do I want to be a good preacher? Is it to be heard of men and recognized as such? Or is it so I may persuade men and women to come to the Lord?

Why do I want to be a good father? Is it so my children will call me blessed and so I would have the respect of my neighbors as being a good father? Or is it so my children will learn of my example that their Heavenly Father too is One who can be trusted to keep them and minister to their needs.

God’s Purpose.

What is God’s purpose in my life? I want to find it. I want to know it.

If You Chase Two Rabbits

“If you chase two rabbits, you will not catch either one.” I found this old Russian proverb in the early pages of a recent book written by Gary Keller.  The title of this book, “The One Thing” jumped out at me above all the other titles on the shelf.  This concept of One Thing is totally foreign to me.  I have always thought myself quite adept at doing several things at one time.  I have done it all my life.  I learned this early in my working career.  In fact, the manager of the McDonalds restaurant where I found my first job told me, “The one thing you will learn and take with you from this job is the ability to do many things at one time.” It was not long before I learned first hand what he was talking about.  Since that day to this, I can rarely remember doing only one thing at a time.

There is in me a drive that feels like I am not being productive unless I am accomplishing several things at once.  Rarely do I ever do “One Thing”.  According to Keller’s book, doing more than One Thing is usually not the most productive or profitable way to conduct oneself. This book has some incredible insight as to how to stay on track and build momentum towards your goals, but for many of us preachers, doing more than one thing at a time is a way of life that we are unable to change. 

Most Pastors and ministers of the Gospel have families and ministries as well as secular jobs or businesses.  This creates a constant pulling in different directions that leaves us feeling tired, confused and even guilty that we are unable to accomplish all that we want to do in any of these areas.  We endlessly wrestle with our time constraints as well as our energy levels for each of these.

It would be very nice to do only One Thing Mr. Keller, but for the average preacher out there, this prospect of staying focused, is probably going to be a challenge for us beyond the pages of your book. 

Are You In Way Over Your Head?

I don't want to be so presumptuous as to speak for everyone in ministry, so allow me to speak from my experience;

I often feel overwhelmed and under qualified at that task that God has set before me. I sometimes wonder if I will be able to communicate what I feel so strongly about in a fashion that would cause those who hear me to feel the same passion I feel. I wonder if I can motivate the Church to move in the direction I believe God wants it to move. I feel especially burdened with these thoughts when I am ministering in an outreach setting where the people have not yet heard the Apostolic Message. (with this group, I may have only one chance) No doubt you have felt the same way.

Early in my ministry, I figured this feeling would dissipate over time as my experience grew. But it hasn't. I still feel overwhelmed and under qualified, even more so than before. Yet, now, I have come to understand this is how God wants me to feel. When I lose this feeling, I am on my way down.

What I am describing is not so much a lack of confidence in one's self. I am not describing someone who is fearful or timid of people and pulpit ministry, but rather someone who is humble. God requires humility in every leader. Without humility you will never reach your people. The moment you feel like you have everything in control is the moment you lose control. The message that you just know is going to fill the altars is going to flop. Pride has no place in ministry. Pride will backfire every time. Yet, when you feel like you are in way over your head or when you feel like you don't have the words to say, God will always make up the difference.

Leading Leaders Who Think

One of the challenges all pastors face is leading those who have the same vision you have but don't have the same idea's about accomplishing that vision. I call these people 'thinkers'. Thinkers are good and bad. Every pastor loves to have a group of leaders that agree with everything he says. But there comes a point when that starts working against the pastor.

It is not always healthy to have a ministry team full of 'yes-men.' Most "yes-men" cannot think for themselves. What good are leaders who cannot work situations out? They need instruction for just about everything they do. Some even like to be micro-managed. Pastors cannot afford to be micro-managers, it steals ones time and produces people who cannot make it on their own.

As a builder of homes I have worked with hundreds of different carpenters from around the country. While working with these different tradesmen there were a few things I learned very quickly about people. Some of these carpenters would come to me and ask me how I liked things done. They wanted to be sure they built the house the way I wanted it to be built. At first I really appreciated this, but soon I realized that most of my time was taken up showing them my method when their method would have worked just as well.

Other carpenters would jump right in and do their own thing. This frustrated me even more because they didn't even have the courtesy to ask for my plan or opinion. But then there were those very few carpenters who would ask a few questions about the blueprint, get dialed in on my plan of attack, and then proceed to carry out that plan.  If they ran into a problem, they could "think" it out for themselves. They didn't have to come to me about every little thing, but if something major came up they wouldn't hesitate to consult me. Sometimes they even offered suggestions that increased the productivity of my crew. In  twenty plus years of building homes, I found only a handful of carpenters with these qualities. These were valuable men. These were the men who helped me achieve my goals. These were the carpenters that made my company money.

We need leaders like this in our churches. We need men and women who can work through problems and think things through on their own. It is important as a leader that you develop leaders who can think. It is also important that you are confident enough to lead leaders who may have a better idea or plan than you have. I am not talking about those who disagree with everything you have to say. I am talking about those who are dialed in to your vision, but may have better ideas than you about how to accomplish that vision.

In the Old Testament, the Kings surrounded themselves with people who were dialed into their mission. There are many accounts where this team of leaders did not agree with their King. They had different ideas of how to accomplish the mission. They were not "yes-men". What kind of value would they have to the King if they agreed with everything the King asked? The king though, would have to be humble and confident enough in himself to act on their advice. Their advice was oftentimes critical to the success or failure of that nation.

Principles To Guide Your Life

What are some of the principles that greatly impact our lives and help us become mature, growing, productive people? Listed are principles to guide your life:

1. Your attitude determines your altitude.
2. It’s not what happens to a person, but what happens in a person that makes the difference.
3. Every problem has a hidden possibility and a seed of victory in it.
4. Failure is not final. Learn from it and go on.
5. Limitations are guidelines, not stop signs.
6. Expect the best and express the best.
7. There is not much difference between success and failure. The successful usually gave just a little bit more.
8. Each person can increase a little. You can improve your attitude, relationships, priorities, determination and credibility a little each day.
9. Helping others succeed helps you to succeed.
10. Be yourself – that’s who God made.
11. People don’t care how much you know until they know how much you care.
12. Live what you teach.
13. Pay now and play later.

Staying Focused in Your Area of Ministry

(This is an excellent article for Pastors to share with anyone involved in leadership or ministry in their church.)

Sometimes you just have to say it like it is.  This is one of those times.  I offer this to you in a gentle spirit and pray that if you share it with others on your team, that you would do so in a spirit of gentleness and meekness. 

John Maxwell says “Only do what only you can do.”  This is important in the various areas of ministry of the local church.  One thing that stops the momentum of a church is various leaders trying to run someone else’s ministry.  When God has placed you in an area of ministry within the church, he did not put you there so you could judge other lay ministers of the church.  Do your job and let others do theirs.

Focus on your own ministry.  What can you do to cause your own ministry to make a greater impact in your church and community?  Anytime you spend even a few minutes judging the way another person is running their own department or area of ministry within the church, you are wasting valuable time, energy and emotion that if better used, could be applied perfecting your own.

Too often people criticize the work of others in order to make their own ministry look good.  Lazy people usually find time to do this.  These people are jealous of other people’s success and try to destroy them in order to preserve their rank or position in a church.  This is not a Godly spirit and should be stopped immediately.  There is no room in any church for division.  If you do not like what other people are doing, mind your own business and do your own job and trust God to take care of the rest.  It is His church and not yours after all.