Short answer: Yes, per Corey Pfaffe, CPA.
Long answer: See post at Mr. Pfaffe’s MinstryCPA blog.
P.S. I agree with his answer, by the way. Good followup advice to the pastor. Check out his post.
This is something that churches often don’t quite understand. Love offerings for a specific person are taxable to the person. Disbursements on behalf of a staff person are usually going to be taxable. Here is the rule of thumb: unless there is a specific exclusion for an item, something your staff receive from the church or ministry is taxable.