What is a Ministry Expense?
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Effective Date:
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November 2025
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Focus Group:
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Missionaries
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Guidelines:
The purpose of this Policy is to ensure that (a) adequate cost controls are in place, (b) travel and other expenditures are appropriate, and (c) to provide a uniform and consistent approach for the timely reimbursement of authorized expenses incurred by our missionaries. It is our policy to reimburse only reasonable and necessary expenses actually incurred by Missionaries.
When incurring ministry expenses, Global Outreach expects Missionaries to exercise discretion and good business judgment with respect to those expenses; be cost-conscious and spend ministry money as carefully and judiciously as the individual would spend his or her own funds; and report expenses, supported by required documentation, as they were spent.
1. What is a ministry expense?
• A Ministry expense is an expense you incur that directly relates to or is a result of your ministry.
• A ministry expense must also be reasonable and necessary.
• A ministry expense must also be substantiated (a receipt/invoice is required that provides proof of the expense).
• A ministry expense must also satisfy the Five W’s
o Who: The names of all individuals who make up the expense must be in some way related to your ministry. (Donor, National, etc.)
o What: What does the expense entail (Clear description of Event, Activity, or purpose)
o When: Date of the expense (Not longer than 60 days prior)
o Where: Location the expense took place
o Why: Purpose of the expense (Topics discussed, activity or agenda and how it relates to
your ministry)
2. Support and documentation for ministry expenses.
When entering ministry expenses for reimbursement, details and documentation are always necessary. An itemized receipt must be submitted for reimbursement of expenses. Along with the receipt, providing comments provides additional documentation and support to show how your funds were spent in line with your ministry. Your comments should make it so that a third party can clearly see how the expense relates to your ministry. That said, there are certain categories that require comments, and they are listed
below.
A. Ministry Meals
o Names of everyone who attended the meal.
o Purpose of the meal as it relates to your ministry (Current/Prospective Donor, Discipleship of National, etc.)
o Example: “Lunch in Nairobi, Kenya – discussed November Camp curriculum with Pastor Fred Smith – Agape Bible Church”
B. Ministry to Nationals
o Description of how funds were used to minister to nationals in your country of service.
Example: “Sewing packages for XYZ ministry”
3. Things that do not qualify as a ministry expense:
• “Travel Meals” within a night’s stay of your residence.
-The IRS acknowledges that you eat three meals a day and has decided that any meals consumed without an overnight stay away from your residence are not considered travel meals. These expenses are considered salary expenses instead of reimbursable
ministry expenses.
-Any ministry related travel meals consumed while staying the night away from your residence, and that satisfy the criteria above in #1 are considered reimbursable as ministry expenses.
• Personal/Family Expenses: These types of expenses would occur naturally outside of ministry, so they aren’t exclusive to a ministry setting.
-Examples: Meal with your spouse, meal with your family, etc.
-Family Meals aren’t considered ministry because the IRS acknowledges that your family will eat three meals a day. Due to this acknowledgement, family/spouse meals aren’t specific to ministry
• Lavish/Extravagant expenses that would otherwise qualify as ministry expenses
-Examples: Business Class/First Class air travel, purchasing lavish brand name luggage that costs exponentially more than standard luggage.
• Business Class/First Class Air Travel
-Global Outreach will reimburse authorized air travel in coach/economy. In the event Business Class/First Class air travel is submitted for reimbursement, Global will reimburse up to the cost of coach/economy travel, and the remaining expense will be
considered a personal salary expense.
• 100% of Cellphone/Internet bill, as well as the purchase of cell phones.
-While on the field, phone lines and internet service are used for ministry purposes as well as personal use. You are allowed a ministry reimbursement for the ministry use of your phone and internet. Because a precise breakdown isn’t applicable, we have
set a standard 70% Ministry 30% personal use. For this reason, you are allowed to be reimbursed a maximum of 70% of your monthly phone and internet statements. This 70/30 split is also applied to the purchase of cell phones.
• Old Receipts
-Expenses older than 60 days will no longer be allowed as ministry reimbursement.
-The IRS has a limit of 60 days to submit expenses for reimbursement. Any receipts submitted that are older than 60 days will not be eligible for expense reimbursement and will instead be considered a salary expense.
Children’s Flights
• This policy pertains to children who do not physically live with you in your country of service (ex.*Children attending boarding school and/or children under the age of 25 who are away at college, etc). Children living with you (under the age of 25) are subject to the same criteria as their missionary parents.
• If *children* are traveling, and will be active in ministry while traveling, these flights are considered a reimbursable ministry expense. However, if your child is traveling for any other reason not ministry related, these flights are not considered a ministry expense and are considered a personal salary expense.
Examples include:
-Your child attends boarding school and is traveling to your country of service to spend time as a family. This would be considered a personal salary expense.
