"In general, the IRS and the courts require that a minister be ordained, commissioned, or licensed.... [to] be deemed to be a minister for tax reporting purposes." Richard Hammar, J.D., LL.M., CPA
"Therefore, be it RESOLVED.....that we encourage the service of women in all aspects of church life and work other than pastoral functions and leadership roles entailing ordination." Southern Baptist Convention Resolution, voted and approved June 1984
"Do I believe in women behind the pulpit? You bet I do, how else do you expect them to vacuum back here if they can't get behind it?" Ergun Caner, 2007, at Ohio Free Will Baptist Men's Retreat
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One aspect of the clergy housing allowance that is being overlooked, is the unfair, and sexist manner in which the allowance is applied by many Southern Baptist churches.
"Do I believe in women behind the pulpit? You bet I do, how else do you expect them to vacuum back here if they can't get behind it?" Ergun Caner, 2007, at Ohio Free Will Baptist Men's Retreat
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As seen in the quote above, it is the official policy of Southern Baptists NOT to ordain women - even those who are seminary trained and have decades of experience serving in churches as ministers. Yet some of these same churches will ordain men who are hired on staff with absolutely no seminary training or ministerial experience! FBC Jax is one of these churches.
While ordained ministers can enjoy this benefit of receiving a portion of their pay for their housing, furnishings, maintenance and utilities tax free - this benefit is denied to many female ministers in the SBC simply because they cannot be "ordained". And thus women employed as ministers at most SBC churches, cannot be considered "ministers" for IRS tax purposes.
What employees of a church would be considered a "minister" by the IRS, and would thus be eligible for the housing allowance benefit? The short answer is, they must be ordained or licensed.
Probably the best overview of the clergy housing allowance benefit and who qualifies for it, is given here by the Evangelical Council of Financial Accountability (ECFA). If you want a more in depth discussion, you can go to this document and read pages 92 and beyond which deals with who qualifies as a "minister" for tax purposes.
Without boring you with too much detail, there have been two tax court rulings that effectively created two "tests" to be applied to ministers in determining if they are a "minister" as defined by the IRS. These two rules are the "Wingo Test" and the "Knight Test". The Knight test is the most recent, and it requires the minister to be "ordained, commissioned, or licensed", and then there are four other provisions that may or may not be met.
Here are the requirements of the Knight test, defining a minister for tax purposes:
1. administers sacraments;
2. conducts religious worship;
3. has management responsibility in a local church;
4. is ordained, commissioned, or licensed;
5. is considered to be a religious leader by his or her church or denomination
In a ruling subsequent to the Knight case, the IRS determined that only the fourth factor is absolutely required, and the others are applied in a balancing test. If the church's ruling authority (such as board of trustees or elders) believes the minister qualifies, and if the minister submits a written request and dollar amount, the church can issue a separate pay check for the amount of the housing allowance and no taxes are deducted on that portion. There is no limit to how much of their pay can be designated for the housing allowance, and as discussed in my previous post it can even apply to multiple homes. And the minister receives a double tax benefit in that they can still deduct mortgage interest from the taxable portion of their income!
So the IRS requires "ordination, commission, or licensure" of the minister. But the SBC does not "license" ministers, and I don't think they "commission" people except perhaps missionaries, thus ordination is the standard method used to designate a "minister" in the SBC. But women cannot be ordained in most SBC churches. Thus, the IRS rule is set up to unfairly exclude female ministers in the SBC from enjoying this tax benefit.
Let me give an example of the ridiculousness of this: at FBC Jax, over the years there have been several female full-time vocational ministers holding the position of "director". They are seminary trained, they are in leadership positions, but because they are not ordained can't enjoy the housing allowance benefit, while their male counterparts of mostly equal job responsibilities do.
There are multiple male ministers on staff at FBC Jax who are not seminary trained, but hold the title of "Reverend". These men joined the FBC Jax staff with no formal seminary training or credentials or formal vocational ministry experience, yet were promptly ordained and immediately enjoyed the title of "Reverend". I know of three of them: Dan Elkins, John Blount, and Kevin King. All three hold and use the title of "Reverend".
Reverend Elkins's job title is "Middle School Pastor", while Shelly Norman's job title was "Elementary Ministry Director". Shelly has close to 20 years ministerial experience, and a degree from Southwest Baptist Theological Seminary. Elkins, at the time of his hiring and ordination, had a bachelor's degree from UF (chemistry I believe), and little or no vocational ministry experience. Yet he is a deemed a "pastor", and Shelly a "director". They both served the same functional purpose in their employment - Shelly coordinated the children's ministries, Dan the middle school ministries.
But Dan is a male, and thus he is entitled to be a "Reverend" and a "Pastor". Shelly is female, and thus she is "Ms. Shelly" and a "Director". Same job functions, but gender makes the difference between Pastor and Director.
Now I do not know for sure if Elkins, Blount, and King enjoy the housing allowance benefit, but my point is that FBC Jax has taken steps to ensure that under the IRS rules they would qualify using the Knight test. They have been ordained with no credentials or formal seminary training whatsoever, they have been given the opportunity to "conduct a worship service" by preaching at least once in the Main auditorium. So I would have to imagine the good 'ole boys on the FBCJ board of trustees have made sure their male ministers enjoy the tax benefit. Elkins, Blount, and King have management responsibility in the church, and by virtue of their title and job descriptions they would be considered "leaders".
But take a female minister at FBCJ, like Shelly Norman: she is seminary trained, does hold management responsibility in the church, and DOES conduct religious worship of children, and she is considered a "leader" by those that volunteer in her ministry. She is a minister by any reasonable definition and does meet 3 of the 5 requirements of the Knight test, but because of the lack of "ordination" she is not a minister by the IRS definition.
Thus, because females can't be called "Reverend", no housing allowance for them.
I would say that if "Reverend" Elkins or "Reverend" Blount or "Reverend" King qualify as "ministers", then certainly seminary trained female ministers who hold similar positions at the church should as well, at least for tax purposes. The test should be primarily a functional test, not one of ordination or licensure.
The IRS either needs to change their definition of ministers, knowing that some denominations specifically exclude women from ordination, or better yet they need to do away with this tax benefit altogether.
I prefer the latter, as ministers are now mostly degreed professionals who earn salaries and benefits and don't live in parsonages, and thus this benefit has outlived its purpose and should be a thing of the past.
But at the very least, let's not leave the decision of who enjoys a ministerial tax benefit to guys like Ergun Caner and his Baptist buddies who believe a woman's most useful function in church is performed with an apron and a vacuum cleaner.