Voluntary pastoral donations to a minister were taxable income, not nontaxable gifts. A congregation’s minister collected voluntary donations in specially marked envelopes labeled “pastoral gifts.” The minister argued that these donations were nontaxable gifts. The U.S. Tax Court ruled that the donations were taxable income for several reasons including they far exceeded the sum of his deemed salary and parsonage allowance, and they were meant to keep him at his post. Plus, the donations were part of a routine, highly structured program. (TC Memo 2018-168)

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