What expense category is Church Camp and Retreat Costs?

For churches and religious organizations, hosting camps and retreats for members is a vital part of building community, fostering spiritual growth, and carrying out the ministry's mission. The expenses involved in organizing these events—from renting a facility and providing meals to purchasing curriculum and staffing the event—are a significant and necessary part of your program activities.

For tax and financial reporting purposes, these are not a single, all-in-one expense. The IRS requires that the total cost of a camp or retreat be broken down into its components, as each part has a specific tax treatment. This guide will clarify how to categorize these costs to ensure your organization remains compliant and accurately reports its ministry expenses.

Church Camp and Retreat Costs Category

For a church or religious organization, the costs of running a camp or retreat for its members are a direct program expense.

This is a functional category that is a cornerstone of nonprofit financial reporting (on the Form 990). The individual costs that make up this category must be broken down and tracked separately in your books. The primary components are:

• Rent Expense: The cost of renting the camp or retreat facility.
• Travel Expenses: Costs for transporting staff and participants to and from the event.
• Meal Expenses: The cost of food provided during the event, which is subject to limitations.
• Supplies: The cost of curriculum, workbooks, craft materials, and other consumable items.
• Professional Fees / Contract Labor: Payments made to guest speakers, counselors, or special worship leaders who are not employees.

Important Considerations While Classifying Church Camp and Retreat Costs

To correctly account for these expenses, it is critical to separate the different types of costs and understand the strict IRS rules that apply to each.

The 50% Limit on Meals

This is a crucial IRS rule that applies to nonprofits as well. According to IRS Publication 463, you can generally only deduct 50% of the cost of business-related meals. This limit applies to the food and beverages served at your camp or retreat.

Travel Expenses and the Accountable Plan

If you reimburse staff or volunteers for their travel expenses to the event, you must use an accountable plan to ensure the reimbursement is not treated as taxable wages. As detailed in Publication 463, an accountable plan requires that:

1. The expenses have a direct connection to the program.
2. The individual must substantiate the expenses with receipts on time.
3. The individual must return any excess reimbursement or allowance.

Payments to Guest Speakers or Counselors

If you pay a guest speaker or counselor for their services, they are typically an independent contractor. As detailed in IRS Publication 334, if you pay an individual contractor $600 or more during the year, you are required to report this by filing Form 1099-NEC.

Tax Implications and Recordkeeping

Properly accounting for camp and retreat expenses is essential for your organization's financial statements and annual IRS reporting.

How to Report the Expense

For organizations that file a Form 990, all costs associated with a camp or retreat are reported as program service expenses in Part IX. This is a key metric used by the IRS and donors to see how effectively your organization is fulfilling its mission. The individual costs are broken out on their respective lines (e.g., Travel, Supplies, Other fees for services).

What Records to Keep

You must have documentary evidence to substantiate all event expenses. Your records should include:

• The rental agreement for the camp or retreat facility.
• Invoices from all vendors (caterers, suppliers, etc.).
• All receipts and expense reports from staff or volunteers for travel and other reimbursed costs.
• A completed Form W-9 for every guest speaker or counselor paid $600 or more.
• Proof of payment for all related expenses.

How Fyle Can Automate Expense Tracking for Camps and Retreats

Fyle helps you manage the diverse expenses of your camps and retreats, ensuring every cost is captured, coded, and compliant.

• Track by Event: Code all expenses—from facility rental to food—to a specific Youth Camp or Women's Retreat project.
• Capture Receipts on the Go: Staff and volunteers can instantly submit receipts for supplies or travel costs using the Fyle mobile app.
• Enforce Travel Policies: Fyle’s policy engine can automatically apply the 50% meal limit and flag out-of-policy expenses for review.
• Automate Your Accounting: Sync all categorized program expenses directly to the correct GL account in QuickBooks, Xero, NetSuite, or Sage Intacct.