-Your child attends boarding school and is traveling to your country of service, and while there they will be participating in ministry in some capacity. This would be considered a reimbursable ministry expense.
-Your child attends boarding school and is traveling to meet your family in the U.S. (or other country) while on furlough. This is also considered a personal salary expense UNLESS
• While on furlough your child will be participating with you meeting with donors, Churches, etc. In this case, their flight would be considered a
reimbursable ministry expense.
-You decide to send your child to participate in a mission project that requires travel. The cost of that flight is considered a reimbursable ministry expense.
The following is a compilation of suggested expenses we would expect to see in the available categories. This is a not a complete list of allowed expenses, nor does it address each possible expense for each available category. The Home Office reserves the right to amend and/or update this policy as necessary. The Home Office also reserves the right to review individual expense reimbursement requests as needed to verify that ministry funds are spent in line with the mission of Global Outreach.
When incurring ministry expenses, Global Outreach expects Missionaries to exercise discretion and good business judgment with respect to those expenses; be cost-conscious and spend ministry money as carefully and judiciously as the individual would spend his or her own funds; and report expenses, supported by required documentation, as they were spent.
1. What is a ministry expense?
• A Ministry expense is an expense you incur that directly relates to or is a result of your ministry.
• A ministry expense must also be reasonable and necessary.
• A ministry expense must also be substantiated (a receipt/invoice is required that provides proof of the expense).
• A ministry expense must also satisfy the Five W’s
o Who: The names of all individuals who make up the expense must be in some way related to your ministry. (Donor, National, etc.)
o What: What does the expense entail (Clear description of Event, Activity, or purpose)
o When: Date of the expense (Not longer than 60 days prior)
o Where: Location the expense took place
o Why: Purpose of the expense (Topics discussed, activity or agenda and how it relates to
your ministry)
2. Support and documentation for ministry expenses.
When entering ministry expenses for reimbursement, details and documentation are always necessary. An itemized receipt must be submitted for reimbursement of expenses. Along with the receipt, providing comments provides additional documentation and support to show how your funds were spent in line with your ministry. Your comments should make it so that a third party can clearly see how the expense relates to your ministry. That said, there are certain categories that require comments, and they are listed
below.
A. Ministry Meals
o Names of everyone who attended the meal.
o Purpose of the meal as it relates to your ministry (Current/Prospective Donor, Discipleship of National, etc.)
o Example: “Lunch in Nairobi, Kenya – discussed November Camp curriculum with Pastor Fred Smith – Agape Bible Church”
B. Ministry to Nationals
o Description of how funds were used to minister to nationals in your country of service.
Example: “Sewing packages for XYZ ministry”
3. Things that do not qualify as a ministry expense:
• “Travel Meals” within a night’s stay of your residence.
-The IRS acknowledges that you eat three meals a day and has decided that any meals consumed without an overnight stay away from your residence are not considered travel meals. These expenses are considered salary expenses instead of reimbursable
ministry expenses.
-Any ministry related travel meals consumed while staying the night away from your residence, and that satisfy the criteria above in #1 are considered reimbursable as ministry expenses.
• Personal/Family Expenses: These types of expenses would occur naturally outside of ministry, so they aren’t exclusive to a ministry setting.
-Examples: Meal with your spouse, meal with your family, etc.
-Family Meals aren’t considered ministry because the IRS acknowledges that your family will eat three meals a day. Due to this acknowledgement, family/spouse meals aren’t specific to ministry
• Lavish/Extravagant expenses that would otherwise qualify as ministry expenses
-Examples: Business Class/First Class air travel, purchasing lavish brand name luggage that costs exponentially more than standard luggage.
• Business Class/First Class Air Travel
-Global Outreach will reimburse authorized air travel in coach/economy. In the event Business Class/First Class air travel is submitted for reimbursement, Global will reimburse up to the cost of coach/economy travel, and the remaining expense will be
considered a personal salary expense.
• 100% of Cellphone/Internet bill, as well as the purchase of cell phones.
-While on the field, phone lines and internet service are used for ministry purposes as well as personal use. You are allowed a ministry reimbursement for the ministry use of your phone and internet. Because a precise breakdown isn’t applicable, we have
set a standard 70% Ministry 30% personal use. For this reason, you are allowed to be reimbursed a maximum of 70% of your monthly phone and internet statements. This 70/30 split is also applied to the purchase of cell phones.
• Old Receipts
-Expenses older than 60 days will no longer be allowed as ministry reimbursement.
-The IRS has a limit of 60 days to submit expenses for reimbursement. Any receipts submitted that are older than 60 days will not be eligible for expense reimbursement and will instead be considered a salary expense.
Children’s Flights
• This policy pertains to children who do not physically live with you in your country of service (ex.*Children attending boarding school and/or children under the age of 25 who are away at college, etc). Children living with you (under the age of 25) are subject to the same criteria as their missionary parents.
