Thu
Aug
11
2005
Ministry and financial transparency
Scott Yang has taken my comments about Hillsong and financial transparency a bit further.So, to be more transparent myself I thought is helpful to explain what I understand about normal (ie: non-business empire) churches and tax breaks (although, please note, I’m NOT an accountant, or any kind of ‘expert’ on these matters!):
Most recognised churches do get some tax breaks. They are mainly in the form of GST exemption and releif from some forms of stamp duty. The GST break though, is really no more than most businesses get. IE: the ability to claim back GST on expenditure relating to their core business.
People in ministry like me can benefit from this type of break, by, for example, opting to drive a new car nominally owned by my church, but paid for by me via salary sacrifice. This is a very common practice in many not-for-profit organisations. The main bonus for me is the cost saving by not paying GST on the vehicle, and the fact that I get to drive a new car every nine months or so.
But this is all public knowledge. It’s on record in the Parish Council minutes, and the pre-tax allowance part of my salary package is made public every year at our annual general meeting.
I’m not sure why big churches feel the need to leverage the system the way many do. But I think it’s most unhelpful to the gospel, and most confusing to the community at large.
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