May 19, 2024
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OU Lauds Parsonage Allowance Ruling

The Orthodox Union (OU), the nation’s largest Orthodox Jewish umbrella organization, praised the decision by the 7th U.S. Circuit Court of Appeals to dismiss a challenge to the law that gives clergy tax-free housing allowances. The Court said that the Freedom From Religion Foundation, the organization behind the lawsuit, had no standing to challenge the law.

The OU joined other leading Orthodox Jewish organizations to defend the constitutionality of the federal tax code’s “parsonage” allowance for clergy in federal court. The “Friend of the Court” brief was drafted by attorney Nathan Lewin.

“Since the observance of the Jewish faith prohibits the use of transportation on the Sabbath and most Jewish holidays, congregational rabbis and other clergy members must reside within walking distance to their synagogues in order to serve their communities on those days,” said Nathan Diament, Executive Director for Public Policy at the OU.

“Clergy members of all faiths should not be penalized for living near their congregants nor should they be required to treat housing allowances provided by their congregations as disposable income. We appreciate that the Court of Appeals dismissed this suit for lack of standing, thus preserving this important policy for America’s clergy. We also thank U.S. Secretary of the Treasury Jack Lew and the Obama Administration for their support of the parsonage provision,” Diament said.

 

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