At the request of Senator Charles Grassley, the Evangelical Council for Financial Accountability (ECFA) will lead the independent commission to investigate and offer recommendations to lawmakers on a list of eight issues related to ministry ethics and finances. Housing allowances are near the top of the list.
A 2009 lawsuit filed in California by the Freedom from Religion Foundation argued the housing allowance tax benefit violates the Constitution’s Establishment Clause. A government request to dismiss the case was rejected in 2010, allowing it to proceed to trial. Experts like Richard R. Hammar, an attorney and senior editor of the Church Law & Tax Report, are concerned that its outcome may spell the demise of the benefit.
