Per the Internal Revenue Service (IRS), "A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. ... However, the amount excluded can't be more than reasonable compensation for the minister's services."

Out of the total compensation paid to an ordained employee, the Seminary regularly designates a housing allowance.  A form is distributed to ordained faculty and staff each September on which an estimate of expenses up to the fair rental value can be made, and an amount requested for designation as a parsonage allowance for the following tax year.  These requests are approved by the Board of Trustees each October. An allowance can be granted mid-year for new hires.

Example: The ordained employee's salary is $75,000 per their offer letter. They complete the housing allowance form and request $30,000 in housing allowance. The employee's annual income is now $45,000 in salary and $30,000 in housing allowance for a total of $75,000.

DocuSign Parsonage Allowance Form