In case you havent been paying your musician as an employee weve got some good news for you. If youd like to better understand why we say this, check out an essay we did previously by clicking HERE. First, we hope that youve been treating them as an employee and not as an independent contractor. To determine what fair market rent would be in your community contact a local music store and ask them what they charge music teachers for studio rental, both equipped with an instrument and not equipped.īut lets say that the music teacher in question already receives compensation from your church for performing. To avoid creating a private benefit, the church would need to charge the musician fair market rent. Substantial and ongoing private benefit can result in the church losing its tax exempt status. As a non-profit organization, no one is supposed to receive any private benefit from your churchs assets other than those receiving compensation for services rendered or those receiving approved benevolence assistance.Ī music teacher using any of the churchs facilities or a church-owned instrument such as its piano, and receiving payment from students, would be viewed by the Internal Revenue Service (IRS) as receiving a private benefit from the church. This is why you are allowed to be tax-exempt. Your church has been granted special standing by the government because of the value it adds to society. Why shouldnt such a dedicated servant be allowed to teach at the church and get paid? Whats the harm? And this musician has performed as a volunteer for years. Youre glad that your churchs atmosphere is one of an oversized happy family. Sounds like a winning situation at first. So along comes a gifted musician from your church asking if they can conduct lessons at your church. Often it is the culmination of many years of training and practice. But a musicians ability to move people is not based on God-given talent alone. Many pastors probably arrange the order of worship on purpose so that uplifting music is the lead-in for their sermons. Music, done well, has the ability to stir a persons soul like few other elements in a Sunday morning worship service.

Whats in tune with best practices for having music lessons at church? One of the musicians who plays regularly for your church would like to earn some extra income by giving private music lessons at the church, using the church's piano.

We recently asked church leaders about the following situation:

Music tutor insurance