Q. "Can we require employees to tithe ten percent of their pay to our church?"
Answer:
While not illegal, making tithing a mandatory condition of employment—especially to a specific organization—can create significant legal and ethical risks. A tithe is, by definition, a voluntary act of giving. When it is mandated as a condition of employment it blurs the line between voluntary donation and compelled payment, leading to multiple serious consequences:
Legal & Tax Implications
The IRS allows tithing to be claimed as a charitable donation because it is an act of voluntary giving. If it is interpreted as a mandatory condition of employment, it could be seen as an employment expense or even a form of coerced giving. This could lead to an employee's deduction being challenged during an audit.
Employee Coercion
This policy could easily be interpreted as coercive. The distrust created could lead an employee to believe their personal finances are not their own, which can severely damage morale and culture.
Erosion of Trust
A policy like this makes it difficult for employees to feel their giving is a personal act of worship. It can also lead to employees feeling shame if unable to meet the financial requirement for personal reasons.
While churches have broad leeway under the ministerial exception, this exception doesn't grant immunity from all employment laws, especially those concerning compensation and coercion.
We strongly recommend any language requiring tithing, especially to a specific organization, be removed from Staff Handbook policies. Instead, encourage the spiritual discipline of giving as a part of the behavioral expectations in your Staff Lifestyle Agreement and through teaching and discipleship.