For churches
Volunteer church treasurer in New Jersey: what the rules actually say
Most church treasurers are volunteers who inherited a spreadsheet. Here's what the IRS and New Jersey actually require of a church, and where small congregations get tripped up.
Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. See Tallyfinch
What a church doesn't have to do
- No Form 990: churches are automatically treated as tax-exempt and don't file an annual information return with the IRS. (IRS)
- No NJ charity registration: religious organizations are exempt from New Jersey's charitable registration requirement. (N.J.S.A. 45:17A-26)
What it should do
- Sales tax exemption: apply for New Jersey's exempt organization certificate (ST-5) with Form REG-1E. There's no fee, and a church organized only for religious purposes can use a religious certification instead of an IRS letter. (NJ Treasury)
- Clergy pay: a minister's salary counts as wages for income tax, but Social Security and Medicare are usually paid through self-employment tax, including on the housing allowance. (IRS Topic 417) Get this right on the W-2.
- Contribution statements: donors need a written acknowledgment for gifts of $250 or more to deduct them.
- Two people count the offering, and the books are reconciled to the bank every month.
Want a hand?
We keep books for small congregations and nonprofits: offerings and designated funds tracked separately, monthly reconciliation, and a report the board can read in two minutes. Bookkeeping · Bookkeeping for churches
Printable kit
Church Contribution Statement Maker
Log gifts all year in Excel, then print a year-end statement for each donor with the IRS acknowledgment wording.
General information, checked November 2026. Not legal advice. MCC Solutions is not a law firm.
Questions
Do churches have to file a Form 990?
No. Churches are automatically tax-exempt and aren't required to file an annual return with the IRS.
Does a church have to register as a charity in New Jersey?
No. Religious organizations are exempt from the State's charitable registration law.
How do we stop paying sales tax on purchases?
Apply for the ST-5 exempt organization certificate with Form REG-1E. There's no fee.
Tallyfinch
Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
See Tallyfinch Download it free Compare the three apps