Group to study housing allowance

Group to study housing allowance

In a move that could have a major impact on the tax status of churches and pastors nationwide, an independent national commission of religious and financial experts will review several church-related tax issues — such as the limitations of the pastoral housing allowance and the Internal Revenue Services’ (IRS) power to investigate churches — and issue its recommendations to U.S. Sen. Chuck Grassley.

The commission, formed by the Evangelical Council for Financial Accountability (ECFA) at Grassley’s request, will examine church-related tax issues in the wake of a mostly unsuccessful Grassley investigation into the financial records of six television ministries, most of whom have ties to what is known as the “health and wealth gospel.” At least some of them have been accused of using donor money to live luxurious lifestyles. Because they label themselves as churches, the ministries are tax-exempt and not required to submit detailed financial information to the IRS.

Grassley, who began his probe in 2007, maintained from the start that his probe had nothing to do with doctrine but instead focused on whether donor money was being used for “legitimate, nonprofit purposes.”

The commission will be known as the Commission on Accountability and Policy for Religious Organizations. It will receive no government money.  (BP)