Preparing Church Staff Budgets

Agreements regarding compensation, benefits, reimbursement of your ministry-related expenses, vacation time, etc., are all important considerations in your call to a church. Misunderstandings at the beginning of your first pastorate can be avoided if you and the church carefully spell out the agreements and put them in writing.

MMBB recommends that churches follow a thorough process in determining a pastoral ministry budget. It is recommended that the pastoral ministry budget be arranged so that reimbursement for ministry-related expenses, compensation and benefits are each clearly identified and separated in the church budget. Ministry-related expenses include automobile reimbursement, convention expenses, continuing education, Ministers Council dues, hospitality funds, books, periodicals and other resources.

Compensation is the item that is considered “pay,” and includes cash salary, parsonage and utilities or housing allowance.

Benefits provided by most churches include the Benefits for Life program. Benefits for Life includes important protections for retirement, disability and death and is offered by The Ministers and Missionaries Benefit Board (MMBB). Benefits for Life provides a firm base, along with Social Security, to protect families now and to build financial security for retirement. Contact MMBB for information about the Plans. Enrollment requires an application from you and a check for the first month’s premium from your employer. Medical/dental protection is available through the MMBB-endorsed health plans.

A Social Security/Medicare tax offset also is considered a benefit.