Housing Allowance Resolution Sample

Housing Allowance Resolution Sample

Housing Allowance Resolution Sample 

The following is a sample resolution to be adopted by the board of directors of any organization which employs a “minister” as defined by the IRS:

Whereas, section 107 of the Internal Revenue Code specifies that the amount of ministers’ compensation that is designated in advance by their employer as a housing allowance is not taxable in computing federal income taxes to the extent that it is used to pay for actual expenses incurred in owning or renting a home or apartment, and, in the case of ministers who own their home, does not exceed the fair rental value and maintenance of the home; and

Whereas, Rev. (Minister’s Name) is compensated by (Church or Organization Name) exclusively for services as a minister; and

Whereas, (Church or Organization Name) does not provide Rev. (Minister’s Name) with a parsonage; therefore, it is

Resolved, that the total compensation paid to Rev. (Minister’s Name) for calendar year _______ shall be $ ______________, of which $______________ is hereby designated as a housing allowance pursuant to section 107 of the Internal Revenue Code; and it is further

Resolved, that the designation of $______________ of Rev. (Minister’s Name)’s annual compensation as a housing allowance also shall apply to all future years that Rev. (Minister’s Name) is employed by (Church or Organization Name), unless otherwise provided.


This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.