Policy Number:  28

Title:  Parsonage Allowance Designation

The following resolution was duly adopted by the Diocesan Council of The Diocese of South Dakota at a regularly scheduled meeting held on July 7, 2006, a quorum being present:

Whereas, section 107 of the Internal Revenue Code permits a minister of the gospel to exclude from gross income the rental value of a parsonage furnished to him as part of his compensation, and a church-designated parsonage allowance paid to him as part of his compensation to the extent used for actual expenses incurred in maintaining a parsonage; and

Whereas, a priest employed by The Diocese of South Dakota and is compensated by The Diocese of South Dakota exclusively for services as a minister of the gospel; and

Whereas, The Diocese of South Dakota provides the priest with rent-free use of a church-owned vicarage as compensation for services that he renders to the church in the exercise of his ministry; and

Whereas, as additional compensation to the priest for services he renders to the church in the exercise of his ministry, The Diocese of South Dakota also desires to pay the priest for expenses that he incurs in maintaining the parsonage; therefore, it is hereby

Resolved, that the annual compensation paid to the priest shall be established in accordance with the Mission Clergy Salary Guideline Policy, of which $8,000.00 is hereby designated to be a parsonage allowance pursuant to section 107 of the Internal Revenue Code; and it is further

Resolved, that the designation of $8,000.00 as a parsonage allowance shall apply to the remainder of calendar year 2006 and all future years unless otherwise provided by the Diocesan Council; and it is further

Resolved, that as additional compensation to the priest for calendar year 2006 and for all future years unless otherwise provided by the Diocesan Council, the priest shall be permitted to live in the church-owned vicarages located in a city of the Episcopal Mission the priest is serving, and that no rent or other fee shall be payable by the priest for such occupancy and use.