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Pastoral Compensation Checklist

You should be able to answer “yes” to all of the questions in the following checklist if the financial arrangements for your first pastorate have been handled properly. Contact MMBB if you need more information.

  • Does the church fully reimburse you for ministry-related expenses?
  • Does the church have an Accountable Plan for your ministry-related expenses?
  • Will the church provide Benefits for Life coverage for you?
  • Will the church provide medical and dental coverage?
  • Is your compensation (cash salary, housing and utilities) comparable to other professionals with similar education and responsibilities?
  • Will the church provide you with a merit increase for proficiency and experience in addition to a cost-of-living increase?
  • Does the church pay for utilities if you live in a parsonage?
  • Does the church provide a Social Security/Medicare tax offset equal to 50% or more of your tax liability?
  • If the church provides a parsonage, is a realistic rental value reported for Benefits for Life purposes?
  • Will the church provide an equity allowance if you will be living in a parsonage?
  • Will the church provide a housing allowance for furnishings, tenant’s insurance, etc., if a parsonage is provided?