If a church provides a parsonage, the church should assume all costs for maintenance and utilities. These costs may be paid directly or the pastor may be given a parsonage allowance sufficient to cover these expenses. In addition to these costs, the church should provide and maintain major appliances in the parsonage. Pastors who live in an unfurnished parsonage also may receive a furnishings allowance or have a portion of their base salary designated as a furnishings allowance. If the pastor is offered such an allowance, it must be designated by the church council prior to the beginning of the year. While living in a parsonage has some advantages, it does not build equity for retirement. Some church organizations choose to compensate the pastor for this by making Housing Equity Contributions.
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