Approved Payment Methods for Church Purchases (Tax Exempt)
The following payment methods are approved for church purchases:
- Church credit card
- Church check
- ACH or approved vendor payment
The following payments are NOT approved for church purchases:
- Cash is not an approved payment method.
- Personal funds are not permitted unless the expense qualifies under the reimbursement policy.
*Important: Personal funds are not an approved payment method for normal church purchasing. Only approved reimbursable expenses may be paid personally and submitted through the reimbursement process.
Emergency Cases
If an emergency requires the use of personal funds, the purchase must comply with the church's reimbursement policy. Tax exemption should NOT be claimed on purchases made with personal funds unless specifically permitted by applicable state law and church policy.
Why is this Important
Using personal funds for church purchases can create tax compliance issues because the purchase is made by an individual—not the church. This may invalidate the church's tax-exempt purchase, complicate audits, increase administrative work, and jeopardize the church's tax-exempt purchasing privileges. Repeated noncompliance can expose the church to regulatory scrutiny and increase the risk of penalties.
To protect the church and ensure compliance, always use an approved church payment method whenever possible.