• If *children* are traveling, and will be active in ministry while traveling, these flights are considered a reimbursable ministry expense. However, if your child is traveling for any other reason not ministry related, these flights are not considered a ministry expense and are considered a personal salary expense.
Examples include:
-Your child attends boarding school and is traveling to your country of service to spend time as a family. This would be considered a personal salary expense.
-Your child attends boarding school and is traveling to your country of service, and while there they will be participating in ministry in some capacity. This would be considered a reimbursable ministry expense.
-Your child attends boarding school and is traveling to meet your family in the U.S. (or other country) while on furlough. This is also considered a personal salary expense UNLESS
• While on furlough your child will be participating with you meeting with donors, Churches, etc. In this case, their flight would be considered a
reimbursable ministry expense.
-You decide to send your child to participate in a mission project that requires travel. The cost of that flight is considered a reimbursable ministry expense.
The following is a compilation of suggested expenses we would expect to see in the available categories. This is a not a complete list of allowed expenses, nor does it address each possible expense for each available category. The Home Office reserves the right to amend and/or update this policy as necessary. The Home Office also reserves the right to review individual expense reimbursement requests as needed to verify that ministry funds are spent in line with the mission of Global Outreach.
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Ministry Expense Type:
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Examples
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Bank/Atm Fees
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Fees Deducted By Int'l Bank Or Atm Fees
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Computer/Software
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Purchase Of Computer, Computer Accessories, Software Purchase Or Subscription Fees (Zoom, Mail
Chimp, Dropbox, Etc) |
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Covid-19 Expenses
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Covid Test
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Currency Loss
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Loss Incurred By Currency Conversion When Submitting Receipts For A Cash Advance
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Donor Gifts/Mailout Expense
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Stationary, Envelopes, Postage, Donor Gifts up to $25 Per Donor
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Education
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Online Courses Related To Your Ministry Or Which Improve Your Ministry Skills, Children's
Education As Outlined In Policy Manual |
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Electronics
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Printers, Scanner, Audio Visual Equipment, Etc,
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Employee Salaries
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Ministry Employees
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Foreign Tax
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Tax Required By Foreign Country Where You Reside
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Furlough Expense
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Room And Board, Car Rental, While Traveling To Raise Ministry Funds
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GOI Retreat
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Expenses related to annual GOI Retreat (Lodging, etc.)
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Hospitality
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Ministry Expense Related To Hosting Visitors
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House Help/Child Care
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Help Required To Maintain Home And Care For Children While Ministering Outside The Home
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Intern
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Expenses For A Trainee
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Legal Fees
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Lawyer Fees, Government Fees, Etc.
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Foreign Medical Insurance Premium
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Insurance Premium Required By Government In Country Where You Reside
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Marketing
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Expenses Related To Promoting Your Ministry
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Ministry Building Expense/Maintenance
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Any Expense Related To Maintaining A Ministry Building
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Ministry Construction
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Building Materials, Labor, Etc.
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Ministry Events
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Expenses Related To Hosting Ministry/Outreach Event
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Ministry Meal
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Meals For Donors, Potential Donors, Nationals with whom you are engaged in Discipleship
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Ministry To Nationals
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This Expense Type Covers A Wide Range Of Expenses Related To Ministering To Nationals: Gifts, Food, Medicine, Rent, Clothing, Education, Etc.
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Office Expense/Supplies
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Pens, Paper, Printing Service, Ink Cartridges, File Cabinets, Etc.
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Passport/Visa
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Expenses Related To Passport And Visa
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Phone/Internet
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70% of purchase of cellphone, as well as monthly phone plan and/or Internet/30% Personal
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Professional License Registration/Renewal
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Medical License Renewal And Other Professional License Renewal, Drivers License
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Residency/Work Permit
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Fees Related To Acquiring Residence/Work Permits
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Security
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Security Guard, Guard Dog Expense
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Shipping/Extra Baggage Fees
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Airport Fee For Extra Baggage For Onboarding and/or Returning From Country of Service For Initial Launch or End of Service Cost of Airfare for Ministry
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Travel
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Lodging During Ministry Travel (Not Vacation or Family Entertainment), Parking/Toll Fees/Public
Transportation/Rental Car Incurred During Ministry Travel |
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Travel: Food
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Refer to Policy Manual for Travel Food Allowed During Ministry Travel, Not Vacation Or Family
Entertainment |
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Travel: Usa Mileage
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Use Excel Spreadsheet With Odometer Readings As The Receipt; Concur Calculates Using Current IRS Mileage Rate; Excludes Fuel Receipts
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Vehicle Maintenance/Purchase
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Ministry Vehicle Purchase, Repairs, Insurance
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The above Appendix is not all-inclusive. If you have a question regarding if an expense is reimbursable or not, please email Josh Simpson, VP of Finance, @ [email protected] or another member of the Finance team for clarification.