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Financial Wellness for Church Leaders: Clergy Tax Basics
Your guide to demystifying clergy taxes and taking confident steps toward financial well-being in ministry. [FREE Mini-course]
About this Course
Many clergy feel ill-equipped to navigate their own financial landscape, leaving them less able to lead their communities with confidence and sustainability. This course equips clergy with the foundational knowledge they need to take ownership of their financial well-being, so they can lead from a place of stability rather than confusion.
What You’ll Be Able to Do:
Navigating taxes as a clergy person can feel a lot like learning a new language—full of unfamiliar terms, unexpected rules, and more than a few moments of confusion. This mini-course offers a clear, approachable introduction to clergy tax basics, equipping you with the foundational knowledge you need to work more effectively with a tax professional.
From understanding housing allowance to self-employment taxes, this course walks you through the essential concepts at your own pace. You won't leave as a tax expert—but you will leave better prepared to ask the right questions, avoid common pitfalls, and take your next step with confidence.
Modules
Financial Wellness for Church Leaders: Clergy Tax Basics
In this course, you will:
- Understand how housing allowance is defined, designated, and used, including the three-factor test for calculating the excludable amount.
- Understand when clergy are considered employed, when they are considered self-employed, and how that impacts your tax payments.
- Develop a sense of calm and confidence when approaching the often confusing landscape of clergy taxation.
- Reflect on your current housing allowance designation and identify specific questions to bring to a clergy tax professional.
- Consider your approach to withholding and/or estimated quarterly tax payments and begin researching clergy tax professionals in your area.
Get to Know Your Instructors
Grace Duddy Pomroy
Grace Duddy Pomroy is the Director of the Stewardship Leaders Program at Luther Seminary. She’s a lay, millennial stewardship leader, speaker, and financial educator based in Allyn, WA. She is the co-author of the stewardship book, Embracing Stewardship: How to Put Stewardship at the Heart of Your Congregation’s Life, as well as author of the free 2013 ELCA stewardship resource, “Stewards of God’s Love.” Her latest book, Funding Forward: A Pathway to More Sustainable Models for Ministry, was just released September 2024.
Grace is also a consultant with Relèven, a charitable organization that lovingly preserves, restores, and repurposes under-utilized churches into community hubs and affordable housing. She graduated from Luther Seminary in 2012 with a Master of Arts degree in Congregational Mission and Leadership.
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What to Expect with a Faith+Lead Academy Course
You’ll get a transformative learning experience that combines trustworthy theological teaching with spiritual practices, interactive elements, and a supportive online community.
Know
Expand your theological toolkit with fresh insights for today’s ministry landscape. Connect timeless wisdom with practical frameworks for navigating change.
Be
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Practice skills to lead confidently in your ministry context. Take actionable steps to invite your community into God’s unfolding story.
Every Academy course is designed to
Help your growth in one of these core areas:
Develop a Christ-centered identity, grounded in theology, scripture, and spiritual practice, that empowers community members to live as disciples of Jesus Christ in everyday life.
Tell the story of Jesus and invite neighbors into Jesus’ way of life and love through words and actions they can recognize.
Listen deeply, name God’s presence in the midst of everyday life, and form life-giving relationships across all dimensions of diversity—both within and beyond the church.
Through mutual relationships with the neighbors among whom you’re hosted, join in acts of compassion, justice, and reconciliation as a witness to the ministry of Jesus—especially in places of suffering and despair.
Harness skills of agile leadership, stewardship, fundraising, entrepreneurism, and management to be nimble enough to respond to a changing cultural landscape.
Frequently Asked Questions
Will this course help me do my own taxes?
Not exactly — and that's intentional. The goal of this course is to give you a strong foundation so you can work more effectively with a clergy tax professional. Clergy taxes have enough complexity that working with a specialist is strongly suggested.
Do I need prior knowledge of taxes to take this course?
No. This course is designed for clergy who are new to navigating their own tax situation. All key terms are introduced and explained.
What is housing allowance, and why does it matter?
Housing allowance is the portion of a clergy person's compensation designated in advance for the purpose of housing. This portion of the clergy person's compensation is exempt from income taxes.. This course explains exactly how it works and how to make the most of this valuable tax benefit
Why are clergy considered self-employed for some taxes but not others?
Clergy occupy a unique position in tax law—treated as employees for some purposes and as self-employed for others. This course walks you through what that means practically for your tax obligations.
How do I find a clergy tax professional?
The course encourages you to ask other clergy in your community for referrals. Many denominations and judicatory bodies also maintain lists of recommended tax professionals who specialize in clergy finances.
Is this course free?
Yes—this is a free Faith+Lead mini-course, available on-demand at no cost.
How long will this course take to complete?
About one hour
What can I expect when I take an Academy course?
Academy courses consist of 6-10 lessons or modules, each walking you through the “know, be, do” learning framework. You’ll learn some new information with instructor videos and other resources (know). You’ll engage in a spiritual practice that will help you develop your faith around the topic (be). Then, you’ll be asked to apply what you’ve learned through activities completed online or in the “real world” (do).
How long will it take me to complete a course?
Each module is designed to take 15-45 minutes. Some learners complete the course in as little as one day. Some do a module a day or even a module a week. We suggest allowing some time between modules to process what you are learning, but not so much time that you lose momentum.
What resources are available if I’m a group leader?
Each course includes a flexible leader’s guide with multiple pathways for group facilitation. You’ll find thought-provoking discussion questions and practical activities that connect faith with daily life, designed to work with whatever preparation time you have available. These resources equip you to foster meaningful discipleship experiences that meet your community where they are.
What do I need to know about the free private online social group?
The private online group allows you to connect with others. Because our courses don’t have a required start or stop date, you will encounter others in different places in the course and even in different courses altogether. This is by design. Feel free to interact as much or as little as you like.
What should I do if I have questions or problems with my registration?
Reach out via email to faithlead@luthersem.edu with your question and we’ll get back to you with a response within two business days.
What if I have a suggestion or request for a course topic?
The best way to connect with us is to complete this form with your suggestion. We always want to hear your feedback. You may also include it in the comments section of the course evaluation.
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