Conference treasurer issues guidelines to churches for tithing on Paycheck Protection Program loans

5/18/2020



Memphis Conference churches are not expected to tithe (to the conference) on proceeds from the Paycheck Protection Program (PPP), according to a May 15 announcement from Larry Davis, Memphis Conference treasurer.
 
The PPP has issued forgivable loans to small businesses (including churches) to pay employees during the COVID-19 crisis.
 
The Memphis Conference Council on Finance and Administration (CFA) issued the following guidance on this matter, reported Davis:

There is no doubt that the funds are being used to support the annual budget and would normally be reported in  Line 52g ‘amount from other sources’ on the end-of-year statistical report and this amount will flow into Line 52t which is used to calculate the tithe and 100% certificates at the end of the year. Tithing would not be one of the allowable expenses as outlined by the Small Business Administration and could not be used in the calculations leading to loan forgiveness.
 

Churches receiving the PPP loan are not expected to tithe on the proceeds. However, in order to not impact 100% paid calculation, please report loan proceeds on the statistical report under line 53c ‘funds for other sources & projects’ with a note highlighting the amount of the PPP loan. This amount does not figure into the tithe or 100% calculations.

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